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!

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

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.

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.

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!

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/.