Gold and Silver Flat in Asian Trading

Most metals and energy commodities closed with strong gains in international market. Gold closed slightly higher, recovering a part from the previous session’s slide, as better performance in equity markets and underlying uncertainties surrounding the US fiscal crisis increased bullion’s investment appeal. Gold rose 0.04% for the first time in four days on speculation that the Federal Reserve will buy more debt to boost the U.S. economy. However, silver fell 0.16%.
Public bickering between Democrats and Republicans made the headlines of global news services. After President Obama told investors earlier in the week, that a deal was imminent and that he was ready to sign the new legislation as soon as it reached his desk.
Gold holdings  of SPDR gold trust, the largest ETF backed by the precious metal, declined to 1,347.02 tons, as on Nov 28. Silver holdings of ishares silver trust, the largest ETF backed by the metal, declined to 9,780.44 tons, as on Nov. 29.
The dollar index, which measures the greenback against a basket of six rival currencies, stood at 80.215, above the day’s low of 80.021, but still down from 80.262 in late US trading session on Wednesday.
This morning gold prices have come of the highest level of the session as euro has come under pressure after concern on German economy arrived in the market. Other than this, US economic releases could scale back expectations for further easing from the Federal Reserve, boosting the dollar and weighing on the precious metal. Asian markets are trading in a higher side with optimism of increasing economic sentiment in China and Japan.
Looking towards later today traders can expect gold prices to continue its upside move whereas prices may come under pressure during European session. German retail sales are likely to decline further which will weigh on the euro to pressurize on these metal prices. Likewise, US personal data are expected to an improved picture as GDP number for third quarter climbed up. Thus, higher dollar index during US session may weigh on prices.
This morning, Japan released their monthly data dump; Japanese industrial production has improved and supported gains in Asian equities, which may continue to support gains in Silver. Also growing Chinese business sentiments and growing manufacturing may continue to support demand for the metal. Even record mining and higher costs failed to dent and with improving sentiments buying at dips should be initiated. Silver outpaced gold in yesterday’s session and is trading at 34.278 flat this morning

Article Source: http://www.fxempire.com/

Gold to Retest Highs?

If there is anything I’ve learned over the years of trading/investing, it is to fade the crowd. When gold was rallying to all-time highs, I was warning of a monster correction. This wasn’t a “rational” call since the debt crisis in Europe was intensifying, but then again, markets are not rational. You must feel out markets and go with your instinct

You must constantly adjust your forecasts to account for price action as a function of time. While I expected a correction to the $1400′s, the price action since then just hasn’t justified such a call, which is why I have been buying. Don’t get stuck with one view of where a market is headed if the price action is telling you something totally different. This is the trap people fall into all the time.

People are way too bearish on gold in the short-term, which suggests to me we will see a strong move in the opposite direction. For now, I think we are setting up for a retest of highs, but first I want to see gold push past $1730. A convincing bounce off of $1600 was the first sign we were in store for a sustainable rally. A move past $1730 and then $1750 will be the next sign. I’m not sure people will catch on to the rally until it’s too late.

I have been steadily adding to my gold positions throughout this correction. If there is one thing I’ve been consistent about the past couple of months, it’s that gold stocks are a steal. You must be patient in waiting for a rally to materialize; the biggest moves always happen a very short period of time. A big move may be coming, and you can be sure I want to be positioned for it.

Article Source: http://expectedreturnsblog.com

COMMON INVESTOR MISTAKES

1.Wrong Number of Stocks:

Too Few:

Owning only several gold stocks increases the likelihood that a problem at one will wreck havoc on your portfolio. Don’t try to “swing for the fences with just a couple… with over 1000 gold and silver stocks existing, you’re too likely to strike out, or be ignored by Mr Market.

Too Many:

Owning too many gold stocks is a common fault of those that attend Gold Shows or subscribe to newsletters with several dozen stocks on their “buy” list. Investors hear or read a good story and buy. Before long they own 20, 30 or more… far too many stocks and thus they are doomed to simply match Indexes such as the XAU or HIU. Most gold newsletters are guilty of recommending too many stocks as it increases the chances of a big win they can boast about, but it does little good for anyone’s portfolio to own all their recommendations... which is why they don’t report total portfolio results, as do mutual funds and Gold Stock Analyst.

The beauty of “10” is two fold:

First, the way numbers work. 10 is large enough that a disaster at one, even if it falls 50%, won’t cause much overall damage. On the other hand, when a Top 10 stock doubles, triples, or more, it can have a big impact on your total portfolio’s value. One never knows when Mr Market will wake up a stock, so having 10 broadens the possibility of a big success.

Second, the discipline of 10. If you find a new stock and want to buy, sticking to 10 forces you to re-examine the entire portfolio and decide if the candidate’s chances are better than the stocks already held.

GSA’s track record shows 10 Gold/Silver Stocks to be about the right number to own. And even if gold will only be a portion of your portfolio, in today’s era of $10 internet trade commissions, a $100 total transaction cost is minor “insurance” to own all of the Top 10.

While GSA covers over 60 miners, that doesn’t mean we like them all at the current price… but at a different price, or after an “event” we might. Already following the stock means that we don’t have to “get up to speed” after price changes or events and we can immediately tell subscribers to act. And, covering virtually all producers is how we compile our unique industry-wide database that lets us find the Top 10 Stocks.

