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.
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!
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