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Posts Tagged ‘Gold Purchase’

Gold, Nonferrous Metal, Nonferrous Metals Prices

July 31, 2011

Australia’s Norton Gold sees China’s Zijin increasing stake

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Australian miner Norton Gold Fields expects its top shareholder, China’s Zijin Mining , to lift its stake to 19.9 percent, using Norton to expand offshore, Norton’s chief executive said.

Zijin, China’s top gold producer, last week agreed to invest $30 million in Norton, buying shares to lift its holding in the company to just under 17 percent.

Norton Chief Executive Andre Labuschagne said he plans to meet Zijin executives in the next few weeks to discuss what their longer term intentions are.

“All indications are we are the Australian arm for potential growth,” Labuschagne told reporters late on Sunday.

Labuschagne told two reporters separately that he expects Zijin will want to raise its stake to 19.9 percent, the threshold above which an investor would have to make a full takeover for the company if it wanted to increase its stake further.

Norton sees Zijin as a useful partner as it has expertise in the heap leaching process of extracting gold.

Norton Gold is considering developing its Navajo Chief lode using by heap leaching, alongside several other expansion opportunities on its tenements spanning 700 square kilometres in the gold belt around Kalgoorlie.

Zijin agreed to buy its stake for A$0.20 a share, a 14 percent discount to the stocks price on Monday.

The company’s shares have been languishing relative to its peers as it has an A$80 million debt load, compared to others who have no debt.

The share sale to Zijin will allow it to cut debt to A$50 million, and its recent sale of coal tenements in Queensland and the planned sale of its Mount Morgan mining leases in Queensland will cut debt to below $30 million by March 2013, if not sooner.

Once its balance sheet is strong enough Labuschagne is keen to get into merger activity which is sweeping the gold sector, and sees Norton as a predator rather than target.

“If I can help it, I’ll do it,” he said, adding that Norton would look at takeover opportunities in Australia and offshore.

“I feel disappointed we can’t at this stage participate in that consolidation process because of where the share price is.”

Gold, Metal News, Nonferrous Metal, Nonferrous Metals Prices

May 30, 2011

China’s demand for gold to keep rising

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SHANGHAI – Chinese demand for gold bars and coins as private investments could push bullion imports above 400 tons in 2011, the leading global consultancy GFMS said on Friday.

Increased appetite for silver investment products too, combined with a forecast 16 percent annual growth in industrial demand, means China’s total silver consumption could outstrip domestic supply this year, said Philip Kalpwijk, executive chairman of GFMS.

“There is a widening demand for silver as an investment in China because of its lower entry point. It is also being increasingly recognized as an physical investment asset, which will support demand,” Kalpwijk told a conference in Shanghai.

The Chinese government does not publish official statistics on gold imports but the World Gold Council said the country produced 340 tons in 2010.

Last year, total consumption was about 700 tons, leaving a gap of around 300 tons made up either by imports or sales of existing stocks.

The surge in imports, which jumped fivefold last year, has turned China, already the largest bullion miner, into a major overseas buyer. GFMS forecasts imply that imports will continue to grow at a robust pace despite high gold prices.

The explosive demand has been stoked by concerns about inflation and poor returns in the stocks and property sectors. It also been aided by Beijing’s encouragement of retail consumption, such as expanding the number of banks allowed to import bullion.

GFMS said China’s investment demand for gold could hit 300 tons this year, up from 200 tons in 2009. Investment demand for silver stood at around 260 million tons in 2010, the group said.

China National Gold Group Corp predicted that China’s bullion output could reach 400 tons by 2014, a gain of nearly 19 percent from 2010. Consumption was set to grow by nearly a quarter to 700 tons, implying a supply shortfall of about 300 tons in three years.
Demand from China, along with inflation concerns amid a weak dollar, has pushed gold prices to a series of record highs.

Bullion struck a record above $1,575 in early May. Silver touched a record at $49.51 in late April before falling sharply on a broad sell-off in commodities and after exchange operators in Shanghai and New York raised the amount of money required to trade.

Gold’s decade-long price rally could take the metal above $1,600 an ounce by the end of the year, GFMS said.

The investment frenzy in China has also led to booming trading volumes in the spot and forward markets on the Shanghai Gold Exchange (SGE), said the exchange’s president Wang Zhe.

Total gold traded on the exchange rose 28.5 percent from a year ago to 6,051.5 tons in 2010, while the total turnover jumped 57 percent. The trading volume for silver was 73,615 tons in 2010, a meteoric 353 percent rise from a year ago, Wang told a conference on Thursday.

The SGE, China’s only specialized precious metals exchange, started a trial of over-the-counter trading in April and is studying ways of establishing a platform to provide open gold lease rates in China.

China National Gold Group’s President Sun Zhaoxue said Beijing’s move to consolidate the gold-mining sector, improve technology and encourage exploration at depths exceeding 1,000 metres would combine to boost underground reserves and output.

China’s gold output in the first three months of 2011 totaled 73.4 tons, up 4.6 pct from the same period in 2010, the Ministry of Industry and Information Technology said.

