Concerns over the sovereign debt crisis and China austerity measures have gold mining companies like Barrick Gold (NYSE:ABX) Newmont Mining (NYSE:NEM) Agnico-Eagle Mines (NYSE:AEM) and Gold Fields (NYSE:GFI) jumping today, as they have been up from 4 to 5 percent today, while gold prices today are closing in on all-time records.
After the euphoria over the almost $1 trillion being provided to bail out European countries passed, investors have taken in the potential consequences and possible irrelevance of the $1 trillion, which many are saying will just postpone the inevitable, and after spending that much will still have to deal with the underlying causes and consequences of the economies of these countries and the response of their people to having their outrageous wages and perks being taken away.
That has investors nervous, and rightly so, and gold should be the beneficiary of that in the years ahead.
As for China, they're having to face their own potential bubble bursting, and they're putting measures into place which could cut back on demand for raw materials, which will also be a good thing for gold prices, and ultimately gold mining companies.
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