Fool's Gold Report: Newmont Soars While Platinum-Group Metals Bounce Back

Gold still stayed below $1,300, but other metals gained more ground. Find out why here.

Mar 28, 2014 at 6:38PM

Gold only managed to gain minimal ground Friday, finishing the week below $1,300, and raising questions about whether gold can continue to post gains for the rest of the year. But Newmont Mining (NYSE:NEM) soared 4%, and platinum-group metals staged an impressive comeback after big plunges earlier in the week.

How metals moved today
Despite a modest gain in spot prices, gold futures were actually down Friday, as the June gold contract dropped $0.50 per ounce, to $1,294. May silver gained $0.08, to $19.79, but the real action was in platinum and palladium, with the latter metal rising almost 2%.


Today's Spot Price and Change From Previous Day


$1,295, up $3


$19.82, up $0.12


$1,406, up $13


$772, up $15

Source: Kitco. As of market close.

Gold And Silver

Image sources: Wikimedia Commons; Creative Commons/Armin Kubelbeck.

For bullion prices, fundamental considerations reasserted themselves today. In the gold market, the apparent course of U.S. monetary policy continues to point toward a gradual removal of stimulus from the economy, and the long-term result of the Fed's actions will likely be higher interest rates that make a bullion investment less attractive. Yet, in platinum and palladium, supply and demand considerations, including the threat of Russian sanctions and the ongoing strike in South Africa, played a role in the metals' gains Friday. However, some of those following the labor discussions have suggested that a resolution might be at least a little bit closer than it was.

As stockpiles of platinum-group metals diminish, it will become crucial for users to replace supplies, and that could force prices far higher. Moreover, astute investors might well jump into ETFS Physical Platinum (NYSEMKT:PPLT), ETFS Physical Palladium (NYSEMKT:PALL), and other bullion-tracking vehicles to capture potential gains. If enough demand removes supplies of metal from the market, those moves could themselves push prices higher, as well.

Meanwhile, on the mining front, geopolitical issues have also had a major impact. Newmont's 4% gain today stemmed from news that peer Freeport-McMoRan Copper & Gold (NYSE:FCX) had reached a resolution to its dispute with the Indonesian government over export taxes on copper that it mines at its Grasberg mine in the country. According to reports, Freeport will build a copper smelter within Indonesia, boosting the nation's capacity to make value-adding refinements to metals mined in-country, and therefore raise the value of exports. As hopes rise that Newmont might obtain an exemption from export taxes under similar terms, shareholders bid the stock higher.

For the foreseeable future, gold and other precious metals could be at the mercy of traders and the short-term focus that they have. In the long run, though, look for success from those mining companies that are best able to capitalize on opportunities even in a poor price environment, as they can boost their profits even more if metals prices return to their former levels.

Three stocks to own for the rest of your life
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 

Dan Caplinger owns shares of Freeport-McMoRan Copper & Gold. The Motley Fool owns shares of Freeport-McMoRan Copper & Gold. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.

Compare Brokers