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Monday, November 16, 2009

China shakes the gold industry: Rumored to be interested in major U.S. gold miner...

Newmont Mining (NEM), one of the world's biggest gold producers, has been on a tear lately. Its stock is up almost 20% in just the last week. Most are pinning the move on the company's great earnings at the end of October - third-quarter profits more than doubled as gold has risen above $1,000 an ounce... But there's also an interesting rumor behind the move.

Some on Wall Street are speculating China is looking to buy the U.S.-based company outright. It's no secret China has been on a buying spree for gold and other real assets, but this would mark its first attempt to buy a major gold company.

The rumor is unconfirmed at this point, and it's likely the U.S. government would get involved prior to a sale. But this type of news is certain to become more common as the world attempts to flee the dollar.

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