Newmont (NEM) (IAG) (KGC) (EGO) (ABX) (AEM) (AUY) Had Ratings on Them Initiated

Newmont Mining Co. (NEM), IAMGOLD Corp. (IAG), Kinross Gold Corp. (KGC), Eldorado Gold Co. (EGO), Barrick Gold Corp. (ABX), Agnico-Eagle Mines Limited (AEM), Yamana Gold (AUY) had ratings on them initiated by analysts.

Barclays Capital initiated coverage on Newmont Mining Co. (NEM). They placed an "Overweight" rating and price target of $73.00 on the company.

Barclays Capital initiated coverage on IAMGOLD Corp. (IAG). They placed an "Equal Weight" rating and price target of $19.00 on the company.

Barclays Capital initiated coverage on Kinross Gold Corp. (KGC). They placed an "Equal Weight" rating and price target of $13.00 on the company.

Barclays Capital initiated coverage on Eldorado Gold Co. (EGO). They placed an "Equal Weight" rating and price target of $18.00 on the company.

Barclays Capital initiated coverage on Barrick Gold Corp. (ABX). They placed an "Equal WeightThey placed an "Equal Weight" rating and price target of $52.00 on the company.

Barclays Capital initiated coverage on Agnico-Eagle Mines Limited (AEM). They placed an "Equal Weight" rating and price target of $62.00 on the company.

Barclays Capital initiated coverage on Yamana Gold (AUY). They placed an "Overweight" rating and price target of $25.00 on the company.

Newmont (NEM) Slashes Gold Production Estimates at Batu Hijau

After Newmont Mining (NEM) announced its gold and copper production estimates were significantly lowered, it also said it plans on cutting workers and other costs at it Batu Hijau Indonesian mine.

Saying it is now costing the company $1 million a day in cash flow to work the mine because of the low quality of the rock it is now mining.

Gold production for 2012 was downwardly revised from 114,000 ounces to 71,000 ounces. Copper production estimates were cut from 192 million pounds to 170.6 million pounds.

In 2011 the mine produced approximately 282 million pounds of copper and 318,000 ounces of gold for Newmont and its partners Sumitomo (8053.T) and Bakrie Group.

Expectations are low production will continue through 2013. Going into 2014 and 2015, the firm sees production rebounding at the mine as they tap into the more productive core ore body once again. The coming is preparing to widen the pit in the near future.

The lower production appears to present more problems for Newmont, as in November negotiations with workers will begin, with expectations high on their part of major wage increases after Freeport McMoRan Copper & Gold (FCX) workers gave its workers a huge 37 percent boost in wages over a two-year period in the latter part of 2011.

According to Newmont, it's looking at cutting costs, which will surely strain negotiations with workers.

Batu Hijau general manager, Ian McGaffin, said, "We are looking at trimming costs from all facets of our business including mining and processing and support costs. This includes reviews of contract services, parts and supplies, and salaries and wages."

Also a challenge for Newmont and other miners working in Indonesia is the change in rules in 2012 which now require companies to divest 51 percent of their mine assets after operating in the country for a decade. At that time they are also expected to pay a 20 percent levy on raw ore exports.

What is highly unlikely even though made a rule for miners, is all ore is to be smelted locally in Indonesia by 2014. No one thinks that will have any teeth to it, as no miners have plans in place to add more smelting capacity in the world, as there are already more than are needed.

Newmont does have to walk a fine line though, as Elang, another mining resource discovery close to Batu Hijau, could have more resources than that mine. That has yet to be confirmed though.

Newmont closed Friday at $56.01, falling $0.53, or 0.93 percent.

Newmont (NEM) (MPC) (EXC) (OKE) (WPZ) Boost Dividends

Newmont Mining Corporation (NEM), Marathon Petroleum Corporation (MPC), Exelon Corporation (EXC), ONEOK, Inc. (OKE) and Williams Partners L.P. (WPZ) all recently increased dividends.

Marathon Petroleum Corporation (MPC) raised its quarterly dividend 40 percent to $0.35 a share. The dividend is payable September 10, 2012 to shareholders of record as of the close of business August 16, 2012.

Exelon Corporation (EXC) boosted its quarterly dividend 38.5 percent to $0.525 a share. The dividend is payable September 10, 2012, to shareholders of record of Exelon at 5:00 p.m. EST on August 15, 2012.

