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Gold Mining Company Echo Bay Mines Echo Bay Mines was begun in 1964 and

Echo Bay Mines was begun in 1964 and was wholly owned by IU International by the end of the 1960s. Echo Bay mined silver near the Arctic Circle in Canada for most of its early history, then used the proceeds of the silver operation to purchase gold mines in the United States in the early 1980s (Clark, 1993, p. 1220). Echo Bay Mines is a major North American gold mining company with interests in four operating mines and exploration and development properties in Canada and the United States. The company has an office in Denver, but is based in Canada, where it is also incorporated. Echo Bay has approximately 1,800 employees, and has been traded on the American Stock Exchange (its symbol is ECO) since 1983. IU International spun off its Echo Bay holdings in November 1983. All financial information included in this report is in American dollars.

Gold is both a commodity and a monetary asset which adds complexity to the market and makes estimation of future prices difficult. As a commodity, gold is used in the fabrication of jewelry and electronics; the supply from mines plus the supply from inventory stocks and gold scrap is likely sufficient to meet the market's demands. If gold were only a commodity, price estimation would be more straightforward.

However, gold reserves are held by central banks because of the perception of gold as a "store of value" (Clark, 1993, p. 1217). Central banks can therefore have an effect on the price of gold if they decide to reduce holdings. Since banks do not announce their intentions ahead of time, their actions in the market result in unpredictability and volatility with regard to price.

Investors also consider gold a store of value as a way to insulate them from difficult economic times, and they traditionally turn to gold during times of inflation and political upheaval. While the political upheaval influence is falling through the efforts of international currency markets, the inflat...

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Gold Mining Company Echo Bay Mines Echo Bay Mines was begun in 1964 and. (1969, December 31). In LotsofEssays.com. Retrieved 05:40, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1690165.html