Gold Stocks Take Pain

Source: Mineweb.com  (10/16/07)

While the further rise in gold bullion over the past two months has apparently confirmed a protracted bull market for the metal, investors have shown a reluctance to invest in gold stocks generally, with serious interest confined to a handful of leading Tier I gold stocks, along with a highly selected list of stocks outside that category.

Gold bullion lost around US$10 an ounce, to around US$750 an ounce in early North American trade on Tuesday, triggering a sell off in gold stocks, and confirming negative sentiment towards the sector. While the further rise in gold bullion over the past two months has apparently confirmed a protracted bull market for the metal, investors have shown a reluctance to invest in gold stocks generally, with serious interest confined to a handful of leading Tier I gold stocks, along with a highly selected list of stocks outside that category.

Trade on Monday saw Tier I price leader Kinross rise to new levels, while Tier I peer member Lihir scored fresh highs early on Tuesday. Outstanding stock price performances have also been noted for Goldcorp and Barrick , the world's biggest gold digger, and by far the most heavily capitalised gold stock in the world, at $36bn.

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