Gold Once Again Being Considered Key Safe Haven Asset

It can be confusing for some not familiar with what gold is and represents, when trying to figure out if it's simply one of many commodities. For those thinking it's primarily a commodity, at this time, because most commodities considered bearish, they will consider it a depressed asset that isn't worth owning.

For gold investors who understand what gold really is, they've been baffled because the price of gold, under the economic conditions of the last several years, should have soared. My belief is the reason it hasn't is because it has been classified wrong, and that has caused the price to be suppressed.

Why gold hasn't suffered a total breakdown is because there is a significant number of people understanding it has been a form of currency for thousands of years, and to this day can be used as such.

With the global economy getting more volatile, the commodity classification of gold is slowly eroding, and it's once again being considered the safe haven it always had been. That will have strong implications as the potential for significant events grow, in which investors will flee for safety. Gold will be there waiting for them.

Impetus for gold

One thing about gold is it takes difficult times to remind the majority of investors of its store of value. When the economy is doing well, it is for the most part forgotten by the majority and lingers in the background until global events once again trigger the memory of the important role gold plays in the world.

There was a reason the price of gold soared during the last market and economic meltdown, and it appears we're closing in on the early stages of the next recession, largely because of slowing China and its Asian neighbors.

The key metrics to watch in relationship to gold price movements are volatility and fear. They work together, and one builds on the other to produce the most optimal conditions for gold; a trend that is growing at this time.

Gold has to be nudged by events to appeal to investors, and those types of events are increasing around the world.

What type of fear and volatility?

It's also important to understand there is a certain type of fear and volatility that supports gold. While I think it's not the best way to think of gold, the main driver is financial fear, not political fear.

The reason for that is the market, overall, reacts to what is happening in the moment, and the the long-term view of the consequences of specific political events isn't priced in immediately, or sometimes not understood or digested as to the potential financial consequences. One of the most recent is the tensions between Russia and Ukraine, and Russia's support of Syria in the Middle East.

Where the two can converge of course is when political events visibly affect finances. But for the most part, it's almost always financial fears alone that result in people running to gold and the price being pushed up. That is the stage being set up now, and at least part of the reason asserted by the Federal Reserve as to why it didn't raise interest rates.

On the investment side, until there is short-term pain, meaning consistent weak quarterly results, the price of gold, in general, will remain subdued. It's when the negative financial news is coupled with earnings consequences that gold will once again soar.

The reason for that is the majority of investors will only respond when they believe their capital is under siege; meaning only when events affect their money.

We can read about China and other weak Asian countries all we want. We can read about or listen to news reports about Russia and how it may respond to Western resistance to its policies. But until that is connected to the stock market in the minds of investors, it doesn't have a lot of support for gold.

This is one of the reasons those that closely watch the potential impact of political events on the economy can get frustrated with their gold investments, as they make the connection much quicker than the general investing community, and get in much earlier and have to wait for the market to come to them.

Making the connection between political and economic events

Earlier I mentioned gold being classified wrong. The reason for that is the lack of correlation between political and financial events at this time. Once gold is reclassified in the minds of investors - from a commodity to a currency - that will be a bullish trigger.

There are a growing number of news reports on the slowing Chinese economy, weakening manufacturing in the U.S., and the growing human migration problems in Europe and America. These have potential for tremendous financial upheaval, and in fact there are some ramifications already causing economic tremors, with the most obvious at this time being China, which has for so long been touted as the main driver of global economic growth.

Even now investors have been slow to see how it will impact the U.S. and other markets, because they still haven't made the connection financially. That's because while there are economic concerns growing, the latest earnings reports appear to be fairly strong, even as the macro-economic situation is looking weaker. 

Gold as money

When referring to gold as money, the idea isn't that people necessarily use it as a means of exchange of goods or services. That can and does happen in some parts of the world, but in general, that's not how business is conducted.

What I mean is gold is considered money in the sense of is being used to protect assets. After all, if it wasn't considered a form of currency, why do people always rush to hold gold when difficult and unpredictable times come about?

Remember what happened a short time ago when the stock market in China crashed, and the crazy responses by China's leaders to it. Right in their faces was the reality China's market was highly overvalued, and it wasn't reflective of its economy. In response to that, the price of gold made a quick move upward, once again confirming it's considered a safe haven asset investors in order to protect their capital. That's money, no matter how it may be spun.

