Newmont (NEM) (AUY) (HMY) (NYSE:KGC) Close Mixed as Gold, Silver Break Records

Newmont Mining (NYSE:NEM), Yamana Gold (NYSE:AUY), Harmony Gold Mining (NYSE:HMY) and Kinross Gold Corp (NYSE:KGC) closed mixed Thursday as gold and silver prices broke all-time records.

Gold prices shot up while silver prices popped Thursday as investors bought the metals against a weak dollar and higher inflation expectations.

Gold for June delivery settled $14.10 higher at $1,531.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price soared to a record intra-day level of $1,538.80 an ounce while the spot gold price rose $6.90.

Silver prices for July moved up $1.55 to settle at $47.54 an ounce.

Spot silver jumped almost 4 percent Thursday to an all time high at $49.51 an ounce, surpassing the previous record set in 1980.

The ICE Futures U.S. Dollar Index was down 0.4 percent. The collapsing greenback aided dollar-denominated gold and silver by making them less expensive for foreign buyers, generating more demand.

Gold $5,000 Says (UXG) (MAI) Chairman

Rob McEwen, Chairman of Minera Andes (MAI) and US Gold Corp (UXG), says he says gold is probably going to reach $5,000 an ounce in the next 3 to 4 years, citing demand from investors and central banks.

The price of gold may hit $5,000 an ounce, nearly three times current levels, in three to four years, as demand from sovereign states, central banks and exchange-traded funds (ETFs) rises, the chairman of two Canadian gold mining companies said.

"Gold is used as insurance for bad governments," Rob McEwen, chairman and chief executive of Minera Andes Inc and US Gold Corp, told Reuters on the sidelines of the Mines and Money conference in Hong Kong on Wednesday.

Gold is traditionally used as a hedging tool against inflation and economic uncertainty. The yellow metal has also been a favourite investor hedge against loose monetary policies in the wake of the global financial crisis.

McEwen said gold was in the middle of a super cycle that could end by 2015, adding that the length of the gold super cycle and the $5,000 forecast were based on historical gold prices and the ratio of the Dow stock index against gold since 1970.




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Barrick (NYSE:ABX), Goldcorp (NYSE:GG), Newmont Mining (NYSE:NEM) Push Up as Gold Prices Break $1,400 Again

Since December 6th gold mining companies have been on a downward trend, as investors took profits and focused on what appears to be a decent Christmas season for retailers. Major gold miners like Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG) and Newmont Mining (NYSE:NEM) all started their drop on the 6th of December, and today have finally made a nice rebound as gold prices soared past $1,400 an ounce, pulling the share prices up with it.

Most of this is connected to the fall in value of the U.S. dollar again, but also, as mentioned, decent Christmas retail sales, which may have brought to the remembrance of investors the very real threat of inflation, and probably lowering the perceived risk of deflation.

As of 12:13 PM EST, gold prices continue to hold, and the usual sell-off after a rise in price earlier in the trading session hasn't emerged yet, and as far as spot gold stands at $1,405.20 an ounce, up by $21.10 on the day.

Gold for February delivery surged $18.30 to $1,400.70 an ounce at the Comex division of the New York Mercantile Exchange earlier in the day.

Goldcorp was trading at $45.36, up $0.88, or 1.98 percent, as of 12:14 PM EST.Newmont Mining was at $61.68, up $1.59, or 2.65 percent. Barrick Gold was trading at $53.03, up $1.43, or 2.77 percent.

Gold Prices Today Up on Korean Military Tensions

Military tension between North and South Korea have pushed up the price of gold today, as gold futures on the Comex division of the New York Mercantile Exchange increased by $16.40, or 1.2%, to $1,374.40 an ounce.

It underscores the skittishness of investors in volatile times, as the bailout of Ireland revealed and the news Greece may still be hiding the depth of its deficit problem.

