Gold Mining Industry Analysis Essay

Words: 917
Pages: 4

Gold Mining Industry Analysis
By: Robert


The Gold Mining Industry has experienced a huge amount of growth since the beginning of the financial crisis. With the price of gold being at $639 in January 2007 before the beginning of the financial crisis and now in June 2010 the price of gold reaching $1220, there is no denying the interest of gold between investors and governments. Investors are seeking ways to protect themselves from inflation and any other type of financial crisis that may be on the horizon.
With the uncertainty that the world financial markets are facing over the next three years and the relation that gold has with the worlds currency, the U.S. dollar, it can be safely assumed that the price of gold will
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Newmont Gold Mining Corporation has been an industry leader for several decades and May 2010 they were spotlighted by Gold Speculator with this listing: “The gold group, represented by Newmont Mining, was the best-performing group for the week, rising 6 percent. The price of gold increased nearly 2 percent during the week.” (Gold Speculator 2010)
“The miner has acquired a reputation as a slow-growth outfit relative to its large-cap gold mining peers, such as Barrick, Goldcorp and Kinross. (Newmont expects to produce 5.3 million and 5.5 million ounces in 2010, basically flat with a year earlier.) But the elevated price of the yellow metal, which has traded in a range above the mythic $1,000-level since touching its all-time high in early December, has helped Newmont reap profits.” (The Street 2010)
Newmont will continue to be recognized for its achievements within the industry and will continue to be one of the main standard bearers for all gold mining corporations. As individuals and governments continue to seek the safety from volatility of the world’s currencies, Newmont will continue to supply the sought after product of gold and will continue their exploration of other precious metals.