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."
Market volatility sets the stage for price upswings as well as down, according to Michael Gray, equities analyst of Macquarie Capital Markets, and the recent gold price drop should be seen as a "pause" in the bull market.
There an oddity about gold at the moment with phenomenal physical demand in Asia, U.S. and Europe, while the actual spot prices languishes. We have written before about the strange disconnect between paper and physical demand but rarely has there been such a clear divergence.
A rush by Indian consumers to buy gold jewelry and coins after the biggest plunge in prices in three decades is prompting jewelers to offer premiums on imports as traders and banks run out of stockpiles, a trade group said.
While gold is lower in dollars and in most currencies today, it is sharply higher in Japanese yen after the BOJ announced the continuation of ultra-loose monetary policies and even more radical measures in a clear signal that currency wars are set to deepen.
In this reaction to an interview in The Gold Report with B&D Capital consultant Don Mosher, Kevin Campbell outlines the fundamental demand for commodities behind his conviction that this is a temporary, albeit viscous, downturn.