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.
This week in the precious metals has been calm in comparison to the previous week as rising equity markets and a better sense of stability are easing investor tensions. This week has produced quite a bit of information however; the news has been for the part factual! (a big plus)…
The European Union’s debt crisis is certainly a long way from resolution and many fear the Euro zone debt crisis may spread to other parts of the world. The EU’s fiscal crisis has affected the world’s markets and has chased investor into “safer havens” primarily Gold. Its appeal as a safe haven is at a pinnacle as the uncertainty in the Euro region continues.
Monday we learned that the Bank of Spain… “Has appointed a provisional administrator to run CajaSur”(a savings bank which has been devastated by property loan defaults). Unfortunately this may be the first of many. This news certainly made gold more appealing as investors were spending their Euro’s to purchase Gold….
The European’s are not alone it has been reported through the WGC (World Gold Council) that “India’s total gold demand surged to 193.5 tons In the first quarter. (ending march 31st)…………. 147.5 tons was sold as jewelry ! Also china’s demand was up 11%…… There is always insatiable demand out of the Asian sector …. As you can see there is certainly a huge demand GLOBALLY…….
The world is also eyeing some growing tension between North Korea and South Korea….as there appears to be mounting evidence that North Korea did in fact torpedo a South Korean Navy ship earlier this year….Global tension forces investors to safer havens…..(Gold , Silver, Diamonds….)
There were reports that China was considering selling their holdings of Euro zone debt. However, China denied it as “groundless” and stated “Europe has been, and will be one of the major markets for investing China’s exchange reserves”, as reported on the Website of China’s State Administration of Foreign Exchange…(SAFE)….
The Central bank of China said “Europe would remain one of China’s main investment markets and Beijing would support actions to help the European Union resolve its debt crisis”…. This helped to calm fears and lends stability to global investors.
Higher prices in the crude oil also fueled gold prices this week as investors tend to guy gold as a hedge to Oil-led inflation.
Treasury Secretary Timothy Geithner is in Berlin for a meeting with German Finance Minister Schaeuble to discuss the current fiscal situation in the European Union as well as laying the groundwork for the upcoming G20 meeting scheduled for June 4th-5th in South Korea…
Reports this week….
*New Home Sales were much better than expected… UP 14%…504,000
*Gross Domestic product EXPANDED at a 3.0% annual rate
*Initial Jobless Claims DROPPED 14,000 to 460,000
Mike Daly / Gold Specialist
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