Gold-Mining Investors Cautious Of Mining Risks

Market Watch reported that political shifts such as the risk of nationalization, increased taxation, and more complex permitting for new mines, or “political risk,” is causing investors in mining to be much more cautious.

As quoted in the report:

Mining has always carried risk, but until recently investors were mostly concerned about how governments of “frontier” regions such as Mongolia and the Democratic Republic of the Congo handle the development of their resources. Well-established metal producers such as Peru and Australia received less investor scrutiny.

Jamie Sokalsky, chief executive of Barrick Gold Corp. commented:

Investors are now differentiating between political risk from one company to another more than they ever have.

Click here to read the full Market Watch report.