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Monthly Archives: January 2015

Gold Prices Drop as Fed Says U.S. Economic Expansion Is ‘Solid’

Gold prices declined after the Federal Reserve boosted its assessment of the U.S. economy and labor market, cutting demand for haven assets.

“Economic activity has been expanding at a solid pace,” Fed policy makers said, while repeating a pledge to be “patient’ on raising interest rates. The comments were made in a statement Wednesday after concluding a two-day meeting.

Spot gold jumped 9.1 percent this year through Jan. 27 as signs of flagging economies in Europe and Asia revived investor demand for a store of value. The metal also rose amid speculation that weaker foreign expansion would prompt the U.S. central bank to wait longer before increasing borrowing costs. (more…)

Update: Orezone Gold Signs A Deal With Sandstorm Gold

Summary

–  Orezone Gold sells a 0.45% NSR to Sandstorm Gold for $3M which I consider to be an excellent deal.

–  This is a surprising fact as it does look like Sandstorm might be overpaying for the NSR based on the current gold price.

–  The investment thesis remains standing but will be impacted by the financing mix should the company decide to build the project.

Orezone Gold (OTCPK:ORZCF) which aims to develop the Bomboré gold project in Burkina Faso has announced it has closed an agreement with Sandstorm Gold (NYSEMKT:SAND) whereby the latter is purchasing a 0.45% NSR on the project for $3M in cash. Orezone can repurchase this royalty by paying $3.15M within the next six months or ($3M + 10% per year) in the subsequent 2.5 years. (more…)

Eldorado Gold (EGO) Stock Soaring Today After Jump in Gold Prices

Shares of Eldorado Gold Corp. (EGO – Get Report) are higher by 5.02% to $5.97 in late afternoon trading on Tuesday, as some gold and mining related stocks get a boost from the rise in price of the precious metal.

Gold for April delivery is advancing by 1.18% to $1,295.50 per ounce on the COMEX this afternoon.

Gold started to gain following two sessions of declines as losses in U.S. equities and a softening dollar spark investors’ interests in gold as a haven, the Wall Street Journal reports. (more…)

Yamana Gold (AUY) Rising Today Amid Rallying Gold Prices

Shares of Yamana Gold (AUY – Get Report) are rising, up 3.44% to $4.36 in afternoon trading Tuesday, as gold-related stocks rally on higher gold prices due to a soft dollar, CNBC reports.

Gold is up after two sessions of losses, as the dollar eased ahead of tomorrow’s U.S. Federal Reserve interest rate announcement.

The Federal Open Market Committee kicked off its first two-day policy meeting of the year today.

Spot gold is trading up 0.8% to $1,291.13 an ounce as of 12:43 p.m. ET today.

Canada-based Yamana is a gold producer, engaged in gold production, gold development stage properties, exploration properties and land positions in Brazil, Chile, Argentina, Mexico and Colombia. (more…)

Why gold outperformed other assets recently

Gold is benefiting from today’s low interest rate monetary climate, and Russ says its diversifying effects mean the metal can be a valuable risk management tool for investors.

I’am advocating gold as a long-term investment and also as a risk management tool. Today, I remain bullish on the metal for two reasons – the monetary climate and gold’s diversifying qualities.

Gold is up nearly 8% this month, outperforming most equity indexes. Gold – more than any other commodity – is a natural beneficiary of the current monetary regime, which is characterized by negative real interest rates.

Mine Tales: Dredges helped Arizona dig up gold

The word “dredging” might not make your heart race, but it certainly helped speed the pace of mining in Arizona.

From the 1900s through the 1930s, large-scale extraction of the placers on the Prescott area’s Lynx Creek occurred in the form of dredging to remove gold from river-flat gravel deposits with little grade.

A technique used in the New Zealand placers in 1882 and first employed in North America at Bannack, Montana, in 1897, dredging was used effectively in the gold fields of California and Alaska.

The steam dredge functioned as a floating processing plant on water. It excavated alluvial sands directly in its path, while digging its own river through a streambed.

