According to Adam Graf for Dahlman Rose & Co. a lot of companies and a lot of projects have royalties, gross revenue royalties or net revenue royalties on some of their gold flows. If your gold price goes up, so do those cost elements. And so a lot of these companies are sensitive to currencies and diesel price. This is important to consider when speculating on a gold investment. [Where Gold ETFs Are Headed in 2010.]
As of Wednesday, gold prices were at $1,150 an ounce as investors bought the precious metal. The news that the Federal Reserve would keep interest rates lower caused this gold speculation.
Steel also reports that gold prices were fighting a stronger U.S. dollar and finding support from traders after the Bank of Japan held key interest rates at 0.1%. Also, reassurance from the Federal Reserve that it’s more concerned with economic conditions than with raising rates also renewed the interest in gold. [Gold Miners Had Been Quiet.]
For more stories about gold miners, visit our gold miners category.
- Market Vectors Junior Gold Miners (NYSEArca: GDXJ)
- Market Vectors Gold Miners (NYSEArca: GDX)
