Wednesday, March 17, 2010

Newmont Mining (NYSE: NEM): Gold Going Up!

Newmont Mining Says Confident Gold Prices Going Up

Newmont Mining (NYSE: NEM) is the largest producer of gold based in the United States, and the company recently stated they are "confident" gold prices will continue to rise in 2010.

I agree, as there is little to stand in the way of gold prices increasing, and the surged yesterday on the news from the Federal Reserve interest rates will continue to stay where they're at for now.

But even if interest rates increase near the end of the year, which many analaysts believe will happen, I don't see that having a negative impact on gold prices, as there are many other factors undergirding the price of gold.

This doesn't mean there won't be a correction, just that it won't hold after the initial reaction.

Eventually money will start being borrowed out by banks, and when that happens, inflation will surge as the growing demand for iron ore in China and the steel industry shows.

That's a prelude to how commodity prices in general will perform once demand explodes again, which it will. That means gold will continue to be a major place to put your money to protect against inflation and as a place of safety.

Newmont Mining Says Confident Gold Prices Going Up

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