Built along the river, dredges were initially expensive to assemble, but they required little maintenance after that. (more…)

Royal Mint sells gold bars directly for the first time—For the first time in 47 years, the Royal Mint is manufacturing gold and silver bars which are available for everyone to invest in

The Royal Mint has begun selling gold and silver bars directly to the British public today for the first time.

The bars, which were last produced by Royal Mint 47 years ago, are available to buy in several weights ranging from 1g to 100g.

Each bar bears the historic marque of the Royal Mint Refinery “RMR”.

The price of the bars fluctuates as it is linked to the constantly changing price of gold and silver. Currently, a 100g bar made of 999.9 gold costs £2,871.39 while a 1g gold bar costs £49.65. (more…)

Gold Price: Return Of The Bull Market Or Bear Trap?

Summary

– Gold mining companies have received over $600 million in financings this week alone;

-Osisko Gold Royalties, Detour Gold, Pretium Resources, Asanko Gold, Richmont Mines, and Lydian International are all recipients;

-Will the Gold price continue to rise, or is this the setup for a futures market-led bear trap?

-Goldman Sachs Jeff Currie has been conspicuously silent on gold since September of last year.

Gold has been on an upward tear these last few sessions, suggesting that there is every possibility that a bull phase has begun for the monetary metal based on certain macro-economic factors. But does the current move portend a trend? Or is this just yet another one of those booby traps gold’s market puppeteers are now famous for?

Is gold going to climb into the near-$1,400 range before Jeffrey Currie proclaims “Short Gold!”, presaging an utterly reckless overnight sell-off of gold futures overnight in Tokyo?

Gold Is Having A Great Start To 2015

Gold and bonds are rallying on Tuesday, as gold continues its excellent start to the year.

Early Tuesday afternoon, gold futures were up 1.5% to $1,295 an ounce, with the price of gold now up almost $150 an ounce from its late November low.

On Twitter, CNBC’s Sara Eisen noted that gold is on track for its seventh-straight daily gain, and over this period gold has gained more than 7%, the best streak for the precious metal since 2007.

Also rallying was another “safe haven” asset — US Treasury bonds — as the yield on the 10-year fell to near 1.77% while the 30-year bond was yielding a near-record low of 2.37%. (more…)

Will Gold Price Break Out Once Again?

Briefly: In our opinion no speculative positions are currently justified from the risk/reward perspective. Being on the long side of the precious metals market with half of the long-term investment capital seems justified from the risk/reward perspective.

Gold rallied once again yesterday and so did silver and mining stocks. The question is if the rally is about to pause or end, since mining stocks are not really outperforming gold and the USD Index has just confirmed the breakout above the 2005 high.

The rally in gold looks encouraging, but let’s keep in mind that no market can move in the same direction without temporary corrections. What changed yesterday? The HUI Index moved to its major resistance. We’ll cover that later today. Let’s start with the USD Index.

The breakout above the 2005 high has just been verified, by both a weekly close, and 3 consecutive daily closes above this level. The outlook is bullish once again. The next resistance is slightly above the 96 level, and it’s quite likely that the USD Index will move to these levels – unless the news from the ECB will cause the moves to reverse. That seems unlikely at this time, though, precisely because of the breakout’s confirmation. (more…)

Gold settles at highest level in 5 months

Gold gained for a seventh straight day to settle at its highest price in five months Tuesday, after the Swiss National Bank last week triggered turmoil in currency markets and investors looked ahead to this week’s meeting of the European Central Bank.

Gold for February delivery GCG5, +0.40%  settled up $17.30, or 1.4%, at $1,294.20 an ounce, on the New York Mercantile Exchange. That’s the highest settlement for gold since Aug. 19. The seven-day rally has resulted in a 7.1% rise in gold prices.

In January, gold is up 9.3%. That follows depressed prices toward the end of 2014 due to year-end tax-loss selling, so part of the recovery is due to bargain hunting, according to Brien Lundin, editor of Gold Newsletter. “Like a spring, it’s only natural for the price to rebound once the selling pressure abates,” Lundin said in emailed comments. (more…)