Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks Correct into Bitcoin Happy Thanks Halving - Earnings Season Buying Opps - 4th July 24
24 Hours Until Clown Rishi Sunak is Booted Out of Number 10 - UIK General Election 2024 - 4th July 24
Clown Rishi Delivers Tory Election Bloodbath, Labour 400+ Seat Landslide - 1st July 24
Bitcoin Happy Thanks Halving - Crypto's Exist Strategy - 30th June 24
Is a China-Taiwan Conflict Likely? Watch the Region's Stock Market Indexes - 30th June 24
Gold Mining Stocks Record Quarter - 30th June 24
Could Low PCE Inflation Take Gold to the Moon? - 30th June 24
UK General Election 2024 Result Forecast - 26th June 24
AI Stocks Portfolio Accumulate and Distribute - 26th June 24
Gold Stocks Reloading - 26th June 24
Gold Price Completely Unsurprising Reversal and Next Steps - 26th June 24
Inflation – How It Started And Where We Are Now - 26th June 24
Can Stock Market Bad Breadth Be Good? - 26th June 24
How to Capitalise on the Robots - 20th June 24
Bitcoin, Gold, and Copper Paint a Coherent Picture - 20th June 24
Why a Dow Stock Market Peak Will Boost Silver - 20th June 24
QI Group: Leading With Integrity and Impactful Initiatives - 20th June 24
Tesla Robo Taxis are Coming THIS YEAR! - 16th June 24
Will NVDA Crash the Market? - 16th June 24
Inflation Is Dead! Or Is It? - 16th June 24
Investors Are Forever Blowing Bubbles - 16th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Manufacturing Our Economies and the Gold Coup of the Decade

Commodities / Gold & Silver Stocks Jan 08, 2010 - 04:04 AM GMT

By: Miles_Banner

Commodities

Best Financial Markets Analysis ArticleThe Dollar fell against six other currencies on the U.S. Dollar Index on the back of news from Federal Reserve Governor Elizabeth Duke that “moderate” economic growth is likely to lead to sustained low interest rates.

So whilst the Dollar seems to be struggling but still afloat, the American manufacturing industry seems to be, dare I say, beginning to show symptoms of a recovery.


A report from the Institute for Supply Management, a trade group of purchasing executives, stated that U.S. manufacturing increased for the fifth month in a row, recording its highest reading since April 2006. It is believed that expansion will continue for the ensuing months vis-à-vis more demand and the creation of new jobs.

Several countries also recorded positive manufacturing results. Britains manufacturing index rose to a 25 month high, the euro currency countries collectively reached a 21 month high, whilst China reached a 20 month high.

So does this mean the economies picking up?

Well lets not get ahead of ourselves here.

The economies like an abandoned puppy, needing to be nursed back to health. This is just the milk bottle that gives it enough strength to look up and put one paw in front of the other. But it is a positive sign, one that gold investors should be aware of, considering the yellow metals relationship with fiat currency.

New gold coup

Now our attention turns to New Gold, who have predicted gold production for the coming year to be between 270,000 to 300,000 ounces, at a cost of $470 to $490 per ounce sold. News stories have circulated this week about the small mining company’s 70% acquisition in the El Morro mines.

The small mining company, New Gold, thwarted Barrick Golds attempted takeover bid of El Morro, a Chilean mining project.

El Morro mining has reserves of 6.7 million ounces of gold and 5.7 billion pounds of copper.

The Chairman of New Gold? None other than Randall Oliphant, former chief executive of Barrick gold. Yes friends, the old mucker got one over on his former employees.

How did they do it?

Well, Barrick gold made an original offer of $465million back in October. However, with New Gold owning 30% of the El Morro mining project, they received first refusal from Xstrata, the owners of the other 70%.

New Gold chose to exercise this right but couldn’t afford the fee. So they went to a major rival of Barricks; Goldcorp.  New Gold a Vancouver based mining company borrowed $463 million from Goldcorp, who, by the way, are also a Vancouver based mining company. This has allowed them to obtain 70% of El Morro.

Once the deal has been settled, Goldcorp intends to takeover the 70% from New Gold paying them an additional $50 million.

And there you have it, how the little David slew the mighty Goliath. Alright maybe slew is a strong word, but its still an impressive coup from such a small mining company.

We expect to hear more from New Gold, who’s share price has more than doubled this year, as it grows as a company in the ever competitive mining world. And we will certainly be keeping close tabs on its progression.

That’s all from me for this week.

Digger
Gold price today

P.S. If you haven’t already, be sure to sign up to my once a week FREE email, where I’ll deliver straight to your inbox all the gold news stories worth hearing about.

Digger
Gold Price Today

P.S Digger writes a weekly email analysing the gold price and the gold industry. Visit Digger at Gold Price Today (http://goldpricetoday.co.uk).

© 2010 Copyright Gold Price Today - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in