The Week Ahead

A look at the coming week has given me little to get excited about except as we have blogged before the gold mining stocks. Many of these companies have pulled back from recent highs along with falling gold prices and could be posied to once again resume the strong uptrend.

Northgate Minerals (NXG) is an excellent example of what I am blogging today. Northgate Minerals has been on a tear since late Dec, 2008 rocketing from about .75 to a recent high of $2.49. Then as gold found some selling pressure Northgate Minerals (NXG) did as most of the mining stocks and pulled back to find some support at the $1.88 price level. And when I say support I do mean support.

A look at buylist.com shows that Northgate Minerals gained some institutional interest with “Market Vectors Gld Miners Van Eck” fund purchasing a whopping 5,919,230 shares. ( NXG Fund Purchase

Now while a fund buying shares should never be used as your sole decision to invest in a company for those looking to get some exposure to the gold industry by way of a mining company would surely find this an interesting purchase.

I am sure Northgate Minerals will have its up days and down but overall I think the company remains in a very strong uptrend and expect that we will see many mining companies continue to do well as the economy continues to struggle.

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