Gold spot price has climbed nearly 12 percent so far in 2012, supported by positive economic data and monetary policy guidance in the US.
Junior mining and exploration companies can offer investors increased exposure to gold price appreciation. Share prices for junior miners can be leveraged to gold price increases, an initial discovery, or the significant achievement of commercial production.
Canada withdrawing from the Kyoto Protocol on the basis of supporting economic importance over environmental interest may be a strong investment opportunity for investors interested in junior gold exploration and development companies.
Bloomberg reported that shares of European Goldfields (TSX:EGU) were up on news it may be an acquisition target.
Gold was on track to post its biggest weekly advance in four weeks, Friday, over speculation that central banks may boost their purchases of gold.
Debate over the potential of extensive gold reserves held by central banks to resolve the euro zone's economic problems have been pervasive in recent months just as fear of exposure to the sovereign debt crisis has grown. In fact, reports of the German central bank liquidating some of its gold reserves for the first time in almost a year have surfaced, selling 150,000 troy ounces in October.
CFTC data suggests that hedge funds are holding their biggest bet on higher prices since mid-September. Money managers raised their combined net-long position in US futures and options by 6.8 percent to 148,279 contracts in the week ended Nov. 1.
Gold price has been strong by any standard for a decade, the use of the search term “gold price” with the Google search engine, has been suggested by Edward Ritchie, Senior Investment Analyst at Manulife Asset Management to be a general gauge for confidence in the United States economy.
Gold followed the equities lower on Friday, as discord among the G20 leaders on boosting the IMF’s firepower to fight the Eurozone debt crisis led to investor apprehension.
Gold investment is becoming more accepted as a substitute for currency by industry observers, particularly in light of the context of all four major currencies experiencing structural debasement.
Friday, February 3, 2012