Here’s an interesting way to view the potential longevity of  $1000-plus gold prices, courtesy of RBC Capital Markets.

Take your top tier gold stocks and calculate the types of price scenarios their share prices are currently pricing in:

On average it seems global Tier 1 gold stocks are pricing in levels around $940/oz long-term, say RBC, while global Tier II gold stocks are pricing in $945/0z.

North American gold stocks, meanwhile, are pricing in a much deeper discount to the current spot gold price of about $900/oz and $930/oz for the Tier Is and Tier IIs respectively.

Related links:
‘Brangelina’ cash-in on gold mania (for charity of course) - FT Alphaville
IMF sells 200 tonnes of gold to India central bank - FT

This entry was posted by Izabella Kaminska on Tuesday, November 24th, 2009 at 11:00 and is filed under Capital markets, Commodities. Tagged with Anglo gold, Equities, gold. Edit this entry.