Monday, April 11, 2011

AngloGold (AU), (NCMGY), (KGC) Shine as Gold, Silver Skyrocket

Gold and silver prices are taking off again after languishing for some time on unwarranted optimism, which has resulted in gold miners like Newcrest Mining (OTC:NCMGY.PK), Kinross Gold Corp (NYSE:KGC), and AngloGold (NYSE:AU) moving up with the precious metals.

On Friday gold prices hit another new record, reaching a high of $1,476 an ounce. Silver prices soared to a 31-year high, closing at 40.60 an ounce, after reaching a high of $40.63 an ounce during the session.

Most of this is based upon the collapsing U.S. dollar, pullback in China, sovereign debt crisis in Europe, unrest in the Middle East, deepening inflation and consequences of the Japanese earthquake are just some of the negative factors hitting the markets.

Incredibly, many investors are acting as if these are some parenthetical events that have little bearing on the markets and commodity prices.

Kinross closed Friday at $16.60, gaining $0.25, or 1.53 percent. Newcrest closed at $44.65, rising $1.36, or 3.14 percent. AngloGold closed at $51.09, jumping $1.61, or 3.25 percent.

No comments: