Silver Wheaton Corporation (NYSE: SLW) is up 6.7% at $34.07, and the 52-week trading range is $25.84 to $47.60.

Pan American Silver Corp. (NASDAQ: PAAS) is still only flat at $21.85 but it was lower before the FOMC comments today. The 52-week trading range is $19.93 to $43.06.

Goldcorp Incorporated (NYSE: GG) is up 5.2% at $46.70, and the 52-week trading range is $39.93 to $56.31.

Newmont Mining Corporation (NYSE: NEM) is up 3.4% at $59.43, and the 52-week trading range is $50.05 to $72.42.

Kinross Gold Corporation (NYSE: KGC) up over 6% at $11.23, and the 52-week trading range is $9.96 to $18.25.

Agnico-Eagle Mines Limited (NYSE: AEM) up 8% at $37.23, and the 52-week trading range is $34.36 to $76.49.

ETFs are rocking as well.  The Market Vectors Gold Miners ETF (NYSE: GDX) is up 5.3% at $54.58 against a 52-week range of $49.22 to $66.98.  Market Vectors Junior Gold Miners (NYSE: GDXJ) is up 6.5% at $28.66 against a 52-week range of $22.58 to $42.97.  The Global X Silver Miners ETF (NYSE: SIL) is up 3.9% at $23.69 and the 52-week range is $19.05 to $31.34.

The logic is simple enough… This signals extremely low interest rates and low costs of borrowing.  It also signals that investors will have to look elsewhere yet again to seek higher returns than short-term and intermediate-term Treasuries.  As this means that rates will be low in the U.S. for longer than expected, that is going to drive a weak dollar policy as long as things remain static in Europe and in other major economic zones.  That is the perfect storm for gold and silver as they are often inversely correlated to the dollar.

JON C. OGG

Kinross is making a bit of a comeback on speculation that the company may now be a takeover target. Larger Canadian gold miners Newmont Mining Corp. (NYSE: NEM) and Barrick Gold Corp. (NYSE: ABX) are included in the number of possible buyers, as are Goldcorp Inc. (NYSE: GG) and AngloGold Ashanti Ltd. (NYSE: AU). Another potential buyer is London-traded Polyus Gold International Ltd. according to a report at Bloomberg News.

Kinross acquired Canadian miner Red Back in 2010 for $7.8 billion, and the deal included the Tasiast mine in Tanzania. The Tanzanian mine is the cause of the goodwill writedown, but the simple fact is that Kinross paid way too much for Red Back. Kinross has admitted that itself.

Of the potential buyers, Polyus might be the one to take most seriously. The Russian company has said that it wants to become one of the three largest gold miners in the world. Acquiring Kinross would achieve that goal.

Kinross might also be a good acquisition for Newmont, which currently has few growth prospects according to an industry analyst cited by Bloomberg: “Newmont has no growth, whereas Kinross has plenty of growth projects.”

Kinross is now trading at around $10/share though its asset value is about double that. That’s still a $20 billion+ deal at a time when production costs are rising and the price of gold going forward is unclear.

Shares of Kinross are up about 1.5% at noon today at $10.25 in a 52-week range of $9.96-$18.25. Shares of the SPDR Gold Trust (NYSE: GLD) are up 0.27% at $161.65 in a 52-week range of $127.80-$185.85.

Paul Ausick

Alcoa, Inc. (NYSE: AA) Cut to Hold at Deutsche Bank.
Amazon.com Inc. (NASDAQ: AMZN) Raised to Buy at Stifel Nicolaus.
Athenahealth, Inc. (NASDAQ: ATHN) Started as Outperform as Bull of the Day at Zacks.
Chico’s FAS Inc. (NYSE: CHS) Cut to Hold at KeyBanc.
CF Industries Holdings, Inc. (NYSE: CF) named value stock of the day at Zacks.
First Solar Inc. (NASDAQ: FSLR) Cut target to $80 from $135 at Credit Suisse.
Gap Inc. (NYSE: GPS) Cut to Hold at KeyBanc.
Goldcorp Inc. (NYSE: GG) Raised to Buy at Deutsche Bank.
LinkedIn Corporation (NYSE: LNKD) Started as Hold at Citigroup.
NetApp, Inc. (NASDAQ: NTAP) Raised to Buy at Citigroup.
Priceline.com Incorporated (NASDAQ: PCLN) Raised to Overweight at Morgan Stanley.
Qihoo 360 Technology Co. Ltd. (NYSE: QIHU) Started as Buy with $24 target at BofA/ML.
Sears Holding Corporation (NASDAQ: SHLD) maintained Underperform as Bear of the Day at Zacks.
State Street Corporation (NYSE: STT) Cut to Hold at Jefferies.
United Continental Holdings, Inc. (NYSE: UAL) Cut to Hold at Citigroup.

