Globe says analyst's gold picks include B2Gold, others

2014-01-02 08:46 ET - In the News

Also In the News (C-ELD) Eldorado Gold Corp
Also In the News (C-G) Goldcorp Inc (2)

The Globe and Mail reports in its Thursday edition gold's fall from grace in 2013 after years of spectacular gains dragged down both mining stocks and the many investors lured by gold's supposed power as a hedge against economic calamity or inflation. In a Globe special, Brenda Bouw writes investors can expect more pain in 2014. With the global economy poised to pick up speed, few observers see much chance in the year ahead for gold to rise substantially above its current levels around $1,200 (U.S.) per ounce. "Investors' love affair with gold has come to a bitter end," said John Stephenson, portfolio manager at First Asset Investment Management and author. "Gold, one of the worst performing assets in 2013, will continue its slump in 2014," said Mr. Stephenson. At a gold price of $1,250 an ounce, "producer balance sheets are relatively stable," given the cost reductions that miners have already achieved, TD Securities analyst Greg Barnes said in a recent note. There will be problems, however, if the metal breaks lower. "We continue to prefer companies with strong balance sheets in the current gold price environment," he said, citing as his top picks such companies as Eldorado Gold, Goldcorp and B2Gold.