ONEOK, Inc. (OKE) raised its quarterly dividend 8.2 percent to $0.33 a share. The dividend is payable August 15, 2012, to shareholders of record at the close of business August 6, 2012.

Newmont Mining Corporation (NEM) increased its quarterly dividend 17 percent to $0.35 a share. The dividend is payable on September 28, 2012, to holders of record at the close of business on September 6, 2012.

Williams Partners L.P. (WPZ) raised its quarterly dividend 2 percent to $0.7925 a unit. The dividend is payable on August 10, 2012, to unitholders of record at the close of business on August 3.

Barrick (ABX) (GG) (IAG) (EGO) (KGC) (NEM) Rise on Higher Gold Future Prices

IAMGOLD Corporation (NYSE:IAG), Eldorado Gold Corporation (NYSE:EGO), Kinross Gold (NYSE:KGC), Newmont (NYSE:NEM), Goldcorp (NYSE:GG) and Barrick Gold (NYSE:ABX) all closed in positive territory Thursday as gold futures continued to rise.

Gold futures for August delivery climbed $4 to $1,547.70 an ounce. Silver prices were also up, settling at $37.32 an ounce, a 2 percent gain.

NovaGold Resources Inc. (AMEX:NG) was among the few miners closing in negative territory.

The job market in the U.S. continues on its disastrous journey, as the number of people applying for unemployment benefits for the first time rose to 427,000 last week. Economists had been looking for the number to drop to 419,000. The number applying for jobless benefits rose from the prior week as well, being upwardly revised from 422,000 to 426,000.

Gold was also the benefactor of the decision by the European Central Bank in keeping its interest rate unchanged, although it hinted it may raise interest rates in July.

The European Central Bank kept its key interest rate at 1.25 percent. The Bank of England left its main interest rate unchanged at 0.50 percent, a record low.

Kinross Gold closed Thursday at $15.63, up $0.54, or 3.58 percent. Eldorado Gold Corporation closed at $14.46, gaining $0.39, or 2.77 percent. IAMGOLD Corporation ended the session at $20.97, rising $0.59, or 2.89 percent. Goldcorp closed at $47.59, jumping $0.57, or 1.21 percent. Barrick Gold ended the day at $44.40, climbing $0.08, or 0.18 percent. Newmont closed at $52.92, increasing $0.58, or 1.11 percent.

Yamana (AUY) (GG) (NEM) (EGO) (KGC) Close Down as Gold Prices Fall

Yamana Gold (NYSE:AUY), Goldcorp (NYSE:GG), Newmont Mining (NYSE:NEM), Eldorado Gold Corporation (NYSE:EGO) and Kinross Gold Corp (NYSE:KGC) all closed down as gold prices fell on Tuesday.

Gold for August delivery fell in New York to $1,544 an ounce, a loss of $3.20.

The euro strengthened against the U.S. dollar, to a high of $1.4696. The dollar was also down against the Swiss franc to 0.8327. Against a basket of major currencies the dollar dropped to 73.506.

The Dow Jones industrial average was down 19.15 points, or 0.16 percent, to close at 12,070.81. The Standard & Poor's 500 Index dropped 1.23 points, or 0.10 percent, to end at 1,284.94. The Nasdaq Composite Index fell 1.00 point, or 0.04 percent, to close at 2,701.56.

Yamana Gold closed Tuesday at $12.02, down $0.13, or 1.07 percent. Goldcorp ended the day at $47.99, falling $0.39, or 0.81 percent. Newmont Mining closed at $52.94, declining $0.50, or 0.94 percent. Eldorado Gold ended at $14.52, dropping $0.23, or 1.56 percent. Kinross closed at $15.44, losing $0.17, or 1.09 percent.

NovaGold (NG) (GG) (NEM) (GFI) (ABX) Lag Rising Gold Prices

NovaGold Resources Inc. (AMEX:NG), Goldcorp (NYSE:GG), Newmont Mining (NYSE:NEM), Gold Fields (NYSE:GFI) and Barrick Gold (NYSE:ABX) all closed down Wednesday, lagging behind rising gold prices responding to a fragile and weak American economy, as well as weak manufacturing numbers from China and the EU.

Gold and silver went in opposite directions on Wednesday after an employment report from the ADP said an anemic 38,000 jobs were added in May, while the figure for April was downwardly revised by 2,000.

Weak manufacturing numbers from China, the U.S. and the European Union pressed on silver, although it did gain some back as the trading day advanced.