Here is a detailed summary list of the top analyst calls from Wall Street last week.  Many were cautious.

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JON C. OGG

Investors should use these more for a review rather than any quick trading ideas because anything tied to gold and silver this Friday is taking it on the chin.

Zacks has a report noting that these funds “can be a source of comfort to investors when markets are heading south and the economy is passing through choppy weather.”  The aim is for higher consistent returns that outperform stocks.  These act as diversification and as protection against inflation.  Zacks has offered a list of its top 5 rated precious metals funds this morning, all of which have the Zacks #1 Rank (Strong Buy).

U.S. Global Investors Gold and Precious Metals (USERX) invests in companies whose primary operations are related to gold and other precious metals. The precious metals mutual fund has a ten year annualized return of 26.34%. The precious metals mutual fund has a minimum initial investment of $5,000 and an expense ratio of 1.80% compared to a category average of 1.40%.  After looking elsewhere, the three month return on Google was noted as +10.2% and the year-to-date return was -6.5%.  Its top holding was listed as Kinross Gold Corporation (NYSE: KGC) at almost 7.5% of the fund.

OCM Gold (OCMGX) invests in companies in the gold mining industry and may also invest in precious metals producers. The precious metals fund has a five year annualized return of 15.52%.  Google listed its 3 month return as 17.8% and a year-to-date return of almost 6%.  More than 12% of its assets were in Goldcorp, Inc. (NYSE: GG).

Fidelity Select Gold (FSAGX) invests in companies whose principal operations are related to gold, and it also invests in gold bullion and coins. Up to 25% of the fund’s assets may be invested in gold and other precious metals through a wholly-owned subsidiary. Zacks noted a return of 20.09% in the last one year period.  Google noted a return of +14.3% in the last three months and a return of +3.3% year-to-date.  The top three holdings are each 10% or more of the weighting and they are in Barrick Gold Corporation (NYSE: ABX), Goldcorp, Inc. (NYSE: GG), and Newcrest Mining Limited (NYSE: NCM).

GAMCO Gold AAA (GOLDX) invests at least 80% of its assets in companies which engage in gold-related activities, but a large portion of its assets are in foreign securities.  Zacks noted a three year annualized return of 20.68%.  Google noted a 3-month return of +17.7% and a year-to-date return of almost +4%.  The top two assets in the fund account for more than 23% of the entire fund and they are Randgold Resources, Ltd. ADR (NASDAQ: GOLD) and Newcrest Mining Limited (NYSE: NCM).

Unfortunately for the report, this is coming on a morning that gold and silver are getting hammered and are bring down anything and everything tied to them.  Here are all of Zacks #1 Rank funds.

JON C. OGG

The rally in gold has really started to pull up the rest of the gold sector since the middle of last week.  To show this, the Market Vectors Gold Miners ETF (NYSE: GDX) tracks the largest gold miners and it came within about 1% of 52-week highs today.  Shares closed Monday up almost 4% at $63.70 and the 52-week trading range is $49.57 to $64.62.  The high on the day was $64.05.

Goldcorp Inc. (NYSE: GG) is based in Vancouver, Canada and it acquires, explores, develops and operates mines and gold operations throughout Canada, United States, Mexico, Central America, and South America. The stock closed up 4.8% at $54.14 against a 52-week trading range of $39.04 to 56.20.  That is less than 4% from a 52-week high for the $43.7 billion gold giant.

Newmont Mining Corp. (NYSE: NEM) is a $31 billion Colorado-based producer with operations in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico.  The stock closed up 4.8% at $54.14 against a 52-week trading range of $50.05 to $65.50.  That is right at 4% under a 52-week high and this one was helped by a Citigroup upgrade this morning.

