Today, Peter Schiff has announced his plan to help struggling Americans. If you do not know who Peter Schiff is, he is an American author, businessman, financial commentator, and a 2010 candidate for the United States Senate. He is also president and chief global strategist of Euro Pacific Capital Inc. and is often quoted in major financial publications and frequently makes guest appearances on internet radio as well as CNBC, Fox News, and Bloomberg Television. He also is the host of the podcast Wall Street Unspun.
Schiff is known for extremely bearish views on the United States stock market, bond market, the US dollar, and the United States economy in general. Recently he has stated that a deflationary period would be good for the US and struggling Americans to be specific.
With unemployment still uncomfortably high, the housing market down, and the consumer price index (CPI) down three straight months, at Fed Chairman Ben Bernanke's semi-annual testimony to Congress this week he was very careful to downplay deflation and to assure markets that the Federal Reserve has the capacity to reverse deflation, should it occur. However, Bernanke's comments didn't settle the deflation debate, nor did they convince Peter Schiff that the Fed chairman knows what is going on.
In an Article today, Schiff stated "I don't know where anyone thinks prices are falling,” alluding to rising prices for food, healthcare and energy. He also declared "I don't know where most people do their shopping but I don't see falling prices. To me, prices are rising." While the Fed believes it has prevented a deflationary spiral such as Japan faced in the 1990s from taking root, Schiff sees more government stimulus analogous to feeding an addiction. He states that “we are high on government stimulus; the US needs to go “cold turkey” from more monetary stimulus and government spending
After Bernanke’s testimony yesterday, Schiff stated "It's not that the Fed has done too little, they've done too much, interest rates are too low, they need to be much higher.” He says the federal government is spending too much, they need to spend a lot less, and government stimulus is the source of our problems." Schiff believes the U.S. economy is addicted to government stimulus and is at risk of overdosing. He stated "They're trying to sober up a drunk by giving him more alcohol - it won't work."
Schiff does concur with the view that there will be economic would become weaker if the Fed and Congress force the economy to go "cold turkey" rather than slowly weaning it off stimulus. But the pain would be short-term; however, any short-term pain will be well worth the long-term gain, and may even avoid another Great Depression.
Schiff believes that even though we have been in the worst recession since the Great Depression, at the moment, deflation is non-existent because the government has created so much inflation that they have prevented prices from falling. Schiff stated. "It would have been a relief for a lot of Americans...if things cost less and the cost of living was falling in line with a weaker economy."
Schiff believes inflation is a much greater threat than deflation. In his view the government created inflation by creating too much money, keeping interest rates at zero, and increased spending. The result of this government induced inflationary period is that Americans are soon going to be paying much more for food, clothing, energy, healthcare, etc. However, the prices of financial assets and real estate are not going anywhere but down, according to Schiff.
Authors note: We all know that the US cannot continue to print dollars, just because they have the ink and paper. Since this is a precious metals blog, I feel I should interject with the notion that when paper money is worthless (seems to be heading in that direction), people will fall back to anything of value. PMs such as Silver and Gold will likely be used to purchase goods and services. I know what I am describing is the SHTF scenario, but it always pays to be prepared.
On Euro Pacific Capital, Inc. Peter Schiff wrote: “I have long been an advocate of fortifying investment portfolios with precious metals. Holding actual precious metals is important, but it is primarily a way to preserve capital. I believe that a fully realized precious metals portfolio also includes some exposure to the companies that explore and produce gold and silver.”
In the paragraph above, Schiff is advising holding precious metals as a hedge and investing in mining companies. Of course he would not say “take all of your free money and buy Silver and Gold” because that would be reckless and likely to cause a panic that could precipitate the SHTF. Now, this last statement is not a fact, it is just my thoughts and opinions. I DO recommend buying as much silver and gold as you can. How much? That depends on how much you are comfortable with. Most places of business still want payment in dollars, so do not use all of your money to buy PMs or you might find it hard to pay your mortgage, rent, utilities, etc.
Friday, July 23, 2010
Monday, June 21, 2010
Why It Is Crucial To Your Finances and Future to buy Gold and Silver-Goldwars.blogspot.com
I may have written on this subject before but I cannot stress enough, do not wait! You should be buying precious metals such as gold and silver now. I have stated my point of view, now I give you an other's POV. Kirsty Hogg has written an article in her blog GoldWars on why it is now crucial to your finances and future to buy gold and silver? I urge you to read this treatise as it explains why PMs guard against inflation, why Central banks are manipulating the prices of PMs, and much more. With the National debt at 13 Trillion and counting as the paper flies through the printing presses, our economy cannot hold back the floodgates of inflation much longer. Read it for yourselves, but more importantly, ACT!
Wednesday, June 16, 2010
MoMoney beaks down the Gold Chart
I confess that I know squat about the technical analysis of reading charts. When I try to explain things I talk about fundamentals. But for the chart people, Mo Dawoud explains the technical charts for gold , silver, and other commodities on his MoMoney blog. Once a month he posts a update on the gold chart. This month he wrote "Previously, I stated that gold broke the 1,227 resistance and it is now clear for an uptrend until it hit 1,500. Instead, the chart forms another resistance level at 1,250 per ounce. It made three attempt to break the resistance, but it could not close above the resistance level". He still believes gold will break this resistance before the end of the summer with high volume. Furthermore he believes gold will hit 1,500 before the end of the year. The light volume shows that there is no big sell off in gold which indicates that the “big players” are still in the game and that is a good sign for Main Street investors.
The fundamentals of the economy will dictate when will the price of gold will move above the resistance. If the Federal Reserve decides to continue their quantitative easing (the definition is when the Feds decide to print more money), He believes it will help gold start the uptrend to 1,500 or more. However, He is sticking with his prediction that 2011 will be a great year for gold.
To read more technical analysis on gold or to see the current chart go to MoMoney Blog
Ben Bernanke is Confused about Gold
written by Kevin McElroy
Monday, June 14, 2010
Federal Reserve Chairman Ben Bernanke recently expressed some confusion about increases in gold prices. According to a recent story in The Wall Street Journal, Bernanke said, "I don't fully understand movements in the gold price." It seems like Bernanke and Treasury Secretary Tim Geithner, formerly of Goldman Sachs (NYSE: GS), believe that massive deficits and billion dollar gifts to Wall Street bankers should have no consequences. For anyone paying attention to the Federal Reserve's massive bailouts gifted to super-rich bankers, it's small wonder that world investors have started bidding up gold's price - they're sick of working hard for dollars while the Fed gives them out for free to the world's elite financial institutions.
Here's a wake-up call for Ben Bernanke, Timothy Geithner and President Obama: deficits do matter! Recent polls suggest that deficit spending is now the #1 issue on voters' minds. Willingness to print the dollar into oblivion will continue to be matched by a stronger and stronger bull market in gold. To take advantage of this bull market, Ian Wyatt, the Chief Investment Strategist at Wyatt Investment Research, has written a full report about his favorite American gold company. This company has over $20 billion in proven gold reserves, with a market cap of around $200 million. Even if this company only mines 1% of its reserves, it could double its current share price.
Warning: This is a solicitation from Wyatt Investment Research. I do not work for them, and I receive no type of payment for blogging this. I just thought that the introductory article was very timely and shows how Bernanke, Geithner, and Obama are working to destroy this market. If you want to read the rest of the report you can go HERE.
Monday, June 14, 2010
Federal Reserve Chairman Ben Bernanke recently expressed some confusion about increases in gold prices. According to a recent story in The Wall Street Journal, Bernanke said, "I don't fully understand movements in the gold price." It seems like Bernanke and Treasury Secretary Tim Geithner, formerly of Goldman Sachs (NYSE: GS), believe that massive deficits and billion dollar gifts to Wall Street bankers should have no consequences. For anyone paying attention to the Federal Reserve's massive bailouts gifted to super-rich bankers, it's small wonder that world investors have started bidding up gold's price - they're sick of working hard for dollars while the Fed gives them out for free to the world's elite financial institutions.
Here's a wake-up call for Ben Bernanke, Timothy Geithner and President Obama: deficits do matter! Recent polls suggest that deficit spending is now the #1 issue on voters' minds. Willingness to print the dollar into oblivion will continue to be matched by a stronger and stronger bull market in gold. To take advantage of this bull market, Ian Wyatt, the Chief Investment Strategist at Wyatt Investment Research, has written a full report about his favorite American gold company. This company has over $20 billion in proven gold reserves, with a market cap of around $200 million. Even if this company only mines 1% of its reserves, it could double its current share price.
Warning: This is a solicitation from Wyatt Investment Research. I do not work for them, and I receive no type of payment for blogging this. I just thought that the introductory article was very timely and shows how Bernanke, Geithner, and Obama are working to destroy this market. If you want to read the rest of the report you can go HERE.
Tuesday, June 15, 2010
Monday, June 14, 2010
This Little PIIGGY: Spain and Gold Prices
Since the economic situation in the EU was either better or less worrisome last weekend, many investors' felt that market trading was less risky. Therefore, traders tentatively sold gold for stocks. Global stock markets posted modest gains encouraged by the U.S. late-day rally on Friday.
There may be more volatility ahead for gold prices as they continue to take their cue from the risk trade. In the short term, a weaker US dollar could boost demand for gold as the dollar-backed commodity becomes an inexpensive purchase in other currencies; furthermore, any significant pullback could lure in any bargain-hunters looking to buy gold at a discount.
Even though Spain denied rumors last week that it would be the next EU nation to request bailout funds, sovereign debt risk from Spain is waiting in the wings as a gold provocateur. Even though the Spain's yields are on the rise. Bond yields typically rise when a government must sweeten the pot to entice investors to lend the country money. Currently, the yield on Spain's 10-year bond is 4.59% while Portugal's is 5.33%. These levels do not yet compare with Greece's double-digit yield at the height of its' financial crisis, but investors are still worried, and any bad news out of the eurozone would trigger a gold rush as investors buy the metal as a form of money that retains value when paper currencies fail.
