Gold spot price has climbed nearly 12 percent so far in 2012, supported by positive economic data and monetary policy guidance in the US.
Following Wednesday's announcement by the Federal Reserve that interest rates would likely stay near zero in the coming two years, the price of gold surge to its highest price in four months.
Strong supply and demand fundamentals give long-term bullish gold outlook.
Jaguar Mining said on Wednesday it has signed confidentiality agreements with several parties announcing it was engaging in a strategic review process to “explore alternatives”.
Chalice Gold has agreed to sell its 60 percent interest the Zara gold project in Eritrea to China SFECO Group for $100-million. The sale will enable Chalice to pursue other mining opportunities in Eritrea and around the world.
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.
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.
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 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