Gold Prices Pop to New Record Highs

Source: The Street, Alix Steel (10/13/10)

"Investors bought the metal as protection against a weakening USD."

Gold prices broke to new highs Wednesday as investors bought the metal as protection against a weakening U.S. dollar. Gold for December delivery was adding $25.20 to $1,371.90 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Wednesday has traded as high as $1,375.70 and as low as $1,350.

The U.S. dollar index was slipping 0.38% to $77.07 while the euro added 0.22% to $1.39 vs. the dollar. The spot gold price was up $18, according to Kitco's gold index.

Gold prices were rallying hard after the minutes of the last Federal Reserve policy-setting meeting signaled that the central bank is ready to jump-start another stimulus program. The Fed governors downgraded growth prospects for the U.S. economy for the rest of 2010 and 2011.

Gold prices had been struggling as investors took advantage of high prices and booked profits, but after the Fed minutes were released, gold started to pare its losses and has rallied to almost new record highs. Gold has now hit a new intraday high of $1,375.70 an ounce, easily surpassing its previous record of $1,366.

More accommodative measures mean the Fed will expand its balance sheet by printing more money to buy more government debt and literally pump more money into the system. As the Fed prints money, the dollar loses value, which is good for gold prices.

Currency issues and the race to debase might also see an additional push Wednesday after China reported that September exports rose 25.1% as its currency stayed low despite the country's announcement in June that it would let the yuan rise in value.

Wednesday's rally in gold is also triggering technical buying from traders who sold at record prices and are now looking to jump back in.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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