Gold bulls are hoping that prices can reclaim and exceed their record high last week of $1,254 an troy ounce. However, gold set that record intraday and settled under $1,250 leaving many analysts wondering if there is any momentum to this gold is bullish movement.
For the Silverbugs and base metal buyers: Monday, silver prices were rising .18 cents to $18.42, while copper was rallying 8 cents to $2.99.
There may be more volatility ahead for gold prices as they continue to take their cue from the risk trade. In the short term, a weaker US dollar could boost demand for gold as the dollar-backed commodity becomes an inexpensive purchase in other currencies; furthermore, any significant pullback could lure in any bargain-hunters looking to buy gold at a discount.
Even though Spain denied rumors last week that it would be the next EU nation to request bailout funds, sovereign debt risk from Spain is waiting in the wings as a gold provocateur. Even though the Spain's yields are on the rise. Bond yields typically rise when a government must sweeten the pot to entice investors to lend the country money. Currently, the yield on Spain's 10-year bond is 4.59% while Portugal's is 5.33%. These levels do not yet compare with Greece's double-digit yield at the height of its' financial crisis, but investors are still worried, and any bad news out of the eurozone would trigger a gold rush as investors buy the metal as a form of money that retains value when paper currencies fail.
Gold bulls are hoping that prices can reclaim and exceed their record high last week of $1,254 an troy ounce. However, gold set that record intraday and settled under $1,250 leaving many analysts wondering if there is any momentum to this gold is bullish movement.
For the Silverbugs and base metal buyers: Monday, silver prices were rising .18 cents to $18.42, while copper was rallying 8 cents to $2.99.
Monday, May 24, 2010
The Small-Cap Investor’s Guide to Gold
A short guide sent to me by email. I thought I would share it.
With market volatility on the rise, scores of investors have been turning their sights to gold. Typically, gold and small-cap investing don’t have much overlap – but that’s not true when it comes to junior mining stocks. These tiny companies benefit from the price increases in gold, but they also offer the value-driven analysis of a typical small-cap. And right now could be the perfect time to buy shares in mining companies – here’s why…
When the proverbial fecal matter hit the fan during the week of May 3, one asset shined above all others. It was the humble yellow metal, gold, doing its part in times of panic and crisis. It held up. On May 7, gold closed above $1,200 for the first time in five months — up more than 2.5% during a week in which U.S. stocks endured a freefall. Just five days later, it hit an all-time high of $1,243.10. And the largest physical gold fund recorded its largest inflows since early 2009.
Of course, buying gold all the time is not really an investment strategy. If you bought gold in the 1980s and 1990s, your return was abysmal. So, as with all assets, there are times when gold is a really good buy and there are times when it is not. Sounds obvious, but many people seem to want to think that gold is an exception to the order of things. It isn’t.
But how do you know if gold is cheap? Well, intelligent people usually advance a couple of arguments.
One is that on an inflation-adjusted basis, gold is 30% less than its all-time high in 1980. Okay, that’s true, but it’s not particularly timely because by that measure gold has been cheap for three decades. And who’s to say that the 1980 gold price is a benchmark we should pay attention to, anyway? By that way of thinking, the NASDAQ is a bargain, too, because it trades at a big gap from its 2000 high. But is it? I think not.
Another point advanced by the “gold is cheap” crowd is the old monetary base argument — that gold’s price tends to track the monetary base over long periods. The monetary base is essentially bank deposits and currency. It’s like the seedlings of inflation.
This argument is a little more interesting. Yet, as the government has added huge piles to the monetary base in the last year or so, the gold price has responded in a muted way. This next chart shows what the gold price would have to be to “catch up” to the monetary base.
QB Partners, a New York-based hedge fund, really likes this argument. QB writes: “The graph shows visually how much U.S. dollar purchasing power has been lost. We think gold is cheap by a factor of almost 7 times.”
If a gold price of $7,000 an ounce doesn’t strike you as implausible or absurd, QB’s next comment might. QB says the chart “does not necessarily imply a target price for spot gold. The gold price could move higher than that if it experiences a blow off top, like all other bull markets tend to do before exhausting themselves.” So, $7,000 an ounce, you see, is just some kind of base case.
Maybe it’s not so implausible. Strange stuff happens all the time in markets. If I had told you on May 6 that Accenture — a $40 stock with a $29 billion market cap — would trade for a penny a share the next day, you would have thought I was nuts. Yet, on May 7 it did just that, if only for a second.
But the gold market is different because it’s so small. Even a small amount of interest in gold will send it up a lot. Just imagine if people decide a small sliver of that tall bar of financial assets should be in gold. We’re talking about some serious pressure on the gold price.
That’s a nice scenario, but I don’t invest in nice scenarios. I invest where I can find value. Speculative upside is a plus. Those kind of stocks give you that added juice on the price of gold. A cheap gold stock is even better – that’s why I’m recommending that my readers pick up gold miners, not just gold itself…
By Chris Mayer
With market volatility on the rise, scores of investors have been turning their sights to gold. Typically, gold and small-cap investing don’t have much overlap – but that’s not true when it comes to junior mining stocks. These tiny companies benefit from the price increases in gold, but they also offer the value-driven analysis of a typical small-cap. And right now could be the perfect time to buy shares in mining companies – here’s why…
When the proverbial fecal matter hit the fan during the week of May 3, one asset shined above all others. It was the humble yellow metal, gold, doing its part in times of panic and crisis. It held up. On May 7, gold closed above $1,200 for the first time in five months — up more than 2.5% during a week in which U.S. stocks endured a freefall. Just five days later, it hit an all-time high of $1,243.10. And the largest physical gold fund recorded its largest inflows since early 2009.
Of course, buying gold all the time is not really an investment strategy. If you bought gold in the 1980s and 1990s, your return was abysmal. So, as with all assets, there are times when gold is a really good buy and there are times when it is not. Sounds obvious, but many people seem to want to think that gold is an exception to the order of things. It isn’t.
But how do you know if gold is cheap? Well, intelligent people usually advance a couple of arguments.
One is that on an inflation-adjusted basis, gold is 30% less than its all-time high in 1980. Okay, that’s true, but it’s not particularly timely because by that measure gold has been cheap for three decades. And who’s to say that the 1980 gold price is a benchmark we should pay attention to, anyway? By that way of thinking, the NASDAQ is a bargain, too, because it trades at a big gap from its 2000 high. But is it? I think not.
Another point advanced by the “gold is cheap” crowd is the old monetary base argument — that gold’s price tends to track the monetary base over long periods. The monetary base is essentially bank deposits and currency. It’s like the seedlings of inflation.
This argument is a little more interesting. Yet, as the government has added huge piles to the monetary base in the last year or so, the gold price has responded in a muted way. This next chart shows what the gold price would have to be to “catch up” to the monetary base.
QB Partners, a New York-based hedge fund, really likes this argument. QB writes: “The graph shows visually how much U.S. dollar purchasing power has been lost. We think gold is cheap by a factor of almost 7 times.”
If a gold price of $7,000 an ounce doesn’t strike you as implausible or absurd, QB’s next comment might. QB says the chart “does not necessarily imply a target price for spot gold. The gold price could move higher than that if it experiences a blow off top, like all other bull markets tend to do before exhausting themselves.” So, $7,000 an ounce, you see, is just some kind of base case.
Maybe it’s not so implausible. Strange stuff happens all the time in markets. If I had told you on May 6 that Accenture — a $40 stock with a $29 billion market cap — would trade for a penny a share the next day, you would have thought I was nuts. Yet, on May 7 it did just that, if only for a second.
But the gold market is different because it’s so small. Even a small amount of interest in gold will send it up a lot. Just imagine if people decide a small sliver of that tall bar of financial assets should be in gold. We’re talking about some serious pressure on the gold price.
That’s a nice scenario, but I don’t invest in nice scenarios. I invest where I can find value. Speculative upside is a plus. Those kind of stocks give you that added juice on the price of gold. A cheap gold stock is even better – that’s why I’m recommending that my readers pick up gold miners, not just gold itself…
By Chris Mayer
Wednesday, May 5, 2010
Seasonal Slip for Gold
Yesterday was a bad day on the US markets and the price of PMs dropped as well. So far, today is not looking much better, but the Market has not opened yet as I am writing this. A Facebook friend asked, why the drop in PM prices? and was it a seasonal effect? I replied that I thought it was primarily due to the problems in Greece and the other PIIGS, which led to slide in the Euro and therefore, a relative increase in the strength of the dollar. As most of us know when the dollar is strong PM prices go down. Well, It may come to a suprise to most of you, but I do not know everything. I may have been partly wrong. According to an article on Forbes.com, Carl Gutierrez reported “the demand for gold has eased of late, but the cause may owe more to the calendar than the appetites of investors.”
Haytham Hodaly, senior precious metals analyst at Salman Partners, states that gold price is only returning to where gold typically rests this time of year, and assuming nothing else flares up, it should trade sideways to slightly lower, within a 5% range, until late-July. Demand is supposed to pick up again at that time from Asia, and as European countries seek to move out of the dollar and into hard assets. This seasonal relationship that has taken place 80% to 90% of the time over the last 20 years.
This seasonal phenomenon along with other factors such as a stronger dollar due to economic turmoil in Europe may be the cause of yesterdays drop in gold prices. I still believe that you should use the dip to stock up on PM's. To read the Forbes.com article go here: http://www.forbes.com/2010/05/04/gold-metals-barrick-markets-equities-commodities-mining.html?feed=rss_markets
Haytham Hodaly, senior precious metals analyst at Salman Partners, states that gold price is only returning to where gold typically rests this time of year, and assuming nothing else flares up, it should trade sideways to slightly lower, within a 5% range, until late-July. Demand is supposed to pick up again at that time from Asia, and as European countries seek to move out of the dollar and into hard assets. This seasonal relationship that has taken place 80% to 90% of the time over the last 20 years.