The European Union sovereign debt crisis is worsened by the fact there is little to trust in assertions made by many political leaders who are under enormous pressure domestically, having made promises they aren't able to meet, as socialism always results in.

They've also created a culture of entitlement, which those receiving the entitlements rise up in anger over when they're cut back because there has never been the money to pay for them.

For gold, these and many other factors like the quantitative easing put into play again by the Federal Reserve will support gold for some time to come.

The fall in value of the euro against the U.S. dollar is all that has been keeping gold from skyrocketing even further.

Spot gold was trading at $1,377.90 an ounce, up by $11.50.

Gold Prices Today Pressing Toward Largest Gain in Two Weeks

The anticipated and expected drop in the value of the U.S. dollar is playing a big part in the increase in gold prices today, as it dropped, pushing up the price of commodities, and gold in particular.

Gold futures for December delivery on the Comex in New York rose to $17.70, to $1,354.60 an ounce at about 11:20 AM EDT. That is the largest gain since November 4, if it is able to close at that, or higher.

Spot gold prices were up by $18.30, rising to $1,354.10 an ounce at 1:49 PM EDT.

The only reason the U.S. dollar was stronger recently was because its move up against the euro, which was again under pressure because of the seemingly endless sovereign debt crisis, which is far from over, and is still hidden in obscurity and dishonesty in some countries, making it difficult to ascertain the depth of the crisis.

Greece's recent announcement they had understated the extent of their deficit is a case in point.

The question for gold now is if the correction is over or if there is more room to go down.

Barring unforeseen circumstances, it seems gold prices may be ready to take off again, but only time will tell if that's the correct assessment.

Why Agnico-Eagle (NYSE:AEM) and Eldorado (NYSE:EGO) Are So Attractive

When gold prices continue to break record after record, and the Federal Reserve and Ben Bernanke continue to cooperate by printing more and more money, gold miners like Agnico-Eagle Mines (NYSE:AEM) and Eldorado Gold (NYSE:EGO) are great ways to participate in the ongoing gold bull market.

Why companies like Agnico and Eldorado Gold are so good, is they are among the leading companies in controlling costs.

This is important because the more costs are under control, the more flexibility a company has, and the more they're able to profitable operate under conditions where gold prices aren't as high.

Agnico and Eldorado are far from the only gold miners positioned strongly, but they are good examples of well-run companies which should do well in strong and weaker economic conditions.

Those gold miners that are heavily leveraged and don't have solid cost controls in place, will only do well as long as gold prices do well. Once that is over, they could have value drain off extremely quickly.

This isn't to say it is expected anytime soon, but over the long term solid gold companies with operational costs under control will be prepared for whichever way the market goes, and have more opportunities to grab up weakened companies for future growth.

Low debt and low costs will do more for gold investors than just about anything else, all other things, especially gold prices, being equal.

Will Potential Gold Bubble End up Being a Silver Rally?

While I don't think a gold bubble is coming any time soon, as there are too many elements involved to support the ongoing increase in the price of gold unrelated to the herd mentality, which will as some time kick in, but probably not for a few years, if not more, depending on the economy and actions of central banks around the world.

What that means for silver investing is the incredible heights gold will probably reach will start to weigh on a large number of investors who simply can't afford to invest in it any longer, or at least perceive they can't.

That inevitably leads to a run on silver from an investment perspective, and should drive the price of silver up to astronomical levels, although that will take time.

Of course silver is driven by industrial use as well, which will also continue to drive up the price of silver because existing mines won't be able to keep up with supply.

Add these two scenarios together and you see a perfect storm for silver prices to rise, and silver has been already making the beginning of a number of major moves reinforcing its coming surge.

Kinross (NYSE:KGC), AngloGold Ashanti (NYSE:AU), Harmony (NYSE:HMY) Explode Upward on Rising Gold Prices

Kinross Gold Corp (NYSE:KGC), AngloGold Ashanti (NYSE:AU), Harmony Gold Mining (NYSE:HMY) are moving up in a major way in response to the explosion in gold prices and the overall response of the broader gold market.

