Everybody’s doing it
Now that the market capitalization behind the global gold mining industry has dipped to $150 billion, the new fun thing to do is compare it to Facebook’s $175 billion market cap. Yes, according to investors, the two are pretty much equal, which has funds like the OCM Gold Fund touting graphs demonstrating that THIS is the time to buy gold.
According to Greg Orrell, portfolio manager at OCM Gold Fund, “For what Facebook was paying for WhatsApp, you could buy the entire South African gold sector, plus throw in North America and all the [gold] reserves and all the capital that went with it.” He is one of a reported four speakers to present stats comparing these two valuations at a recent Denver Gold Group industry forum in New York. Of course, this is quite possibly more desperate salesmanship after last year’s drop in gold prices which hadn’t been seen since 1981.