by Brian Sylvester
The Gold Report
Eric Coffin: A zero yield world is the result of four or five years of central banks essentially buying the hell out of the bond market, which is what the European Central Bank (ECB) is doing right now. And buying those bonds, also known as quantitative easing (QE), drives down yields. QE has helped the U.S. and will probably help the European economies but it creates a lot of distortions.
Continue Reading at TheAuReport.com…
Please share this article
The Gold Report
Eric Coffin, long-time editor of the Hard Rock Analyst group of
publications, has seen the all-time highs in the junior mining space,
and the current three-year bear market has taught him to adjust his
expectations. He says the companies that he follows that have performed
recently all had a specific event—a bigger resource number, a new
economic study or even a discovery—that prompted the market to rerate
the stock. Coffin says that, as always, it is about solid management and
good projects, but it’s no longer about who has the biggest copper or
gold resource, it’s about which company has a resource that makes sense.
In this interview with The Gold Report, he suggests some companies with
resources that not only make sense but could make even more sense to
larger companies.
The Gold Report: At the subscriber investment summit
in Toronto in March 2015, you had a talk titled “Life in a Zero Yield
World.” What is wrong with that world?Eric Coffin: A zero yield world is the result of four or five years of central banks essentially buying the hell out of the bond market, which is what the European Central Bank (ECB) is doing right now. And buying those bonds, also known as quantitative easing (QE), drives down yields. QE has helped the U.S. and will probably help the European economies but it creates a lot of distortions.
Continue Reading at TheAuReport.com…
No comments:
Post a Comment