News that Germany may get behind another bailout of the insolvent Greece was also considered a positive by the market, and could put some pressure on gold if the €60 billion expected to be lent to Greece is put into effect.

The realization the United States is in fact not in a recovery is counteracting the positive news out of Europe, and will probably be a stronger determining factor in gold and silver prices than any other consideration.

Gold for August delivery climbed $6.40 to $1,543.20 an ounce. Silver for July delivery was down 61.1 cents to settle at $37.694 an ounce.

Kinross Gold was able to close slightly in positive territory on Wednesday. Most of the major gold miners were trading up after hours.

Barrick closed at $47.28, falling $0.48, or 1.01 percent. NovaGold ended the session at $11.23, dropping $0.23, or 2.01 percent. Newmont closed at $55.67, down $0.90, or 1.59 percent. Goldcorp was at $49.46, declining $0.61, or 1.22 percent. Gold Fields ended at $16.05, falling $0.39, or 2.37 percent.

Newmont (NEM) (GG) (ABX) (NG) (EGO) Trade Higher as Gold Jumps

A weakened U.S. dollar and dismal data about an 11.6 percent drop in pending home sales has offered gold and silver prices support today, with major miners like Newmont Gold (NYSE:NEM), Goldcorp (NYSE:GG), Barrick Gold (NYSE:ABX), Novagold (NYSE:NG) and Eldorado Gold (NYSE:EGO) all trading in positive territory.

Gold for June delivery was up $10.60 to $1,533.40 an ounce at the Comex division of the New York Mercantile Exchange. It has traded in a range of $1,518.40 to $1,535.50.

Silver prices were climbing 64 cents to $37.97 an ounce while the U.S. dollar index fell to $75.08, losing 0.66 percent.

Kitco.com senior analyst Jon Nadler said he believes thinks gold will have to wait to gain momentum until after Memorial Day weekend. "I think you're looking at bargain hunters in the $1,480-$1,500 range in gold but again we have to overcome decisively the $1,530-$1,540 area until we can talk about higher levels."

Eldorado Gold was trading at $16.07, gaining $0.26, or 1.64 percent, as of 12:36 PM EDT. NovaGold was at $11.53, up $0.24, or 2.17 percent. Newmont Mining was trading at $56.62, rising $0.79, or 1.42 percent. Goldcorp was at $50.19, climbing $0.26, or 0.52 percent. Barrick Gold was at $47.63, jumping $0.46, or 0.98 percent.

Barrick (ABX) (GFI) (GG) (NEM) Close Up Even as Gold Settles Slightly Down

Shares of Barrick Gold (NYSE:ABX), Gold Fields (NYSE:GFI), Goldcorp (NYSE:GG) and Newmont Mining all closed up on Thursday, even as gold prices traded slightly down.

Gold for June delivery declined $3.90, or 0.3 percent, to $1,522.80 an ounce.

Gold for August delivery was down $4.10, or 0.3 percent, to $1,523.70 an ounce in the Comex division of the New York Mercantile Exchange.

July silver fell 31 cents to settle at $37.33 an ounce, lower by 0.8 percent.

Trading was light as we approach Memorial Day weekend in the United States.

The U.S. dollar was weaker, as was economic data, but it wasn't enough to push up the price of gold, while other metals traded mixed.

First-time jobless claims were up again last week, jumping 10,000 remain above the 400,000 mark.

Barrick Gold closed at $47.12, rising $0.31 or 0.7 percent. Gold Fields ended at $16.10, up $0.27 or 1.7 percent, to . Goldcorp closed at $49.76, gaining $0.22 or 0.4 percent. Newmont Mining ended the session at $55.61, jumping $0.40 or 0.7 percent.

Newmont (NYSE:NEM) Interested in Developing Afghanistan Mines

Newmont Mining Corp. (NYSE:NEM) has reportedly shown an interest in developing mines in Afghanistan, according to the Minister of Mines Wahidullah Shahrani in a Bloomberg interview.

“They also expressed their interest in coming and investing in the gold mines of Afghanistan,” Shahrani said. “Since then, there has been some communication on getting some information from the government of Afghanistan.”

The troubled country is attempting to generate interest in the development of their mineral resources to produce jobs and revenue. In about five years Sharani expects to generate revenue up to $1.2 billion annually, and over a ten to fifteen year period, increase that to $3 billion to $3.5 billion.