2. All Ounces are Not Equal:

An ounce is an ounce is an ounce… right?  WRONG!!!  Don’t be confused by the various “ounce” totals thrown around by the companies.

The US SEC allows miners to report only one type of ounce totals, Proven and Probable Reserves. These are ounces determined by drill holes spaced close enough, as little as 15’ apart, to have a high probability that their grade results can be projected over the untested distance between the holes. Plus, the deposit’s economics have been verified by an independent feasibility study that shows the capital required to build the mine and processing facility will have a positive return. A combination of these two criteria qualifies a deposit’s ounces to be P+P Reserves.

Other ounce designations… Mineralization, Measured, Indicated, Inferred, Resource, Global Resource, etc... have wider drill spacing so the ounces are less certain to exist and/or the deposit has not been shown to be economic. For example, sea water is known to have billions of ounces of gold… but the grade is so low that it’s not economic to attempt recovery.

3. Buying entire position at once:

Just because you agree with GSA, that a stock has the long term potential to double, it doesn't mean that Mr Market will suddenly see the same upside and start buying right after you've bought. It takes time for value to be recognized.

NEVER buy your entire position at once, whether it's a new stock or establishing a position in the precious metals sector. Scale in... 50% of your final investment is the maximum to start. You may well get a chance to buy more later. If you don't get this chance, you'll have a low cost initial basis and there's nothing wrong with adding to an already winning position.

Article source:http://www.goldstockanalyst.com

Gold Eases Up on Good Economic Data

Gold traded in a tight range this week and at lower-than-normal volumes due to the Thanksgiving holiday yesterday in the United States. The price of bullion on Thursday climbed slightly due to positive manufacturing data out of China and Europe, alongside increased tension in the Middle East. Gold is considered a safe haven asset in times of economic and political turmoil. 
Reuters reported that the HSBC Flash China Purchasing Managers’ Index reached a 13-month high of 50.4 in November, while manufacturing activity in Europe slowed less than expected this month.
Both events were bullish for gold, with investors continuing to buy the metal on the hope that Eurozone economies are not as weak as had been feared, and news from China indicating fresh demand for bullion in the Middle Kingdom, which is vying against India to be the world’s largest gold consumer.

“If there is a belief that China has turned the corner, there could be more physical demand,” Reuters quoted Saxo Bank vice president Ole Hansen as saying. Spot gold was last quoted at $1,729.70, up just 50 cents from the previous day’s closing numbers. Gold has risen about 11 percent so far this year, mostly due to quantitative easing measures announced by the European Central Bank and the US Federal Reserve.
Central banks, ETPs keep buying gold
The price of gold was also buttressed this week on new International Monetary Fund data that indicates that central banks are continuing to purchase the yellow metal. Mineweb reported that 40 tonnes were purchased in October and purchases are on track to match last year’s 456 tonnes (net purchases). The main buyers were Brazil with 17.2 tonnes, Turkey with 17.5 tonnes and Kazakhstan with 7.5 tonnes. The purchase by Brazil raises the country’s gold holdings to the highest level since 2001. Germany, on the other hand, the second-largest holder of gold after the United States, reduced its holdings by 4.2 tonnes. Gold held through exchange-traded products (ETPs) is also on the rise, at a record 2,605.318 tonnes, Mineweb said, quoting Bloomberg.
Meanwhile, in India, where the gold-buying season is going full tilt, the Chhath festival in Northern India is expected to give fresh impetus to gold buying. Gold coins are being discounted up to 7.5 percent as Hindus pay homage to the Sun God. By comparison, last week Gold Investing News reported that gold sales during the five-day Diwali festival were curbed due to high prices and totalled only around 70 percent of last year’s 100 metric tons.
Company news
Eldorado Gold (TSX:ELD,NYSE:EGO) said it will not go ahead with a planned $500-million debt offering, citing “deteriorating conditions.” The Canadian company had four days earlier announced the offering of senior notes, intending for proceeds to go towards general corporate purposes, including growth initiatives.
“Deteriorating conditions in the debt capital markets led us to conclude that the proposed offering of senior notes would not be in the best interest of shareholders under the terms currently available,” stated Paul Wright, CEO.
Another Canadian gold miner, Detour Gold (TSX:DGC), is trying to raise $106 million to start production at its gold mine in the province of Ontario. When it starts in January, the open-pit mine is slated to become Canada’s largest gold mine at an average annual output of 657,000 ounces.
South Africa’s Gold Fields (NYSE:GFI) said it is no longer feasible to develop the Chucapaca gold mine in Peru into an open-pit mine. The project is a joint venture with Peruvian miner Buenaventura.
“The partners have studied the viability of a large open-pit operation capable of sustaining a 30,000 tonnes per day throughput. A first draft of the feasibility study has been completed and as a result of relatively high capital and operating costs this option would not have delivered acceptable project returns,” the companies said in a joint press release.
Future studies will focus on other options, including underground mining or a combination open-pit and underground operation. The deposit has an estimated 7.6 million ounces of gold and gold equivalents.
Toronto- and London-listed Patagonia Gold (LSE:PGD,TSX:PAT) said Thursday that it has been granted the final permit for producing gold from the Lomada de Leiva deposit in Argentina. The company is ready to begin constructing the main heap leach and production is slated for the second quarter of 2013. The mine is expected to produce an annual 21,000 ounces.
Junior company news
US silver miner Hecla Mining (NYSE:HL) expanded its interests into Nevada with a $2.5 million investment in Canamex Resources (TSXV:CSQ). “Hecla is pleased to be able to make a strategic investment in Canamex to participate in the re-emergence of a historic Nevada gold district with outstanding exploration and development potential,” Hecla CEO Phil Baker said Monday. He added, “[t]his is one of many strategic investments in junior mining companies with strong management and outstanding land-exploration packages that Hecla is contemplating as we seek to expand our exposure to under-explored silver-gold mining districts in the Americas.” The funds will be used to develop Canamex’s Bruner property in Nevada.
Cogitore Resources (TSXV:WOO) reported that drilling is underway to test the Gold Hill showing at its Lemoine project, located south of Chibougamau, Quebec.
“Results of recent chip sampling of the Gold Hill showing by Cogitore included up to 0.92% copper and 85.4 g/t gold (2.49 oz/ton gold), and 0.87% copper and 1.9 g/t gold over narrow widths. These results are consistent with historical surface sampling reported by Teck Exploration Ltd in 1999 which included grab samples up to 2.8% copper and 48.2 g/t gold, and a chip sample returning 6.3 g/t Au over 7.3 metres,” the company press release states.
Roxgold (TSXV:ROG) announced initial results from the current step-out drilling program at its 100-percent-owned Yaramoko concession in Burkina Faso, commenting that the results “confirm the presence of high grade gold mineralization outside of the existing mineralized envelope and represents a significant step out from known mineralization down plunge within the 55 Zone.