Conclusion

For now a lot of people are in cash. Part of that is for safety, and a lot of it is for the purpose of waiting for opportunities to come to them.

When the next economic downturn comes, which as I mentioned, is probably in its early stages, the thought of bottom-feeding will change to capital preservation and growth, and under crises situations, very few assets perform like gold does, and that's why being positioned for a prolonged season of economic difficulties with some of our assets is a smart play.

Discipline is important under these circumstances. If you believe we are going to enter into a season of economic weakness, going long gold is a sure winner. I've been long gold and silver for some time, and I know I'll be rewarded significantly over time.

As for what to look for, historically the larger miners with significant gold exposure are the first to move, followed by juniors and then explorers. Juniors are my favorite play because they have proven reserves and have the most upside potential. You have to do your homework of course, but for the strongest upward potential, juniors will strong management in place will make you more money.

On the other hand, if safety is the major factor, the larger miners can preserve and grow your capital when the rest of the market is floundering.

The catalyst will be when investors make the connection between political events and the economy. Discovery of that will be the sustainable upward movement in the price of gold. The decision to get in on that should be what your outlook is in regard to economic conditions and how long it'll take for investors to recognize the risks that are quickly approaching.

Investing in gold shouldn't be considered a short-term play, traders need to go long and hold on during these times of volatility. I don't think we're quite there yet with investors sentiment in regard to fear, and until that escalates, there will continue to be up and down movements.

And while the Fed and interest rates, in my opinion, has already been priced in, the ongoing sport of reporting on and guessing as to whether or not the Fed will increase interest rates will continue, and that means having the stomach to endure volatility in the gold price.

Even if the Fed eventually increases interest rates, it's not going to be by much. And with the many potential triggers that could bring more fear to the market increasing in the world, I don't think there should be a fear of overt interest rate intrusion.

As events unfold and the realization the global economy is slowing sinks in, nothing will be able to hold back money flowing to gold, and that means much higher gold prices. Position yourself accordingly.

Gold in a World of Failing Government

The majority of people still don't really understand the importance of gold, as they look at it primarily as an investment rather than a hedge against disaster and a protector of wealth.

This is why even in the midst of a failing global economy investors aren't buying up some physical gold as part of their financial strategy.

In some parts of the world, especially Europe, there is the very real possibility of social upheaval as the unemployment rate continues to climb in nations such as Greece, Spain, Ireland and Portugal. Young people have been hit the hardest, and of course are most likely to look for a scapegoat if things begin to unravel and a catalysts launches protest across the region. For no other reason than that people should have some physical gold on hand to protect them against the potential fallout from such a scenario that is increasingly probable.

We shouldn't pay attention to the financial media, as overall, around the world, the media has to be considered almost another arm of the government, as it prints out or reports on TV and the Internet pretty much what world leaders want to be reported on, unless the situation is so obvious there is no way it can be hidden.

Just look at recent stories of a recovery and economic healing even though the economies around the world are a disaster. You would think there was some type of economic revival going on the way most of the mainstream media asserts increasing economic health.

Whether you believe it or not (and you should), everyone that has wealth to protect should have some gold on hand because once unrest arrives or inflation begins to soar, the price of gold and silver will skyrocket, and the cost will be prohibitive for many seeking to buy some gold at that time, if it is available at all.

The major reason to own gold isn't for the purpose of building wealth, but protecting it and having something of value in case a worst-case-scenario plays itself out.

It's not a matter of if, but only where and when, as well as how widely it'll spread, concerning the surety of social unrest of some type breaking out in the world beyond the Middle East. 

Those holding gold will be positioned to ride it out better than those that are looking for equities, bonds and cash to sustain them.

Think of gold first of all as a safe haven, and only secondarily as something that can be used to grow wealth. And for physical gold, it's real value is solely in protection and little else. That must be understood if you're going to position yourself for the inevitable breakdown approaching, even if it doesn't happen in the specific country you live in.

Don't think if people storm banks and governments that you'll be spared some of the pain as far as financially goes, as now that almost everything is connected, what happens in one part of the world, especially if it were Europe or important parts of Asia, that it won't affect everyone around the world. It will. Be prepared by holding physical gold.