Yamana Gold, Inc. (NYSE: AUY) is a $12 billion Toronto, Canada-based producer and explorer throughout many properties in Central and South America.  The stock closed up 3.7% at $16.09, and the stock hit a new 52-week high of $16.18 today.  Yamana’s all-time high was close to $20.00 back in early 2008.

Royal Gold, Inc. (NASDAQ: RGLD) is a $4 billion Colorado-based acquirer of gold mining and production royalties and shares hit a new 52-week high of $73.78 today.  The close was up about 4% at $73.00 for the day after hitting a 52-week high of $73.78. That was also an all-time high.

The SPDR Gold Shares (NYSE: GLD) hit a new high, as did gold of course, today at $184.82.  At last look, gold was trading up $45.30 in New York at $1,897.50 per ounce.

The run higher in gold each day is beginning to feel more and more like the crude oil rally from 2007 into 2008.  That is a market where the base just keeps rising and rising for virtually the same news each day.  The difference here is that gold does not run economies in the same manner as oil.  At least it does not as long as the gold-barter system doesn’t return.

JON C. OGG

The earlier sell-off in equities pushed gold prices about $1,800/ounce briefly as part of the fall-out from the downgrade of US debt. Demand for a safe haven separated gold and silver prices again, with the gold:silver ratio widening to nearly 45. Gold and silver ETFs as well as mining stocks are all affected by the sudden return to equities.

The SPDR Gold Trust (NYSE: GLD) is up marginally today, at $170.07, in a 52-week range of $118.36-$175.13, its highest level since last Thursday. The iShares Gold Trust (NYSE: IAU) is down marginally, at $17.01, in a 52-week range of $11.88- $17.56. Weakness in the Empire State manufacturing index has probably helped prop up gold prices even as equities gain more interest.

The iShares Silver Trust (NYSE: SLV) is up about 0.5%, at $38.31, in a 52-week range of $17.48-$48.35, and the ETFS Physical Silver Shares Trust (NYSE: SIVR) is up by approximately the same amount, at $39.07, in a 52-week range of $17.80-$49.28. Silver’s status as a safe haven simply isn’t strong enough to keep its price increases on a par with gold’s. There could be a buying opportunity in physical silver, though, because it’s pretty likely that silver will break and stay above $40/ounce.

Mining stocks and ETFs are up as well today, with Newmont Mining Corp. (NYSE: NEM) posting a gain at around noon of 1%, at $57.97, in a 52-week range of $50.05-$65.50. Miners Goldcorp Inc. (NYSE: GG) and Barrick Gold Corp. (NYSE: ABX) have also risen by about half that amount.

The Market Vectors Gold Miners ETF (NYSE: GDX) is also up about 1%, at $59.81, in a 52-week range of $49.57-$64.62. The Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) is up more than 1.5%, at $35.57, in a 52-week range of $28.06-$44.86. The Global X Silver Miners ETF (NYSE: SIL) is also up more than 1.5%, at $25.57, in a 52-week range of $14.58-$31.34.

The mining stocks are rising pretty much in parallel with the overall rise in the Dow and the S&P 500. There is still not a lot of reason to be sanguine about equities, so the modest slide in gold probably won’t last long. Given the recent swings, caution and safety may be the most important forces at work for some time yet.

Paul Ausick

Newmont Mining Corp. (NYSE: NEM) reported earnings this morning that failed to reach expectations, posting adjusted EPS of $0.90, roughly -10% below estimates. Revenue also missed expectations, coming in at $2.4 billion compared with estimates of $2.5 billion. Production of gold fell -5.4% and copper production fell -45%, primarily on lower-grade ores. Newmont’s average price for gold was $1,501/ounce, in line with realized prices reported yesterday by Barrick Gold Corp. (NYSE: ABX) and Goldcorp Inc. (NYSE: GG). [http://247wallst.com/2011/07/28/gold-mining-earnings-shine-but-less-than-gold-itself-abx-gg-gld-gdx-gdxj/]

Newmont’s other issue was rising costs, which rose to $538/ounce, between cash costs of $445 at Barrick and $553 at Goldcorp. Managing costs remains the main anchor on gold miners’ share prices compared with the price of gold.

Newmont’s CEO told CNBC that he expects gold prices to reach $1,750/ounce in 2012 as a result of inflationary pressures and ongoing economic problems in the US and Europe. He also noted that Newmont would raise its dividend in the third quarter from $0.20/share to $0.30.

