To satiate the world’s growing hunger for silver, a lot of pressure has been placed on its supply chain. And with total annual supply recently exceeding 31k metric tons (1.0b ounces) for the first time ever, suppliers have made a valiant effort to meet demand.
The publisher of the Colombia Gold Letter has invaluable first-hand knowledge of the exploration scene there. He says juniors still have to navigate through an as-yet-untested permitting process. Once the first junior does that, the floodgates will open up.
Gold briefly popped above the 200 day moving average at $1,643/oz. this morning and remains near the 3½ month high set in the prior session. A break above the 200 day moving average will be bullish technically.
The government at Lima and the management of Newmont Mining have agreed to suspend construction work at the site following violent protests. Newmont Mining had intended to extract mostly gold and copper in the region of Cajamarca.
The real point of modernizing railways, and the major reason for China's global push for High Speed Rail, is the increased movement of cargo - a shift in passenger traffic to the new high speed routes frees up space on older, now congested legacy lines.
Gold surged 1.4% ($23) from $1,600.90/oz to a new record nominal of $1,624.07/oz within an hour of the open in Asia. Gold reached new highs due to continuing uncertainty and theater regarding the debt ceiling negotiations in Washington.
While the party continues for gold bullion prices, stocks of gold companies have been a no-show. The NYSE Arca Gold Bugs Index has fallen more than 13% year-to-date and the Philadelphia Gold & Silver Index has toppled more than 16%.