Hecla (HL) (GPL) (PAAS) (AG) (AXU) Close Mixed Thursday as Silver Prices Reach 31-Year High

Silver miners Great Panther (AMEX:GPL), First Majestic (NYSE:AG), Hecla Mining (NYSE:HL) and Alexco Resource (AMEX: AXU) closed mixed Thursday as most have been running up with soaring silver prices, which ended the week with silver settling at a 31-year high of just over $46 an ounce. The most active Thursday silver contract, for May delivery, settled at a record $46.059 a troy ounce, up $1.598 or $3.6 percent.

The front-month contract, for April delivery, settled up $1.597, or 3.4 percent, at $46.062 a troy ounce, a 31-year high. Silver is quickly approaching its record high of $50.36 an ounce, set in 1980.

Gold futures hit another record high on Thursday, as gold gold for June delivery settled up $4.90 at $1,503.80 an ounce on the Comex. That was a new settlement high. The contract also reached an intraday high at $1,509.60 an ounce earlier in the day.

A collapsing U.S. dollar continues to be a major part of the gold and silver price story, as the U.S. government refuses to cut spending and limit its size, while the Federal Reserve endlessly has its digital printing presses running, pushing down the value of the greenback.

The dollar index .DXY fell 0.4 percent to 74.092 after falling to 73.735, its lowest level since August 2008.

Other key influences include deepening inflation, tightening in China, sovereign debt crisis in Europe, sovereign debt crisis in America, unrest in the Middle East and impact of the Japanese earthquake.

The weak U.S. dollar and inflation concerns has boosted the attraction of gold. Spot gold XAU= hit a record high at $1,508.75 before cutting gains. Spot silver XAG= jumped to a 31-year high at $46.68 an ounce.

Spot gold prices rose during the first quarter from $1,380 an ounce on January 3 to $1,430 on March 31.

Alexco Resource closed Thursday at $10.17, gaining $0.21, or 2.11 percent. Hecla ended the day at $9.46, rising $0.24, or 2.60 percent. First Majestic closed at $23.31, dropping $0.39, or 1.65 percent. Great Panther ended the session at $3.92, losing $0.08, or 2.00 percent.

Gammon (GRS) (HMY) (NXG) (TRE) Close Up as Gold Breaks Record Again

Harmony Gold Mining (NYSE:HMY), Gammon Gold (NYSE:GRS) Tanzanian Royalty Exploration (AMEX:TRE) and Northgate Minerals (AMEX:NXG) closed Up on Wednesday as gold continues to break records on a daily basis recently.

Gold prices soared to another intraday record, reaching as high as $1,506.20 an ounce before pulling back to settle for June delivery in at $1,498.90 an ounce, an increase of $3.80 at the Comex division of the New York Mercantile Exchange.

Wednesday was the fourth session in a row gold prices broke an intraday record, as well as settling at a new record as well.

After breaking the $45 level, silver prices ended the day up 54 cents to close at $44.46 an ounce. That was also another 31-year high as it pushes to break $50 and move on to an all-time record.

Gold and silver prices continue to soar on safe-haven buying with the major impetus at this time probably being a collapsing U.S. dollar. The U.S. dollar index was plunging 0.84% to $74.43 as it continues to struggle after Monday's S&P downgrade of the U.S. economy, and warning of a credit downgrade if the U.S. doesn't quit its outrageous spending and reduce its debt.

The downgrade of U.S. debt, sovereign debt crisis in Europe, Chinese inflation, soaring oil prices, and the ongoing fallout from the earthquake in Japan are just some of the other factors offer support to gold.

The gold-silver ratio, which measures how many silver ounces are needed to acquire an ounce of gold, fell under 34 — its lowest level since 1983.

Northgate Minerals closed Wednesday at $2.88, gaining $0.01, or 0.35 percent. Tanzanian Royalty Exploration closed at $6.32, up $0.02, or 0.32 percent. Gammon Gold ended the trading session at $10.78, rising $0.31, or 2.96 percent. Harmony Gold Mining closed at $15.02, jumping $0.24, or 1.62 percent.

Alexco Resource (AXU) (PAAS) (CDE) (AG) Close Up as Silver Jumps Again

Alexco Resource (AMEX:AXU), Pan American Silver (NASDAQ:PAAS), Coeur d'Alene Mines (NYSE:CDE) and First Majestic (NYSE:AG) closed up Wednesday as silver continues its upward climb gold to break records on almost a daily basis.