Not even the dividend hike could keep Newmont’s stock from falling. Shares are down more than -3.5%, at $55.70, in the late afternoon, within a 52-week range of $50.05-$65.50.

The SPDR Gold Trust (NYSE: GLD) posted a new 52-week high today of $159.25, but has retreated somewhat. The new 52-week range is $113.34-$159.25. The iShares Gold Trust (NYSE: IAU) also posted a new 52-week high today, for a new range of $11.35-$15.95.

The Market Vectors Gold Miners ETF (NYSE: GDX) has lost another -2% today, trading late in the day at $56.90, in a 52-week range of $47.45-$64.62. The Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) lost more than -2% early this morning, but has gained about half of that back to trade now at $36.00, within a 52-week range of $25.89-$44.86.

Silver’s lackluster performance on the commodity markets today is reflected in the ETFs that focus on the devil’s metal. The iShares Silver Trust (NYSE: SLV) is up about 0.6%, at $38.99, within a 52-week range of $17.38-$48.35. The PowerShares DB Silver Fund (NYSE: DBS) is up about 0.75% at $70.28, within a 52-week range of $31.09-$86.98.

Silver miner Silver Wheaton Corp. (NYSE: SLW) is down about -2%, at $36.23, within a 52-week range of $18.15-$47.60, and Pan American Silver Corp. (NASDAQ: PAAS) is down about -2.5%, at $30.32, within a 52-week range of $22.52-$43.06. The Global X Silver Miners ETF (NYSE: SIL) is down about -0.6%, at $26.25, within a 52-week range of $12.90-$31.34.

Paul Ausick

Barrick reported adjusted EPS of $1.12, compared with estimates of $1.08. Revenues totaled $3.43 billion, well ahead of a consensus estimate of $3.32 billion. The surging earnings and revenues were largely attributed to rising bullion prices.

Goldcorp reported adjusted EPS of $0.52, exactly on target with estimates. Revenues rose 60% year-over-year to $1.32 billion, but analysts were expecting revenue of $1.4 billion. The company faced some operational issues, including a forest fire in Canada which forced the temporary closure of a mine, that weighed on revenues.

At Barrick, the company produced 1.98 million ounces of gold at a total cash cost of $445/ounce, among the lowest for the senior miners. The company expects to meet its earlier full-year target of 7.6-8 million ounces of gold produced at a total cash cost of $450-$480/ounce.

Barrick said that cash margins on gold increased to $1,068/ounce, up 33% from $804/ounce in the same period a year ago. Cash margins for copper rose 39% year-over-year, from $1.80/pound to $2.51/pound. Barrick sold 82 million pounds of copper in the quarter, which works out to $205 million in operating income.

Year-over-year, Goldcorp more than doubled adjusted EPS. The company reported co-product cash costs of $553/ounce and a by-product cash cost of $185/ounce. On a by-product basis, Goldcorp reported a margin/gold ounce of $1,331.

The company lowered its guidance for total 2011 production from 2.65-2.75 million ounces to 2.5-2.55 million ounces. The by-product cash cost is expected to be $180-$220/ounce of gold, significantly less than earlier guidance of $280-$320/ounce. Co-product cash costs are predicted to rise however, from $475-$500/ounce to $500-$550/ounce.

Keeping cash costs under control has been the key metric for gold miners. Thus, even though these earnings reports are good, the rising costs will keep share prices from rising in step with the price of gold. It may not be fair, but that’s life.

Gold prices are flat this morning at about $1,616/ounce, as investors wait to see what will happen next in the debate over raising the US debt ceiling. Barrick is trading down about -1.6% at market open this morning and Goldcorp is down more than -3%. Barrick’s 52-week trading range is $39.67-$55.74. Goldcorp’s 52-week range is $38.36-$56.20.

The SPDR Gold Trust (NYSE: GLD) is up slightly before the market opens this morning, and the Market Vectors Gold Miners ETF (NYSE: GDX) is down about -1%. The Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) is also down by about -0.5%.

