Gold rallied 2 per cent to new high above $1,820 an ounce on Thursday, after US economic data pointed to a stalled economy, while renewed concern about the health of European banks brought safe-haven buying.
Spot gold was up 1.9 per cent at $1,822.29 ounce by 11:23 a.m. EDT (1523 GMT), having hit a record $1,825.99 and was on course for a 9 per cent gain over the last two weeks, its best two-week performance since mid-February 2009.
Silver was up 0.9 per cent at $40.50 an ounce. Jossen said bullish option positioning included bull call spreads with strike prices that suggest gold could keep rallying to $2,000 an ounce.
Adding to market nervousness and interest in gold was a Wall Street Journal report that the US Federal Reserve Bank is taking a closer look at the US units of Europe's biggest banks.
Best Buys in Gold
AngloGold Ashanti Limited (ADR) NYSE:AU
AngloGold Ashanti Limited (AngloGold Ashanti) is a mining company. AngloGold Ashanti has 20 operations consisting of open-pit and underground mines and surface metallurgical plants in 10 countries on four continents. As of December 31, 2010 the Company's ore reserves totaled 71.2 million ounces. During the year ended December 31, 2010, it had a gold production of approximately 4.52 million ounces. AngloGold Ashanti's main product is gold. In addition to the six deep-level mines and one surface operation in South Africa, AngloGold Ashanti has surface and underground mining operations in the Americas, Australia and the African continent. The Company's revenues are primarily derived from the sale of gold and also uranium, silver and sulfuric acid. On August 1, 2010, AngloGold Ashanti sold Tau Lekoa Mine to Simmer & Jack Mines Limited (Simmers).
Harmony Gold Mining Co. (ADR) NYSE:HMY
Harmony Gold Mining Company Limited (Harmony) is engaged in underground and surface gold mining and related activities, including exploration, processing and smelting. As at June 30, 2010, its mining operations reported total probable reserves of 48.1 million ounces, primarily from South African sources. During the fiscal year ended June 30, 2010 (fiscal 2010), the Company processed approximately 19.8 million tons of ore. In fiscal 2010, 96% of its total gold production took place in South Africa. In fiscal 2010, approximately 91% of its South African gold came from underground mines, and approximately 9% came from its surface operations, which include the Kalgold opencast operation and the Phoenix operation. The majority of exploration and evaluation done during fiscal 2010, has been focused on Papua New Guinea (PNG). Exploration in South Africa focused on the Evander South project, Joel North, Poplar and Tshepong.
Zijin Mining Group Co., Ltd. SHA:601899
Zijin Mining Group Company Limited is principally engaged in the exploration, mining, smelting and sale of gold and other metal minerals. The Company's main products are gold products, including mineral gold, standard gold bullions, gold ingots and gold concentrates, among others; copper products, including copper concentrates and cathode copper; zinc products, including zinc concentrates, associated zinc and zinc ingots; iron products, including iron concentrates; silver products, including associated silver and standard silver bullions, as well as other products. The Company also involves in the geographic survey business. During the year ended December 31, 2010, the Company obtained approximately 62.51% of its total revenue from gold distribution.
Arizona Gold and Onyx Mining Co, PINK:VGCP
Exclusive Interview with Micheal Mitsunaga - President, CEO and DirectorArizona Gold and Onyx Mining Co PINK:VGCP
Arizona Gold and Onyx Mining Co PINK:VGCP is pursuing exploration and development on its polymetallic property, known as the Mayer Project, located in Arizona, the leading mining state in the U.S.A. Initially, the Company intends to commence production of high grade onyx from a large deposit on the property and to also investigate the occurrences of Gold, Silver, Platinum Group Metals (PGMs) and Copper that have been discovered on the property.
While a variety of onyx occurs on the project, the largest portion of the deposit consists of rare and beautiful Honey onyx, widely used in kitchens, baths and in many other interior and exterior décor. As well, pure black onyx coveted by the jewelry trade and other high-end users, and commanding a premium price in onyx markets worldwide, occurs on the property.
With rising demand and prices for high quality onyx, as well as for precious and base metals globally, Arizona Gold and Onyx is enthusiastic that its Mayer mining project in Arizona represents excellent potential and a compelling opportunity for profitable minerals production during the new global paradigm of the 20th Century in which mineral commodities are the foundation for economic growth.
What is the VGCP Estimated Reserve Today:
Currently, VGCP's estimated reserves are: $238 Million of onyx, and $18.7 Million of gold. These reserves do not include other precious metals, such as silver or copper.
What do you expect in reserves by year end:
Due to probable acquisitions, the estimated projections by the end of 2011 are: $1 Billion in onyx and between 18M and 24M ounces of gold. These projections do not include other precious metals, such as silver or copper.
Is funding in place for production:
The Company is has funding for our needs on an ongoing basis.
When will the company be producing Gold:
Aggressive estimates have the Company producing gold by year's end; conservative estimates put production out nine months to one year.
What $ value do you put on the Onyx reserves:
Current value of the onyx reserves is $238 Million.
When will Onyx production begin:
Onyx production is estimated to begin somewhere between twelve and eighteen months.
Where are the Gold Sites:
Currently, VGCP has the right to gold deposits in Arizona near Flagstaff at its Mayer Mine. VGCP is also reviewing two separate acquisitions in Arizona and Nevada. In the event that the Company is able to finalize either mine, the gold reserves would jump to between 18M and 24M ounces of gold reserves.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.