After surpassing the $45 level Wednesday, silver prices ended the day up 54 cents to close at $44.46 an ounce. That was also another 31-year high as it pushes to break $50 and move on to an all-time record. Silver traded between $43.835 and $45.400.

Gold prices roared to another intraday record, reaching as high as $1,506.20 an ounce before pulling back to settle for June delivery at $1,498.90 an ounce, an increase of $3.80 at the Comex division of the New York Mercantile Exchange.

Wednesday was the fourth session in a row gold prices broke an intraday record, as well as settling at a new record as well.

Gold and silver prices continue to surge on safe-haven buying with the major impetus at this time probably being a collapsing U.S. dollar. The U.S. dollar index fell 0.84% to $74.43 as it continues to struggle after Monday's S&P downgrade of the U.S. economy and warning of a credit downgrade if the U.S. doesn't quit its outrageous spending and reduce its debt.

The downgrade of the outlook of U.S. debt, sovereign debt crisis in Europe, Chinese inflation, soaring oil prices, and the ongoing fallout from the earthquake in Japan are just some of the other factors offer support to gold.

The gold-silver ratio, which measures how many silver ounces are needed to acquire an ounce of gold, fell under 34 — its lowest level since 1983.

First Majestic closed Wednesday at $23.70, up $0.94, or 4.13 percent. Coeur d'Alene Mines closed at $31.61, gaining $0.50, or 1.61 percent. Pan American Silver ended the trading day at $37.63, jumping $1.10, or 3.01 percent. Alexco Resource closed at $9.96, up $0.39, or 4.08 percent.

Endeavour (EXK) (FVITF) (MGN) (SSRI) Close Mixed as Silver Jumps Again

Fortuna (OTC:FVITF.PK), Mines Management (AMEX:MGN), Silver Standard Resources (NASDAQ:SSRI) and Endeavour Silver (AMEX:EXK) closed mixed Wednesday as silver continues its upward climb gold to break records on almost a daily basis.

After surpassing the $45 level Wednesday, silver prices ended the day up 54 cents to close at $44.46 an ounce. That was also another 31-year high as it pushes to break $50 and move on to an all-time record. Silver traded between $43.835 and $45.400.

Gold prices roared to another intraday record, reaching as high as $1,506.20 an ounce before pulling back to settle for June delivery at $1,498.90 an ounce, an increase of $3.80 at the Comex division of the New York Mercantile Exchange.

Wednesday was the fourth session in a row gold prices broke an intraday record, as well as settling at a new record as well.

Gold and silver prices continue to surge on safe-haven buying with the major impetus at this time probably being a collapsing U.S. dollar. The U.S. dollar index fell 0.84% to $74.43 as it continues to struggle after Monday's S&P downgrade of the U.S. economy and warning of a credit downgrade if the U.S. doesn't quit its outrageous spending and reduce its debt.

The downgrade of the outlook of U.S. debt, sovereign debt crisis in Europe, Chinese inflation, soaring oil prices, and the ongoing fallout from the earthquake in Japan are just some of the other factors offer support to gold.

The gold-silver ratio, which measures how many silver ounces are needed to acquire an ounce of gold, fell under 34 — its lowest level since 1983.

Silver Standard Resources closed Wednesday at $34.72, up $0.75, or 2.21 percent. Mines Management closed at $2.73, gaining $0.18, or 7.06 percent. Fortuna ended the trading day at $6.26, falling $0.02, or 0.32 percent. Endeavour Silver closed at $11.79, up $0.10, or 0.86 percent.

Ivanhoe (IVN) (NEM) (SA) (MFN) Close Mixed as Gold Breaks Record Again

Ivanhoe Mines Ltd. (NYSE:IVN), Newmont Mining (NYSE:NEM), Seabridge Gold (AMEX:SA) and Minefinders (AMEX:MFN) closed mixed on Wednesday as gold continues to break records on a daily basis recently.

Gold prices soared to another intraday record, reaching as high as $1,506.20 an ounce before pulling back to settle for June delivery in at $1,498.90 an ounce, an increase of $3.80 at the Comex division of the New York Mercantile Exchange.

Wednesday was the fourth session in a row gold prices broke an intraday record, as well as settling at a new record as well.

After breaking the $45 level, silver prices ended the day up 54 cents to close at $44.46 an ounce. That was also another 31-year high as it pushes to break $50 and move on to an all-time record.