Paul Ausick

In a story a couple of weeks ago, we included a chart of how far off 52-week highs Compania de Minas Buenaventura SA (NYSE: BVN), Golden Star Resources, Ltd. (AMEX: GSS), Northern Dynasty Minerals Ltd. (AMEX: NAK), and US Gold Corp. (NYSE: UXG) had fallen.  We also recently looked at larger miners like Newmont Mining Corp. (NYSE: NEM), Barrick Gold Corp. (NYSE: ABX), Goldcorp Inc. (NYSE: GG), and Yamana Gold, Inc. (NYSE: AUY) that were doing much better overall.

It seems that the stock market just wants to treat most gold stocks like regular stocks as many are just nowhere near highs like the shiny yellow stuff.  Here’s a chart of where these companies’ share prices stand as of mid-morning today:

Buenaventura has made up about 8% of its share price in the last two weeks, going from down -34.51% to down -26.59%. Golden Star has moved from down -59.90% to down -48.92%. Northern Dynasty has picked up a little as well, from down -53.91% to down -51.52%. US Gold has moved from down -37.39% to down -31.41%.

Except for Northern Dynasty, which is really a long-term play, the others have equaled or surpassed the rise in gold prices since the beginning of the month.

Among the larger companies, the widest differential a week ago was Barrick, down about -16%. Today, Barrick is down about -12% from 52-week highs. Yamana is almost even. Goldcorp evacuated employees and closed one of its Canadian mines because of nearby forest fires last Thursday and there is no word yet when the mine will reopen.

Because the big miners were closer to 52-week highs, their differentials closed less. Still, closing about a quarter of the gap in a week is an impressive performance.

The gap between current share prices and 52-week highs for the junior miners still has a long way to go before it is closed. But at least one of the larger miners could close the gap in another week if gold prices continue their upward march. And the others are within striking range as well.

Buenaventura shares are up more than 4%, to $41.99; Golden Star shares are up more than 3%, to $3.07; Northern Dynasty shares are up about 1%, to $10.55, and US Gold shares are up about 1.5%, to $6.77.

Newmont shares are up more than 2.5%, to $58.89; Barrick shares are up about 1.4%, to $48.99; Goldcorp shares are up about 1.5%, to $54.97; and Yamana shares are up more than 1.5%, to $13.32.

Paul Ausick

Both the SPDR Gold Trust (NYSE: GLD) and the iShares Gold Trust (NYSE: IAU) are within striking distance of 12-month highs. The gold mining ETFs, Market Vectors Gold Miners ETF (NYSE: GDX) and Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) have also come back a bit, though for the year-to-date both are off roughly -10%. Miners Newmont Mining Corp. (NYSE: NEM), Barrick Gold Corp. (NYSE: ABX), Yamana Gold, Inc. (NYSE: AUY), and Goldcorp Inc. (NYSE: GG) are all up about 1% today, though Goldcorp is the only miner showing a gain (about 10%) for the year-to-date.

The inability of the Eurozone and the International Monetary Fund to solve the debt problems in Greece has led investors to worry about other Eurozone debtors. Italy is the latest country to be scrutinized and found to be on less firm ground than once thought.

While the jump in gold prices is not usually a good sign for the US dollar, and, at this time, not an especially good sign for the euro, it does bode well for gold miners which have not shared in the run-up of gold prices. Having broken through the $1,500/ounce level again, the wariness about European debt could keep the price there long enough to establish a new floor.

If that happens, then demand for gold will rise again from central banks and bullion buyers. There are also limits to what the gold miners can do to meet higher demand. Production growth is limited by the price of gold — lower prices mean less investment by miners in increased production. Of course as the price rises this limitation disappears, but then gold miners face rising production costs for labor and equipment.

Demand from India and China for gold to make jewelry and other items is expected to continue growing beyond its current level of about 60% of total production. Furthermore, China’s central bank holds less than 2% of its reserves in gold. The global central bank average is about 11%. If the People’s Bank of China decides to beef up its gold holdings, miners will see an immediate rise in gold prices and a demand for even more.

With the exception of Goldcorp, the other miners we’ve mentioned here have a forward P/E ratio of in the neighborhood of 10. Yamana’s price/book ratio is just 1.29, and the others are right around 2.

We looked at some smaller mining companies about a week ago and found very little uncovered value to recommend there.  That does not look to be the case with these bigger miners. And while these large miners are also trading below 52-week highers, the differentials range from -16% to -6%, a far cry from the junior miner differentials of about -60% to -35%.

Paul Ausick