All of this is the result of the misguided move by the Federal Reserve to inflate, or as they like to describe it now: implement a new round of "quantitative easing."

Consequently the U.S. dollar plummeted in value as expected while the price of gold rose, also as expected.

Kinross moved up to $18.64, gaining $0.83, or 4.66 percent at 1:56 PM EDT. AngloGold Ashanti Ltd. traded at $48.95, rising by $2.36, or 5.07 percent. Harmony Gold soared to $12.24, increasing by $0.83, or 7.27 percent.

Almost every gold miner, or mining company with significant exposure to gold have risen today.

Barrick (NYSE:ABX) Receives Mixed Ratings Ahead of QE Announcement

Barrick Gold (NYSE:ABX) will almost always have the challenge of moving up significantly over a short period of time because of their size, and that seems to affect the ratings companies like Mackie and BMO Capital put on the gold mining giant, which went in opposite directions on Friday.

Mackie downgraded Barrick from "Buy" to "Accumulate," while BMO Capital upgraded them from "Market Perform" to "Outperform."

It all depends on how most financial institutions look on valuation and how a company the size of Barrick will be able to grow.

If gold prices are the sole or key indicator used to measure the growth of a gold miner, then it will definitely be viewed strongly, although how management controls operational costs is right there alongside of it, at least it should be.

Barrick closed Friday at $48.09, gaining $1.07, or 2.28 percent. BMO increased their price target on them from $55 to $60.

Barrick should benefit from the expected quantitative easing announcement the Fed is about to make, as should the vast majority of gold and commodity miners.

Newmont (NYSE:NEM), Barrick (NYSE:ABX), Goldcorp (NYSE:GG), AngloGold Ashanti (NYSE:AU) Move Up on QE Anticipation

Gold prices rebounded at the end of the week, and major gold miners like Newmont Mining (NYSE:NEM), Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG) and AngloGold Ashanti (NYSE:AU) moved up with gold prices in anticipation of an announcement by the Federal Reserve that they'll start another round of quantitative easing.

Quantitative easing or printing money, is an inflationary event which also lowers the value of the U.S. dollar, or any other currency where a country has their central bank throw more money into the market, and the result is gold prices will rise in order to protect against inflation and the debasing of the currency.

That's about to happen again in the U.S., and many gold mining companies and those that own shares in them will benefit strongly.

The only question is how much the market has already price quantitative easing into the price of gold. We'll have the obvious surge in gold price and share prices of gold miners immediately after the announcement, but the support underlying that surge is what is important to investors.

AngloGold Ashanti closed the week at $47.11, gaining $0.67 on Friday, or 1.44 percent. Barrick Gold rose to $48.09, gaining $1.07, or 2.28 percent. Goldcorp ended the week at $44.59, increasing by $0.30, or 0.68 percent, and Newmont Mining surged to $60.86, climbing $1.05, or 1.76 percent.

Goldman (NYSE:GS) Economic Report Support Gold Price Moving Up

Almost everything reported concerning the U.S. economy today confirms the ongoing recession, and Goldman Sachs (NYSE:GS) believe there's no doubt the Federal Reserve will inflate via quantitative easing, adding more support to gold, although that's probably priced into the price of gold at this time.

How much it's priced in will be determined by what the Federal Reserve does and to what extent.

There's no doubt the U.S. dollar will continue to weaken, which will benefit gold, and lower interest rates will remain in place.

News today that the sovereign debt of Greece had been understated and will have to be upwardly revised for the last several years is good for gold, as well as the downgrade of Ireland debt by Fitch Ratings and is being watched closely by Moody's (NYSE:MC), mostly on concerns over the cost related to the banking sector in the countries.

Private employers in America also reported they cut 39,000 jobs in September, where analysts were looking for an increase of 24,000 for the month.