Article Source:http://goldinvestingnews.com

Why You Should Be Looking at These Precious Metals Now

When it comes to investing in mining stocks, one has to consider two factors: the underlying fundamentals of the precious metals, and the operational efficiency of the mining stocks.

While mining stocks themselves can’t predict the price of the underlying precious metals, what they can do is run their operation as smoothly as possible. As well, one should take a look at precious metal mining stocks in areas of the world that are less likely to suffer from political obstacles.

An interesting report by the company Johnson Matthey stated that it’s highly likely that the palladium and platinum market will be in a deficit. Such a scenario would certainly be bullish for precious metals mining stocks, which aren’t affected by operational issues, such as being located in South Africa. Jonathan Butler, the author of the report, states that he believes there will be a significant reduction in the supply for two precious metals: palladium and platinum. (Source: “Platinum Market Forecast to be in Deficit in 2012,” Platinum Today, November 13, 2012, Johnson Matthey.)

The report states that for the palladium sector, there will be a two-million-ounce swing from a surplus to a deficit this year. According to the findings within the report, palladium supplies from South Africa are forecasted to decrease by six percent this year, along with a decrease in the sale of Russian stock of precious metals. Conversely, palladium demand for catalytic converters is expected to rise seven percent, to what the report states is a new high of 6.5 million ounces.

Because a large part of the supply disruptions stem from South Africa, one should be cognizant of precious metals mining stocks that are not located in that region. Unfortunately, there aren’t that many to choose from since South Africa has an abundant level of many precious metals.

One of the interesting mining stocks that have popped up on my radar is North American Palladium Ltd. (NYSE/PAL, TSX/PDL). This is one of the more interesting precious metals miners because it trades in Canada as well as the U.S., which could allow for currency diversification, while also having its flagship mine located in Canada, away from any political instability. The company is also one of only two primary palladium producers in the world. (Source: North American Palladium Ltd., last accessed November 22, 2012.)

For third-quarter 2012, which ended September 30, North American Palladium reported revenue of $36.2 million, as compared to $38.3 million in the third quarter of 2011. The company reported that part of the reason for the decline in revenue was lower palladium prices. If the report on the supply and demand dynamics, which I cited earlier, is accurate for precious metals such as palladium, then the commodities market should see higher prices, which should benefit a stock like North American Palladium. (Source: “North American Palladium announces third quarter 2012 results,” North American Palladium Ltd., November 7, 2012.)

As with many mining stocks, the company experienced operational issues. In this instance, North American Palladium’s mine flooded due to severe rain, which cost the firm $1.6 million in expenses for the third quarter due to water pumping. Such issues can and do occur with many mining stocks, which is a possibility that investors must be aware of in addition to the volatility of prices for the precious metals.

Chart courtesy of www.StockCharts.com

This is a three-year weekly chart of North American Palladium. As is quite evident in the chart, this stock has seen a significant decline in share price. With a chart such as this, I would certainly not recommend buying shares at this point. What I do suggest is to keep this stock on one’s radar to see if two things occur: 1) the supply and demand of precious metals such as palladium really does go into a large deficit, which should see the price of the commodities increase, and 2) operational issues are resolved and the company is able to resume production at or above guidance levels.

To both of these points, the share price of the stock should start moving past the $2.00 mark if the situation was improving for the company. If we see mining stocks that have been under pressure stop their decline and start moving up, this would be a sign that large investors believe in the company’s future viability. I would stay on the sidelines and wait for the criteria I mentioned earlier, along with a sustained and significant move up in the stock price before thinking about investing in this company.

