Streetwise Articles
Indian Demand Keeping Gold Markets Alive
Source: Mineweb.com (4/15/08)
The Indian wedding season, when gold is often presented as a gift at Hindu marriages, will last until the end of May. The Akshaya Tritiya festival on May 7 also spurred demand from jewellery makers.
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High Gold Prices Encourage Miners to Reconsider More Difficult Projects
Source: Mineweb.com (4/15/08)
Record-high gold prices encourage mining companies to dust off old projects, dig deeper underground and explore the most remote areas, participants at an international gold mining conference said on Tuesday.
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Silver Conductive Inks Market Will Triple Over Next 8 Years
Source: Mineweb.com (4/15/08)
...the report also warns that the "biggest challenge to the future of silver's use in electronics is undoubtedly its high cost. This is one reason that the traditional semiconductor industry has never seriously considered using silver for interconnects. Silver ink sales in the printable electronics business are also hurt by high prices. And with the price of silver almost doubling over the past year, this has really become an issue."
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Five-Fold Production Increase Forecast for Philippines
Source: Mineweb.com (4/14/08)
Environmental and Natural Resources Secretary Lito Atienza has predicted that the production of the Philippines mining sector will increase five-fold by 2011...Gold production would double from 1.2 million to 2.7 million ounces, while silver would increase six-fold from .89 million to 5 million ounces.
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I.M.F. Gold Sales Good for Gold Price
Source: www.GoldForecaster.com (4/14/08)
Let’s move onto the likelihood that the sales will be finally approved, what then? Just how will the sales move forward in the light of the intriguing statements coming from the I.M.F. executives? What are these statements?
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Sonora State: Mexico’s Carlin?
Source: James West, Midas Letter (4/14/08)
Increasingly, companies operating in Sonora are alluding to “Carlin” style mineralization, though typically the allusion to the famed Nevada gold trend is bandied around too often and too optimistically. These days, “Carlin” mineralization is a promoter’s way of trying to make ultra low grade mineralization sound like good news.
Gold Stocks Quandry
Source: Mineweb.com (4/14/08)
Investors in gold stocks remain spooked for now. A selection of 70 of the world's leading gold stocks indicates an average loss in value of nearly one third, after share prices peaked around when gold bullion traded at a record $1,030 an ounce on March 7. This suggests either that gold stocks overshot, or that investors anticipate further downside from gold bullion.
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Gold and Silver: Prepare for a Short-Term Decline
Source: Larry Nusbaum, Seeking Alpha (4/13/08)
Long term, I am extremely bullish on gold, but for the short term, I feel this market may have some more work to the downside.
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M3 Money Supply and Inflation: Got Gold?
Source: Alex Stanczyk, Seeking Alpha (4/13/08)
Did you know, that an ounce of gold would clothe a man in the finest clothing available thousands of years ago? Guess what, today, an ounce of gold will still, clothe a man in the finest clothing available. 75 years ago $20 would likewise buy you an entire wardrobe, yet what can you buy today with that same $20?
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More Investments Sought in Gold
Source: tradearabia.com (4/13/08)
According to Jeffrey Rhodes, Chief Executive Officer, INTL Commodities, the regional gold market needs innovative financing solutions to sustain robust sales as well as growth.
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Greg McCoach, Mining Speculator: "I am Bullish on All the Metals"
Source: The Gold Report (4/11/08)
Greg McCoach is an entrepreneur who has successfully started and run several businesses the past 22 years. For the last eight of these years he has been involved with the precious metals industry as a bullion dealer, investor, and newsletter writer. In this article, the first of a three-part interview, Greg gives us his thoughts on the economy and what it means for precious metals. Parts two and three cover his thoughts on owning physical gold and his top choices for equities.
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Gold Trading in Wide Range But Seen Steadier at Week End
Source: Mineweb.com (4/11/08)
"We are trading in a range and there is no sign that we are going to break out of the current wide range in the near term," said Wolfgang Wrzesniok-Rossbach, head of marketing at Heraeus, a German precious metals trading group. "We have an all-time high in the oil price and a near record high in the euro-dollar, but gold is still $100 away from its own historic highs. Probably there are some more long positions waiting to be sold, once gold goes up again," he added.
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Gold Wars – A Fight to the Death
Source: James West, www.MidasLetter.com (4/10/08)
Let me state at the outset the thesis of this essay: Gold remains the only standard by which the global financial system’s currencies can uniformly be measured throughout history, and is indeed the most basic and reliable benchmark of value for everything from commodities to T-bills.
