Gold still good, others slump

Faced with declining prices for most metals, mineral exploration companies this year are expected to spend only about half what they spent in 2007 in Nunavut.

The dollar value of mineral exploration in Nunavut is expected to drop to $168 million in 2009, down from $274 million in 2008 and $338 million in 2007, reports a Natural Resources Canada bulletin on mineral exploration.

Most exploration money last year went to precious metals like gold and silver. That trend is expected to continue in 2009.

Only gold continues to perform "exceptionally well," said Patricia Mohr, an economist and commodity specialist with Scotiabank and a featured speaker at last week's Nunavut mining symposium in Iqaluit.

Prices for zinc and copper are likely to remain low and nickel may expect only a "modest rebound" in 2009.

But gold has recovered from last October's low of $712.50 an ounce to about $914 last week.

Mohr said "gold should shine as a safe haven in 2009."

Iron prices may drop by a record 40 per cent this year because of the slump in steel output.

Recovery may have to wait until China ramps up its planned investments in infrastructure, although uranium remains a good bet over the long term, she said.