Currencies in other countries continue to weaken against gold as well, confirming there is no bubble in gold, and nothing is out there which would suggest that should or will change any time soon.

Bank of America (NYSE:BAC) Says Quantitative Easing Will Pressure Gold

In a recent note to clients, Bank of America Corp (NYSE:BAC) said quantitative easing by the Federal Reserve will put upward pressure on gold prices, as the U.S. economy continues to sputter.

Bank of America said, "Since the first round of QE, precious metals have perhaps become the biggest beneficiary of money printing. In a way, gold is playing out as a second act of the credit bubble, with the first act being the spike in TED spreads that started back in August 2007.

"Just as commercial banks became extremely distrustful of each other's credit profile due to the severe drop in US house prices, Central Banks are quickly becoming distrustful of each other on the back of widening sovereign credit spreads, unilateral policy moves to ease quantitatively or unexpected interventions in the foreign exchange markets."

The Fed continues to hint, through various representatives, that they are ready to intervene in the market again if the American economy doesn't improve. Almost every week as data confirms things will remain slow for some time, someone from the Fed mentions quantitative easing as the remedy.

That will further erode the value of the U.S. dollar, which continues to fall against the euro. That will also push the price of gold higher and increase inflation. All of which is good for investors in gold.

Newmont Mining (NYSE:NEM) Making its Move?

If you look at a chart of Newmont Mining's (NYSE:NEM) performance over the last five years, you find it less than inspiring, as until this summer, it hadn't reached the levels it has in the early part of 2006, when it hit $59.87 on January 9.

It took until June of 2010 for the largest U.S. gold miner to reach and surpass those levels, and it looks like they may have finally broken out, closing at $63.40 on Friday, after reaching as high as $65.40 on Wednesday.

With expectations high in the gold mining stocks because of the ongoing gold bull market, the largest gold mining companies have underperformed as the smaller companies have been outperforming them in a major way.

Major gold miners were held back because costs were increasing at approximately the same pace as prices.

Increasing gold prices are finally starting to overcome that, and it looks like Newmont may be in for a nice upward run.

Although Barrick Gold (NYSE:ABX) and Goldcorp (NYSE:GG) have outperformed Newmont over the last five years, over the last two or three years, when gold prices were soaring, they've been mostly flat as well.

Gold Still Inexpensive Says Marc Faber

Speaking at a CLSA Investors’ Forum 2010 in Hong Kong recently, Marc Faber said he still sees gold prices as relatively inexpensive, even though record prices continue to be set.

Faber gave his reasoning as this, “Given all the unfunded liabilities and the money printing in the world and the size of the financial assets in the world, I don’t think we are in a bubble.”

He's definitely right. At this time these elements aren't close to being fully priced into the value of gold, and central banks and governments are drunk on spending and reckless in stimulus, as they're caught in their socialist schemes which can't be paid for.

Even though he still considers gold to be cheap, Faber does recommend a monthly investment rather than attempting to time the market or putting everything in at once.

He also suggests gold will go through some significant price swings and corrections while maintaining its upward climb. That means those with large, one-time investments could get slammed if their entry point is on the high end.

Bottom line is governments aren't going to quit attempting to pay for their socialist programs, and that guarantees quantitative easing and stimulus, along with the accompanying increase in gold prices.

George Soros Clueless on Gold and "Ultimate Bubble"

George Soros seems to be clueless on gold and his obsession with it being the "ultimate bubble."

Soros doesn't seem to understand the reason there's support under gold and why that will continue for a long time.

He said to Reuters, “I called gold the ultimate bubble which means it may go higher but it’s certainly not safe and it’s not going to last forever,” although reluctantly admitting it's the only bull market at this time.

One reason Soros asserts this is he's big government socialist, and has out-of-the-mainstream views on politics and life.

