Investment stocks for gold

in Gold Gold Bullion prices GOld juniors Mining companies Uncategorized by admin — September 9, 2009 5:35 pm | no comments

Gold miners poised for gains.Gold stocks were on fire today, on higher gold prices overnight.

The yellow metal has been climbing since last week, but there is still some debate as to whether the new highs are sustainable.

Still, September is typically a month when the price for gold rises because of increasing demand largely from Asia, and a weaker U.S. dollar.

The metal has risen in 16 of the 20 Septembers since 1989, Frank Holmes, chief investment officer at U.S. Global Investors, said in a recent commentary.

Gold investment stocks

Here is some recent data

HIGHEST RISES IN A SELLERS MARKET

A total of 35 stocks (or 20.0%) rose in a sellers market where turnover at ask exceeded turnover at bid. Major price rises included:

Heron Resources (ASX: HRR) which soared 11c (or 13.1%) to close at 95c. Turnover at ask of $176,096 outweighed 6.1 times turnover at bid of $28,773.

Kingsgate Consolidated (ASX: KCN) which soared 38c (or 10.9%) to close at $3.87. Turnover at ask of $1.91 million outweighed 1.9 times turnover at bid of $1.01 million.

Admiralty Resources (ASX: ADY) which soared 1c (or 8.7%) to close at 12.5c. Turnover at ask of $508,459 outweighed 3.2 times turnover at bid of $157,120.

Gold stocks on the rise

IG Markets market analyst Cameron Peacock said the market had been trading flat for most of the day, but gold stocks had travelled well.

Mr Peacock said investors were catching their breath as they digested results from the recently ended company reporting season and a lot of economic data this week.

"The good economic news is not being bought — that’s a classic sign of the market running out of steam," Mr Peacock said.

The market had a strong run recently and investors were feeling more defensive for now, putting their money into gold stocks, he said.