Record $1,309 Spot Gold Price Sparks Gold Miner Buyouts, Bidding Wars, and Investor Profits
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Another day, another new high for gold. Today, gold hit a new high at $1,309 an ounce, as investors buy every dip in price for the precious metal.

The reason for gold's popularity are clear. A weak U.S. dollar, a promise of more monetary stimulus from the Fed and an uncertain outlook for the U.S. economy, along with currency weakening moves from Japan and England, have sent investors clamoring for an asset that can protect the value of their wealth.

Current conditions underlying gold's rise are not likely to end anytime soon. And now, gold mining companies are starting to acquire other miners to maximize their profits from high gold prices.

One gold mining stock is up 26% in two days
after it rebuffed a buyout offer from a competitor. With a forward P/E of just 11, it's clear that the offer was too low. And investors agreed, sending the stock higher in anticipation of a higher bid.

Currently trading around $4.80 a share, a reasonable offer for this company, which has one of the lowest cost structures in the industry, could be as high as $6.50. That would represent another 35% gain for investors.

Click here to find out how you could make 35% in a few days on a bidding war for this undervalued gold stock.

Posted 09-28-2010 3:59 PM by Ian Wyatt