NEW YORK, NY--(Marketwire -01/31/12)- Gold prices have been on the upswing this month as the Fed signaled it may keep interest rates low through 2014. Even the GDX, which seeks to replicate as closely as possible, the price and yield performance of the NYSE Arca Gold Miners Index, has shown signs of strength in January, surging more than 10 percent. Five Star Equities examines the outlook for companies in the Gold industry and provides equity research on Paramount Gold & Silver Corporation (AMEX: PZG - News) (TSX: PZG - News) and Newmont Mining Corporation (NYSE: NEM - News). Access to the full company reports can be found at:
www.fivestarequities.com/PZG
www.fivestarequities.com/NEM
Over the past year, the GDX has underperformed the price of gold by a large margin. While the SPDR Gold Trust ETF -- which attempts to reflect the performance of the price of gold bullion--- is up nearly 30 percent year-on-year, the GDX has grown a mere 5 percent over the same period.
According to a recent article from International Business Times, gold stocks have lagged the price of gold due to a number of factors, "including operational disappointments, rising cost structures, elevated political risk in many locations of their assets, and macroeconomic headwinds that have weighed on the equity markets."
Five Star Equities releases regular market updates on the Gold industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.fivestarequities.com and get exclusive access to our numerous stock reports and industry newsletters.
Shares of Newmont Mines have lagged fellow gold miners this month after the company said it expected production costs to increase to US$625 to US$675 (NZ$778 to NZ$840) an ounce of gold, from US$560 to US$590 an ounce in 2011. The company blamed higher labour and power prices and a looming carbon tax for a forecast rise in costs. Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties.
Shares of Paramount Gold and Silver are up more than 17 percent this month. Paramount Gold and Silver is an exploration stage mining company with projects in northern Nevada and Chihuahua, Mexico.
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