This seasonal phenomenon along with other factors such as a stronger dollar due to economic turmoil in Europe may be the cause of yesterdays drop in gold prices. I still believe that you should use the dip to stock up on PM's. To read the Forbes.com article go here: http://www.forbes.com/2010/05/04/gold-metals-barrick-markets-equities-commodities-mining.html?feed=rss_markets
Monday, May 3, 2010
NIA: Introduction and Mining Stock Recommendation
The National Inflation Association (NIA) is an organization dedicated to preparing Americans for hyperinflation and helping Americans to survive and prosper in the upcoming hyperinflationary crisis. The U.S. government’s obligations include a $12.8 trillion national debt, $6.3 trillion in Fannie/Freddie debt and $60 trillion in unfunded obligations for programs such as Social Security, Medicare and Medicaid. The NIA believes that the United States for all intents and purposes is bankrupt and Americans need to take steps immediately to protect themselves from the potential loss of the purchasing power of their U.S. dollars.
NIA believes the largest financial crisis in history is ahead of us as a direct result of the U.S. government unwilling to accept a much needed recession. We are now at a point where our national debt is impossible to pay off. Due to rising interest payments on our national debt, it is unlikely the U.S. will be able to balance its budget ever again. Foreign countries will eventually stop lending the U.S. money and the Federal Reserve will most likely have to print the money to fund our deficit spending out of thin air.
The NIA’s ultimate goal is to help as many Americans as possible become aware of the disaster we are rapidly approaching. The NIA believes that the wealth of most Americans could get wiped out during the next decade, but it will be an opportunity for a small percentage of Americans to become wealthy by investing into companies that historically have prospered in an inflationary environment, such as gold and silver miners and agriculture producers.
Their website has extensive articles, news, reviews, stock suggestions, gold and silver seller reviews, and coin melt values. The articles are written by the staff of the NIA, and you can subscribe to the free NIA newsletter to have them emailed to you before they are posted online. You can check out their website at http://www.inflation.us/ and you can sign up for the newsletter on the same page. The NIA also has a Facebook group site that is open to the public.
Today, MIA announced a new stock suggestion, Coeur d’Alene Mines Corporation (CDE). Coeur d’Alene Mines Corporation is one of the world’s leading silver companies and is also a significant gold producer. In 2009, gold production increased 56% to 72,112 ounces. Coeur has a strong Latin American presence and will have its first full year of production in 2010 at its newest operation, the Palmarejo silver/gold mine in Mexico. The company also holds 100% operating interest and exploration rights at underground mines in southern Chile and Argentina and one surface mine in Nevada; and owns a non-operating interest in a low-cost mine in Australia. The Company is finalizing the construction at its Kensington gold project in Alaska, and conducts exploration activities in Argentina, Chile and Mexico. You can read the CDE profile at http://www.inflation.us/cde.html
As usual do not buy stock on my recommendation or anyone else’s. Always do your own DD.
NIA believes the largest financial crisis in history is ahead of us as a direct result of the U.S. government unwilling to accept a much needed recession. We are now at a point where our national debt is impossible to pay off. Due to rising interest payments on our national debt, it is unlikely the U.S. will be able to balance its budget ever again. Foreign countries will eventually stop lending the U.S. money and the Federal Reserve will most likely have to print the money to fund our deficit spending out of thin air.
The NIA’s ultimate goal is to help as many Americans as possible become aware of the disaster we are rapidly approaching. The NIA believes that the wealth of most Americans could get wiped out during the next decade, but it will be an opportunity for a small percentage of Americans to become wealthy by investing into companies that historically have prospered in an inflationary environment, such as gold and silver miners and agriculture producers.
Their website has extensive articles, news, reviews, stock suggestions, gold and silver seller reviews, and coin melt values. The articles are written by the staff of the NIA, and you can subscribe to the free NIA newsletter to have them emailed to you before they are posted online. You can check out their website at http://www.inflation.us/ and you can sign up for the newsletter on the same page. The NIA also has a Facebook group site that is open to the public.
Today, MIA announced a new stock suggestion, Coeur d’Alene Mines Corporation (CDE). Coeur d’Alene Mines Corporation is one of the world’s leading silver companies and is also a significant gold producer. In 2009, gold production increased 56% to 72,112 ounces. Coeur has a strong Latin American presence and will have its first full year of production in 2010 at its newest operation, the Palmarejo silver/gold mine in Mexico. The company also holds 100% operating interest and exploration rights at underground mines in southern Chile and Argentina and one surface mine in Nevada; and owns a non-operating interest in a low-cost mine in Australia. The Company is finalizing the construction at its Kensington gold project in Alaska, and conducts exploration activities in Argentina, Chile and Mexico. You can read the CDE profile at http://www.inflation.us/cde.html
As usual do not buy stock on my recommendation or anyone else’s. Always do your own DD.
Thursday, April 29, 2010
Gold Rallies Against Western Sovereign Paper
Many people attribute gold’s rally to the possible collapse of the Euro; however, Lance Lewis, of Lewis Capital, a Registered Investment Advisor in Dallas wrote an article for Minyanville.com expressing his hypothesis. He thinks that gold is rallying in all the major currencies at the moment, providing further evidence that gold’s bull market isn't due solely to a weak dollar.
Lewis believes the reason gold is rallying now is more complex than just Portugal, Greece, Italy, and Spain’s (PIGS) sovereign debt problems and the decline of the euro. The real problem is with all the Western sovereign paper currencies including the US. When a monetary system breaks down, that leaves gold and other PMS as the only monetary refuge. The fact that gold prices continues to increase even as the dollar rallies against the euro and other debtor currencies tells us that the market see issues with the dollar in the future as well.
Lewis states that “even if there is a default in Europe and the ECB is eventually forced to flood the PIGS with euros (a lesson it learned from the Fed here in the US) that's when the market’s focus will then turn to the sovereign debt issues of the US and begin to sell the dollar and US debt.”
Gold investors need to look to the future and think ahead, if you look at countries with sovereign debt problems as dominoes, at the end of the line of dominoes is the biggest debtor of them all, the US. Once the market’s focus comes off the sovereign debt problems of the PIGS for a while, the sovereign debt vigilantes will simply then turn their guns on the US, and the market knows this. The gold market is finally thinking ahead (for once), and not waiting for the dominoes to fall.
To read Lewis’ article go here.
Lewis believes the reason gold is rallying now is more complex than just Portugal, Greece, Italy, and Spain’s (PIGS) sovereign debt problems and the decline of the euro. The real problem is with all the Western sovereign paper currencies including the US. When a monetary system breaks down, that leaves gold and other PMS as the only monetary refuge. The fact that gold prices continues to increase even as the dollar rallies against the euro and other debtor currencies tells us that the market see issues with the dollar in the future as well.
Lewis states that “even if there is a default in Europe and the ECB is eventually forced to flood the PIGS with euros (a lesson it learned from the Fed here in the US) that's when the market’s focus will then turn to the sovereign debt issues of the US and begin to sell the dollar and US debt.”
Gold investors need to look to the future and think ahead, if you look at countries with sovereign debt problems as dominoes, at the end of the line of dominoes is the biggest debtor of them all, the US. Once the market’s focus comes off the sovereign debt problems of the PIGS for a while, the sovereign debt vigilantes will simply then turn their guns on the US, and the market knows this. The gold market is finally thinking ahead (for once), and not waiting for the dominoes to fall.
To read Lewis’ article go here.
Thursday, April 22, 2010
24K Chuk Kam mentioned in Gold Wars Article
After I posted an article on "Gold Wars", 24 Chuk Kam was acknowledged and
even praised as presenting "well-researched entries on topics of gold; inflation, gold mines, junior mining industries, ETF’s and other related news in the gold market." Gold Wars even mentions how our information is well researched and that we combine this with our hands-on investment experience. I think it is good to be acknowledged by others in the same field, it gets old fast if you are the only one tooting your horn. To read the entire article go here.
even praised as presenting "well-researched entries on topics of gold; inflation, gold mines, junior mining industries, ETF’s and other related news in the gold market." Gold Wars even mentions how our information is well researched and that we combine this with our hands-on investment experience. I think it is good to be acknowledged by others in the same field, it gets old fast if you are the only one tooting your horn. To read the entire article go here.
Thursday, April 1, 2010
Gold Mining Update-April 1, 2010
There are five gold mining companies making headlines today. Lihir Gold rejected a buyout offer and appointed a new CEO. I believe the two items are unrelated. Allied Nevada gave us an update on its reserves and resources while Apollo Gold and Linear Gold did enter into an agreement to merge. Yamana Gold’s Minera operation in Peru that was shut down for weeks after an earthquake is up and operational. Last but not least, Agnico-Eagle will acquire all the Comaplex Minerals Corp. stock it does not already own and get a gold producing property out of the deal.
Lihir Gold rejected an offer from Newcrest Mining to acquire 100% of Lihir's common shares. Newcrest made the offer on 29 March 2010. Terms of the offer were 1 Newcrest share for every 9 Lihir shares plus A$ 0.225 in cash for each Lihir Gold share. After careful review and analysis, the board of directors unanimously decided that the offer did not represent good value for Lihir Gold shareholders.
Coincidentally, Lihir Gold appointed a new CEO. The company appointed former BHP senior executive Graeme Hunt as Managing Director and Chief Executive Officer. Lihir Chairman Ross Garnaut stated that Mr. Hunt was the ideal candidate for the CEO role. He brings with him strong leadership skills, vast knowledge of the mining industry and extensive experience in strategic development.
Allied Nevada reported today an update on its mineral reserves and resources. Allied has more than doubled its oxide gold reserves to 2.4 million ounces at its Hycroft mine, which it fully owns near Winnemucca, Nevada. Measured and indicated gold equivalent ounces increased 28% to 10.3 million ounces compared with 8.1 million gold equivalent ounces reported in March 2009.
Apollo Gold and Linear Gold announced today that they have entered into a definitive arrangement agreement by way of a court approved plan of arrangement. The Arrangement Agreement supercedes a previous letter of intent executed by Apollo and Linear regarding the merger. Both companies anticipate that the merger will be completed in June 2010
Yamana Gold reaffirms that their gold production will gradually increase, and cash costs would sequentially decrease, throughout the year. The Minera Florida gold processing plant suffered severe damage from an earthquake that hit Chile on February 27, 2010. Although the mine site was unharmed, it was without a secure normal power supply for weeks. This caused Minera Florida to produce less than anticipated. Yamana stated that the Minera Florida operation is now fully operational.
