Wednesday, May 12, 2010

Agnico-Eagle (NYSE:AEM), IAMGOLD (NYSE:IAG), Barrick Gold (TSE:ABX) Down for Record Gold Day

Even though skyrocketing gold futures prices have been pulling the gold mining companies up with them, as investors seek safe haven for their capital, Agnico-Eagle (NYSE:AEM), IAMGOLD (NYSE:IAG) and Barrick Gold (TSE:ABX) were among the few gold miners on the wrong side of the movement, as all of them were down at the end of the trading session, although Agnico-Eagle did go to the positive side in electronic trading.

Gold miners had been sitting on the sidelines for a lot of the gold bull market, as they lagged behind gold futures for some time. That now seems to have changed, and we could see some nice moves now that it appears the sector has finally broken through.

Silver may be about to experience the same thing, as they were pulled upward by the sharp increase in gold prices, and when it breaks $20 an ounce, who knows what will happen if it suddenly takes off.

Most of this is in response to investor concerns over the consequences of bailing out irresponsible countries in Europe, and to a lesser degree, the inflation challenges now facing China, which measures could cut back on demand for raw materials.

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