Gold interferes with his worldview in that regard, and even though he has millions invested in gold, continues to hammer at it as if it's poised to plunge at any time.

There's no problem with Soros saying gold is an ultimate bubble, as someday in the far future that will eventually play out, especially when investors and the average person on the street all pour their money into it without knowing why, and far past the reason it is going up at this time.

That's the overall practice of fast-moving stocks and bull markets of any kind throughout history.

Where he's completely wrong is in he says gold isn't safe. Gold is safe, but it of course, like anything else, depends on how someone is investing in it, and the degree of overall exposure of their overall portfolio.

The price of gold is going up because of economic weakness and disastrous policies and practices of central banks and governments around the world.

And with the recession continuing on, or at minimum the global economy slowing down significantly, quantitative easing is ready to begin again, which will drive up the price of gold even more.

Of course it's not going to last forever, as Soros says, but that's obvious.

But that's like saying if you live in certain parts of California you're going to experience an earthquake sometime.

Everyone knows that, but you simply need to be prepared for that inevitable moment and respond accordingly. You don't stop living and life because it may happen.

Danger can come anywhere and any time, and safety is always an issue, even when traveling to a neighborhood store.

So to suggest gold isn't safe is like saying living in California isn't safe. What's the point?

As long as the fundamental reasons for the price of gold continuing to rise remain in place, gold prices will continue to rise. It's as simple as that.

when the macroeconomic climate changes, then we all need to remain vigilant with our gold investments.

Gold isn't even close to being in a bubble at this time, as nothing in the global economy has changed to make it be a concern. It will eventually happen, but that is probably a number of years away.

Until governments stop the printing presses and their stimulus plans, gold will continue its upward ride.

Gold Prices Reaching for New High Today

Gold prices today have soared on the news the so-called stress tests of the European banks probably didn't accurately portray the level of government debt they held.

In mid-day, gold for December delivery increased to $1,261.60. If it were to close at those levels, it would surpass the record high of $1,258.30 an ounce, set on the Comex division of the New York Mercantile Exchange in June, which was also the result of the ongoing sovereign debt crisis in Europe.

Gold prices have leveled as the trading session advanced, with spot gold standing at $1,256.80 an ounce as of 1:00 PM EDT, gaining $10.20.

Even if it gold prices don't reach record levels today, one more bit of news like this, or more accurate data as to the real level of the sovereign debt crisis, should push it up and beyond the former record.

Peter Schiff Says Price of Gold Unlimited

In a recent interview which focused on being in the early stages of an inflationary depression, Peter Schiff also responded to a question on how high he felt gold prices were going to go.

His take is he's shocked that it's still at only $1,200 an ounce, and sees no limit to the upside potential in the current economic climate.

Schiff said in responding to how high he felt gold would go:

"There's no limit to how high gold prices will go. They will rise many times from here --thousands and thousands of dollars per ounce higher. People will be shocked.

"It's surprising to me that gold is still as cheap as it is. I just know it's going higher, and eventually it's going to go ballistic."

Other places to look to put your money in Schiff's view are precious metals, commodities and emerging markets. He advises no one to have their money in U.S. Dollar assets like bonds and Treasuries.

Jefferies & Co. Reaffirms Barrick (NYSE:ABX) Price Target on Gold and Silver

Jefferies & Co. said today they recommend investors to add to their positions in Barrick Gold (NYSE:ABX), as they said they don't see gold and silver prices dropping anytime soon.

The price target on gold remains $1,300, while the silver prices target continues at $20 an ounce.

Jefferies said in a note to clients, "We highlight metal company participation at next week's Industrials and Aerospace & Defense Conference as we reaffirm our 2010 gold price target of $1,300 and silver price target of $20 per ounce. As the dollar-based commodities reassert traditional relative dynamics versus the US dollar, we expect prices and metal equities to trade higher heading into the fall. We would continue to add to positions in our recommended names - ABX, AEM, CDE, HL and NEM."