Article Source:http://www.pennystockdetectives.com

Precious Metals Update: 5 Gold And Silver Stocks To Buy

Precious metals, especially gold and silver, have recently enjoyed favorable demand scenarios, as global powers increasingly take measures to strengthen the pace of their economies. We continue to remain bullish on both gold and silver, as we think that China will take monetary easing steps in the near-term to support funding for recently-approved construction projects. Moreover, the upcoming wedding season in India is going to further fuel jewelry demand, especially of gold. In addition, the investment interest in gold has increased over recent weeks, as central banks continue to add to their gold reserves, which is keeping sentiment high despite a recent strengthening of the dollar. We continue to recommend gold miners, especially Yamana Gold Inc. (AUY), Newmont Mining Corp. (NEM), Barrick Gold Corporation (ABX) and Goldcorp Inc. (GG). Silver Wheaton (SLW) remains our favorite silver player, as it does not participate in mining activity itself, but purchases share of different silver mines future silver production through upfront payment.

Is Monetary Stimulus in China likely?

Monetary stimulus measures are being taken across the globe, from the United States to Japan, in an attempt to boost the pace of economic activity worldwide. China has also taken numerous steps in this regard, such as bolstering loans to exporters, and quicker payments of export tax rebates. Previously, the country had lowered bank reserve requirements to support growth, and it recently cut interest rates twice; the country has also recently approved more than $156 billion in infrastructure spending.

However, despite these measures, China's economy has not picked up pace, and is continually showing signs of a slowdown. The recently released Chinese manufacturing survey, released by HSBC Holdings Plc and Markit Economics, showed that the Chinese Purchasing Managers' Index (PMI) rose slightly from 47.6 last month to 47.8 in September. However, since a reading below 50 indicates contraction, the survey highlighted the 11th month of contraction, which raises concerns about the economy.

According to an analyst at Phillip Futures, Lynette Tan, "It's not a very great improvement. It's still contracting, so I still expect some more stimuli from China, which could help gold."

Gold

Gold has slipped off its six-and-a-half month peak, as the dollar gains given that investors are currently skeptical about a further rally (prices have already lifted by almost 10% this month). Demand for the commodity has increased manifold after various governments took quantitative easing steps in their respective economies. This is because of its status as a safe haven, given that it is a hedge against inflation.

Tan is expecting gold to break this year's high of ~$1,790 and even touch $1,800; although, she doesn't expect a further hike. "After the next round of stimulus, we probably won't see much action towards the end of the year, so it's likely to hold steady. There's no catalyst for gold to move higher after that," she said.

We continue to remain bullish on gold, as we eye possible monetary stimulus measures by China this year, and the wedding season in India over the next two months, which will lead to a boost in demand.

Demand is also sustained through constant purchases by central banks worldwide. However, with the eurozone's debt crisis returning to the spotlight, the dollar has shown a slight rebound. Still, according to a Hong Kong-based trader, "There aren't many places to go for investors. Buying precious metals seems to be one of the places for them to step out of fiat money. Everyone that can be in gold is in gold now."

Although the upside will now be limited, given that gold has already rallied significantly, we reiterate our recommendation for gold mining equities, especially AUY, NEM, ABX, and GG. These companies' inexpensive valuations and handsome dividend yields are very attractive, while we also remain impressed with their future growth prospects. The companies have strong balance sheets and lucrative liquidity positions, which add to our bullish sentiment.

Yamana Gold remains our favorite gold player, as it has announced an 18% increase in quarterly dividends (on a QoQ basis), and its new mines (Santa Cruz and Ernesto/Pau-a-Pique) will give their first gold output in Q4, and start commercial production by mid-2013.

Barrick is a good option for long-term investors, as its Pueblo Viejo mine will start commercial production in Q4, and the company is focusing on disciplined capital allocation programs. However, we advise near-term investors to stay cautious, and wait for a detailed update on the budget and the schedule of its Pascua-Lama project, which is constantly suffering from inflation and other cost pressures.

NEM has the distinct advantage of its dividend yield being correlated with gold prices. Furthermore, its dividend yield is the highest amongst its peers. Please click here for a detailed investment advice on NEM.

These long positions can be hedged effectively by shorting Market Vectors Gold Miners ETF (GDX).
   

	NEM	ABX	AUY	GG
Forward P/E (1 year)	11.06x	8.29x	12.97x	15.83x
Share price performance	-8.24%	-9.50%	26.21%	0.88%
Dividend Yield (%)	2.50%	1.90%	1.40%	1.20%

Silver

Silver has also fuelled significantly this year, for the same reasons as those outlined above. The metal has a demand as an inflation hedge, however, it is more volatile than gold. Consequently, we do not recommend investing in physical silver. A better way, as we have mentioned previously as well, is to invest in the silver streaming company, Silver Wheaton. Its strong balance sheet, successful growth profile, and the fact that it is not exposed to risks traditionally associated with a mining company, make us prefer it over silver ETF, iShares Silver Trust (SLV).

Platinum

Platinum has been suffering a supply squeeze, as a result of violent strikes at mines owned by Lonmin Plc (LNMIY.PK) and Anglo American Platinum Limited (the world's largest platinum producer). Almost 20% of the global supply has been affected as a result of mines shutting down in South Africa. This rally in platinum prices came as a direct result of a six-week strike at Lonmin's Marikana mine, Northwest of Johannesburg, in which 46 people were killed. The issue was resolved just last week, with the compromise being that labor wages be increased by as much as 22%.

Anglo American Platinum (also known as Amplats) has warned that it will pursue legal avenues if workers didn't return at its Rustenburg operations. However, the company has not dismissed any workers so far.