That includes all its mineral resources, not only gold.

United Mining (TSE:UMG) Lands Western CEO, Newmont (NYSE:NEM) Executive

United Mining (TSE:UMG) announced it has landed former Western Canadian Coal CEO and president Charles Pitcher, who will step into the role of CEO for the miner.

They also added former Senior Vice President and General Counsel for Newmont Mining (NYSE:NEM), Graham (Chip) Clarke, Jr., who landed the role of Independent Director for United.

CFO Erik Panke resigend as Non-Independent Director to make room for Clark, Jr. to step in as Independent Director. Panke will remain on as CFO and Corporate Secretary for United.

Chairman Greg Stewart will continue on in that position, as well as President of the company, adding the role of COO to his duties. Stewart founded the company.

Pitcher said about his new job, "I wish to thank Greg Stewart and the UMG Board for this appointment. Over the years, Greg Stewart has built a superb mining services company, which has expanded to include the Crescent Silver Mine. I compliment Greg and his team for their superlative work. I look forward to working with Greg and his team to move UMG to the next level of growth."

Steward said in a press release about landing Pitcher, "Charles Pitcher has the senior mining experience which is critical to our company, especially as we move towards production on the Crescent Silver Mine. Chip Clark has the experience and connections in the mining world which will be indispensable to our growth. I am proud to welcome Charles and Chip to the UMG team. I would like to thank Erik Panke for his considerable help as Director. His contribution to obtaining our TSX listing was indispensable."

Goldcorp (NYSE:GG), Barrick (NYSE:ABX), Newmont (NYSE:NEM) and Kinross (NYSE:KGC) All Up on Record Gold Prices

Weak economic news from Europe, confirming the ongoing weak global economy, has shares of Goldcorp (NYSE:GG), Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM) and Kinross Gold (NYSE:KGC) all moving up with the price of gold.

Gold on the New York Mercantile Exchange reached a record high of $1273.40, jumping $25.90 for December delivery.

A weaker U.S. dollar may have contributed a little earlier in the session, but the price movement of gold shows investors aren't buying into the hype that there is an economic recovery.

Mainstream financial news targets every bit of positive for their man Obama, while lightly covering the economic disaster growing under his administration.

Investors and business know the real conditions, and the ongoing weakness confirms we're a long way from any real recovery, and gold will continue its long bull run in response to those realities.

Barrick (NYSE:ABX), Newmont (NYSE:NEM), Goldcorp (NYSE:GG) Up on Rising Gold Prices

The gold price today moved up quickly in the morning, and has remained level as the trading day goes on, with major gold miners Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM) and Goldcorp (NYSE:GG) moving up with them, as investors continue to seek safety in the midst of economic weakness and uncertainty.

Spot gold was up $11.20, bringing the price to $1,247.60 an ounce as of 2:39 PM EDT. Gold prices are starting to move downward slightly now, although remaining flat after the huge jump in the morning.

Barrick Gold was at $46.95, gaining $0.61, or 1.32 percent at 2:40 PM EDT. Goldcorp reached $44.40, an increase of $0.67, or 1.53 percent, as of 2:41 PM EDT. Newmont Mining was up the most of the three, reaching $61.27, up $1.35, or 2.25 percent.

Out of control government spending which has done little, if anything, for the economy, and continued bad news from most parts of the economy have investors scrambling to gold to protect their capital, while at the same time enjoying decent returns.

Lihir Gold (Nasdaq:LIHR) Posts $87 Million Profit

Lihir Gold, Limited (Nasdaq:LIHR), which is soon to be taken over by Newcrest Mining (ASX:NCM), turned around in the first half, generating net earnings of $87 million, after losing $301 million in the same period a year ago.

Once the merger between the two companies is completed, Lihir will be included as part of the fourth-largest gold company in the world, behind Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM), and Goldcorp (NYSE:GG).

Guidance for production remained the same as prior estimates, with expectations of 1 million to 1.1 million ounces of gold to be mined for the full year.

Newmont (NYSE:NEM) Claims Indonesian Company Lied Regarding Divestiture

Newmont Mining Corp (NYSE:NEM) lashed back at an Indonesian company, saying 'PT Pukuafu Indah' (PTPI) lied in reference to Newmont divesting of a company in Indonesia which operates one of their mines.

