Lower Gold Price Weighs on Newmont

August 1, 2014 at 07:44


Newmont Mining announced its second quarter results on July 29 and conducted a conference call with analysts on July 30. Lower gold prices and shipment volumes adversely affected the company’s results. The company’s suspended exports from Indonesia negatively impacted its copper shipments. As a result of lower gold prices and lower gold and copper shipments, Newmont reported second quarter revenues of $1.765 billion, around 12.5% lower year-over-year. The company reported net income from continuing operations of $182 million for the second quarter, up from a loss of $2.133 billion in the corresponding period last year. The company’s results in Q2 2013 were negatively i...

Buyers Return Amid Price Blip

July 31, 2014 at 11:21


Gold investors who pulled money out of U.S. exchange-traded products through the first half of 2014 rushed back in July, just as prices resumed a decline that Barclays Plc and Goldman Sachs Group Inc. say will get worse. ETPs backed by precious metals took in $536.81 million this month as of July 29, a 1 percent gain for funds that saw a net outflow of $319 million in six months through June, data compiled by Bloomberg show. This month’s 1.9 percent drop in futures left prices down 6.9 percent from a 2014 peak in March. The appeal of gold as a haven increased since Russia backed a rebellion in Ukraine and as violence escalated in the Middle East and North Africa. Wh...

Gold ready to turn around as central banks increase holdings

July 29, 2014 at 09:40


Gold increased after the first back-to-back weekly declines since May, as investors weighed unrest in Ukraine and the Middle East against signs of a stronger U.S. economy. Bullion rose 8.7 percent this year, partly amid unrest in the regions. The U.S. said satellite photos show that Russian forces shelled across the border into Ukraine as the U.S. and Europe consider more sanctions against Russia. International pressure mounted on Israel to end its three-week offensive in the Hamas-controlled Gaza Strip. Gold fell 28 percent on expectations for reduced U.S. stimulus. The dollar was little changed near a five-week high against a basket of 10 major currencies before U...

US investor sues Banks over silver price rigging

July 28, 2014 at 07:50


Deutsche Bank, HSBC Holdings and Bank of Nova Scotia were accused in a lawsuit of rigging the price of billions of dollars in silver, an allegation similar to earlier suits involving London’s gold fix. The banks unlawfully manipulated the price of the metal and its derivatives, an investor claims in a complaint filed yesterday in federal court in Manhattan. The banks abused their position of controlling the daily silver fix to reap illegitimate profit from trading, hurting other investors in the silver market who use the benchmark in billions of dollars of transactions, says the suit. "The extreme level of secrecy creates an environment that is ripe for manipulation," ...

Gold mine owner prefers bitcoin, wants to sell for bitcoin only

July 28, 2014 at 07:30


Gold, the hard asset long seen as the ultimate hedge against risk, has fallen so much out of favor in recent years that the owner of a mine in Canada's historic Yukon gold belt wants to sell the property for $2 million in bitcoin, a virtual currency. The tiny, producing mine is being offered for sale by Timothy Coles on BitPremier, a self-described bitcoin marketplace for "luxury items and opportunities". When discussing the similarities and differences between gold and bitcoin, Coles cited the fact that the prices in digital currency markets are set by supply and demand. By comparison, gold is subject to geopolitical pressures that have, in his eyes, made it a less at...

Silver Wheaton short squeeze coming?

July 25, 2014 at 11:56


Shares of Silver Wheaton Corp were the recipient of a significant growth in short interest during the month of June. As of June 30th, there was short interest totalling 4,218,991 shares, a growth of 121.4% from the June 13th total of 1,905,638 shares, Stock Ratings News reports. Based on an average trading volume of 5,143,846 shares, the days-to-cover ratio is presently 0.8 days. Currently, 1.2% of the company’s stock are sold short. A number of research firms have recently commented on SLW. Analysts at Raymond James raised their price target on shares of Silver Wheaton Corp. from $31.00 to $32.00 in a research note on Monday, July 14th. Separately, analysts at RBC Cap...

Silver back to $50?

July 25, 2014 at 11:50


With Wall Street and institutional investors continuing to place some big bets on precious metals, there are growing calls from some analysts that silver is significantly undervalued and is worth $50 an ounce. This may sound ludicrous to some investors — the metal is now trading at U.S. $21 an ounce — but there is a rationale behind the argument. There is a strong correlation between gold and silver prices and while gold has rallied strongly this year after seeing its price collapse after the Fed started unwinding quantitative easing at the end of 2012, the price of silver hasn’t kept up. The key driver of this emerging view among analysts is the gold-to-silver ratio, wh...