NEW YORK, NY -- (Marketwire) -- 03/28/12 -- Gold prices have been relatively muted this month due to strengthening investor optimism on the United States' economic outlook along with a sharp rise in treasury yields. The fall in gold prices has led one or more central banks to buy as much as four tons of bullion in recent weeks, according to a recent Financial Times report. Five Star Equities examines the outlook for companies in the Gold industry and provides equity research on Newmont Mining Corporation (NYSE: NEM) and NovaGold Resources Inc. (NYSE Amex: NG) (TSX: NG). Access to the full company reports can be found at:
According to the 'Mineral Commodity Summaries 2012' recently released by the U.S. Geological Survey the world's gold-producing countries bolstered their output in 2011, producing a total of 2,700 tons of gold, a 5.5 percent increase on 2010. According to the China Gold Association, China's gold output reached a record high of 360.96 tons in 2011, cementing its top global ranking for the fifth consecutive year. Statistics from China's Ministry of Industry and Information Technology also show that the country's gold mining sector continued to expand in January with a rise of about 3.69% from the same month a year ago.
China's increasing gold output remains nowhere near the country's huge appetite for consuming gold, however, which rose to roughly 800 tons in 2011.
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.
While gold prices are finally falling off 52 week highs, gold mining stocks continue to lag near 52 week lows. Patrick Chidley, mining analyst for HSBC, argues that gold miners are "expanding their margins rapidly and as their earnings increase, these companies are paying very strong dividends."
The Market Vectors Gold Miners ETF (GDX) -- which seeks to replicate an index that provides exposure to publicly traded companies worldwide involved primarily in the mining for gold, representing a diversified blend of small, mid and large-capitalization stocks -- is down more than seven percent over the last month.
Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: www.fivestarequities.com/disclaimer