Agnico-Eagle and Comaplex Minerals Corp. announced that Agnico-Eagle will acquire all of the shares of Comaplex that it does not already own. The terms of the agreement would give each shareholder of Comaplex 0.1576 of an Agnico-Eagle share per Comaplex share. Agnico-Eagle would also acquire Comaplex's Meliadine gold property. Comaplex owns a 100% interest in the advanced stage Meliadine gold project located in Nunavut, Canada, approximately 300 kilometers from Agnico-Eagle's producing Meadowbank gold mine. Meliadine currently has 3.29 million ounces of measured and indicated gold resources from 13M tons grading 7.9 grams per ton (g/t) and inferred gold resources of 1.73M ounces from 8.4M tons grading 6.4 g/t.
Lihir Gold rejected an offer from Newcrest Mining to acquire 100% of Lihir's common shares. Newcrest made the offer on 29 March 2010. Terms of the offer were 1 Newcrest share for every 9 Lihir shares plus A$ 0.225 in cash for each Lihir Gold share. After careful review and analysis, the board of directors unanimously decided that the offer did not represent good value for Lihir Gold shareholders.
Coincidentally, Lihir Gold appointed a new CEO. The company appointed former BHP senior executive Graeme Hunt as Managing Director and Chief Executive Officer. Lihir Chairman Ross Garnaut stated that Mr. Hunt was the ideal candidate for the CEO role. He brings with him strong leadership skills, vast knowledge of the mining industry and extensive experience in strategic development.
Allied Nevada reported today an update on its mineral reserves and resources. Allied has more than doubled its oxide gold reserves to 2.4 million ounces at its Hycroft mine, which it fully owns near Winnemucca, Nevada. Measured and indicated gold equivalent ounces increased 28% to 10.3 million ounces compared with 8.1 million gold equivalent ounces reported in March 2009.
Apollo Gold and Linear Gold announced today that they have entered into a definitive arrangement agreement by way of a court approved plan of arrangement. The Arrangement Agreement supercedes a previous letter of intent executed by Apollo and Linear regarding the merger. Both companies anticipate that the merger will be completed in June 2010
Yamana Gold reaffirms that their gold production will gradually increase, and cash costs would sequentially decrease, throughout the year. The Minera Florida gold processing plant suffered severe damage from an earthquake that hit Chile on February 27, 2010. Although the mine site was unharmed, it was without a secure normal power supply for weeks. This caused Minera Florida to produce less than anticipated. Yamana stated that the Minera Florida operation is now fully operational.
Agnico-Eagle and Comaplex Minerals Corp. announced that Agnico-Eagle will acquire all of the shares of Comaplex that it does not already own. The terms of the agreement would give each shareholder of Comaplex 0.1576 of an Agnico-Eagle share per Comaplex share. Agnico-Eagle would also acquire Comaplex's Meliadine gold property. Comaplex owns a 100% interest in the advanced stage Meliadine gold project located in Nunavut, Canada, approximately 300 kilometers from Agnico-Eagle's producing Meadowbank gold mine. Meliadine currently has 3.29 million ounces of measured and indicated gold resources from 13M tons grading 7.9 grams per ton (g/t) and inferred gold resources of 1.73M ounces from 8.4M tons grading 6.4 g/t.
Wednesday, March 24, 2010
Free Online Report on Gold
You can read a free online review copy of the brand new breakthrough financial report from Gold, Silver, and Energy expert Byron King entitled "The Curse of the Incas". It is a very interesting read full of historical information and predictions for gold and silver prices, although it is ultimately an invitation to subscribe to his services.
http://agorafinancial.com/reports/OST/Inca/OST_IncaGold.php?code=EOSTL355&o=81348&s=82914&u=49657430&l=98572&r=Milo
http://agorafinancial.com/reports/OST/Inca/OST_IncaGold.php?code=EOSTL355&o=81348&s=82914&u=49657430&l=98572&r=Milo
Tuesday, March 16, 2010
Gold Prices Soar on EU, US troubles
Gold prices soared today as investors sought out the metal's safe haven. Prices have traded as high as $1,130.20 and closed at $1,126.90 as the U.S. dollar index slipped 0.49%. Gold's spot price rose $18.10 according to Kitco's gold index.
Most investors bought gold as an alternative investment, seeking the safety of a hard asset over a pandemic of struggling currencies. Not only is the US dollar in trouble but the EU's multibillion-euro bailout for Greece is sketchy, and now Spain, US, UK, France and Germany are at risk for losing their triple-A credit rating from Moody's. Many analysts are anticipating further euro weakening and subsequent inflation.
Further currency debasement could help support higher gold prices, but global rate hikes might provide some short-term downside. After China's higher-than-expected inflation reading, analysts are expecting the government to raise interest rates to control economic expansion.
The Fed has pledged to keep interest rates low for an extended period of time despite fledgling economic recovery. But wary investors are ever vigilant, watching for any tell that the Fed will tighten rates sooner than expected. Gold has historically been the go to hedge against inflation bought by investors. Thus, any signs that the government will end the flow of free money will impact gold and other precious metal prices.
Most investors bought gold as an alternative investment, seeking the safety of a hard asset over a pandemic of struggling currencies. Not only is the US dollar in trouble but the EU's multibillion-euro bailout for Greece is sketchy, and now Spain, US, UK, France and Germany are at risk for losing their triple-A credit rating from Moody's. Many analysts are anticipating further euro weakening and subsequent inflation.
Further currency debasement could help support higher gold prices, but global rate hikes might provide some short-term downside. After China's higher-than-expected inflation reading, analysts are expecting the government to raise interest rates to control economic expansion.
The Fed has pledged to keep interest rates low for an extended period of time despite fledgling economic recovery. But wary investors are ever vigilant, watching for any tell that the Fed will tighten rates sooner than expected. Gold has historically been the go to hedge against inflation bought by investors. Thus, any signs that the government will end the flow of free money will impact gold and other precious metal prices.
Gold Mining Report-March 16, 2010
In the last few years, most of the gold mining activities have been located in Southern Hemisphere. Lately, mining activities and consolidations are starting to ramp up in the northern areas of Canada, specifically in the Yukon Territories.
NovaGold Resources was a major player in the gold mining industry, but after the financial crisis and related budget problems, it halted its development activities. However, lately the company has been in the news again due to interest by investors like George Soros and John Paulson, who have increased their positions in NovaGold’s stock.
Kinross Gold announced today that in addition to their press release on March 11, 2010, it has entered into a definitive support agreement with the Canadian Junior mining company, Underworld Resources. Kinross’s friendly take-over bid will acquire 100% of the outstanding common shares of Underworld that they do not already own on the basis of 0.141 of a Kinross common share plus $0.01 in cash per common share. Underworld agreed to support the offer and Underworld's directors and senior have agreed to tender their common shares to the offer. In the deal Kinross will also acquire a development prospect called White Gold, which has already identified an indicated resource of greater than 1 million ounces of gold, and the project's Golden Saddle deposit, ore grades look highly favorable for positive economic feasibility at 3.2 grams per ton.
Yesterday,(yea I now I am slacking) Seabridge Gold announced that an independent review of Seabridge Gold's resource estimates for the KSM project has been completed by a third-party, Behre Dolbear & Company. Behre Dolbear confirms that the KSM resource model is reasonable and appropriate. Furthermore, they confirmed that the resource estimates prepared by Resource Modeling in January were accurate, conformed to industry practices, and complied with industry standards. However, the Seabridge realistically cannot enter production at the KSM project unless one of the major mining groups decides back them financially. Higher gold prices may provide them that incentive.
Back in the U.S., Newmont Mining Corporation stated that the Chinese demand for gold bullion will remain strong this year, despite historically high prices for the metal. Philip Stephenson, Regional Group Executive, Operations, Newmont Asia Pacific is forecasting that they are still going to see strong investment demand from China. Last year, 2009, there was a 20% increase in investment demand from China. Newmont is expecting a similar level of demand in 2010.
Newmont's Boddington gold mine in Western Australia recently opened and expectations are high. They also have several early-stage exploration projects near existing Australian mine sites. However, these are more likely to extend existing mine life, rather than boost production levels.
NovaGold Resources was a major player in the gold mining industry, but after the financial crisis and related budget problems, it halted its development activities. However, lately the company has been in the news again due to interest by investors like George Soros and John Paulson, who have increased their positions in NovaGold’s stock.
Kinross Gold announced today that in addition to their press release on March 11, 2010, it has entered into a definitive support agreement with the Canadian Junior mining company, Underworld Resources. Kinross’s friendly take-over bid will acquire 100% of the outstanding common shares of Underworld that they do not already own on the basis of 0.141 of a Kinross common share plus $0.01 in cash per common share. Underworld agreed to support the offer and Underworld's directors and senior have agreed to tender their common shares to the offer. In the deal Kinross will also acquire a development prospect called White Gold, which has already identified an indicated resource of greater than 1 million ounces of gold, and the project's Golden Saddle deposit, ore grades look highly favorable for positive economic feasibility at 3.2 grams per ton.
Yesterday,(yea I now I am slacking) Seabridge Gold announced that an independent review of Seabridge Gold's resource estimates for the KSM project has been completed by a third-party, Behre Dolbear & Company. Behre Dolbear confirms that the KSM resource model is reasonable and appropriate. Furthermore, they confirmed that the resource estimates prepared by Resource Modeling in January were accurate, conformed to industry practices, and complied with industry standards. However, the Seabridge realistically cannot enter production at the KSM project unless one of the major mining groups decides back them financially. Higher gold prices may provide them that incentive.
Back in the U.S., Newmont Mining Corporation stated that the Chinese demand for gold bullion will remain strong this year, despite historically high prices for the metal. Philip Stephenson, Regional Group Executive, Operations, Newmont Asia Pacific is forecasting that they are still going to see strong investment demand from China. Last year, 2009, there was a 20% increase in investment demand from China. Newmont is expecting a similar level of demand in 2010.