Gold and silver prices continue to soar on safe-haven buying with the major impetus at this time probably being a collapsing U.S. dollar. The U.S. dollar index was plunging 0.84% to $74.43 as it continues to struggle after Monday's S&P downgrade of the U.S. economy, and warning of a credit downgrade if the U.S. doesn't quit its outrageous spending and reduce its debt.

The downgrade of U.S. debt, sovereign debt crisis in Europe, Chinese inflation, soaring oil prices, and the ongoing fallout from the earthquake in Japan are just some of the other factors offer support to gold.

The gold-silver ratio, which measures how many silver ounces are needed to acquire an ounce of gold, fell under 34 — its lowest level since 1983.

Ivanhoe Mines Ltd. closed Wednesday at $26.24, gaining $0.48, or 1.86 percent. Newmont Mining closed at $58.85, up $0.22, or 0.38 percent. Seabridge Gold ended the trading session at $33.79, falling $0.68, or 1.97 percent. Minefinders closed at $16.52, jumping $0.71, or 4.49 percent.

UltraShort Gold (GLL) (GDXJ) (UGL) (SLV) Close Mixed as Gold, Silver Soar Again

iShares Silver Trust (NYSE:SLV), ProShares UltraShort Gold (NYSE:GLL), ProShares Ultra Gold (NYSE:UGL) and Market Vectors Junior Gold Mine(NYSE:GDXJ) closed mixed Wednesday as silver continues its upward climb and gold to break records on almost a daily basis.

After surpassing the $45 level Wednesday, silver prices ended the day up 54 cents to close at $44.46 an ounce. That was also another 31-year high as it pushes to break $50 and move on to an all-time record. Silver traded between $43.835 and $45.400.

Gold prices roared to another intraday record, reaching as high as $1,506.20 an ounce before pulling back to settle for June delivery at $1,498.90 an ounce, an increase of $3.80 at the Comex division of the New York Mercantile Exchange.

Wednesday was the fourth session in a row gold prices broke an intraday record, as well as settling at a new record as well.

Gold and silver prices continue to surge on safe-haven buying with the major impetus at this time probably being a collapsing U.S. dollar. The U.S. dollar index fell 0.84% to $74.43 as it continues to struggle after Monday's S&P downgrade of the U.S. economy and warning of a credit downgrade if the U.S. doesn't quit its outrageous spending and reduce its debt.

The downgrade of the outlook of U.S. debt, sovereign debt crisis in Europe, Chinese inflation, soaring oil prices, and the ongoing fallout from the earthquake in Japan are just some of the other factors offer support to gold.

The gold-silver ratio, which measures how many silver ounces are needed to acquire an ounce of gold, fell under 34 — its lowest level since 1983.

Market Vectors Junior Gold Mine closed Wednesday at $41.53, up $0.86, or 2.11 percent. ProShares Ultra Gold closed at $77.86, gaining $0.53, or 0.69 percent. ProShares UltraShort Gold ended the trading day at $24.35, falling $0.18, or 0.73 percent. iShares Silver Trust closed at $44.12, rising $1.12, or 2.61 percent.

Silver Pushing $44 as Silver Wheaton (SLW) (ISVLF) (GPL) (CDE) Close Mixed

Silver prices moved up with gold, reaching another 31-year high as gold blew past the $1,500 an ounce mark on Tuesday. Silver Wheaton (NYSE:SLW), Impact Silver (OTC:ISVLF.PK), Great Panther (AMEX:GPL) and Coeur d'Alene Mines (NYSE:CDE) closed mixed on the day.

Silver prices for May delivery climbed almost a dollar to settle at $43.91, adding 96 cents, another 31-year high.

The gold contract for June delivery rose $2.20 to settle at $1,495.10 an ounce, shy of its all-time and daily high of $1,500.50 an ounce. Spot gold prices dropped 50 cents, to close at $1,495.90 an ounce.

Most of this is based upon the collapsing U.S. dollar, which pulled back again today, the tightening in China, sovereign debt crisis in Europe, unrest in the Middle East, inflation concerns and consequences of the Japanese earthquake. Silver is used by some investors as a gold alternative when gold price rise to high levels as they now are.

The warning from rating agency S&P that the U.S. may have its debt downgraded if it doesn't deal with the risky debt crisis and you have a weak macroeconomic outlook favoring silver, gold and other commodities.

