Pick of the Junior Gold Producers – Four Gold Producers with Growth Ahead

Article Excerpt

Gold hit a record high of $850 an ounce in 1980, then worked its way downward for 25 years. It began rising again in 2002, and it has now broken past $850 and moved higher. It’s now trading at $882. We’re not convinced that gold prices will move significantly higher, or even hold the recent gains. However, some of the conditions that typically accompany higher gold prices are present. U.S. economic growth has slowed and stock markets have dropped. That’s pushing interest rates down. Those lower rates. plus high energy prices, could push inflation up. Either way, we still think the best way to participate in the gold market is through companies with sound production, positive cash flow and strong prospects, like the four we analyze below. IAMGOLD $9.19 (Toronto symbol IMG; SI Rating: Speculative) (1-888-464-9999; www.iamgold.com; Shares outstanding: 293.8 million; Market cap: $2.7 billion) has interests in eight operating gold mines: 100% of the Mupane gold mine in Botswana, 38% of the…