SOURCE: The Bedford Report

The Bedford Report

January 31, 2011 11:25 ET

Are Gold Stocks Still Worth the Risk?

The Bedford Report Provides Analyst Research on Yamana Gold & Kinross Gold

NEW YORK, NY--(Marketwire - January 31, 2011) - The month of January has not been kind to gold prices. Most of the selloff appears to stem from the idea that greater global economic stability will make the precious metals market less attractive as an investment. Last Friday gold finally made a push higher as news of civil unrest in Egypt began gaining more attention from investors. In unpredictable moments, investors traditionally take haven in precious metal markets to avoid currency fluctuations. The Bedford Report examines the outlook for the Gold Market and provides research reports on Yamana Gold, Inc. (NYSE: AUY) & Kinross Gold Corporation (NYSE: KGC). Access to the full company reports can be found at:

A late 2010 interest rate hike from China was the spark that analysts argue stated gold's dip in price. On Christmas day, China raised interest rates in an attempt to counter the fastest inflation in more than two years. China increased rates by 25 basis points to send one-year lending rates to 5.81% and the one-year deposit rate to 2.75%. Higher interest rates in China could hurt gold demand as it increases the opportunity cost of holding the yellow metal. According to a report by the World Gold Council, China is quickly catching up to India as the largest gold consumer in the world. In the third quarter or 2010, jewellery demand rose 8% and demand for gold bars and coins surged 64% from year earlier levels.

Going forward, China could be forced to raise interest rates once again. The International Monetary Fund said it expects China to grow 9.6% in 2011 and 9.5% in 2012.

The Bedford Report releases regular market updates on the Gold Market so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous analyst reports and industry newsletters.

The bulls who believe that gold prices will continue to surge may be inclined to look into gold miners. Investors in gold miners are banking on rising earnings, as gold prices rise, to provide value. Some miners sound confident that silvers run will continue and have started new mining ventures. However the sale of several gold sites may suggest that the industry peaked last year.

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at

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