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Five Ways to Ride Gold to $1500
Source: Martin Hutchinson, Seeking Alpha (4/10/08)
...Three catalysts - worldwide monetary policy, global supply-and-demand for gold, and gold’s past performance - have already ignited a powerful rally that’s virtually certain to carry gold to much higher price points, despite the breather the rally appears to be taking right now.
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Start of a Run for Gold
Source: John Lee, Seeking Alpha (4/10/08)
In the last 6 months, juniors have decisively bottomed after their prices have been slashed up to 90% in some extreme cases. I am now seeing nice pops here and there like mushrooms on a sunny spring day after the storm. There are many quality junior companies with good cash positions, a low market cap and good prospects.
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Investing: A Whole New Era
Source: Mineweb.com (4/10/08)
Raw materials remain the rage, and while a number of developed economies teeter on the cusp of recession, many commodities continue to trade around or close to record levels. Make no mistake: risk aversion is sliming its way back into markets; equities are trading lower, and the dollar remains entrenched in its longer term bear market, which set in during the latter parts of 2001. Investing will never be the same again.
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South African Power Cuts Affect Precious Metal Markets Future
Source: Julian Phillips, www.GoldForecaster.com (4/9/08)
The South African government will give state-owned power utility, Eskom, R80 billion in funding . . . to help it boost electricity generation. . .Mining executives have pointed out that cuts in electrical power have a non-linear effect on gold mines. The typical deep level gold mine allocates roughly 50% of its electrical feed to refrigeration, ventilation and pumping. These facilities need to run at 100% before men can be put down the shafts, meaning that a 10% cut in overall electrical feed to a mine would in fact translate into a 20% cut in the balance of the mine's power usage.
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RBC Capital Markets Says Gold Correction Doldrums Ahead
Source: Mineweb.com (4/9/08)
"We believe investors should take profits ahead of the end of a Fed rate cutting cycle and ahead of the seasonally quiet period for gold and gold equities in June, July and early August," RBC Capital Markets analyst Michael Curran wrote.
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Gold Could Hit $1,100/oz. : GFMS
Source: business-standard.com (4/9/08)
Widening gap between production and jewellery demand could lead to a strong rally in gold prices this year, according to the latest forecast by Gold Fields Mineral Services (GFMS).
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Why Gold Is Likely to Keep Moving Higher
Source: Michael J. Kosares, Seeking Alpha (4/9/08)
Great forces, mostly benevolent, are at work in the gold market. Demand, as reported copiously by the mainstream financial press, continues to grow steadily on a global basis. It is on the supply side of the equation, however, where we now find the strongest arguments for resumption of the bull market. To come to the point, fundamental trends suggest that the gold market may be moving from a period of general scarcity to outright shortages.
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Return to the Gold Standard: Can't Live With It, Can't Live Without It
Source: James West, Seeking Alpha (4/8/08)
...Certainly a return to a monetary standard in gold is now impossible, for the revaluation of currencies that would occur would effectively bankrupt a good portion of the G7 nations. If you think of gold as Tier 1 capital, and currency as leveraged derivatives (which is essentially what they are), most sovereign banks would miserably fail the Tier 1 capital ratio requirements of today. It would make the current liquidity crisis insignificant.
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Gold - An Interesting Week to Miss
Source: Mineweb.com (4/8/08)
What we are seeing, particularly in the gold market, is a degree of volatility seldom seen before. Big moves in the price can occur extremely rapidly, both on the up and on the down trends, and most of these are dollar driven defining gold's primary position as a definer of dollar strength and weakness.
IMF Executive Committee Endorses Gold Sales
Source: Mineweb.com (4/8/08)
The Executive Board of the International Monetary Fund Monday endorsed a new income framework for the IMF, which would permit the agency to sell up to 403.3 tonnes (nearly 13 million ounces) of its gold holdings to create an endowment to support the organization.
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Gold Could Hit $1200 by 2009
Source: Seeking Alpha (4/8/08)
Gold prices could move sideways in the near term and may not make much of a move in the next two quarters, but they should turn upward after that, according to Martin Murenbeeld, chief economist at DundeeWealth Economics.
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IMF Gold Sales Seen Winning US Support
Source: miningmx.com (4/8/08)
The once-off sale of 403 tonnes of gold by the International Monetary Fund to bolster its funds is more than likely to go ahead and is not seen to have much impact on the global gold market, said GFMS chairman Philip Klapwijk.
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