Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The New Year has opened on a positive note with gold opening [in the absence of London in a thin market with prices touching $1,420. Today with London opening prices have slipped back to $1,410 in London’s morning which were followed by even more falls in New York to take the gold price down to $1,388.
We are amazed that some gold commentators are pointing to the recovery in the developed world, which has now seen its bottom as negative to gold prices. On the contrary, gold will do better in the recovery we believe. However, traders will always try to shake out weak holders with such moves. A glance around at the factors that are present in the gold markets and in the financial world, tells us what is likely to happen tomorrow and in the year to come and a heavily falling gold price looks unlikely. With the euro slightly stronger, gold prices fell there too to stand at €1,041 a €14 fall.
The Gold price Fixed in London at.
Apart from covering the gold and silver markets Gold Forecaster and Silver Forecaster are structured in a way that gives perspective to macro-economic factors from oil to currencies covering the pertinent global gold markets that directly affect the gold price and some that simply influence it. It is a “must-read” for all who want to understand why the gold price is moving as it is and why. It also aims to help you understand why currencies and today’s national economic problems are influencing the global economy and the precious metal prices [we cover platinum in the Silver Forecaster too]. Subscribe at www.GoldForecaster.com or for silver at www.SilverForecaster.com].
Gold – Very Short-term
The gold price is likely to slip today but not significantly in line with the current trading range.
Silver – Very Short-term
The silver price is likely to slip today but not significantly in line with the current trading range.
Gold Price Drivers
An important feature of the New Year of 2011 will be the fact that the developed world has seen the bottom in economic activity. This means we do not foresee a double-dip recession anymore. The recovery is picking up slightly, but slowly over time. It is clear that unemployment must recover alongside housing prices and a rise in disposable income before we can really point towards a true recovery. Does this mean that gold and silver prices will then fall? Consider what happened to gold and silver prices during the full recovery boom days of pre-2008. This was when gold prices went from $275 to $1,200. So why should a recovery, make precious metal prices drop? In fact it is clear that the more funds to invest the more the investment in the precious metal sectors. The fundamental problems that led to gold and silver’s rise are if anything worse than they were in the year 2,000.
In the next two years we see a global picture that remains extremely positive for gold. We expect volatility to remain a key feature of markets, structural changes in the global economy and huge shifts in power in the monetary world. Our forecasts will be contained in the next several issues of the Gold Forecaster and Silver forecaster.
We suggest you subscribe to the Gold Forecaster and Silver Forecaster where we will explain our reasons why we feel so and continue to detail the when and the why the gold and silver markets will continue to thrive. There too, we will publish reports on companies like Coeur d’Alene [silver and gold] and other attractive junior mining companies in the gold and silver worlds.
Regards,
Julian D.W. Phillips