Blake Rhodes, Newmont's vice president and deputy general counsel, said this in a press release, "Certain of PTPI's public assertions - including that PTPI paid Newmont for some or all of the divestiture shares - are patently false as Newmont did not receive any such payments."

The company in question is PT Newmont Nusa Tenggara (PTNNT), which is a joint venture between Japan's Sumitomo Corp and Newmont.

What it battle is over is the right to acquire shares which Newmont had divested of in PTNNT. Under Indonesian law the requirement is to sell it to another Indonesian company.

"PTPI has long wished to have a right to acquire the divestiture shares," Rhodes added. "The Indonesian government, however, has an explicit right of first refusal under the Contract of Work. PTPI's claims are contrary to the government's priority rights."

Newmont is in the middle of selling it last 7 percent stake in PTNNT at this time.

Barrick (NYSE:ABX), Newmont (NYSE:NEM) Out, Newcrest for Lihir (NASDAQ:LIHR) Acquisition

Rumors are winding down as clarity comes to the Lihir Gold Limited (NASDAQ:LIHR)acquisition story in connection to Newcrest Gold, as potential suitors Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) are apparently no longer interested in the company, clearing the way for the process to go forward.

Lihir shareholders voted their approval today to allow the merge to go forward, which will create a company valued at about A$25 billion. Measured by market cap, that will create the fourth-largest gold miner in the world.

The one remaining obstacle is the approval of a Papua New Guinea court, which is scheduled for August 27, with the scheme of arrangement taking effect on August 30.

Shareholders of Lihir will receive one Newcrest share for each 8.43 Lihir shares held, plus and additional 22.5 cents in cash for each share they hold.

Eldorado Gold (NYSE:EGO) Fastest Growing Company in 2010

It's interesting and not all that surprising that the usual fastest-growing company in 2010 isn't a tech company, but rather, a gold miner. In this case, Eldorado Gold (NYSE:EGO), according to Fortune Magazine's list of the '100 Fastest-Growing Companies for 2010.'

Surprisingly, Eldorado Gold was the only gold miner on the list, although if gold prices continue to rise as they're expected to, that should change.

One problem that is accompanying the rise in gold prices, especially for smaller and mid-tier miners, is that costs have been rising along with prices, and these miners usually are highly leveraged and unable to control costs in the way better-positioned gold miners like Eldorado are, or major miners like Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM) and Goldcorp (NYSE:GG) are able to, although even there some are struggling more than in the past.

For Eldorado, their competitive advantage is their position in China, where they are able to produce gold at lower costs than their competitors who either aren't exposed there, or have limited exposure.

There is also the increase in demand from China, which is now the fastest-growing consumer of gold in the world, and second in consumption only behind India.

With that in mind and Eldorado strongly positioned to supply growing demand at low costs, they should have a solid future in reference to growth, assuming they can keep costs under control.

JPMorgan (NYSE:JPM) Likes Newmont (NYSE:NEM), Freeport (NYSE:FCX), Caterpillar in Near Term

In a report from JPMorgan (NYSE:JPM), they advised investors to focus on companies which would benefit from an economic rebound, including commodity companies like Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) and Newmont Mining (NYSE:NEM), and those providing equipment for them like Deere & Co. (NYSE:DE) and Caterpillar (NYSE:CAT).

Some other companies noted were CMS Energy Corp. (NYSE:CMS), Entergy Corp. (NYSE:ETR), and Ashland (NYSE:ASH), among a number unrelated to raw materials.

The report focuses on what JPMorgan called the “Circle of Life,” which refers to companies holding assets which follow cycles of peaking, breaking down, bottoming and recovery, said the banker.

What seems to be the major problem with the premise is it's completely based on JPMorgan's guess that the U.S. economy will actually recover, which most data show it isn't, and taking away the stimulus, probably has never left the recession.

JPMorgan Chief U.S. Equity Strategist Thomas J. Lee, said this in the report, “We remain confident that the U.S. economy is unlikely to enter a ‘double-dip’ scenario. It is more appropriate to focus on the areas that are likely to benefit as activity levels normalize.”

That is so unlikely as to not be taken seriously, but even as the recession continues, that doesn't mean some of these companies may prove to be profitable.

Newmont, for example, will no doubt surge, as the price of gold continues to rise, and possibly those providing equipment and machinery to miners and agriculture, like Caterpillar and Deere, could also move higher as demand continues to grow. But that should probably be looked at as long-term scenarios rather than short-term, as far as machinery providers go.

