Shares of Paramount Gold and Silver Rally With the Bullion While Newmont Mining Lags
January 31 2012 - 8:20AM
Marketwired
Gold prices have been on the upswing this month as the Fed signaled
it may keep interest rates low through 2014. Even the GDX, which
seeks to replicate as closely as possible, the price and yield
performance of the NYSE Arca Gold Miners Index, has shown signs of
strength in January, surging more than 10 percent. Five Star
Equities examines the outlook for companies in the Gold industry
and provides equity research on Paramount Gold & Silver
Corporation (NYSE Amex: PZG) (TSX: PZG) and Newmont Mining
Corporation (NYSE: NEM). Access to the full company reports can be
found at:
www.fivestarequities.com/PZG www.fivestarequities.com/NEM
Over the past year, the GDX has underperformed the price of gold
by a large margin. While the SPDR Gold Trust ETF -- which attempts
to reflect the performance of the price of gold bullion--- is up
nearly 30 percent year-on-year, the GDX has grown a mere 5 percent
over the same period.
According to a recent article from International Business Times,
gold stocks have lagged the price of gold due to a number of
factors, "including operational disappointments, rising cost
structures, elevated political risk in many locations of their
assets, and macroeconomic headwinds that have weighed on the equity
markets."
Five Star Equities releases regular market updates on the Gold
industry so investors can stay ahead of the crowd and make the best
investment decisions to maximize their returns. Take a few minutes
to register with us free at www.fivestarequities.com and get
exclusive access to our numerous stock reports and industry
newsletters.
Shares of Newmont Mines have lagged fellow gold miners this
month after the company said it expected production costs to
increase to US$625 to US$675 (NZ$778 to NZ$840) an ounce of gold,
from US$560 to US$590 an ounce in 2011. The company blamed higher
labour and power prices and a looming carbon tax for a forecast
rise in costs. Newmont Mining Corporation, together with its
subsidiaries, engages in the acquisition, exploration, and
production of gold and copper properties.
Shares of Paramount Gold and Silver are up more than 17 percent
this month. Paramount Gold and Silver is an exploration stage
mining company with projects in northern Nevada and Chihuahua,
Mexico.
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