Newmont's Boddington gold mine in Western Australia recently opened and expectations are high. They also have several early-stage exploration projects near existing Australian mine sites. However, these are more likely to extend existing mine life, rather than boost production levels.
Friday, March 12, 2010
This Week in Mining
Rising gold prices this year have been driving a wave of acquisition activities in the sector with at least three major deals being announced this week alone.
Newmont Mining, the world's second largest gold producer, said this week that it may pursue operations in politically risky countries. Last week the company sold its interest in the Amulsar Gold Project in Armenia to its partner Lydian International for around $25M.
Kinross Gold announced the proposed acquisition of Underworld Resources for $139.2 million, or $2.62 per share. Kinross already holds an 8.5% stake in the company and Thursday's offer represents a 36% premium over Underworld's closing price of $1.93 on Wednesday.
Apollo Gold announced Tuesday the acquisition of Linear Gold for C$102M. The combined company will have total reserves of approximately 2.3M ounces of gold in Canada.
On another note:
Barrick Gold, one of the the largest gold producers faced the risk of losing its mining license for the $3B Reko Diq gold-copper project in Pakistan even though the CEO stated that he was confident the company would reach an agreement to develop the project, which it owns jointly with Chilean copper company Antofagasta. Barrick’s North American business produced 600,000 ounces of gold at a cash cost of $523 per ounce. This was driven by the Goldstrike operation, which produced 210,000 ounces at $528 per ounce as higher-grade ore continued to be mined in the open pit and underground and the Cortez mine contributed 170,000 million ounces at $382 per ounce. Barrick is even expecting to increase in gold production from the Cortez property. Assay results predict a higher grade of ore from the Cortez Hills mine when it becomes operational.
There is probably more but thats about all I can digest for one day. Remember buy real money, buy PMs!
Newmont Mining, the world's second largest gold producer, said this week that it may pursue operations in politically risky countries. Last week the company sold its interest in the Amulsar Gold Project in Armenia to its partner Lydian International for around $25M.
Kinross Gold announced the proposed acquisition of Underworld Resources for $139.2 million, or $2.62 per share. Kinross already holds an 8.5% stake in the company and Thursday's offer represents a 36% premium over Underworld's closing price of $1.93 on Wednesday.
Apollo Gold announced Tuesday the acquisition of Linear Gold for C$102M. The combined company will have total reserves of approximately 2.3M ounces of gold in Canada.
On another note:
Barrick Gold, one of the the largest gold producers faced the risk of losing its mining license for the $3B Reko Diq gold-copper project in Pakistan even though the CEO stated that he was confident the company would reach an agreement to develop the project, which it owns jointly with Chilean copper company Antofagasta. Barrick’s North American business produced 600,000 ounces of gold at a cash cost of $523 per ounce. This was driven by the Goldstrike operation, which produced 210,000 ounces at $528 per ounce as higher-grade ore continued to be mined in the open pit and underground and the Cortez mine contributed 170,000 million ounces at $382 per ounce. Barrick is even expecting to increase in gold production from the Cortez property. Assay results predict a higher grade of ore from the Cortez Hills mine when it becomes operational.
There is probably more but thats about all I can digest for one day. Remember buy real money, buy PMs!
Thursday, March 11, 2010
Gold Wars: A Very Knowledgeable PM Business Owner's Blog
I wanted to let my readers know of a blog called Gold Wars. The author is a gold and silver business owner named Kirsty Hogg. Conversely, the blog is not about her business, but instead addresses issues like hyper-inflation, the long term manipulation of gold and silver, current economic events, and other related items. We all know (at least those who read my blog) that the Federal Reserve continues to print money even as the Federal debt is out of control (just check that little ticker on the left side of the page). These are just some of the topics Kirsty discusses. Like me, she is trying to educate folks that paper money is virtually worthless.
Ever since 1971 when President Nixon took the US off the gold standard and replaced our money with fiat currency, the value of he dollar has eroded and many fear the US economy will soon reach a melting point if something is not done about it. She also addresses what you can do to prepare for the worst, if it comes. The number one way to protect your wealth is to buy precious metals such as gold and silver. Kirsty recommends and I agree that it makes sense to store your wealth in something that is inflation proof. As Kirsty put it “I for one will be buying gold and silver in a variety of forms.” So if you want an education in gold, the economics behind it and the value of owning precious metals, I recommend Gold Wars as required reading. Gold Wars link: http://www.goldwars.blogspot.com/.
Ever since 1971 when President Nixon took the US off the gold standard and replaced our money with fiat currency, the value of he dollar has eroded and many fear the US economy will soon reach a melting point if something is not done about it. She also addresses what you can do to prepare for the worst, if it comes. The number one way to protect your wealth is to buy precious metals such as gold and silver. Kirsty recommends and I agree that it makes sense to store your wealth in something that is inflation proof. As Kirsty put it “I for one will be buying gold and silver in a variety of forms.” So if you want an education in gold, the economics behind it and the value of owning precious metals, I recommend Gold Wars as required reading. Gold Wars link: http://www.goldwars.blogspot.com/.
Gold Mining Report-March 11, 2010
Today has been very interesting in the world of gold mining. To wet your whistle, an exploration and aquisition company is now going into the gold production business. Another gold mining company announced that they would acquire 100% of the outstanding common shares of a smaller exploration company without making a hostile take-over bid, and the coup de gras, even though this mining company rose 0.8% to $39.10, the company along with its partner may have some trouble with the locals. The local government threatened to withhold their mining license! Read it on 24K Chuk Kam!
Great Basin Gold Limited usually engages in the acquisition, exploration, and development of precious metal deposits primarily gold and silver deposits. Now it has moved from just an exploration company to a production company. It owns interests in the Hollister gold project and the Esmeralda property in Nevada, and the Burnstone gold project in South Africa. L.A. Little at Real Money is moving into the bullish realm as GBG’s production comes on line. It is well supported in price as a result and any weakness that stems this news needs to be used to accumulate shares.
Kinross Gold . The board of directors of Underworld unanimously recommends the offer to its shareholders. For each Common Share of Underworld, Kinross will offer 0.141 of a Kinross common share, plus $0.01 in cash. The offer represents an implied offer price of ~$2.62 per Common Share. The transaction values the fully-diluted share capital of Underworld at approximately $139.2 M. Underworld's key asset is the White Gold project, in the Tintina gold belt south of Dawson City, Yukon Territory. The project has roughly 1.5 million ounces of resources. Kinross stock is currently trading down 0.8% at $17.90.
Barrick Gold rose 0.8% to $39.10, as the company's CEO Aaron Regent maintains his optimism about Barrick's ability to reach an agreement to develop the huge $3 billion Reko Diq gold-copper project in Pakistan. Barrick and Chilean copper mining company Antofagasta together own the majority of the project, while the local government owns the remaining stake. Many have been worried that the project might be in jeopardy after the local government threatened to withhold a mining license that the companies would need to move the project forward with the project.
Goldcorp reported Q4 (Dec) earnings of $0.25 per share, excluding non-recurring items, in-line with the First Call consensus of $0.25; revenues rose 27.8% year/year to $778.3M vs the $732.4 M consensus. The Company reported gold production of 601,300 ounces at a total cash cost of $289 per ounce for the quarter ended December 31, 2009.
Great Basin Gold Limited usually engages in the acquisition, exploration, and development of precious metal deposits primarily gold and silver deposits. Now it has moved from just an exploration company to a production company. It owns interests in the Hollister gold project and the Esmeralda property in Nevada, and the Burnstone gold project in South Africa. L.A. Little at Real Money is moving into the bullish realm as GBG’s production comes on line. It is well supported in price as a result and any weakness that stems this news needs to be used to accumulate shares.
Kinross Gold . The board of directors of Underworld unanimously recommends the offer to its shareholders. For each Common Share of Underworld, Kinross will offer 0.141 of a Kinross common share, plus $0.01 in cash. The offer represents an implied offer price of ~$2.62 per Common Share. The transaction values the fully-diluted share capital of Underworld at approximately $139.2 M. Underworld's key asset is the White Gold project, in the Tintina gold belt south of Dawson City, Yukon Territory. The project has roughly 1.5 million ounces of resources. Kinross stock is currently trading down 0.8% at $17.90.
Barrick Gold rose 0.8% to $39.10, as the company's CEO Aaron Regent maintains his optimism about Barrick's ability to reach an agreement to develop the huge $3 billion Reko Diq gold-copper project in Pakistan. Barrick and Chilean copper mining company Antofagasta together own the majority of the project, while the local government owns the remaining stake. Many have been worried that the project might be in jeopardy after the local government threatened to withhold a mining license that the companies would need to move the project forward with the project.
Goldcorp reported Q4 (Dec) earnings of $0.25 per share, excluding non-recurring items, in-line with the First Call consensus of $0.25; revenues rose 27.8% year/year to $778.3M vs the $732.4 M consensus. The Company reported gold production of 601,300 ounces at a total cash cost of $289 per ounce for the quarter ended December 31, 2009.
APMEX - The Last Maple Leaf!
Over the past three years The Royal Canadian Mint produced special, limited edition .99999 pure Gold Maple Leaf coins to exhibit their engineering excellence in coin minting. These coins have been reserved for special edition releases only and have been produced in very limited mintages. These unique, special edition coins featured a three maple leaf design in 2007, a two maple leaf design in 2008, and a lone maple leaf on this, the final coin in this series.
We are excited to announce that APMEX has recently secured a small quantity of limited edition 1 ounce .99999 pure, 2009 Gold Maple Leaf coins - the last in this series. Now through Monday March 15, 2010, at 12 noon (CST) these coins have been priced as low as $59.95 over spot while supplies last.
The Gold Maple Leaf was first launched in September 1979 as a 1 ounce investment grade coin. The Gold Maple Leaf was .999 pure until 1982 when its purity was raised to .9999, setting a new standard for gold bullion coins. Every Maple Leaf coin is guaranteed by the Government of Canada for its weight and purity. As a result, Maple Leafs are highly valued and are easily bought and sold anywhere in the world where precious metals are traded.
