In the wake of the AngloGold Ashanti bid for Centamin at 1.7x price/book value, Russ Mould of A J Bell explains why so many gold miners are being bid for. Russ points out that gold mining shares are at an all-time low compared to the gold price. And gold itself is no more expensive relative to equities than it was when Richard Nixon took the dollar off the gold standard. Combined with the fact that utiities are the top US performing sector, perhaps it indicates that, after 16 years of an extreme monetary exeriment, investors are expecting something nasty to crawl out of the woodwork.

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