Gold, Nonferrous Metal, Nonferrous Metals Prices

April 28, 2011

Live Spot Gold for 28 Apr 2011

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Bid/Ask 319.52 319.73
Low/High 318.94 320.77
Change +0.27 +0.09%
30daychg +22.97 +7.75%
1yearchg +76.00 +31.21%

Gold, Metal News, Nonferrous Metal, Nonferrous Metals Prices

March 30, 2011

Live Spot Gold for 31 Mar 2010

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Bid/Ask 300.09 300.30
Low/High 296.98 301.25
Change +0.44 +0.15%
30daychg +3.09 +1.04%
1yearchg +67.89 +29.24%

Gold, Metal News, Nonferrous Metal

February 20, 2011

Surging Metal Demand a ‘Global Phenomenon’

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Israeli comments led to dollar weakness and gold, silver and oil rallying yesterday. The Israeli government described the Iranian warships move into the Suez canal as a “provocation” and hinted at a possible response.

An example, if one was needed, about how precarious the geopolitical situation in the Middle East is and how markets continue to underestimate the risk of military conflict.

Besides the very strong fundamentals, gold is looking better and better technically. After a four month period of correction and consolidation gold remains below levels seen last October (see chart below).

Gold in USD – 10 Day (Tick)

Gold bounced off support seen at the 150-day moving average and is now above the 100-day moving average. It is only 3.5% below the nominal record high of $1,423.75/oz seen in early December 2010.

Gold in USD – 1 Year (Daily) and 150 Day Moving Average

Even more important is the significant increase in demand seen in India, China and globally as people buy gold to protect themselves from macroeconomic risk and deepening inflation.

The World Gold Council reports that the increase in investment demand is a “global phenomenon,” reporting a 19% year-on-year rise across the world in its most recent report this morning.

In China alone, gold investment demand jumped 70% last year as Chinese people bought gold as a store of value. Demand is projected to grow a further 40% to 50% this year and jewelry demand will expand by 8% to 10% this year.

Gold imports by India, the largest buyer of gold in the world, climbed to a record of 918 metric tonnes in 2010, driven by a surge in jewelry demand with Indians continuing to buy jewelry as a store of value.

Reuters quoted a leading Chinese executive from Industrial and Commercial Bank of China (ICBC), the world’s largest bank by market value, as saying that demand for gold was growing at a voracious pace due to surging inflation.

Zhou said that the huge increase in Chinese demand seen last year would happen again in 2011 due to a “choppy stock market” and concerns about how rising interest rates will affect property markets.

Perhaps most importantly and rarely mentioned in the western media is the fact that the Chinese government is encouraging their citizens to buy physical gold and silver bullion having banned gold ownership from 1950 to 2003 (see video).

“Unlike the property market, investment in the gold sector is something the government is encouraging,” Zhou said.

Zhou said there was also voracious demand for silver, with ICBC bank alone selling about 13 tonnes of physical silver in January alone, compared with 33 tonnes in the whole of 2010. Were that demand to continue then demand for silver from ICBC alone could be as high as 156 tonnes this year. This would be a 370% increase on 2010.

Given the degree of demand for silver in China and internationally the forecast that silver could reach $36 an ounce this year, by Bloomberg analysts, is looking very conservative.

Those continuing to call gold and silver “bubbles” continue to ignore the facts and the many, many extremely important developments in the gold and silver bullion markets.

Gold

Gold is trading at $1,377.75/oz, €1,017.01/oz and £854.68/oz

Silver

Silver is trading at $30.59/oz, €22.58/oz and £18.98/oz.

Platinum Group Metals

Platinum is trading at $1,825.50/oz, palladium at $835.00/oz and rhodium at $2,400/oz.

Gold, Nonferrous Metal, Nonferrous Metals Prices

December 28, 2010

Live Spot Gold for 28 Dec 2010

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Bid/Ask 295.85 296.08
Low/High 295.34 296.70
Change +1.04 +0.08%
30daychg +5.28 +0.39%
1yearchg +59.98 +5.42%

Gold, Nonferrous Metal, Nonferrous Metals Prices

November 26, 2010

Live Spot Gold for 26 Nov 2010

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Bid/Ask 292.75 292.96
Low/High 292.43 293.78
Change -1.24 -0.09%
30daychg +9.47 +0.71%
1yearchg +37.82 +3.17%
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Gold, Metal News, Nonferrous Metal, Nonferrous Metals Prices

October 27, 2010

Live Spot Gold for 27 Oct 2010

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Bid/Ask 1327.10 1328.10
Low/High 1318.20 1345.40
Change +2.10 +0.16%
30daychg +32.50 +2.51%
1yearchg +287.50 +27.65%

Gold, Nonferrous Metal, Nonferrous Metals Prices

May 31, 2010

Live Spot Gold for 31 May 2010

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Bid/Ask 1220.20 1221.50
Low/High 1210.50 1223.20
Change +4.00 +0.33%
30daychg +40.90 +3.47%
1yearchg +240.60 +24.56%

Gold, Nonferrous Metal, Nonferrous Metals Prices

April 26, 2010

Live Spot Gold for 26 Apr 2010

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Bid/Ask 1156.20 1157.20
Low/High 1149.90 1161.10
Change +3.20 +0.28%
30daychg +49.50 +4.47%
1yearchg +243.20 +26.64%
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