Huge day for precious metal investors. Best highs in a half a year thanks to a weak dollar, which Martin Murenbeeld was sounding the siren on. The euro has run to its best levels in nearly a month. Silver, platinum and palladium got healthy bumps as well. Spot gold was quoted at $423.25/423.85 according to TheBullionDesk.com The London afternoon gold fix was at $423.60. It's not good news for gold investments linked to commodities. The rand was stronger as was the Canadian dollar among others, sapping the benefits of the gold's gains. Canada is becoming concerned about export competitiveness. The Toronto Star wonders if this is the time to spend Loonies on dollar investments. Bloomberg notes that the technical picture for the dollar has gone sour: "The Dollar Index, a basket of six currencies, dropped below 87 yesterday for the first time in eight months and declined today. The dollar has dropped 1.3 percent this month against the euro as economic reports showed the trade gap widened and foreign investors slowed their purchases of U.S."financial assets. Interestingly, the dollar swoon has resolved the oil:gold ratio which had been out of range again recently. Crude oil futures fell by over two dollars a barrel from an all-time high of $55.33 dollars on Monday. American bonds also improved on gathering fears about inflation. So how did the stocks do? Very well. This is just a small sample of bellwether stocks after lunchtime on Wednesday. This group has traded 64.4 million shares so far today worth around $1.2 billion. Can you say, "commission"!
Investors in SA gold stocks have been more or less assured of a swift conversion of "old order" mining rights into "new order" mining rights. SA correspondent Brendan Ryan reveals that it's going rather slowly as the government nitpicks compliance with the Mining Charter.
It has been taken for granted that there are permanent, unbridgeable disparities between the gold industry's "Three Amigos" and its "Top Guns". A detailed comparison of how Goldcorp, Agnico-Eagle and Meridian stack up against Newmont, AngloGold and Barrick makes it clear that the distinctions are neither simple nor permanent.