Although miners are far more technologically conservative than oil producers, today's tough financing environment may prompt technological advancements in a sector that has historically approached processing "with brute force rather than finesse."
Palladium may be rare, but it is not a precious metal, because its investment sector is negligible. While volatility in gold prices may affect palladium prices in the short term, palladium should not be beholden to the broad precious metals investment climate.
The recent fall in precious metals prices has investors on edge. Peter Rose, head of mining research with Fox-Davies Capital Ltd. in London, provides a European perspective on mining and advises looking at under-appreciated jurisdictions.
The sell-off in precious metals gathered pace this week into what is often called capitulation. Money-managers (hedge funds) cut their long gold positions on Comex by 19,044 contracts in the week to Tuesday, March 26.
The financial backdrop to the current prices of precious metals like silver and gold is that trillions of dollars and other currencies have been created to reflate stock markets and attempt to create a recovery in the property market.
It is difficult for retail investors to sift the wheat from the chaff in the junior miner sector but the president of RMB Resources reveals how his merchant bank, figures out what projects to invest in and those to pass over.
Many gold analysts are forecasting much higher gold prices in 2013 but the senior commodity analyst at the CPM Group says he believes all of the positive gold fundamentals, such as global turmoil, are already factored into the gold price.
Smart companies are beginning to ignore analysts' insistence that production growth is always good, and to focus instead on growing their margins by lowering capital expenses. This is good news to US Global Investors Inc.'s Brian Hicks and Ralph Aldis.
The reason for sovereigns participating in an overseas gold storage program are numerous, and for many countries are mostly political, but the overseas storage issue is providing a textbook case of the importance of direct control of some, if not all, of one’s wealth.