Problems in the South African Mining Industry remain unsolved, as is evident from AngloGold Ashanti Limited (AU)'s recent announcement to halt production at all of its South African mines, due to labor strikes. Meanwhile, inflation pressures are adding to the problems of the country's Mining Industry. According to UBS, "The wider issues that the sector has been struggling with remain unresolved. Higher production costs and ever-rising labor costs put further pressure on the company's margins, which in turn put CAPEX and future production at risk."

However, the main concern is the weak demand emanating from Europe, from which platinum derives most of its demand. This is because platinum's prime use is in cleaning car exhausts in diesel vehicles, whose main market is Europe. Consequently, platinum prices have dropped to $1,630 per ounce as of yesterday, from a peak of $1,714.

Article Source:http://seekingalpha.com

Gold Mining Mergers Taking Off; What it Means for Gold Bugs

Deal flow among gold and silver stocks is increasing, and we’re likely to get more consolidation in the precious metals sector. Even though spot gold is around $1,750 and spot silver is $33.00 an ounce, mining companies are running out of money.

It takes a bull market in precious metal prices and gold and silver stocks to get institutional investors to pile money into the sector. If gold and silver stocks are going up, they can sell more shares, raising money for development and exploration. But, we had a meaningful correction in gold and silver stocks earlier this year, and it took quite a bit of wind out of the sector. Gold and silver stocks have come back, of course, but new financings have been lacking, and this is why we’re likely to see more consolidation as mining companies pool resources.

One great example of this new trend is Prodigy Gold Inc. (TSXV/PDG), which is a development-stage gold penny stock. The company is at the evaluation stage of developing a large, open pit gold mine. In a friendly deal, Prodigy Gold agreed to get purchased by Argonaut Gold Inc. (TSX/AR) in a transaction worth over CDN$340 million. Prodigy Gold’s stock chart is below:

Chart courtesy of www.StockCharts.com

If the appetite for financing junior mining companies has slowed among institutional investors, companies will engage in mergers to get their projects off the ground. There is still a perception problem about investing in individual gold and silver stocks, and it’s why many institutional investors would rather just purchase an exchange-traded fund (ETF) if they feel like expressing a position in these precious metals. No doubt it is a specialized sector, similar in scope to the expertise required in biotechnology stocks.

Gold and silver stocks are still a great place to be for risk-capital, speculative investors. Right now, I’m advocating that investors wait before considering new positions in large-caps, but there are select opportunities in precious metals right now. The one thing we don’t have in this market at this time is the interest among institutional investors to pile into the sector, and that’s because gold and silver prices haven’t begun a new upward trend as yet. They’ve recovered from their recent price corrections, but I think it’s fair to assume that we’re not in a new bull market for gold and silver just yet.

Other sectors of the stock market are doing better than gold and silver stocks currently, and large investors are focused on this momentum. One of the best new entry points for gold and silver stocks was the recent spot price correction in May. Now we’re in wait-and-see mode. In order for gold and silver prices to advance meaningfully from their current levels, a major new catalyst must develop.

American Gold Eagle Coins

World’s most popular gold bullion coins

Since their introduction in 1986, more than sixteen million Gold Eagles have been sold. Because American Eagle Gold Bullion Coins (their official name) are the world’s best-selling gold bullion coins, they provide instant liquidity. Still, the Krugerrand is probably the world’s best known gold bullion coin.

American Gold Eagles come in four sizes: 1-ounce, 1/2-ounce, 1/4-ounce, and 1/10-ounce. The 1-oz Gold Eagles are by far the most popular and sell at small premiums over the value of their gold content. The smaller coins sell at higher premiums.  Gold Eagles are minted at the US Mint’s West Point, New York facility.
American Gold Eagles are 22-karat gold, which means they contain 91.6% gold and 8.4% of a copper-silver alloy. Because Gold Eagles are 22-karat, many investors incorrectly believe that Gold Eagles have less than an ounce of gold. This is not so.

Gold Eagles: exactly 1-oz ounce of gold

The 1-oz American Gold Eagles contain exactly one ounce of gold, and the smaller fractional-ounce Gold Eagles contain the gold content stamped on them. The copper-silver alloy causes the coins to weigh slightly more than their stated gold contents.

American Gold Eagles

Legal Tender Gold Coins

American Eagles are legal tender coins, but their face values are symbolic, as Gold Eagles do not sell at their legal tender values; Gold Eagles sell at prices that reflect the value of their gold content plus small premiums for being coins.

American Gold Eagles: four sizes

The 1-oz Gold Eagle coins are $50 face value, the 1/2-oz coins $25, the 1/4-oz coins $15, and the 1/10-oz coins $5. One-ounce Gold Eagles come in tubes of twenty but can be bought in smaller quantities.
All four American Gold Eagle sizes carry the same design. Gold Eagles minted 1986-1991 are dated with Roman numerals. In 1992, the U.S. Mint switched to Arabic numbers for dating Gold Eagles.
If you would like to discuss buying American Gold Eagles, or would like to discuss any aspect of investing in gold, call us at 800-528-1380. CMIGS takes calls 7:00 a.m. to 5:00 p.m. MST, Mondays through Fridays.

Article Source:http://www.cmi-gold-silver.com

Pullback in this Gold Miner Might Be an Opportunity for Profit

Gold mining stocks have had a bit of a roller-coaster year. Gold mining stocks languished behind the broader market until August, when rumors of the oncoming stimulus package by the Federal Reserve brought them back to life. Gold mining stocks were, and still are, clearly undervalued, based on the fundamentals of the commodity itself. There are numerous gold mining stocks, so an investor has to carefully consider all factors before committing to a stock.

