NovaGold Resources (AMEX:NG), Apollo Gold, (AMEX:AGT) Iamgold, (NYSE:IAG) Down On Gold Swings

While I believe gold will continue on its upward trajectory for many years to come, there are going to be seasons of volatility and corrections on that journey, and gold mining companies such as NovaGold Resources (AMEX:NG), Apollo Gold (AMEX:AGT) and Iamgold (NYSE:IAG) can be expected to move up and down with those gold prices.

For the day, all three companies ended slightly down, as gold prices exploded upward in the early part of the day, pulled back right before noon, and then regained some throughout the rest of the session.

Traders were obviously part of those seesaw results, but that doesn't account for all of it.

Part of this is the consequence of media reports which are conflicting with one another. The usual mainstream media story is that we're in some type of economic recovery and they don't seem to understand anything about Europe especially, which they just view as a positive if trillions more are thrown at it, as their steeped in Keynesian theory, even though most don't even know it.

But when you hear the extraordinary and almost unprecedented situation in Europe (at least for most of us reading our lifetimes), the fallout from it could be catastrophic, and most of that is if they decide to bailout the banks, er, I mean countries.

If the socialist, welfare countries weren't bailed out, it would mean they would be forced to change their ways and quit redistributing money from the productive to the unproductive. It is so bad now many countries from around the world are going to have to bail them out for the extravagant lives they've lived, but which they couldn't afford.

The point is all of this news is being mingled together, and because it's extremely one-sided as usual from the mainstream media, it gives the appearance of chaos and unsurety, when in fact it's an economic mess, and there's no conflict there at all, no matter what data they want to massage to make it look to the contrary.

For gold mining companies like NovaGold Resources, Apollo Gold and Iamgold, I think they are going to start moving closely with the price of gold, and so while they should continue to move upwards in price, there will be some major swings and corrections along the way, and as long as they have good fundamentals and good management in place, should do as well as gold prices in general should do.