Video: West Red Lake Gold works to restart Madsen mine
The company is optimistic about the potential of its Red Lake assets in the storied gold district of northern Ontario.
(including new contract highs)
So far this week Gold has covered a $64.80 range with a low of $1184.40 ( Monday 5/10) and a high of $1249.20 (Wednesday 5/12). This latest rally has been fueled by the uncertainty of the debt crisis rescue package implemented in the Euro Region. On Monday (5/10) we learned the European Union and the (IMF) International Monetary Fund agreed to a monumental 720 billion Euro aid package in a move to support the heavily indebted nations and to preserve their currency.
This sent a vote of confidence to the region and sent the equity markets higher and temporarily halted the gold rally and actually sent it $9.60 lower for the session. However, since then many financial analysts, economists, and savvy investors have questioned the ability of those smaller Euro “debtor” nations to significantly cut deficits enough and more importantly repay the loans.
The concern is also over the vast amount of Euro’s that will be printed in order to inject money into the economies of these needy nations. The consensus has decided the whenever you print more it becomes “WORTH LESS”….
This has brought out global fears of pending inflation and since gold and silver have a tendency to perform better than most commodities during inflationary times you can certainly understand the fuel behind this latest metals rally. It has clearly been a stampede to safer haven investments. The Euro region continues to fuel the run to Gold as well as the demise of their currency on a daily basis….. European Central Bank President Jean-Claude Trichet’s response to the following…..
Trichet was asked whether the financial crisis has changed “it is not the same crisis but tensions are continuing. At the beginning we had financial turbulence in 2007, then in mid 2008 we had an intensification of the crisis which hit the private sector worldwide and now we are in an episode where the creditworthiness of governments have been called into question and we are taking appropriate decisions”. Asked if the debt crisis was over…Mr. Trichet said “We need to remain vigilant” “it will depend on the capacity of public authorities and the private sector to take the appropriate decisions”.
Today brought another wave of negativity to the region. Deutsche Bank CEO Josef Ackermann stated “He doubts Greece can repay debt in full, that Greek repayment requires unbelievable efforts”….and added “Italy and Spain are strong enough to service debt, but that is more difficult for Portugal ” and in his opinion “the Euro is fundamentally strong”….
Portugal’s Prime Minister Jose Socrates and opposition leader Pedro Passos Coelho agreed on new austerity measures to drastically cut their countries budget deficit which includes a 5% pay cut for senior public sector staff and politicians…. the Socialist Socrates was quoted as saying ” I ask all my compatriots for us to make this effort to defend the country, to defend the Euro and Europe”…
Spain also agreed to an austerity plan however, the Spanish Union (UGT) Union General de Trabajadores (Spanish Trade Union) has decided to protest the tough new government measures by calling for country wide strike scheduled for June 2nd . The Union urges “all public workers of different sectors of the country, from health to education to emergency services, municipalities, autonomous communities and government agencies, to observe a general strike on June 2nd “…..
Since the Chinese government implemented very stringent policies on their property market the citizens of China have been investing in Gold and other alternative investments (Diamonds & Silver) as a means to protect their new found wealth….Their appetite for gold is insatiable.
The jewelers of India have continued to buy “price dips” to re-stock for the Akshaya Tritiya festival which falls on May 16th. This is a Hindu Holy day which is auspicious for the giving of gifts of gold. Jewelers have reported actually running out of product on this occasion.
For the fourth week in a row the news on the Initial Jobless Claims front was good….The Labor department reported that in the week ending May 8th initial claims were 444,000 a decrease from 448,000….. That means 4,000 new Americans are working and receiving a pay check!
Despite the fact that both the gold and silver markets are technically over-bought global investors are turning to gold and silver as a “safe haven” investment. This trend could very well continue as long as the uncertainty in the European Union remains….
*AS OF THIS POST…GOLD SETTLED AT $1229.20* Mike Daly / Gold Specialist PFG BEST [email protected] 877-294-4669 312-563-8029 312-775-3014
*THERE IS EXTREME RISK TRADING FUTURES, OPTIONS, and FOREX*