Silver Wheaton closed Tuesday at $42.87, gaining $1.28, or 3.08 percent. Impact Silver ended the session at $2.42, down $0.05, or 2.02 percent. Great Panther closed at $4.00, losing $0.01, or 0.25 percent. Coeur d'Alene Mines closed the day at $31.11, gaining $0.48, or 1.57 percent.

NovaGold (NG) (SA) (GFI) (AUY) Close Mixed Even as Gold Prices Soar to Record High Again

While gold prices reached new all-time highs on Monday, that wasn't the direction for most gold miners, as Seabridge Gold (AMEX:SA), Yamana Gold (NYSE:AUY), Gold Fields (NYSE:GFI) and NovaGold (AMEX:NG), which closed mixed on the day.

Spot gold jumped as high as $1,497.20 an ounce Monday after Standard & Poor’s downgraded its credit outlook for the United States, revealing the risks associated with its own sovereign debt crisis.

U.S. gold futures for June delivery settled up $6.90 an ounce at $1,492.90.

The sovereign debt crisis in Europe continues to boost gold as well, as the euro and U.S. dollar continue to face pressures on out-of-control government spending and refusal to make meaningful spending cuts.

Global inflation and unrest in the Middle East also continue to be major factors in the gold price equation.

As to why most gold miners have been pulling back, a lot of that is based on the fact the majority of the miners are based in Canada, and so the weaker U.S. dollar as it relates to the Canadian dollar is a major factor a lot of investors in gold companies don't take into account.

NovaGold closed Monday at $13.11, dropping $0.16, or 1.21 percent. Gold Fields closed at $17.54, dropping $0.34, or 1.90 percent. Yamana Gold ended the day at $12.54, down $0.26, or 2.03 percent. Seabridge Gold closed at $34.00, gaining $0.38, or 1.13 percent.

Hecla (HL) (AXU) (SSRI) (MGN) Trade Mixed as Silver Continues to Rise

Silver again hit new 31-year highs Friday soaring as high as $42.95 an ounce, closing the week up 4.9%. Silver for May delivery rose 90.7 cents to settle at $42.571 an ounce. Silver has risen just under 40 percent so far in 2011. Alexco Resource (AMEX:AXU), Silver Standard Resources (NASDAQ:SSRI), Hecla Mining (NYSE:HL) and Mines Management (AMEX:MGN) traded mixed on the day.

Gold prices roared toward the $1,500 an ounce mark, trading on Friday as high as $1,488 an ounce in afternoon action until closing at $1,486.50 an ounce.

Inflation continues to be a major factor in silver price movement, as it has with many precious and base metals, with food and fuel prices in the U.S. continuing to soar and consumer prices in China to climb.

The continuing collapse of the U.S. dollar, sovereign debt crisis in Europe and the unrest in the Middle East makes silver and gold an attractive safe haven alternative for capital.

Mines Management closed Friday at $2.71, plunging $0.17, or 5.90 percent. Hecla Mining closed at $9.61, gaining $0.08, or 0.84 percent. Silver Standard Resources closed at $33.80, dropping $0.18, or 0.53 percent. Alexco Resource ended the day at $9.64, losing $0.01, or 0.10 percent.

Barrick (ABX) (EGO) (NG) (IVN) Trade Mixed as Gold Climbs Toward $1,500

On Friday gold prices soared toward the $1,500 an ounce mark, trading as high as $1,488 an ounce in afternoon action until closing at $1,486.50 an ounce. Eldorado Gold Corporation (NYSE:EGO), NovaGold Resources Inc. (AMEX:NG), Ivanhoe Mines Ltd. (NYSE:IVN) and Barrick Gold (NYSE:ABX) traded mixed as many gold miners pulled back after pushing up last week.

Inflation continues to be a major factor in gold price movement, as food and fuel prices in the U.S. continue to soar and consumer prices in China jump.

The ongoing weakness in the U.S. dollar, sovereign debt crisis in Europe and the unrest in the Middle East makes gold an attractive safe haven alternative for capital.

Barrick Gold closed Friday at $53.33, falling $0.09, or 0.17 percent. Ivanhoe Mines Ltd. closed at $26.60, rising $0.22, or 0.83 percent. NovaGold Resources Inc. closed at $13.27, gaining $0.05, or 0.38 percent. Eldorado Gold Corporation ended the session at $18.06, up $0.18, or 1.01 percent.

