The gold price looks set to post its second consecutive quarterly gain later today. It is currently hanging around its two-month high of $1,325.90. Silver is also ready to post its second-quarterly gain but has extended a drop in price.
Bullish markets and “easy money” economic stimulus have proved to be a boon for gold production stocks since the summer. Companies catching the eye of analysts all have strong production profiles, they are seeking to increase output.
Precious metals prices headed substantially lower this morning as European and Fed-related worries resurfaced with a vengeance only two or so weeks after markets envisioned certain developments to open up a one-way path to significantly higher prices.
We are currently witnessing a short term weak market in the large gold producers and precious metals as investors flock to overbought equities. The long term trend remains up in gold and silver and we may be approaching a turning point sooner rather than later.
The gold price hovered just below $1,700 per ounce Tuesday morning in London – over 4% up on its low last week – before easing ahead of US markets open as the US dollar regained some of the ground it lost on Monday.
Earlier this week, Gold Bullion International announced a new service called The GBI Physical Dividend Program. The program allows publicly-traded companies to pay dividends to shareholders in the form of physical precious metals.
It only took eleven years, but in 2011 global gold-mine production has finally returned to pre-bull levels. With 2011’s volume expected to come in at around 88 million ounces, we’ll see a new all-time production high.
The Tanzanian government is planning to increase its license fees on the production and export of gold. Over the next 14 years the government plans to significantly increase the mining industry's contribution to the country's GDP.