* Miners see gold price rising, peaking “around $2,000”-PwC
* Gold companies eye dividend increases to attract investors
* MA deal volumes up in 2011, value down
LONDON, Jan 16 (Reuters) – Gold miners expect the
price of the metal to continue climbing in 2012, with most
respondents expecting a peak around $2,000 an ounce, according
to a survey of gold companies by consultants PwC.
In a report published on Monday, PwC said 80 percent of
those surveyed expected the gold price to increase, with only 6
percent forecasting a decline. The expected peak was set by
respondents at between $1,350 and $2,500 an ounce, below last
year’s forecasts, which had been as high as $3,000.
Spot gold was trading at around $1,640 on Monday.
The survey – which included respondents representing 26.5
million ounces of gold mined in 2011 – showed gold miners were
frustrated that the rising gold price has not impacted shares as
much as expected.
One reason is the increased range of financial instruments,
such as exchange traded funds, that allow investors exposure to
gold without incurring the strike, cost and political risks
associated with direct investment in mining firms.
“Whatever the strategy, companies need to find ways to allow
investors to “win” in a more direct way, if gold prices continue
to increase,” PwC said in the report.
Continued…
