Friday, January 29, 2010

Goldcorp's (TSX:G)(NYSE:GG) Bearish Price Moves

Goldcorp (TSX:G)(NYSE:GG)

Along with some of the other major gold companies, Goldcorp (NYSE:GG) has been participating in the downward plunge in gold prices; not an unexpected event.

Gold futures were the main instigator in pulling shares in Goldcorp down on Thursday, as they moved in response to other market forces as well.

George Soros announced yesterday that he believed gold was in the ultimate bubble position, but I don't think that's the case, as it seems Soros is only basing his assertion on gold rising in price over the last couple of years rather than who was buying it.

Most average investors have no stake in gold in any form, and so until we those investors migrate in a big way toward gold, it's doubtful we'll be in a gold bubble until that time.

We'll obviously have corrections in gold prices based on the endless announcements by Obama to rein in the financial institutions, but that's still largely rhetoric and trial balloons, as there isn't anything detailed yet other than throwing out possible scenarios.

Inflation and safety concerns continue to drive gold prices up, and over the long haul there's nothing in the economic picture which would change that reality any time soon.

Goldcorp (TSX:G)(NYSE:GG)

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