Gold American Mining Corp. (OTCBB: SILA)
With investors doubting the strength of the global economic recovery, gold’s status as a safe-haven investment has been restored in a big way. Gold touched an all-time in June and no metal, precious or otherwise, has seen its price target raised by analysts more than gold. In fact, the median price target for gold in 2011 recently moved to $1,500 an ounce as analysts expect investors to continue pouring cash in this asset class.
High gold prices don’t only benefit futures traders and those investors that have cash in gold funds. Gold mining companies are intimately tied to the price of gold. The equation is simple: The higher the price of gold, the better the profits are for gold miners and this sector has benefited from the gold rally. A shining example of this trend is Gold American Mining Corp. (OTCBB: SILA). Until recently, Gold American had been flying under the radar, but it seems those days are gone.
