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Gold price climbs again after Citi says record is “matter of time”

The rally in the gold price regained momentum on Monday as investors continue to pile into hard assets amid a flood of easy money on financial markets in the developed world and expectations of a prolonged period of ultra-low interest rates and currency debasement.

Gold for delivery in August, the most active contract on the Comex market in New York with 17 million ounces traded by early afternoon, touched a high of $1,823.40 an ounce, just short of a near 9-year high.

Gold is now up 19.7%, or $300 an ounce so far this year. The last time gold traded above $1,800 an ounce was September 2011, but it ended that year at $1,565 an ounce.

Bloomberg reports, according to Citigroup’s third-quarter commodities outlook, the price of gold “is expected to climb to an all-time high in the next six-to-nine months, and there’s a 30% probability it’ll top $2,000 an ounce in the next three-to-five months.” CLICK for complete article

For years the gold market was not a popular place to be. But when the stocks move, they move quickly, which has been the case in this rally as well. And now with gold above $1,800 per ounce, some of these companies are making a lot of money. In this Arcada Economic interview listen to what CEO Stephen Swatton of K2 Gold joined the show to discuss. ~Ed

K2 Gold Corp. is a North American mineral exploration company exploring for gold deposits in California, the Yukon, and Alaska.

K2 Gold Corp. is a part of Discovery Group, an alliance of like-minded mineral exploration companies that leverage industry relationships, global knowledge and strong technical skills DiscoveryGroup. Based in Vancouver, Canada.

Watch the interview here:

Gold Tops $1800/ounce

 

The synchronized breakouts in both gold and silver have raised speculation about a further extension. Especially golds move above $1800 has, from a technical perspective, opened up for a move towards the 2011 record high. However the intense focus on the $1800 level in recent weeks may trigger some sooner-than-expected exhaustion with short term tactical positions already positioned for break. On that basis while we see further upside, today’s price action could end up being critical for the short-term direction of both metals. Full Story

 

Mongolia Set to Establish World Class Mining Potential in Coming Years

It was announced on June 24th that the Mongolian People’s Party would retain a strong parliament majority. The election result marks the first time a single party has retained an absolute majority in consecutive elections.

This is excellent news for Mongolian mining investors as the Mongolian Prime Minister Ukhnaa Khurelsukh pledged to put more considerable effort to promote national development and improve livelihoods for the citizens of Mongolia. 

On Thursday the prime minister emphasized on four goals to be achieved in the coming four years with one notable goal which was to: “Increase and diversify its exports”.

“The way for the Mongolian economy to become debt-free, competitive, and an active participant in regional trade is to increase exports,” he said. 

“To achieve the goal to become an exporter, Mongolia will provide policy support to domestic producers, develop mining, food and agriculture, organic food production, energy, tourism, creative industries, information technology, transportation and logistics as priority sectors, and strengthen the partnership between the public and private sectors,” the prime minister said. “In particular, we will work hard to support agriculture, meet domestic food demand, and become a food exporter.” CLICK for complete article

Moon richer in metals than previously thought — NASA

Plans to start mining the Moon as early as 2025 became more attractive this week after a US National Aeronautics and Space Administration (NASA) team found evidence that the Earth’s natural satellite may, underneath its surface, be richer in metals than previously thought.

Using data from the Miniature Radio Frequency (Mini-RF) instrument onboard NASA’s Lunar Reconnaissance Orbiter (LRO), a team of researchers came to the conclusion that the lunar subsurface contains higher concentration of certain metals, such as iron and titanium, than estimated. The study, published in the journal Earth and Planetary Science Letters, contends the most popular theory surrounding the Moon’s origins. The hypothesis contends the satellite was formed when a Mars-sized object collided with Earth, vaporizing large portions of the Earth’s upper crust…CLICK for complete article

83 Tons Of Fake Gold Bars: Gold Market Rocked By Massive China Counterfeiting Scandal

 

Over the years, we have periodically reported of the occasional gold bar discovered as counterfeit in Manhattan’s Diamond District which instead of containing the yellow precious metal would be filled with gold-plated tungsten or in some cases copper. The news would spark a brief wave of outrage, prompting physical gold holders to run ultrasound spot checks of their inventory, at which point interest would wane and why not: buyer, after all, beware in gold as in every other market, and if someone is spending thousands to buy fake gold, well that’s Darwinism in action.

Yet one market which seemed stubbornly immune to any counterfeiting was that of physical gold in China, which was odd considering that over the past decade China had emerged as the world’s biggest counterfeiter of various, mostly industrial metals used to secure bank loans, better known as “ghost collateral“, and which adding insult to injury, would frequently  be rehypothecated meaning often several banks would have claims to the same (fake) asset.

All that is about to change with the discovery of what may be one of the biggest gold counterfeiting scandal in recent history. And yes, not only does it involve China, but it emerges from a city that has become synonymous for all that is scandalous about China: Wuhan itself.

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