Showing posts with label gold. Show all posts
Showing posts with label gold. Show all posts
"We aim at large-scale mines with good potential in countries that have close ties with China and domestic stability," President Sun Zhaoxue, said in an interview in Shanghai
Gold jumped to a record $1,577.57 an ounce this month, helping make this year one of the busiest for gold deals since 2006. Citic Group, China's biggest State-owned investment company, and partners agreed this month to buy Gold One International Ltd for about A$444 million ($469 million) to gain assets in South Africa.
The value of announced gold deals so far this year stands at $16.8 billion, more than the totals for the entire year in 2009 and 2008, according to data compiled by Bloomberg.
China National, owner of the Yangshan deposit in Gansu province, may also invest in Southeast Asia and Central Asia , Sun said. It currently doesn't operate any mines outside China
The company is also reviving previously uneconomical mines in China
China National Gold had a pretax profit of 3.2 billion yuan ($494 million) last year, after boosting reserves to 1,300 tons at the end of 2010, the company said on Jan 9. Production was 32 tons in 2010.
The extra production may boost China
China National Gold is also diversifying into copper and molybdenum production. Copper concentrate output will reach 80,000 tons next year and 100,000 tons in 2013, Sun said.
Jiangxi Copper Co, China
The question many investors are asking themselves today is, just what happened to the price of gold? Did the world change? Did the problems in Europe go away? Did all the states manage to find funding to cover their deficits?
No, none of that happened, but gold still dropped $100.
It’s all about market perception and timing, two things we’ve talked about many times before on the Trader’s Blog. I don’t know about you, but I remember when gold was over $1,400 an ounce and all I could see on TV where ads from gold companies extolling the virtues of buying gold as it is real money. Since the fall, I expect we’ll see fewer of these advertisements on TV and in print.
So what did happen to gold?
Well, for starters there were some key technical levels broken. If you’re a gold trader, but not a technical trader, you really need to learn how to read charts and see what other traders are doing.
Secondly, there did not appear to be any other news to drive this market higher. When that happens, markets tend to fall under their own weight, and as many retail investors purchased gold, there was nobody on the other side of the market to support gold.
So the question is, is the move over in gold? That’s a tricky one. I want to show you in today’s video exactly how we’re looking at this very emotional market. Every time we have created a video indicating that there would be some pullback in gold, we were bombarded by the gold bugs saying that we’re crazy. When you see a market pullback as much as gold has, you have to have some respect for the market itself.
If we look at the price of gold today at approximately $1,330, it pretty much equates to what happened in the last 30 years when gold was trading at a high of $850 an ounce. If you factor in inflation over the last 30 years, gold is probably lower now than it was 30 years ago. So how good an investment is gold? I think gold is more of a barometer of fear than anything else. Clearly there are other investments in the marketplace that have better returns.
Let’s get back to gold and what we think will happen. In this short video we analyze the market using our “Trade Triangles,” the Williams%R, and the MACD indicator.
As always our videos are free to watch and there are no registration requirements. If you like what you see please comment on our blog and feel free to Tweet or e-mail your friends. I think there’s an important takeaway message in this video – what goes up, must come down.
Who Has The Most Gold?
The price of gold reached an all-time high of $1432 per ounce in December, rising 29% in 2010 following uncertainty in the equity markets and European sovereign debt problems.
The biggest individual holders of gold - Central banks, International entities and governments - are believed to account for approximately 16.5 percent of the world's gold
The biggest individual holders of gold - Central banks, International entities and governments - are believed to account for approximately 16.5 percent of the world's gold
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