Don't miss this great opportunity to invest in one of the world's purest gold coins. At these prices, our special edition .99999 pure 2009 Gold Maple Leaf coins will not last long. Order your limited mintage .99999 Maple Leaf coins today while supplies last!
Respectfully,
David McCarty
Director of Marketing
American Precious Metals Exchange
Wednesday, March 10, 2010
Gold and Oother PM's Start With a Bang then Fizzle Out-March 10, 2010
Gold prices started off slightly higher today on improving investor risk appetite. Gold for April delivery was rising to $1,122.40 at the Comex. Prices traded has high as $1,128.30 and as low as $1,120.50. The U.S dollar index was adding 0.03% to $80.62. Gold's spot price was rising 80 cents according to Kitco's gold index. Many investors were still waiting for a resolution on Greek sovereign debt, but a strengthening euro was helping gold prices. President Obama met with Greece’s Prime Minister Papandreou; however, Obama showed little support for Greece and gave no indications of financial aid.
The European Commission is working on a proposal for a monetary fund to assist struggling European countries, but Greece and Portugal have yet to officially ask for help. Hampering gold's morning rise was the news that China's imports rose by 44.7% last month, crimping its trade surplus. If China raises rates to put the brakes on its economy, many analysts believe that would impact gold prices negatively. Consumer demand for gold in China grew 7% from 2008 to 2009, totaling 462 tons. Initial buying interest has boosted gold somewhat as a result of the European Union debt news and currency fluctuations.
However, gold futures finished lower. According to MarketWatch, traders took a cautious approach ahead of more economic reports from China. Most precious metals sold off early in the session and failed recover during this session. No single reason was attributed to the move lower in precious metals, although a recovery in the dollar index did convince many to sell.
Gold futures are at lows not seen since February 25. Also, gold futures closed just below their simple 50-day moving average. April gold closed 1.3% lower by $14.10 to $1108.20, May silver closed 1.8% lower losing .028 to finish at $17.31 and May copper shed 4.35 cents to $3.368. Actively Traded Lagging Global & Sector ETF Plays: Silver- SLV -1.75%, Gold miners- GDX -1.50%, Gold- GLD -1.25%, Base metals- DBB -0.75% (COMDX).
The European Commission is working on a proposal for a monetary fund to assist struggling European countries, but Greece and Portugal have yet to officially ask for help. Hampering gold's morning rise was the news that China's imports rose by 44.7% last month, crimping its trade surplus. If China raises rates to put the brakes on its economy, many analysts believe that would impact gold prices negatively. Consumer demand for gold in China grew 7% from 2008 to 2009, totaling 462 tons. Initial buying interest has boosted gold somewhat as a result of the European Union debt news and currency fluctuations.
However, gold futures finished lower. According to MarketWatch, traders took a cautious approach ahead of more economic reports from China. Most precious metals sold off early in the session and failed recover during this session. No single reason was attributed to the move lower in precious metals, although a recovery in the dollar index did convince many to sell.
Gold futures are at lows not seen since February 25. Also, gold futures closed just below their simple 50-day moving average. April gold closed 1.3% lower by $14.10 to $1108.20, May silver closed 1.8% lower losing .028 to finish at $17.31 and May copper shed 4.35 cents to $3.368. Actively Traded Lagging Global & Sector ETF Plays: Silver- SLV -1.75%, Gold miners- GDX -1.50%, Gold- GLD -1.25%, Base metals- DBB -0.75% (COMDX).
Gold Mining Report-March 10, 2010
International Tower Hill Mines and Minatura Gold have new mining news today. We also report on Barrick Gold, Newmont Mining Corporation, Kinross Gold Corporation and GoldCorp stocks. International Tower Hill Mines announced the results of the updated independently prepared resource estimate for the Livengood gold project, located in Alaska. The results of these estimates are anticipated to have a positive impact on the strip ratio and mining economics. The Money Knob deposit is still open in several directions and depths. They estimated yields by using different gold cut-off grades. Using a 0.5 g/t gold cut-off grade, the new estimate yielded an Indicated Resource of 9.3M ounces of gold and an Inferred Resource of 3M ounces of gold. Using a 0.7 g/t gold cut-off, which THM envisions as a possible milling cut-off grade, the Indicated Resource is 5.8M ounces of gold and the Inferred Resource is 1.8M ounces of gold. When they used a 0.3 g/t gold cut-off grade, the average grade for the heap leach as described in the THM’s November 30, 2009 heap leach PEA study, the Indicated Resource is 13.5M ounces of gold, and the Inferred Resource is 5M ounces of gold.
Minatura Gold announced that it has completed drilling of the first of a 50-hole drilling program in certain gold mining concessions located in Colombia’s Department of Antioquia on 1,775 acres, including the Zaragosa Project located on Coco Hondo and Angostura properties. Minatura believes that these areas contain an estimated 50 million cubic meters of material. The first hole of the anticipated 50-hole drilling program was drilled and completed on February 26, 2010. To complete the drilling program, Minatura will be using two churn drills, SonicSampDrill drilling units with crawlers, and is under contract with SonicSampDrill to provide four additional drill masters to operate the units. These areas in the Zaragoza Project were previously dredged by the Plato Gold Dredging Company over 50 years ago. Plato recovered an estimated 700,000 ounces of gold at that time. It is believed that the inefficient dredges used by Plato led to a substantial amount of unrecovered gold deposits. Minatura intends to install and operate a bulk sampling plant to test the tailings above the water table. The Company expects the new plant to be operational by the end of the second calendar quarter in 2010.
Mining stocks were mixed. Barrick Gold opened at $39.48 but ended the day down 0.79 to close at 38.75. Currently, Barrick is down 0.08 in the after-market session. Barrick Gold Corporation primarily engages in the exploration, development, production, and sale of gold worldwide.
Newmont Mining Corporation opened at $51.12 and was rose eagerly to $51.58, but by the end of the session Newmont lost its gains and closed at 50.27. Although right now it is up 0.01 in after-hours trading. Newmont together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. Its assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. By end of 2009, Newmont had proven and probable gold reserves of approximately 91.8 M ounces and a total land position of approximately 33,400 square miles.
Another large-cap miner, Kinross Gold Corporation opened at $18.57 and peaked at $18.76 around 10:00am, then continued to slide, losing 0.50 and closing at 18.07. Kinross through its subsidiaries engages in the gold mining and mining related activities such as the exploration for and acquisition of gold-bearing properties, the extraction and processing of gold-containing ores, and reclamation of gold mining properties. Its gold production and exploration activities are carried out principally in the United States, Brazil, Chile, Ecuador, and the Russian Federation. In Q4 2008, its proven and probable mineral reserves were 45.6 M ounces of gold.
Goldcorp opened trading at $40.52, peaked around 11:00am at $40.88 then gave back 0.99 to close at 39.45. Currently it is trading up 0.04 in the after-market session. Goldcorp Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and central and South America.
Minatura Gold announced that it has completed drilling of the first of a 50-hole drilling program in certain gold mining concessions located in Colombia’s Department of Antioquia on 1,775 acres, including the Zaragosa Project located on Coco Hondo and Angostura properties. Minatura believes that these areas contain an estimated 50 million cubic meters of material. The first hole of the anticipated 50-hole drilling program was drilled and completed on February 26, 2010. To complete the drilling program, Minatura will be using two churn drills, SonicSampDrill drilling units with crawlers, and is under contract with SonicSampDrill to provide four additional drill masters to operate the units. These areas in the Zaragoza Project were previously dredged by the Plato Gold Dredging Company over 50 years ago. Plato recovered an estimated 700,000 ounces of gold at that time. It is believed that the inefficient dredges used by Plato led to a substantial amount of unrecovered gold deposits. Minatura intends to install and operate a bulk sampling plant to test the tailings above the water table. The Company expects the new plant to be operational by the end of the second calendar quarter in 2010.
Mining stocks were mixed. Barrick Gold opened at $39.48 but ended the day down 0.79 to close at 38.75. Currently, Barrick is down 0.08 in the after-market session. Barrick Gold Corporation primarily engages in the exploration, development, production, and sale of gold worldwide.
Newmont Mining Corporation opened at $51.12 and was rose eagerly to $51.58, but by the end of the session Newmont lost its gains and closed at 50.27. Although right now it is up 0.01 in after-hours trading. Newmont together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. Its assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. By end of 2009, Newmont had proven and probable gold reserves of approximately 91.8 M ounces and a total land position of approximately 33,400 square miles.
Another large-cap miner, Kinross Gold Corporation opened at $18.57 and peaked at $18.76 around 10:00am, then continued to slide, losing 0.50 and closing at 18.07. Kinross through its subsidiaries engages in the gold mining and mining related activities such as the exploration for and acquisition of gold-bearing properties, the extraction and processing of gold-containing ores, and reclamation of gold mining properties. Its gold production and exploration activities are carried out principally in the United States, Brazil, Chile, Ecuador, and the Russian Federation. In Q4 2008, its proven and probable mineral reserves were 45.6 M ounces of gold.
Goldcorp opened trading at $40.52, peaked around 11:00am at $40.88 then gave back 0.99 to close at 39.45. Currently it is trading up 0.04 in the after-market session. Goldcorp Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and central and South America.
Monday, March 8, 2010
Gold Price Report - March 8, 2010
Early this morning gold dropped a quick ~5 points to lows at $1130.00. By 10:00 am SMH reported gold as a sector laggard as it was down 0.4%. At midday, gold dropped to new session lows as the dollar index moved into positive territory. Gold closed down at $1123.70. In summary, gold sold off as the dollar pared its early losses this morning, but it moved modestly higher off session lows and traded relatively flat for the remainder of the session, netting marked losses. April gold closed 1.0% lower at $1124.00 per ounce. Gold futures are still above their 50 moving average near the $1109.50 level.
