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.
Thursday, April 29, 2010
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.
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