Fortuna (FVITF) (SLW) (ISVLF) (GPL) Trade Down Even as Silver Continues to Rise

Silver again hit new 31-year highs Friday soaring as high as $42.95 an ounce, closing the week up 4.9%. Silver for May delivery rose 90.7 cents to settle at $42.571 an ounce. Silver has risen just under 40 percent so far in 2011. Impact Silver (OTC:ISVLF.PK), Silver Wheaton (NYSE:SLW), Great Panther (AMEX:GPL) and Fortuna (OTC:FVITF.PK) traded down on the day.

Gold prices soared toward the $1,500 an ounce mark, trading on Friday as high as $1,488 an ounce in afternoon action until closing at $1,486.50 an ounce.

Inflation continues to be a major factor in silver price movement, as it has with many precious and base metals. as food and fuel prices in the U.S. continue to soar and consumer prices in China climb.

The continual collapse in the U.S. dollar, sovereign debt crisis in Europe and the unrest in the Middle East makes silver and gold an attractive safe haven alternative for capital.

Fortuna closed Friday at $6.43, falling $0.12, or 1.85 percent. Great Panther closed at $4.08, down $0.08, or 1.92 percent. Silver Wheaton closed at $42.61, dropping $0.27, or 0.63 percent. Impact Silver ended the day at $2.73, losing $0.07, or 2.69 percent.

Yamana (AUY) (RGLD) (KGC) (GFI) Trade Mixed as Gold Rushes Toward $1,500

On Friday gold prices soared toward the $1,500 an ounce mark, trading as high as $1,488 an ounce in afternoon action until closing at $1,486.50 an ounce. Royal Gold (Nasdaq:RGLD), Kinross Gold (NYSE:KGC), Yamana Gold (NYSE:AUY) and Gold Fields (NYSE:GFI) traded mixed as many gold miners pulled back after pushing up last week.

Inflation continues to be a major factor in gold price movement, as food and fuel prices in the U.S. continue to soar and consumer prices in China jump.

The ongoing weakness in the U.S. dollar, sovereign debt crisis in Europe and the unrest in the Middle East makes gold an attractive safe haven alternative for capital.

Gold Fields closed Friday at $17.88, falling $0.09, or 0.50 percent. Kinross Gold closed at $15.67, dropping $0.21, or 0.13 percent. Yamana Gold closed at $12.80, gaining $0.05, or 0.39 percent. Royal Gold ended the session at $53.77, up $0.33, or 0.62 percent.

IAMGOLD (IAG) (NEM) (AZK) (GSS) Trade Mixed as Gold Climbs Toward $1,500

On Friday gold prices soared toward the $1,500 an ounce mark, trading as high as $1,488 an ounce in afternoon action until closing at $1,486.50 an ounce. Newmont Mining (NYSE:NEM), IAMGOLD Corporation (NYSE:IAG), Golden Star Resources (AMEX:GSS) and Aurizon Mines (AMEX:AZK) traded mixed as many gold miners pulled back after pushing up last week.

Inflation continues to be a major factor in gold price movement, as food and fuel prices in the U.S. continue to soar and consumer prices in China jump.

The ongoing weakness in the U.S. dollar, sovereign debt crisis in Europe and the unrest in the Middle East makes gold an attractive safe haven alternative for capital.

Newmont Mining closed Friday at $57.75, gaining $0.22, or 0.38 percent. IAMGOLD Corporation closed at $20.07, falling $1.85, or 8.44 percent. Golden Star Resources closed at $3.02, dropping $0.01, or 0.33 percent. Aurizon Mines ended the session at $6.78, down $0.11, or 1.60 percent.

BHP (BHP), RIO (RIO) Jump on Rising Commodity Prices

Rising gold, silver and copper prices are pushing up the share price of diversified miners BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RIO), as safe haven status and growing copper demand offers the commodities support and growth.

Copper demand and prices are rising on the fact that Japan will need a tremendous amount to rebuild the country. Other commodities like aluminum and steel will also generate strong demand over time.

Gold is up on the various geo-political and economic crises around the world, with the never-ending sovereign debt crisis in the EU again adding fuel to the fire.

Silver continues to rise on an alternative to gold as well as demand as an industrial metal.

BHP was trading at $ 90.94, gaining $0.92, or 1.02 percent, as of 2:20 PM EDT. Rio Tinto was at $68.57, up $1.05, or 1.56 percent.