One of the more interesting gold mining stocks that have pulled back is Aurizon Mines Ltd. (NYSE MKT/AZK). This is one of the few gold mining stocks with properties in Canada, a country that has been quite favorable towards this sector for a long time. Aurizon continues to perform exploration work on its properties, and is quite optimistic about what they might yield.

The firm reported results for the third quarter of 2012 that did disappoint the market. Aurizon reported net profit for the third quarter of $5.5 million, as compared to $13.1 million during the same quarter in 2011. The reason for the shortfall was due to several reasons. The company stated the initial shortfall was due to lower ore grades; however, further drilling by the firm has determined this is an isolated occurrence. The company also incurred four days of zero production due to the replacement of a shaft cable. (Source: Press release, “Aurizon Reports Third Quarter 2012 Financial Results,” Aurizon Mines Ltd., November 8, 2012.)

The company is currently incurring a transition phase for its mine, and this will disrupt production. The needed infrastructure installation will mean lowered gold production over the next 18 months, but long-term, the firm strongly believes in the potential of this property. The President and CEO, George Paspalas, stated in the financial report that following the end of the transition period, he expects to have production levels back up to historical norms.

Setbacks can occur when investing in gold mining stocks. The key is to look for long-term opportunities. While short-term investors are exiting this stock, those interested in long-term potential for gold mining stocks might want to put this company on their radar over the next few months. As the firm progresses in transitioning and adding infrastructure, the closer it comes to resuming full production, the more interested I am in potentially investing in this firm.

Another consideration when looking at gold mining stocks is the level of cash per share, as well as debt levels. This is a company with essentially no debt and approximately $203.0 million in cash, which is equivalent to $1.24 per share. For stock trading at $3.87, this represents a large percentage of the share value in cash.

Chart courtesy of www.StockCharts.com

This is a three-year weekly chart of Aurizon. The latest setback due to production issues is certainly pulling back the stock to multi-year lows. Generally, I do not suggest buying at or near such low levels. What I do recommend is keeping an eye on this stock, as well as other gold mining stocks that pull back significantly, due to short-term reasons. The key is to wait patiently for the fundamentals to begin to turn.

The company still has significant hurdles ahead of itself, and I would need to see further developments in its transition phase that needs to be completed before I would consider investing. I do like the large amount of cash per share on hand. Gold mining stocks can be volatile, and as such, one needs to be careful to be well-diversified and cautious when accumulating any stock. Most likely, the stock will not be that active until further fundamental developments and upgrades to the infrastructure are completed.

Gold and the World in 2013

Nothing can happen unless it is based on today's present world structures, events and leaders in politics, and money. The first major point we have to recognize is the structures we see around us, within which everything is bound together, together with the current leaders and their will for the future –these things will shape the years ahead.
Much as we might hunger for reform in so many areas, we must be pragmatic in looking forward. The world is not pure – far from it— so it is realistic to look at what is here today that will shape tomorrow. Looking at the future through these leader's eyes gives us a clear perspective.
Underlying the developed world society is the state of the family, which underpins the state of the nation. This in turn describes the state of national and global cohesion within world structures. For instance, by contrasting the progress of China's economy with that of the developed world, we get a focused picture of the economic and monetary capabilities of civilization in the two blocs.
If you doubt what we have said, look back to the start of the credit crunch in 2007 and see that it has been over five years since it began. The problems that exploded on us then –have they been resolved? Has the political system been reformed? Is the developed world showing a clear direction forward or is it a mélange of contradicting power bases, in dispute with one another. Has the financial system been reformed?
Or is it reliant on a series of rescue operations attempting to hold together structures that have failed so far to provide what we are looking for in our future? Are the fundamental structures of government and finance working cohesively to provide solutions that will lead the developed world to a growing future? It does seem that political parties keep promising a solution to our problems (with little to no details) and manage to avoid letting us see that the problems we face are a consequence of past actions by the same dominant structures.
Do we have a strong workable monetary system to take us into the future? No we don't. Are the powerless ordinary people more confident in their future? No they are not.
What we see is a growing discontent among the bulk of mankind that their future is so uncertain. That discontent breeds instability and uncertainty, a state that has not lessened in the last seven years. As the developed world points down to more economic underperformance, this rising tide of discontent threatens to worsen substantially. It is against this backdrop that we look at the future.

