Barrick and Goldcorp Bullish on Long-Term Gold Prices

Barrick Gold Corp. (ABX) and Goldcorp Inc. (GG) are still bullish on long-term gold prices despite the recent correction in the precious metal, according to a new note from Credit Suisse

In a wrap-up of last week's Denver Gold Forum, analyst Anita Soni told clients that Barrick believes the re-emergence of global inflation, low real interest rates and renewed credit concerns will continue to support higher gold prices.

Barrick added, she said, that underpinning these issues, is an environment of supportive supply demand fundamentals including declining mine supply and emerging market demand for gold.

In the meantime, Goldcorp argued that investors are only half way through a longterm bull market for gold, despite the surprise correction that has seen gold fall more than 10% this summer, the analyst wrote.

Ms. Soni also said that several producers expect M&A activity to pick up now that the recent pullback in equity prices has provided some attractive opportunities, especially for those companies with large cash balances.

Comments

[buying9876:]

With some major producers in South Africa and Canada saying they will not expand production until the gold price moves higher (than recent prices) I agree that this is the bottom of the correction and prices should rise over the next six months to at least $1000, possibly $2000 if China increases their gold reserves as some in their governemnt have suggested

2008 Sep 17 06:37 AM

[GMiki1:]

As with a tsunami in which the water first recedes, we've gotten the withdrawal. Soon, very soon, the onrush. How much longer can people remain in denial with what's going on in the markets? If this isn't a sea change, I don't know what is.

2008 Sep 17 08:43 AM

[ussmls7:]

The Fed or who ever puts out the inflation/deflation for the USA must live in a cave! The MSM needs to report from a place that gives the truth,such as "ShadowStats.com, it tells a total different story,also you see nothing about the huge Bank involvement in the Gold/Silver Price take down!

2008 Sep 17 10:04 AM

[leh:]

Gold up $50 this morning--the onrush is here! Time to load up on miners.

2008 Sep 17 10:46 AM

[davemcc3300:]

Barrick Gold up 13% in ONE day! No resistance below $37.50.

2008 Sep 17 06:04 PM

[sorgmot:]

Humpty and Dumpty sat on a wall. Humpty and Dumpty had a great fall.

All the King's horses and all the King's men could not put Humpty and Dumpty back together again.

September 17, 2008 was the day the US $ and just about any other fiat currency became too dangerous to hold because it is too dangerous to invest.

On that day gold rose 10% against the US $.while paper investments fell 4 % against the US $.

Blood is now in the streets.

Good luck.

2008 Sep 17 07:06 PM

[Billy Staples:]

Boy you guys easily lose me. I was with you till almost the end. blood on the streets...bad?

Goldcorp analyst said that gold lost more than 10 % this summer. Is there a figure to show where gold price was in relation to the 10% drop presummer? Was it's starting poing point before the drop a strong postion to take the loss and still be profitable? Ex: up 20? 30? 15% for those who don't have that info in front if them or can go run right to where it is, its seems like a good reference point.m(extreme newbie alert)
Regarding the mention of M & A activity, I have an interest in a rather small, speculative company that is growing the positive way and many positive geo results and hopeful findings. It too, rode the wave and got a nice bump the past day or 2.
what are some recommendations,that anyone cares to share for the smaller,'boutique' if you will drillers that look good, either on their own or M $ A targets. I am just for now keeping my investment to myself to see if I get a real opinion or good or bad about it in those who reply. I know, sneaky for a Neb.

Did you ever wonder what Michael Phelps would be worth if gold did go to 12-1500 an oz and the medals were real gold?
No McDonald's commercials

Thanks

Staples

thedarksize.com

2008 Sep 18 03:48 AM

[User 270765:]

I bought a couple of sets of gold coins several months ago, and I want to know generally what the valve could be after (if) congress buys the banks?

2008 Sep 26 03:03 PM