Gold Mining News

Lovitt Resources Ltd. (TSXV: LRC) –Further Testing of Blasted Material in I-49 Stope Averages 6.6 g/t Gold

Investment Highlights: Assay results from 47 samples taken from pre-blasted material in the I-49 stope returned an average grade of 6.6 g/t gold. Similar pre-blasted material has been identified in adjacent stopes potentially totaling an […]

Present LongWave Cycle of Winter to Drive Gold to $4,000/oz.

Given the American national debt and deficit problems … the U.S. greenback has the potential for considerable downside … and by axiom, gold bullion has significant upside potential to $1,500 per ounce over the short […]

Pediment Gold Corp Uncovered: The Field Tour Review

A Monday Morning Musing from Mickey the Mercenary Geologist [email protected] I first wrote about Pediment Gold Corp (PEZ.T) in a private report delivered on June 18, 2007. Parts of my missive were reprinted by Jay […]

Elephant Country…

Interview: Rob McEwen and the Next Homestake Mining Company By Ron Hera April 5, 2010 ©2010 Hera Research, LLC Hera Research is pleased to present a riveting interview with gold mining industry legend Rob McEwen, […]

Gold and NYSE Index Charts Unfold

Below are two charts and my thoughts on what I am looking for in the coming days and weeks. Gold Exchange Traded Fund – Daily Chart As you can see the price action of gold […]

John Licata: Gold Stands Its Ground

Source: Tim McLaughlin and Karen Roche of The Gold Report 4/5/10 Gold prices continue to climb and John Licata, chief commodity strategist at Blue Phoenix Inc., says he sees reason to be optimistic about […]

Gold Targets $1,400 as Consolidation Period Ends

Gold has been consolidating for 4 months, trading mostly within the $1,075 – $1,150 range. The last few times that gold consolidated in this manner, it was resolved with an advance of around 30%. There […]

World Gold Council signs agreement to develop China market

The World Gold Council (WGC) and the Industrial and Commercial Bank of China (ICBC) have signed a memorandum of understanding (MOU) for strategic co-operation within China’s gold market. This agreement will enhance the exchange of market information between WGC and ICBC to promote domestic demand for gold, encourage investment into the Chinese market, as well [...]

China Is Gold’s Future

The new report “Gold in the Year of the Tiger” from the World Gold Council (WGC) predicts that gold consumption in China could double in the coming decade as a result of rising demand for jewelry, hard-asset investments and industrial uses. This forecast seems reasonable, and it lines up with what I’ve long been saying about the profound evolution in China’s economy – domestic consumption is replacing exports as the growth engine as more poor Chinese move up into the middle class and from there into the ranks of the wealthy. Tens of millions of people in China are joining the middle class every year – by some estimates, they already number more than the entire U.S. population and could double in the next decade. They are buying more spacious and better-outfitted homes. They have made China the world’s largest automobile market, and a wide range of brand-name Western luxury items are available even in provincial cities. China has a centuries-long cultural affinity for gold, so it makes sense that more middle class and wealthy would mean more gold sales. The line on the WGC chart above shows how investment demand for gold has rocketed up from next to nothing in 2001 to 80 tonnes (2.6 million troy ounces) last year, with the sharpest upswing coming after trading rules were liberalized in mid-2007. Over the same period, China’s GDP roughly tripled. The Chinese are famous for their high savings rate, and the chart shows how important gold has become as a store of their growing wealth. The next chart compares China’s annual gold jewelry consumption to more than a dozen other countries. Last year, China consumed 347 tonnes in jewelry, which was about 30 tonnes more than the country’s total gold production (tops in the world). But on a per-capita basis, China is near the bottom of this list. The World Gold Council points out that, if China matched Saudi Arabia on a per-capita basis, it would consume an additional 4,000 tonnes of gold jewelry each year. That’s more than last year’s demand for the entire world (3,386 tonnes), so even the most enthusiastic gold devotees would probably agree that it’s not a realistic number. But given projections that the Chinese middle class will double in the next decade as China’s economic growth generates a wider distribution of wealth, it’s not farfetched to think that its gold consumption could also double. It is farfetched, however, to think that China’s domestic gold output could keep pace with demand growth – more and more of the world’s gold production (on a declining trend for years) would have to be diverted to the Chinese market, and the result could be a significant impact on gold prices in the years to come.

There is a way to beat JPMorgan at their game.