Gold Mining Report- March 8, 2010
Three gold mining companies were in the news today. There was the discovery of a possible new high yield gold target, a huge sale of mining company stock to Soros Fund Management, and positive initial test results on a new gold extraction and processing method that could dratically reduce the volume of material used to recover the shiny stuff.
Paramount Gold and Silver announced a second bulk mineable target has been discovered at San Miguel project in new San Francisco, Mexico area. The new target generated some unusually high assay results. Paramount owns a 100% interest in the 466,000 acre San Miguel Project in the Palmarejo District of northwest Mexico, making it the largest claim holder in the area.
NovaGold Company announced that it is proposing to issue more than 13.6 Million (M) common shares of the company at $5.50 per common share for gross proceeds of $75M to Quantum Partners, a private investment fund managed by Soros Fund Management. This capital is in addition to the $100M financing announced by the company on March 4th of this year. The gross proceeds to be raised under the two financings total US$175 million.
Lastly, International Tower Hill Mines announced key initial metallurgical test results for mill processing of the major types of mineralization at the Money Knob deposit at the Livengood Gold Project in Alaska. The initial gravity and flotation gold recovery test results were highly encouraging for the use of a pre-concentration gold recovery system for the Money Knob mineralization. Potentially, both the operating and capital costs for a milling operation could be reduced by using this treatment for gold extraction. The initial extraction method results indicated that it could reduce by 80% the material volume used to recover gold. The company is currently engaged in further testing and optimization of both the concentration process and the extraction of gold from the concentrates.
That is your day in gold mining. Stay tuned for the Gold Mining Report as I hope to make it a regular feature of this blog.
Paramount Gold and Silver announced a second bulk mineable target has been discovered at San Miguel project in new San Francisco, Mexico area. The new target generated some unusually high assay results. Paramount owns a 100% interest in the 466,000 acre San Miguel Project in the Palmarejo District of northwest Mexico, making it the largest claim holder in the area.
NovaGold Company announced that it is proposing to issue more than 13.6 Million (M) common shares of the company at $5.50 per common share for gross proceeds of $75M to Quantum Partners, a private investment fund managed by Soros Fund Management. This capital is in addition to the $100M financing announced by the company on March 4th of this year. The gross proceeds to be raised under the two financings total US$175 million.
Lastly, International Tower Hill Mines announced key initial metallurgical test results for mill processing of the major types of mineralization at the Money Knob deposit at the Livengood Gold Project in Alaska. The initial gravity and flotation gold recovery test results were highly encouraging for the use of a pre-concentration gold recovery system for the Money Knob mineralization. Potentially, both the operating and capital costs for a milling operation could be reduced by using this treatment for gold extraction. The initial extraction method results indicated that it could reduce by 80% the material volume used to recover gold. The company is currently engaged in further testing and optimization of both the concentration process and the extraction of gold from the concentrates.
That is your day in gold mining. Stay tuned for the Gold Mining Report as I hope to make it a regular feature of this blog.
Friday, March 5, 2010
24K Chuk Kam's Daily Gold Mining Report
Today, March 5, 2010, three gold mining companies, Nova Gold, Appollo Gold, and Yamana Gold made headlines.
Nova Gold Resources announced that landowners have approved certain amendments to the lease for subsurface and surface rights in connection with the Donlin Creek property; the existing lease covers the subsurface rights for the entire Donlin Creek mineral reserves and resources.
Apollo Gold announces that its first drill assay results intercepted high grade gold mineralization at the Pike River Project. The assay shows high grade gold mineralization.
Yamana Gold has not had the same good fortune lately. The company’s costs were higher than expected at the company's Jacobina mine in Brazil and El Penon in Chile during the fourth quarter, which pumped up cash costs of gold on a per ounce basis. Yamana claims it has performed below expectations as a result of damage to its Minera Florida mine in Chile due to ongoing power outages caused by recent earthquakes.
This article is intended to be a regular feature on 24K Chu Kam as time allows.
Nova Gold Resources announced that landowners have approved certain amendments to the lease for subsurface and surface rights in connection with the Donlin Creek property; the existing lease covers the subsurface rights for the entire Donlin Creek mineral reserves and resources.
Apollo Gold announces that its first drill assay results intercepted high grade gold mineralization at the Pike River Project. The assay shows high grade gold mineralization.
Yamana Gold has not had the same good fortune lately. The company’s costs were higher than expected at the company's Jacobina mine in Brazil and El Penon in Chile during the fourth quarter, which pumped up cash costs of gold on a per ounce basis. Yamana claims it has performed below expectations as a result of damage to its Minera Florida mine in Chile due to ongoing power outages caused by recent earthquakes.
This article is intended to be a regular feature on 24K Chu Kam as time allows.
Thursday, March 4, 2010
Article from TheStreet.com : Gold Prices Stall
Alix Steel
March 4, 2010
Gold prices were slipping today due to profit talking by PM investors, and a rise in the U.S. dollar index. The U.S. dollar rallied off of Euro weakness after the European Central Bank announced its decision to keep key interest rates low.
Currently gold's future is mixed, and one factor is the next employment report. A positive report could prompt the Fed to raise interest rates, which would likely impact gold prices negatively. Gold prices were also negatively influenced by Greek debt fears, new uncertainties created volatility for the Euro and gold.
Mining stocks, were also such as Barrick Gold, Newmont Mining, Kinross Gold and Goldcorp were also down. Gold ETF’s such as SPDR Gold Shares were also lower. To read the article in its entirety go here.
Wednesday, March 3, 2010
Gold Futures Higher on Stronger Euro, Weaker Dollar
An article on Forbes.com reported that gold futures moved higher this morning as the Euro strengthened against the US dollar, and an employment report showed improvement in the U.S. jobs picture. Gold went as high as $1,144.40 per ounce early in the session, to its highest levels since Jan. 11. 2010. Greece's plans to rein in its debt gave strength to the Euro and thus weakened the US Dollar. Furthermore, the ADP jobs report stated the U.S. private-sector employers cut 40,000 less jobs in February than in January. Gold mining companies also traded higher during this mornings advance. Barrick Gold, AngloGold Ashanti, and Newmont Mining all posted modest gains. To read the entire article:
Gold Rallies As Dollar Dallies
Greenback falls on Greek belt-tightening, provides boost to metal prices, stocks.
By MarketNewsVideo.com
http://www.forbes.com/2010/03/03/gold-barrick-anglogold-markets-equities-silver-marketnewsvideo.html?partner=email
Gold Rallies As Dollar Dallies
Greenback falls on Greek belt-tightening, provides boost to metal prices, stocks.
By MarketNewsVideo.com
http://www.forbes.com/2010/03/03/gold-barrick-anglogold-markets-equities-silver-marketnewsvideo.html?partner=email
Sunday, February 14, 2010
TheStreet's Prediction of Gold Futures
Published on TheStreet.com 02/14/10 - 09:12 PM EST
By Mohammed Isah of fxtechstrategy.com
"Gold futures took a break this past week from their recent declines and broke back into their longer rising trend line and through the Jan. 28 low at 1,073.95 to close the week higher at 1,093.30. Gold futures still retain their broader downside bias, but the immediate risk is higher, and futures could target the Feb. 3 high at 1,125.00. A cap is expected there, which would turn the commodity back down again. However, if that level breaks, we could see more momentum build toward the Jan. 20 high at 1,141.48. "
To read the entire article go here.
By Mohammed Isah of fxtechstrategy.com
"Gold futures took a break this past week from their recent declines and broke back into their longer rising trend line and through the Jan. 28 low at 1,073.95 to close the week higher at 1,093.30. Gold futures still retain their broader downside bias, but the immediate risk is higher, and futures could target the Feb. 3 high at 1,125.00. A cap is expected there, which would turn the commodity back down again. However, if that level breaks, we could see more momentum build toward the Jan. 20 high at 1,141.48. "
To read the entire article go here.
Thursday, February 4, 2010
The Glitter of Precious-Metals ETFs - Kiplinger.com
By Laura Cohn, Associate Editor, Kiplinger's Personal Finance
Published February 4, 2010
In this article Ms. Cohn identifies five exchange-traded funds that give investors a stake in gold, silver, platinum and palladium. Ms. Cohn reports “for decades, precious metal maniacs have argued the bullish case for their favorite metal. In recent years, they’ve actually been right. The price of gold has climbed steadily for the past nine years, from $277 an ounce in 2001 to a record high (not adjusted for inflation) of $1,213 in December 2009 as investors piled into the yellow metal because of its reputation as a safe haven and as a hedge against a falling dollar”. Recently Gold closed at $1,115 on February 2, 2010.
She further elaborates “the rising price and the rise of exchange-traded funds have attracted investors in droves. Thanks to ETFs, investors can buy gold without having to open their own Fort Knox. Last year, investors around the world bought 51.2 million ounces of gold, and 35% of that amount came through ETFs. In the case of silver, the figure is even more astounding. Investors snatched up 172 million ounces of silver last year, and 87% of it was via ETFs. Silver closed February 2, 2010 at $17 an ounce, well below the record of $50, set in 1980, but far above the $5 level of recent years. However, you may want to expand your horizons to commodities that are less well known. In particular, the arrival of two new ETFs makes it easier than ever to invest in platinum and palladium, two precious metals with a wider array of industrial uses than gold and silver. The creative names of these new vehicles are ETFS Physical Platinum Shares (symbol PPLT) and ETFS Physical Palladium Shares (PALL).”
Then she shares a bit of wisdom that if you do not know already you should. Don’t put all of your eggs in the same basket, or as the author more eloquently states “Investing in raw materials doesn’t come without risk -- and, in fact, prices of platinum and palladium are actually more volatile than those of gold. So this is one reason precious metals should represent only a small slice of your portfolio -- 5% at most and probably less for most people. The best way to get a piece of gold is through the popular and liquid SPDR Gold Shares (GLD). The ETF sports an expense ratio of 0.40%. (If you’d rather track gold stocks, you can buy another ETF, Van Eck Market Vectors Gold Miners ETF (GDX), which tracks an index of gold-mining stocks). For access to silver, buy the iShares Silver Trust (SLV), which charges 0.50% per year. Both GLD and SLV provide a stake in the metals, which are housed in vaults located in London, eliminating the need to worry about where to store them safely.” “What gets people into trouble is making a bet that’s too concentrated,” says Jack Reutemann, founder of Research Financial Strategies, so he recommends a buying bit of each. The author states an alternative “spread your risk by buying an ETF that includes gold and silver as well as other materials, such as oil, corn and soybeans. For broad exposure, we like the PowerShares DB Commodity Index Tracking Fund (DBC). The ETF, based on the Deutsche Bank Liquid Commodity Index, tracks the futures prices of 14 raw materials. Its expense ratio is 0.85%.”