We still have the political gridlock that has rendered the leaders of the US powerless to lead, let alone reform over the last few years. No attempts to really promote growth and jobs have come out of Washington. The emphasis in the political and financial world has been to save the buckling banking and monetary system from spiraling down into a Depression. Hats off to the Fed because they have succeeded in doing that, but little more!
The hopes inside the US have been to see no further decline and to hope that the tenacity and resolve of the consumer will lift the US out of its doldrums. Perhaps one should ask, "Are politicians qualified to provide economic growth or simply lessen the burden government puts on the productive facet of a nation?" The last five years –when growth has been so badly needed—has not seen that happen. What convinces us that next year thing will change for the better? And reality demands specifics, not just vague, hopeful generalities.
The use of quantitative easing has boosted the money supply enormously and will keep on doing so until growth takes off, growth that is not just well-established but sustainable. If this does not happen and growth remains below inflation and population growth, then the bloated money supply will turn back on the system and create monetary inflation while the economy is shrinking. Combine that with shrinking confidence at that time and the mercurial impact of the two factors joining each other, and this may well go beyond a simple recession and lead to a massive drop in the Dollar's buying power. It could easily then swing out of control.
A failure to resolve the 'debt-ceiling' crisis and the 'fiscal cliff' could ignite that state of affairs. So we enter 2013 with that economic backdrop. Political gridlock, which will last until the election of Congress and the House of Representatives, will continue to render government inadequate to handle the current crises. The consequences could be dire. It's well-known that the leading institutions of the US are going through planning for a possible Dollar collapse, the possible scenario of having to withdraw military personnel from outside the US, and the pay of government employees being insufficient to provide for their families. These are very real scenarios for the future that must be addressed ahead of them happening.
So 2013 appears to promise more of the same as the last five years in the US and its economy except that conditions have become more fragile. The economy appears to have a small element of growth and by way of hope, does not seem to be headed into a slump. This is contingent on the politicians not mucking it up at the start of 2013.
But there's a major change coming in the next four years within the economic structure of the States that may help it survive and maybe even prosper despite these handicaps.
The inadequacy of the political structure of the Eurozone has been evident for all to see in the last few years when the 'credit crunch' morphed into the Eurozone Sovereign Debt crisis. It has been with us for far longer than anybody expected and has succeeded in highlighting the weakness of the bloc's diverse national bases. The leadership performance of the Eurozone's politicians has been underwhelming and continues to place partisan interests over those of the EU We see no reason why that should change. But the reinforcing of that failure in 2013 and beyond is against a disenchanted population that is increasingly inclined to social unrest as their financial and employment situation worsens.
We believe that the recession now underway in the Eurozone will feed on itself and worsen in 2013.
The situation in the Mediterranean nations of the south side of the Eurozone seems to be worsening and removing hope in the process:

• We expect Greece will leave the Eurozone in the next 12 months. 
• The weaknesses being seen in Spain are not going away and will worsen in line with the ongoing recession there too. Spain is expected to find requests for a further bailout irresistible. 
• Italy is beginning to spiral down to potentially need help too. This would bring the entire EU into question.

Once this happens the contagion effect will worsen for other members, including Germany, which relies on the Eurozone for 40% of its exports.
How will the Euro fare under these conditions? Undoubtedly it will fare poorly. As a currency passing its twelfth year in existence, never has it looked more tenuous as it does now.
Are the Eurozone's leaders up to the task of turning the Eurozone economies around? A look at their performance over the last few years does not point to this. Expect that as the recession bites, the value of the Euro will decline and what faces the US will happen in the Eurozone, only to a greater degree.
But there's a major change coming in the next five to ten years within the economic structure of the Eurozone that could well let it survive and prosper despite these handicaps.
The controlled nature of China and its people's love of regimentation and cooperation has been the prime cause of China's rapid development. Its reliance on cheap labor to date developed not only its export markets but its own expertise in all facets of economic life. The target of double digit growth remains plausible there, but the threat of social unrest at the uneven distribution of wealth as it develops is a worry to the government.
This is particularly true when the financial playing fields were relatively flat two decades ago. Its population of 1.3 billion people in itself is a huge number. Even if 1 billion people do well out of its growth, then that leave 300 million still waiting for an exit from poverty. This is the same as the population of the entire US.
But even China must see its economy reach a self-sustainable, internalized dependency level, before it can be confident of its future. To achieve that it has to become less reliant on its export markets and outside investments, unless they support the needs of its structure. The thought that it will contribute to the developed world's growth is somewhat fatuous when we see it manufacturing goods cheaper, but of the same quality and slowly removing its reliance on imported goods, except of a basic nature.
Given time, it will be manufacturing everything as well as and cheaper than the developed world can. This makes the shift of wealth from the West to the East a long-term facet of the global economy.

Article Source: www.goldnews.bullionvault.com

Gold and Silver Consolidate While These Two Stocks Are Going Up

The spot price of oil is the best barometer for stock market investor sentiment. Currently, at $85.00 a barrel for West Texas Intermediate, oil speculators aren’t expecting much from the global economy. In the commodity space, gold and silver are holding up much better than oil prices, and we’re even seeing companies raise new money to expand operations.

One gold and silver producer to recently hit the market with a significant new financing is New Gold Inc. (NYSE/NGD), which recently announced a $500.0-million debt offering. In today’s environment of artificially low interest rates, we’ll likely see more debt financing instead of new share issuance, which is advantageous for gold stock investors.

New Gold’s been doing well on the stock market since May, but the stock has actually been going up strongly since December of 2008. At that time, New Gold was a penny stock, trading around $1.25 a share. The stock then appreciated to a record price just under $14.00 a share last September, and has held up well since gold and silver prices experienced their consolidation since then. New Gold’s recent stock chart is below:

Chart courtesy of www.StockCharts.com

Another gold and silver producer in the mid-tier space that’s been a real market leader is Argonaut Gold Inc. (TSX/AR), which is a company I’ve featured before in this column. This growing precious metal producer has a similar stock chart to New Gold; the company’s share price has been going up since August of 2010.

Chart courtesy of www.StockCharts.com

Just over two years ago, Argonaut Gold was also in penny stock status, trading around $2.50 per share. With growing production of gold and silver ounces, commensurate with rising spot prices, the stock accelerated to an all-time record high of $11.08 per share, which it achieved just last month.