The revelation at last week's CFTC meeting that JPMorgan was the prime instigator behind the repeated 'takedowns' of the price of gold and silver came as no surprise to those of us who study the […]

The current consolidation in gold offers a buying opportunity

During February, the Russian Central Bank bought another 200,000 ounces of gold. This makes the total of their purchases for the year 300,000 which is the best January/February performance on record. In many of my […]

The Analysis of Gold and the USD Index Once Again Provides Key Trading Signals

This essay is based on the Premium Update posted on April 2nd, 2010 In the March 26th commentary we wrote that given the historical significance of the RSI being at 70 and the fact that […]

Junior Gold Stocks 5

Nearly a decade into gold's secular bull the mining industry continues to exhibit struggles.  And this is best characterized by an ongoing 6-year downtrend in global mine production.  For this reason, and the fact that […]

Gold – The Real Shape of Chinese gold demand This is a snippet from the Gold Forecaster. The newsletter that covers all pertinent factors affecting the gold price [with a 95% accuracy rate].- The respected World Gold Council has issued a report on […]

The Next Phase of the Credit Crunch and What it Means for Gold and Markets

Lately we've been writing about the importance of the bond market. Want a hint if we will have hyperinflation? Follow the bond market. Japan and the US in the 1930s didn't have hyperinflation because there […]

Gold & Indexes Melt Up Into Earnings?

Do the past successes of resource company principals portend future successes as they migrate to other companies or projects? Investment Banker and Financial Advisor Paul Moase has been following the resource sector for 25 years. […]

Paul Moase: Investing in People First

Source: By Ellis Martin and Karen Roche of The Gold Report 3/31/10 Do the past successes of resource company principals portend future successes as they migrate to other companies or projects? Investment Banker and […]

TWP Australia awarded EPCM contract for Siana gold project

The Australian arm of South African engineering company, TWP, has been awarded the EPCM contract for Red 5's Siana gold project

World Gold Council, China's biggest bank to join forces to promote gold investments in China

ICBC and the WGC will share gold market resources, promote domestic demand and market new products in the country.

Is The General Stock Market Topping and What Does It Mean for Gold?

This essay is based on the Premium Update posted on March 26th, 2010 In our previous essay we explained the link between the USD Index, and the price of gold and commented on what how […]

SilverCrest Mines, Inc. (TSXV: SVL) –Funding In Place, Construction on Schedule for 2010 Production

Investment Highlights: The company has signed a definitive Project Facility Agreement on a US$12.5 million loan with Macquarie Bank Ltd., and a definitive Purchase Agreement with Sandstorm Resources Ltd.  (TSXV: SSL) on a US$12 million […]

Panama's Bellhaven bullish on Colombia

Greetings subscribers Here's a deal I believe will get interesting in the weeks to come: Bellhaven Copper & Gold Inc., trading as BHV on Canada's TSX Venture Exchange. Bellhaven shares have been creeping up nicely […]

"States Rights"…Bye, Bye!

Good Morning Americans!  It's Friday…somewhere. What is the price of gold?  Who cares? As long as those blue days of under 300 an ounce don't return.  Dear heaven forbid.  I'll never forget those days.   Everyday […]

Royal Canadian Mint reports C$1bn in bullion and refinery revenues in ‘08

A long delay in the Royal Canadian Mint's 2008 annual report ended as it was tabled by the Canadian Parliament, revealing unprecedented demand for bullion, and 17,500 ounces of gold unaccounted for.

China’s Appetite for Gold

What would happen to the price of gold if China’s annual consumption went up tenfold? That’s the high-end demand case laid out by the World Gold Council (WGC) in its new report “Gold in the Year of the Tiger,” which focuses on China. The WGC says China’s gold consumption of 423 tonnes in 2009 works out to about one-quarter of a gram per person, which is lower than other Asian countries with cultural affinity for gold (chart). The Saudis consume more than three grams per person, and in Hong Kong, it’s more than two grams. “If gold were consumed in China at the same rate per capita as in India, Hong Kong or Saudi Arabia, annual Chinese demand could increase by at least 100 tonnes to as much as 4,000 tonnes in the jewelry sector alone,” the WGC writes. OK, 4,000 tonnes (128.6 million troy ounces) looks pretty extreme, even for the most enthusiastic gold devotees. The WGC offers a more reasonable but nonetheless bullish outlook: China’s gold demand has nearly doubled over the past five years (13 percent growth per year), so it would not be a huge stretch for a doubling to roughly 850 tonnes per year in the next decade. Gold demand is rising as China’s middle class expands, and while the nation is the world’s largest producer, domestic supply falls short of demand by some 100 tonnes per year and that gap will almost certainly widen with rising demand. As more foreign gold is diverted to the Chinese market, the impact on world prices could be significant.