Read the whole article here:
The Glitter of Precious-Metals ETFs - Kiplinger.com
Posted using ShareThis
Published February 4, 2010
In this article Ms. Cohn identifies five exchange-traded funds that give investors a stake in gold, silver, platinum and palladium. Ms. Cohn reports “for decades, precious metal maniacs have argued the bullish case for their favorite metal. In recent years, they’ve actually been right. The price of gold has climbed steadily for the past nine years, from $277 an ounce in 2001 to a record high (not adjusted for inflation) of $1,213 in December 2009 as investors piled into the yellow metal because of its reputation as a safe haven and as a hedge against a falling dollar”. Recently Gold closed at $1,115 on February 2, 2010.
She further elaborates “the rising price and the rise of exchange-traded funds have attracted investors in droves. Thanks to ETFs, investors can buy gold without having to open their own Fort Knox. Last year, investors around the world bought 51.2 million ounces of gold, and 35% of that amount came through ETFs. In the case of silver, the figure is even more astounding. Investors snatched up 172 million ounces of silver last year, and 87% of it was via ETFs. Silver closed February 2, 2010 at $17 an ounce, well below the record of $50, set in 1980, but far above the $5 level of recent years. However, you may want to expand your horizons to commodities that are less well known. In particular, the arrival of two new ETFs makes it easier than ever to invest in platinum and palladium, two precious metals with a wider array of industrial uses than gold and silver. The creative names of these new vehicles are ETFS Physical Platinum Shares (symbol PPLT) and ETFS Physical Palladium Shares (PALL).”
Then she shares a bit of wisdom that if you do not know already you should. Don’t put all of your eggs in the same basket, or as the author more eloquently states “Investing in raw materials doesn’t come without risk -- and, in fact, prices of platinum and palladium are actually more volatile than those of gold. So this is one reason precious metals should represent only a small slice of your portfolio -- 5% at most and probably less for most people. The best way to get a piece of gold is through the popular and liquid SPDR Gold Shares (GLD). The ETF sports an expense ratio of 0.40%. (If you’d rather track gold stocks, you can buy another ETF, Van Eck Market Vectors Gold Miners ETF (GDX), which tracks an index of gold-mining stocks). For access to silver, buy the iShares Silver Trust (SLV), which charges 0.50% per year. Both GLD and SLV provide a stake in the metals, which are housed in vaults located in London, eliminating the need to worry about where to store them safely.” “What gets people into trouble is making a bet that’s too concentrated,” says Jack Reutemann, founder of Research Financial Strategies, so he recommends a buying bit of each. The author states an alternative “spread your risk by buying an ETF that includes gold and silver as well as other materials, such as oil, corn and soybeans. For broad exposure, we like the PowerShares DB Commodity Index Tracking Fund (DBC). The ETF, based on the Deutsche Bank Liquid Commodity Index, tracks the futures prices of 14 raw materials. Its expense ratio is 0.85%.”
Read the whole article here:
The Glitter of Precious-Metals ETFs - Kiplinger.com
Posted using ShareThis
Thursday, January 21, 2010
Jan. 21, 2010: Gold Price Falls as Dollar Rises
Article from TheStreet.com
Gold price Falls as Dollar Rises
Alix Steel
01/21/10
NEW YORK (TheStreet) -- Gold prices fell toward $1,100 an ounce Thursday after President Obama vowed to shake up Wall Street with strict limits on bank's trading activity. Also, the U.S. dollar hit a five-month high against the euro. The author attributes this to a rising U.S. dollar, making dollar-based commodities like gold more expensive to buy in other currencies, often creating the inverse correlation between prices and the dollar.
Steel also states that increased worries over Chinese credit tightening is contributing to gold's slide. China has already ordered its banks to curb lending, but these inflationary figures could put more pressure on the country to restrict lending. An end to free money from China, which has stimulated the global economy, will continue to curb investor interest in purchasing gold as an alternative asset.
Read This Article
Gold price Falls as Dollar Rises
Alix Steel
01/21/10
NEW YORK (TheStreet) -- Gold prices fell toward $1,100 an ounce Thursday after President Obama vowed to shake up Wall Street with strict limits on bank's trading activity. Also, the U.S. dollar hit a five-month high against the euro. The author attributes this to a rising U.S. dollar, making dollar-based commodities like gold more expensive to buy in other currencies, often creating the inverse correlation between prices and the dollar.
Steel also states that increased worries over Chinese credit tightening is contributing to gold's slide. China has already ordered its banks to curb lending, but these inflationary figures could put more pressure on the country to restrict lending. An end to free money from China, which has stimulated the global economy, will continue to curb investor interest in purchasing gold as an alternative asset.
Read This Article
Wednesday, January 20, 2010
A Very Good Reason To Hold Gold
Federal Deficit in the Danger Zone - Kiplinger.com
As federal spending continues to rise, a crushing mountain of debt looms.
Posted using ShareThis
A very good reason to hold gold!
As federal spending continues to rise, a crushing mountain of debt looms.
Posted using ShareThis
A very good reason to hold gold!
Thursday, January 14, 2010
Article from TheStreet.com : Why Gold Is the Best Money
Why Gold Is the Best Money: Opinion
Jeff Nielson
01/14/10 - 11:14 AM EST
By Jeff Nielson of Bullion Bulls Canada
Among the myths being constantly circulated by gold bears is that gold (and silver) only perform well in high-inflation environments. As with many of the pronouncements of the gold bears, this is another case of them drawing conclusions based upon their own faulty understanding of markets, history, and precious metals, themselves.
READ THIS ARTICLE
Jeff Nielson
01/14/10 - 11:14 AM EST
By Jeff Nielson of Bullion Bulls Canada
Among the myths being constantly circulated by gold bears is that gold (and silver) only perform well in high-inflation environments. As with many of the pronouncements of the gold bears, this is another case of them drawing conclusions based upon their own faulty understanding of markets, history, and precious metals, themselves.
READ THIS ARTICLE
Thursday, January 7, 2010
GOLD PLAYS IN CHILE
According to Yahoo’s In Play, January 7, 2010, New Gold (NGD) announced that it will enter into a partnership with Goldcorp Inc. (GG), and exercise the right of first refusal to acquire 70% of the El Morro copper-gold project in Chile for $463 million. NGD provided notice to Xstrata Copper Chile, a subsidiary of Xstrata (XSRAF.PK), of the exercise of its right of first refusal. New Gold is currently a 30% joint venture partner in El Morro with Xstrata. Goldcorp will loan $463 M to New Gold to fund acquisition. Once New Gold has acquired the 70% interest through a subsidiary, it will sell that subsidiary to Goldcorp. At the same Goldcorp will pay $50 to New Gold and the parties will amend the terms of the existing El Morro Shareholders Agreement to further increase the value of New Gold's 30% interest in the El Morro project.
Tuesday, January 5, 2010
DUMP GOLD?
I want to make it perfectly clear that this is not my opinion, but I strive to be impartial in the articles I post on this blog. If you want my opinion go here.
In an opinion article published on Forbes.com, Jan. 5, 2010, Keith McCullough, Chief Executive Officer of Research Edge said “Sell your gold. Buy some dollars.” It is his belief that the Fed will raise rates sooner than you think, and gold has peaked. He has been bullish on Gold since 2003. But on the date of this publication, Research Edge moved forward to a zero-percent position in their gold asset allocation. Their analysis showed immediate-term trade resistance for the price of gold at $1137.
The decade high for the gold was established on Dec. 2, 2009, and McCullough believes Gold may not top that high until the Fed stops raising interest rates. Even though the consensus is that the Fed is on hold until 2012, and they are long on gold. However, McCullough’s research team remains outside of the consensus. McCullough’s team thinks they have some credibility in reversing their own bearish U.S. dollar stand. It was the same team that wrote the dollar thesis earlier, last year.
McCullough stated that Research Edge did not make this prediction for the sake of being contrarian. They made the call because was their belief in the increasing probability of their being right. They even went as far as to sell their position in SPDR Gold Shares and buy the Powershares DB US Dollar Index Bullish in their virtual portfolio. Both of these moves are confirm the same investment thesis. McCullough’s group says “Sell your gold. Buy some dollars, and start moving forward right now."
The rest of this article can be read here.
In an opinion article published on Forbes.com, Jan. 5, 2010, Keith McCullough, Chief Executive Officer of Research Edge said “Sell your gold. Buy some dollars.” It is his belief that the Fed will raise rates sooner than you think, and gold has peaked. He has been bullish on Gold since 2003. But on the date of this publication, Research Edge moved forward to a zero-percent position in their gold asset allocation. Their analysis showed immediate-term trade resistance for the price of gold at $1137.
The decade high for the gold was established on Dec. 2, 2009, and McCullough believes Gold may not top that high until the Fed stops raising interest rates. Even though the consensus is that the Fed is on hold until 2012, and they are long on gold. However, McCullough’s research team remains outside of the consensus. McCullough’s team thinks they have some credibility in reversing their own bearish U.S. dollar stand. It was the same team that wrote the dollar thesis earlier, last year.
McCullough stated that Research Edge did not make this prediction for the sake of being contrarian. They made the call because was their belief in the increasing probability of their being right. They even went as far as to sell their position in SPDR Gold Shares and buy the Powershares DB US Dollar Index Bullish in their virtual portfolio. Both of these moves are confirm the same investment thesis. McCullough’s group says “Sell your gold. Buy some dollars, and start moving forward right now."
The rest of this article can be read here.
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