The analysts of precious metals at Credit Suisse are among the most bullish on gold. How they are keeping the fire going.
Gold has appreciated about a third so far this year – forcing a great many research units of banks to reevaluate their recommendations for the precious metal.
The analysts at Credit Suisse (CS) have done so with great enthusiasm. The raised their target price for an ounce of gold for the coming two years.
Bold Recommendations
The bank's analysts expect the ounce to costs $1,500 by the spring of 2017. In April, their estimate still was $150 lower. Gold currently costs $1,350 per ounce. CS precious metals experts were already bullish – and now they are upping the stakes further.
Their newest recommendations seems particularly bold: the bank made buy recommendations for various gold mine shares. These securities not only are notoriously volatile. They also have increased substantially over the past months, some of them by more than 200 percent.
This suggests that they are already overbought.
Cost Cuts, New Reserves
But CS still sees potential for the shares of Barrick Gold, Newmont Mining, Yamana Gold, Agnico-Eagle Mines and Alamos Gold.
CS expects for the mentioned companies either a round of cost cuts or the exploitation of new reserves of the precious metal, according to a report on «24/7 Wall Street».
