Victoria Gold’s Eagle mine site groundwater highly contaminated, Yukon government says
Groundwater flowing from Eagle mine shows signs of high cyanide contamination, though much of the water is being contained on site.
With the rising price of gold, the mining stocks were looking better as options for investments. Recently there was a correction in the prices of gold and this sector was ignored by the institutional investors. Gold stocks’ speculation needs a strong head as precious metals are pretty volatile in the stock market. But at the same time the potential for good returns is high if one invests in the right stocks at the right time.
The spot gold price was on the rise; it may presently go above $1,800 an ounce before this year concludes and hence if one owns some gold, it may be a good decision at this stage. Only when the price of gold thus keeps rising will the institutional investors that shied away from this sector previously, return to it.
Actually, the number of gold mining companies that present attractive potentials for investments are quite few. After all, there has been a considerable increase in the costs at a number of such precious metal companies and as a result, their profits have suffered. Still, amongst its peers of precious metals, gold, which is the priciest of all stocks, is the most desirable bet along with silver, owing to its high prospects for lucrative growth towards the latter part of this year and in the next year.
The performance of the mid-tier producers of gold is more robust than that of large-caps. Investors new to the field of gold and other precious metals-investing
can set their eyes in this direction. One can gain profits if there is lower buying price and higher selling price.
As the Federal Reserve’s quantitative easing is under way, gold is rising in price. Presently spot gold is just about $1,800 an ounce, which is pleasant news for the gold mining companies as it signals consecutive high corporate earnings seasons.
With talks on gold abounding Wall Street, there are bullish predictions with building-up-of momentum for $2,000 gold and with the continuation of the current momentum of its price, it is very likely that the price will indeed touch this figure. Gold is a measure of the amount of the easy money present in the system. And there can be reversals after volatilities in such a commodity; resulting many a time in the disillusionment of the investor.
If an investor has been exposed to gold, he should be aware of its commodity price cycle and that when there is a weakening of the U.S. dollar, there is a strengthening of the price of gold.
As of October 8, 2012, the U.S. dollar started strengthening against the euro; courtesy, the report of jobs which beat expectations. As a result, there was a lower trading observed in gold prices. If theU.S.continues to send signals of betterment of its economy, it will cause the decline in the gold prices. But with the choppiness and sideways trend of the gold mining equity markets in 2012 so far, there is in reality, no sufficient growth in the economy as indicated above. Getting back to normalcy will take some time; to the tune of a few years. The debt burden still sits on the economy.
The precious metals were in a cyclical bull market since the month of May and a pullback is expected this month. Later, the market could again test its highs and then there could be a possible upside. Likewise, gold could be due for a correction. Hence investments in good gold junior mining companies could be an advantageous call.
For more information, visit www.profitconfidential.com
