For too long, the rare earth space has operated in obscurity. Greater clarity on prices, inventory levels and demand will create more market stability, according to Matt Gibson, institutional research analyst with CIBC World Markets.
Many traders are on the sideline as trading slows down prior to Christmas. The focus remains on US lawmakers attempts to cobble together a deal to avert the 'fiscal cliff'. There is optimism that a deal can be done to avert fiscal disaster.
There are no queues down the road outside gold and silver shops, though we note that most large towns do now have somewhere to buy and sell precious metals and that was not true a decade ago. So when the retail investors finally bite they will be able to buy.
Gold has recovered from the fall yesterday and overnight and is tentatively above $1,700/oz. There was no fundamental driver of the price falls yesterday or today. It may have been momentum traders selling as the short term trend is now down.
The head of Aheadoftheherd.com isn't looking for huge producers with so much overhead that they can't profitably mine an ounce of gold. Instead, Mills seeks out the smaller mines with low capital costs. That's where the money will be made in the next two years, he says.
Gold prices hovered just below $1,738 an ounce Monday morning in London, close to three-week highs, while stocks and commodities were broadly flat and the euro traded near two-month lows against the dollar.
In the age of the Libor scandal, FASB mark to market rule changes, HFT programs front running retail investors, MF Global’s dramatic demise and Bernie Madoff’s outrageous Ponzi scheme, it continues to be taboo to entertain the idea of managed precious metals markets.
While he owns both bullion and certificated bullion, many investors are better off buying bullion says the founder of Sprott Global Investments and president of Sprott Asset Management USA. Certificated bullion may be more convenient while bullion provides assurance.