Tapering fears spook Goldcorp Inc (NYSE:GG)

Posted by George Brook September 12, 2013 0 Comment 1205 views

Goldcorp Inc (NYSE:GG) stocks slipped by over 5.87% compared to Wednesday’s close of $22.7. This represents an astounding 44% drop from its 52 week high price of 447.42. What seems to have spooked the markets into off loading shares of gold companies is the impending decision of US Federal Reserve on September 18to either scale back or continue with its stimulus approximately      $85 billion monthly asset purchase. The apprehension seems to be that in the event of a tapering of the stimulus; US dollar will appreciate and in turn will lead to investors staying off gold as an investment vehicle.

Goldcorp Inc (NYSE:GG) not alone

Goldcorp Inc (NYSE:GG) is not the only suffer in this slug fest. Eldorado Gold fell by over 4%. In fact all the 24 trading companies on the S & P Gold index have declined with the index itself sinking by 3.7% in September. Another probable reason for the softness in gold stock could be assigned to the easing of tension around Syria over the past couple of days. With United States teaming up with Russia to avert military action the markets seem to have put the fear of war behind them and are not looking at parking their assets in gold and oil.

Goldcorp Inc (NYSE:GG) announces its ninth monthly dividend payout for 2013

In other recent financial news, the company on September 9 declared its ninth monthly dividend payment of $0.05 per share for 2013. Share holders who are on records of the company as of close of business on September 19 will be able to collect this payout. It is interesting to note that Goldcorp has been consistently paying its shareholders a monthly dividend since 2003.

About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

View all post by George Brook Visit author's website

Write Your Comment