‘The steepest discount I’ve ever seen’ – Sprott’s John Hathaway on gold price and equities mis-match

John Hathaway, senior portfolio manager, Sprott Asset Management, says there are two reasons why gold stocks haven’t kept pace with the gold price. One is the creation of the gold-backed ETF, “which cannibalized demand for gold stocks.” Secondly, the mining industry has proven itself to be a poor allocator of capital.