Barrick traded down slightly today, falling to $43.31, a loss of $0.08, or 0.18 percent as of 3:36 PM EDT.

Gold Soars for 8th Straight Day, Payrolls Down, Recession Worries Up

News outlets reporting on the "disappointing" and "unexpected" results of the U.S. payroll data, somehow find themselves using those words every time the economic data confirms the frailty of the U.S. economy, which when you remove the government props, at best show they've only slowed down the economic crisis, and at worst, and most probable, exasperated it.

Now we're almost surely going to enter into a period of more quantitative easing, which is just another way of saying the Federal Reserve is going to resume it endless printing of money.

Peter Schiff concurs, saying in a report, “It is now widely accepted that the continued domestic weakness will cause the Fed to significantly expand stimulus efforts through so-called quantitative easing. It’s a strong signal for traders to flee the dollar.”

Now that the historical inverse relationship between gold and the U.S. dollar seems to have returned, after a period of time it moved off that to a euro/gold inverse relationship, we should see gold start to rise again as the reality of the weak American economy again sinks into the minds of investors.

Gold is already responding, as it has ended in positive territory for the eight trading day in a row, moving up to $1,205.30 for December delivery on the Comex division of the New York Mercantile Exchange. That was for the most actively traded contract.

It's incredible to hear the mainstream media outlets focus on the release of census workers, which they attempt to paint as a temporary situation. Unfortunately they, in general, weren't near as aggressive in saying that when the census workers were hired and propped up the jobs market as if was on a solid foundation months ago.

There is nothing really new in these numbers, other than confirming what any discerning person already knew, and that is the private sector hasn't been hiring, and the hiring by the government for needless jobs (even without the census workers included), have created the illusion of at least a level situation. That fallacy has been destroyed with the removal of the government props and we see the American economy naked as it actually is.

I don't believe there has ever been an economic recovery in the United States, only the selling out of the future of our children and grandchildren as the Obama administration and the Federal Reserve attempt to print and spend money in order to buy time until a real recovery begins.

Unfortunately, their Keynesian strategy is backfiring, and future generations will have to pay for the outrageous stimulus programs which have done absolutely nothing to help the economy, but rather are only extending the recession longer.

Not only that, but now an increased tax burden has been added to the problem for the American people, and that should cause an even deeper rebellion and resentment from those Americans, who are increasingly discovering what these actions are doing to their country.

As far as how this affects the relationship between gold and the euro, that has started to revert to the former relationship of moving in tandem with one another, although there is little reason for that to happen, as nothing has really happened to change the sovereign debt crisis in Europe, other than the media's decision to report the crisis is relatively over.

The market is acting like there has been a real change, so while they believe it, the euro/gold relationship looks like it'll act like it has in the past.

If and when that changes, all bets are off as to how high gold prices will go, as there is really nothing in the way any longer to keep it down.

Those with discernment understand the enormous economic challenges ahead, and will invest or hold their money accordingly. Gold will remain one of the best places for safety and returns for some time to come.

Aurizon Mines (AMEX:AZK) and Minefinders (AMEX:MFN) in Positive Territory on Gold Prices Rising

Gold prices shot up quickly today, reaching over $1,202 an ounce, before pulling back slightly. Now gold prices have given up a little more, although they're still holding over $10 on the day.

Aurizon Mines (TSE:ARZ)(AMEX:AZK) and Minefinders (TSE:MFL)(AMEX:MFN), along with a number of gold miners and miners in general, have moved up with the gold prices.

If they gold holds for the day, which it looks like it will, it'll be the sixth straight day it closes with a gain.

Aurizon Mines was at $5.08 a share as of 1:50 PM EDT, gaining $0.03, or 0.59 percent. Volume was a little below the 3-month average of 557,618.

Minefinders climbed to $8.79 a share, increasing $0.19, or 2.21 percent. Volume was below its 3-month average of 539,265.