Yamana Gold (TSE:YRI), Goldcorp (TSE:G), Kinross Gold (TSE:K) All Surge on Safe Haven Investors

Gold futures and gold mining stocks exploded upward today, as gold companies like Yamana Gold (TSE:YRI) (NYSE:AUY), Goldcorp (TSE:G) (NYSE:GG) and Kinross Gold (TSE:K) (NYSE:KGC)made strong moves, possibly signaling a major upward surge by gold mining companies, who have largely lagged behind gold future prices, which have been increasing non-stop, and probably will into the future.

Increasing concerns over China inflation, the European sovereign debt crisis, and reports today from the commerce department that wholesale prices rose by 2.4 percent, and wholesale inventories increased as well, telling us spending declined in March.

Sovereign debt is the short-term catalyst of ongoing gold prices going up, and that's could end up being a long-term problem, when using Germany as a bellwhether from its past experiences when they took austerity measures and applied them to themselves, while also moving toward a more market economy. It took them 15 years to do that, and they were committed. What will happen with these entitlement thinking, socialist countries of southern Europe when they don't get to have the money keep flowing in, as it's run out, and there no one else to take it from. Well, other than the foolish EU and IMF, which many countries will be helping these countries through.

China is also a major story, although temorarily eclipsed by the sovereign debt crisis. Many countries are basing their domestic growth on their exports to China. If China takes major steps, which it is already doing, to cool off their economy, that will result in less imports, and even a small decrease could have an enormous impact.

The secondary part of the EU sovereign debt crisis is the inevitable cut back in spending, which is part of the requirements for countries in the euro-zone receiving aid. It's unclear how that could affect exports from other countries and companies, but add it together with China and it will probably be dramatic.

Add to this inflation increasing in the United States and the news just keeps getting worse, although that is good for gold prices and gold mining companies, who should be the beneficiaries of all this for many years.