Goldcorp (GG) and Inflation, Rising Costs Challenges

Goldcorp (NYSE:GG) and other gold miners have been getting the attention of some who are worried over the possible negative impact rising inflation and mining costs and how they what the impact on the mining companies will be.

The massive gold miner looks strong in reference to that, as looking at earneings 57 cents a share in the fourth quarter with production reaching 689,600 ounces of gold at total cash cost of $164 an ounce. Minus metal bi-products, Goldcorp's cash costs were $461 an ounce. Goldcorp also realized record production from three of its mines, as well as the first full quarter of production at its newer Penasquito mine.

Margins at Goldcorp also reached record levels for the company, mostly on the record high gold prices and record operating cash flows of $646.1 million, $1.7 billion for all of 2010.

Goldcorp boosted its annual dividend to 40 cents share, an 11 percent increase.

Like with its peers, inflation shouldn't be a worry to them as investors seek a safe haven to protect their assets, with gold among the favorite targets.

Barrick (ABX) and Inflation, Rising Costs, Guidance

Barrick Gold (NYSE:ABX) and other miners have been garnering the attention of some who are concerned over the impact rising inflation and costs will have on the companies in light of their guidance.

The giant gold miner looks solid in that regard, as based on revenue topping $2.95 billion and gold production reached 1.7 million ounces at cash costs of $486 an ounce, or $326 an ounce if you include sales of byproduct metals. Barrick said it should produce from 7.6 million to 8 million ounces of gold in 2011 at cash costs from $450 to $480 an ounce. Cash costs will be up in 2011 over 2010 because of rising raw material costs and lower grade gold at some of the mines the company works.

But with Barrick generating 95 cents a share in the last quarter, a big boost of 55 percent over the same quarter last year, while also declaring a 12-cent dividend, it appears they're confident they can continue to generate healthy profits in a tough environment.

As for inflation, that should help all the gold mining companies, and investors flock to gold to protect against rising inflation, which should help drive up the price of gold.

Gold Prices Today Soar on EU Sovereign Debt Disaster

Black Friday temporarily captured the attention and imagination of traders and investors, but that is already past us and the potential contagion and ongoing disaster related to the EU sovereign debt crisis has them running to gold again for safety reasons.

Gold for February delivery at the Comex division of the New York Mercantile Exchange rose by $17.40 to $1,384.90 an ounce. Spot gold was at 1,384.10, rising by $16.80 as of 2:19 PM EST.

As has happened several times in the recent past, gold ignored the temporary rising value of the U.S. dollar, for imperceivable reasons, has also attracted those seeking safety.

At those times the two ignore the usual inverse relationship and rise together. That could continue to happen in the current economic climate for a short period of time.

Much of that will be determined by the perceived fate and value of the euro against the dollar as the narrative unfolds in Europe.

The problem seems to be the EU and news outlets are not reporting the true depth of the problem, which appears to be far worse than is being let on.

Greece, for example, recently stated their deficits are probably worst than last reported, which implies either outright dishonesty or ineptness; both of which are dangerous to the region, although at lower levels than the obvious repercussions if Spain were to require a bailout.

This seems to be the primary driver of gold at this time, and as long as the euro remains under pressure and the U.S. dollar moves up against it, gold and the dollar will probably rise together.

That will eventually change, but until it does, gold will most likely move up slower than it otherwise would have in light of other economic factors like the quantitative easing of the Federal Reserve.

Gold Prices Close Down Below $1,200 an Ounce

In somewhat of a past pattern, gold prices today have been moving downward, mostly on what is perceived as slowing demand in India.

Recent lower gold prices has began to create demand in physical ownership in gold rather than investing in the yellow metal.

Typically this part of the summer is considered a slow time for gold prices, and they usually will rebound later in the year.

I don't really think this is how it will play out this year, as they are too many variables, especially the terrible shape of the economies in the U.S. and Europe to think gold won't continue to be a safe haven factor throughout the summer months.

Nothing has changed there, and once this irrational optimism passes in equities, we'll see the underlying fundamentals return to the minds of investors, and gold resume its upward price movement.

This isn't to say there won't be temporary corrections, as we're experiencing now. But as soon as the latest negative economic news returns, investors will pour money back in gold again, and the prices will consequently rise with that.