Gatos Silver posts solid 2024, preps takeover by First Majestic
The deal will merge Gatos’ main Cerro Los Gatos mine with First Majestic’s San Dimas mine in Durango, and its Santa Elena operation in Sonora.
After opening Thursday at $1,712 an ounce February gold contracts had fallen by more than 1% by lunch time, crashing through the psychologically important $1,700 an ounce level to trade at $1,698.20.
Earlier the yellow metal traded as low as $1,691 – down $26 from yesterday’s close.
Traders were reacting to gold’s lackluster performance following the US Federal Reserve’s radical change in its monetary policy regime.
Gold was hardly moved by news that the Fed’s bond-buying program has been upped by $45 billion – bringing total asset purchases to an eye-watering $85 billion a month – and that it expects rates will be near zero until mid-2015.
In the past any mention or even a hint of increased or extended quantitative easing would send investors piling into gold. Anything to the contrary and they would run for the exits.
Now it appears that strong link is broken and gold is behaving more like other asset classes. Today it is falling in tandem with the stock market as US fiscal cliff fears continue to mount.
At the moment it is not acting like a safe haven or storer of wealth.
And it’s purported qualities as a hedge against inflation?
So far that theory has not really been thoroughly tested despite US and global central banks’ relentless money printing.
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3 Comments
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Well, any investment performance cannot be judged over a mere few days. As pointed out by the world gold council, every ounce of gold ever produced still exists today- as either jewellry, in the form of coins or in bullion form. Gold is a physical asset, however one could class as fraudulent activities by financial institutions and other traders that are issuing paper to investors who walk into an institution and buy gold. No regulator exists that actually confirms the existence of gold backed by paper. However some economies in the world are currently running on gold, one is reported to be Iran who is trading oil for gold at the tune of $3 billion US per month, that is 1.76 million ounces of gold a month, not sure but in 12 months that is over 21 million ounces of gold, obviously that gold is then recirculated to china? russia? for arms? or what? because 90 million ounces gold produced per year, the lower the price of gold goes the more gold Iran will be receiving, there are a few other reported countries doing the same thing as there are economic sanctions contra them, just for information purposes
mike
Worst Journalism Ever.
Ivan Carvajal
CUIDADO. Ya sabemos que cuando algunas personas comienzan a hablar en contra del oro y la plata, es por que algunos grupos económicos o particulares comienzan a comprar y almacenar estos preciados metales, por que algo no muy bueno se avecina en la parte económica, siempre en desmedro de los comunes. NO OLVIDEMOS queridos lectores. que las grandes fortunas, tienen y por encima de las acciones ordinarias de bolsa, UN GRAN PORCENTAJE EN ORO Y PLATA. SIEMPRE ESTOS METALES SERÁN PARA LOS QUE SABEN, PARA LOS QUE TIENE EL DINERO, PARA AQUELLOS QUE SON “FUERTES” Y PUEDEN DESARROLLAR MINERÍA O COMPRAR ORO Y PLATA. Algo no muy bueno se nos viene encima y por ello, a los comunes se les dice que el ORO Y LA PLATA no son buenos refugios…MENTIRA. SE ESTÁN ACAPARANDO DE ESTOS METALES Y YA NO HAY ESPACIO EN EL MUNDO PARA EXPLORAR. (SABEN QUE LA ERA DEL ORO Y LA PLATA LLEGO PARA QUEDARSE Y LAS BOLSAS DE ACCIONES LES QUEDA POCO TIEMPO, COMO EL PETROLEO…SE ACABO EL DINERO DE PAPEL, SE ACABARON LAS IMPRESIONES)
CARE. We know that when some people start to speak out against the gold and silver is that certain economic groups or individuals begin to buy and store these precious metals, something not very good at the looming economic, always at the expense of Commons. DO NOT FORGET dear readers. that large fortunes, have a large percentage INVESTED IN GOLD AND SILVER AND MUCH MORE IMPORTANT THAN COMMON STOCK EXCHANGE. BASE METAL ALWAYS BE FOR THOSE WHO KNOW, FOR THOSE WHO HAVE THE MONEY, for those who are “strong” and can develop mining or buy gold and silver. Something very good is upon us and therefore the common are told that gold and silver are not good shelter … LIE. SE are hoarding of these metals and there is no space in the world to explore. THE ERA OF BASE METAL came and stay for long. (Are the moderators of the economy). No more paper money and impressions.