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| Updated: 10 Nov., 2008 |
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By Charles Kubach, Mine-Engineer.Com 10 Nov., 2008 |
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Gold continues to have a bright outlook, despite the two largest producers, Newmont Gold (NEM) and Barrick Gold (ABX) reporting increased cash costs for producing a ounce of the yellow metal of $480 and $460, respectively. Costs rose due to increased fuel and energy costs, increased contractor costs. The price of gold hovered in the $720 to $750 range, much more stable than the stock market. The gloomy outlook for the world economy will bode well for the doomsday metal, as more astute investors look to add gold to their depleted stock portfolios, anticipating a uncertain economic outlook for the coming year. India gold sales have increased significantly, as the price of gold fell to around $750/ounce. Dubai has also noticed a reversal of gold sales, that is consumers selling gold jewelry back to jewelers. Both the consumers convert their gold jewelry to cash and reap profits from gold bought a lower prices, while the jewelers are also turning a profit buying the gold. Dubai jewelers expect the upcoming holiday season to improve gold sales, with gold in the $750/ounce range. So, gold could finish the 2008 year with a bang, instead of a whimper. Will it? Stay tuned, I think it will. |
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