In anticipation of the ECB and the Federal Reserve deciding to stimulate the economy through an infusion of newly created paper money gold prices have started to recover and head north.
This week we have meetings involving the ECB and the Federal Reserve followed by the job numbers on Friday. These meetings, summits, announcements have an effect on the investment community in that investment funds tend to stay on the sidelines until the direction of the markets becomes clear.
Our acquisition programme has been on hold for some time now as gold and silver prices consolidated and the mining sector failed to sparkle. Gold has temporarily been sidelined by the pantomime that is European politics.
"This is a company with a business model that is extremely difficult to argue with. Franco Nevada has a diversified portfolio of high margin, cash flow producing assets principally in North America."
It has been an interesting week on the economic stimulus front with what looks like a co-ordinated effort by the major powers to ignite their respective economies.
The situation in the euro-zone remains dire, however, the euro strengthened when the European Council President Herman Van Rompuy said the euro zone reaffirms its commitment to use its bailout funds to calm markets, thus weakening the dollar, for now.
Endeavour Silver Corporation (EXK) have just announced that they have entered into a definitive agreement whereby Endeavour will acquire 100% interests in AuRico Gold's operating El Cubo silver-gold mine in Guanajuato State, Mexico and the Guadalupe y Calvo silver-gold exploration project in Chihuahua State, Mexico, for total consideration of up to US$250 million.
Clarity of vision can be lost in the everyday hustle and bustle of market gyrations, news events, political posturing and the whirlwind of activity that is our daily labor.
