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Newmont Mining Corporation Message Board

  • investora2z investora2z Jul 19, 2013 7:28 AM Flag

    Next few weeks will be crucial

    Newmont is a bit stable after the crash, but the sentiments have still not improved much. Gold prices have been a bit quiet around current levels for a few sessions. The move over the next few days will determine the short term trend for the precious metal. Important hurdles are close by, and any move above that will add a bit of positivity to the sentiments. Opinions remain divided, and economists and analysts have different predictions. Recently, the voices have become a bit more positive. Some are stating that the ultimate devaluation in the currencies will help gold make a comeback. Some articles mention that lower prices of gold may reduce the supply due to decrease in production. Currently, the cost of mining in many mines is below the price of gold. The average price mentioned in a recent article is around $1200, with some companies like Pershing Gold (PGLC) expected to have much lower cost. Therefore, lower gold price may surely lead to lower production due to automatic adjustments. There are other theories in support of higher prices in the near future. Of course, there are voices on the opposite side also, but some big investors are a bit more positive on gold now. Jim Rogers had stated that he would be a buyer in gold at $1300, and buy more at $1200. George Soros has a more positive stance at current levels. Marc Faber expects a strong rebound in select mining stocks if the gold prices rebound substantially. He stated that a 20% rise in gold prices may lead to doubling of many gold stocks. While no one can be certain, one can not ignore voices from such experienced investors. Next few weeks will surely be crucial in indicating how things may move from here on. In case things improve, there could be time for stock picking.

 
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17.17-0.12(-0.69%)Jul 31 4:00 PMEDT