Monday, April 11, 2011

IAMGOLD (IAG) (EGO) (NXG) (SA) Rise as Gold, Silver Surge

Gold and silver prices are jumping again after leveling off for some time on unjustified optimism which has resulted in gold miners such as IAMGOLD (NYSE:IAG), Eldorado Gold Corporation (NYSE:EGO), Northgate Minerals (AMEX:NXG) and Seabridge Gold (Amex:SA) soaring with the precious metals.

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

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

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

IAMGOLD closed Friday at $23.10, gaining $0.16, or 0.70 percent. Eldorado Gold Corporation closed at $18.05, rising $0.84, or 4.88 percent. Seabridge Gold closed at $34.23, jumping $0.71, or 2.21 percent. Northgate Minerals closed at $2.75, up $0.05, or 1.85 percent.

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