The weak housing market could possibly offset the revenue and earnings from big equipment companies, but they at least have some positive support in some of the segments.

Barrick (NYSE:ABX), Goldcorp (NYSE:GG), Newmont (NYSE:NEM), Agnico-Eagle (AEM) All Up as Gold Rebounds

After starting off slow in earlier in the trading session, gold prices today advanced in the afternoon, pulling the share prices of major gold miners like Barrick Gold (NYSE:ABX), Goldcorp (NYSE:GG), Newmont Mining (NYSE:NEM) and Agnico-Eagle (AEM) up with it.

The story for gold prices at this time is the revelation the American and global economy isn't even close to being robust and in a recovery as asserted in the not too distant past, which has not only added support under gold, but has aided it in continuing its inevitable long-term upward climb in price.

All the major gold miners listed above had gains of 2 percent or better as of about 3:10 PM EDT in New York. Trading volume was below the 3-month average for all of them though, especially with Newmont Mining and Barrick Gold.

After the stimulus had been lowered and/or removed, the economy has been seen to be as naked as it really has been all along, and continued spending can't and won't change that.

But that won't keep the Treasury and Federal Reserve from continuing to take steps which over the long term will devastate the economy, but will be a reason to invest in gold for a long time to come.

Eton Park Buys SPDR Gold Shares (NYSEArca:GLD), Gold Fields (NYSE:GFI) in Last Quarter

Eton Park Capital Management LP, the $13 billion hedge fund run by Eric Mindich, moved a significant amount of capital into the gold market last quarter, acquiring shares of SPDR Gold Shares (NYSEArca:GLD) and Gold Fields Ltd. (NYSE:GFI).

Mindich acquired 6.58 million shares of SPDR and 780,000 shares of Gold Fields in the quarter via Eton Park.

SPDR Gold Shares has been one of the favorites of hedge funds in the past, and continues to be. Other major hedge fund holders of SPDR include John Paulson and George Soros, although both held their positions and didn't add any shares last quarter.

They did add gold miners, including Gold Fields by Paulson and Soros as well.

Major gold miners were targeted by major hedge funds in general, with Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM) and Goldcorp (NYSE:GG) among the largest increase in holding for funds, accounting for the sixth, seventh and eight places in the order listed above.

SPDR Gold Shares landed in second place as far as the greatest increase in investments from hedge funds in the latest quarter, with all of them together holding 68.2 million shares in SPDR.

With data showing a continuing weak global and American economy, we should see an even larger increase for the current quarter of hedge fund holdings in gold.

Barrick (NYSE:ABX), Newmont (NYSE:NEM) and Goldcorp (NYSE:GG) to Become Next Freeport-McMoRan (NYSE:FCX)?

It's instructive to watch the major gold miners like Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM), Goldcorp (NYSE:GG) and Kinross (NYSE:KGC) make acquisitions, as it tells a story of where the current gold mining industry is going, at least with the larger companies.

One thing to consider is because the gold price is high and economic conditions ripe for it to continue to rise, we hear the focus of the miners primarily on gold.

But in the background they've been quietly buying up properties, while which including gold, also have a lot of secondary metals included with the acquisitions.

The gold miners will continue to rise in share price, but the question in the back of a lot of investors' minds over the long term is what happens after the prices end their run.

Answers to that question are obvious, and the gold mining companies are starting to act more like a company like Freeport-McMoRan (NYSE:FCX) than pure gold miners, even though they're positioning themselves primarily as gold companies in the current economic environment.

Interestingly, Freeport gets a lower valuation than Barrick Gold, and is just ahead of Newmont and Goldcorp in market value.

That shows the premium being placed on gold at this time by investors, and that will remain that way until the gold bull market runs it course, which could easily be several years into the future, or more, depending on the actions of central banks and governments around the world; especially the Federal Reserve in the U.S.

An amazing part of this is the major gold miners, by investing in a diverse amount of metals, will become better companies, but could lose market value because they won't be considered pure gold miners any longer.

This probably won't happen anytime soon, but once the bull market is over, we'll probably see the miners named above, and others, position themselves as base metals companies, or if a particular metal or metals are hot at that time, as whatever that metal may be ... such as copper, etc.

We'll probably see a much stronger metals market at that time, and increased and more robust competition as the demand for metals soars as emerging market middle classes increase their expendable income.