Like always in the investment business, good timing is as much responsible for your returns as anything. I think gold and silver prices are going to accelerate in 2013, and the fundamentals are in for this to happen. Gold and silver prices need a catalyst to begin a new trend, and it’s probable that this will come from policymakers (or perhaps a lack of policy action) regarding the “fiscal cliff,” sovereign debt and deficits, or the Federal Reserve.

Spot Gold Holding up Strong—Gold Earnings Set to Shine

The main stock market indices have pulled back, but the spot price of gold is still holding above $1,700 an ounce, and this is very positive for gold stocks. There is no particular reason why gold prices are holding up, only that the marketplace feels that its store of value is worth this much. Spot gold did already experience a correction, and is now in consolidation mode, waiting for a new price trend.
On the stock market, many gold stocks are in consolidation mode, exhibiting no particular trend, either. Many gold mining companies haven’t reported their third-quarter financial results as yet, and therefore, these stocks are just treading water.
One important benchmark within the gold sector is Yamana Gold Inc. (NYSE/AUY). When spot gold began to tick higher during the summer, Yamana’s share price accelerated significantly on the stock market. The company just reported record production and revenues in its latest quarter. For gold stock investors, Yamana Gold is a company that’s always worth following. The company’s stock chart is featured below:

Chart courtesy of www.StockCharts.com

At the junior, exploration stage, gold stocks naturally trade on their own events, but a strong commodity price environment is always helpful. One exploration company that’s developing a following among institutional investors is Belo Sun Mining Corp. (TSX/BSX). Similar to Yamana, this position moved higher on the stock market commensurate with spot gold, but the company has been diligently working on developing its Volte Grande resource in Brazil. It recently closed a major new financing, and will use the proceeds to fund further exploratory drilling and complete a full feasibility study on its potential mine. Belo Sun’s stock chart is below:

Chart courtesy of www.StockCharts.com

Like the rest of the stock market, gold stocks are in a wait-and-see mode; even though financial growth is quite prevalent. As a stock market sector, I think gold stocks are going to shine in 2013, and a properly diversified equity portfolio should have some exposure to this commodity.
If you pull up a long-term chart on the SPDR Gold Shares (NYSEArca/GLD) exchange-traded gold fund, you’ll see a spectacularly consistent upward price trend in these shares since 2005. Gold prices have been in consolidation for well over a year, but the long-term trend isn’t broken. What’s clear is that institutional investors have pulled away from the sector of the stock market, making it that much more attractive at this time.

Precious Metals Miner Releases Estimate of 6.6 Million Ounces for New Deposit

In anticipation of September’s Federal Reserve monetary policy announcements, many precious metals skyrocketed. This substantial increase in the price of precious metals across the board has certainly benefited many firms, including junior mining stocks. The main advantage for investing in junior mining stocks is that they have a higher level of sensitivity to increases in the price of precious metals. Of course, this also works in reverse, as well as potential risks associated with operational difficulties.

Junior mining stocks have to deal with many issues, including the price of the precious metals, as well as labor difficulties and new regulations. Also, junior mining stocks that are in the exploratory phase can be quite volatile due to the lack of production stabilizing earnings. Because of the lack of steady earnings, the capital appreciation possible is primarily based on what their exploratory work results in. If a large amount of precious metals is found, it’s extremely bullish for junior mining stocks. If, on the other hand, the drill results end up showing a lack of precious metals, the stock will plummet. These are risks one must be aware when investing in junior mining stocks.

While many investors look to gold when thinking about precious metals, I suggest considering platinum. Of course, this is not an easy task. Platinum isn’t easy to find or to extract, so one must be careful when investing in junior mining stocks in the precious metals sector.

One of the interesting junior mining stocks in the precious metals space is Platinum Group Metals Ltd. (NYSE/PLG; TSX/PTM). This is one of the penny stocks involved in exploring for platinum and precious metals, and it has recently issued some progress reports.

Because this is an early-stage exploration firm looking for precious metals, caution is urged. You certainly don’t want to rush into any junior mining stocks too fast. I would suggest patience, as it takes many years of work to fully understand the full extent of precious metals contained within a property. Following the drill results, it then takes more time to start extracting the precious metals.

Platinum Group is exploring its Waterberg property. The firm has discovered a new deposit within the property, announcing an estimate of inferred mineral resources of approximately 6.6 million ounces of gold, platinum, and palladium. The company breaks down its estimate as 3.73 million ounces of palladium, 2.05 million ounces of platinum and 0.81 million ounces of gold. (Source: www.platinumgroupmetals.net, September 5, 2012.)

 

Chart courtesy of www.StockCharts.com

I first brought this precious metals miner to the attention of my readers back in early August, when it was trading at $0.82. Following the good news, the stock surged to over $1.30 the following month, a move of over 60%. Obviously, that kind of move is not sustainable, as evident by the overbought condition the Relative Strength Index. Unfortunately, the stock was unable to hold above its 200-day moving average, and has since fallen back, although it’s still substantially higher than the price in early August.

Junior mining stocks involved in precious metals can offer a large potential reward, but also possess serious risks. I like watching the charts, and seeing what other investors are doing with their money when considering investing in junior mining stocks. The precious metals sector does have potential pitfalls, so I tend to be very careful about what junior mining companies I invest in. At this stage, one needs to understand that there are still substantial hurdles for this stock to overcome and far more due diligence is required by an investor considering this stock for their portfolio.