Gold Continues Its Run (NEM, GLD, GDX, KGC, ABX)
The weaker dollar has once again proven to be the trigger for rising gold prices. Miners are in good position to exploit the weakness of the U.S. currency, and Newmont Mining (NYSE: NEM) President and CEO Richard O’Brien has the strategy to do it. He said in an interview that the right formula is to produce all you can, as fast as you can, at the lowest cost you can.
O'Brien said that the dollar has weakened because of the rising federal budget deficit, but he expects it to eventually rebound which will make gold prices retreat.
Newmont Miners (NEM) gained around 2% on Monday and closed at $53.34.
Some of the gold related ETFs had a good return in the last month. SPDR Gold Trust (ETF) (NYSE: GLD) gained 11.5% in November, while Market Vectors Gold Miners (ETF) (NYSE: GDX) added almost 22% this month.
If you prefer stocks instead, you would have gained 7.1% with Kinross Gold Corporation (USA) (NYSE: KGC) in the month of November, while Barrick Gold Corporation (USA) (NYSE: ABX) would bring you a yield of 22.12% in the same period. Yamana Gold Inc. (USA) (NYSE: AUY) was pretty successful too this month, it added 27.7%.
Goldcorp Inc. (USA) (NYSE: GG) was also a pretty good stock to own, it gained 20.5% so far this month, while AngloGold Ashanti Limited (ADR) (NYSE: AU) added 19.5%.
