| |
Commodity Gold
Putting things in their perspective, the World Gold
Council offered that, "The beginning of 2006 saw a mixed
reaction to rising gold prices from retail investors
around the world. Many long-standing investors saw
surging prices as an opportunity to take profits, even
pushing off take into negative territory for a few
countries. Elsewhere rising prices produced a fresh
interest in gold from new investors."
With an increase in interest coming from the side of
investors, comes the rising demand for supplies and new
gold discoveries. The Council also reported that to
date, "Total gold supply declined by 15%, to 868 tones,
on the same period in 2005." Commenting on how the
commodity fares in terms of supply and demand, Scott
Emerson, Chairman and Director of Golden Peaks Resources
Ltd. (TSX-V: GL), an international exploration and
resource development firm focused on Argentina, has said
that, "We view this as an opportunity. Golden Peaks is a
well financed junior exploration company with highly
prospective gold projects and on-going exploration
programs. The Company's La Fortuna project continues to
deliver extremely positive results."
Other Factors Influencing the Commodity Gold Price :
In terms of factors currently driving the price of gold,
namely the US dollar and interest rate fluctuations, as
well as Iran's alleged nuclear plans, Philip Klapwijk,
chairman of GMFS Ltd. and editor of The Outlook for Gold
Investment says, "Indeed, looking ahead the only major
cloud on the horizon for gold is the ongoing rise in
nominal short-term interest rates. However, the rising
cost of carry is much less of an issue when investors
are confident of double digit gains in gold over the
short term."
But amidst the many factors that are beyond our control,
investors still hold many of the cards as they eye the
opportunity ahead for new gold discoveries.
Commodity Gold Exchanges
When asked where he thinks the commodity currently
stands, McCluskey said, "While we are currently in a
correction phase, Q1 06 was very positive for gold
producers that were unheeded. While I believe gold is
leading higher in the medium to long term, as the
secular bull picks up steam, it is very difficult to
predict precisely where the price will go at some fixed
point in the future."
As the future for gold unfolds over the upcoming months,
fluctuations in the price will determine whether gold
will experience an upswing out of the current correction
period. At this point, the summer months have much to
unveil, in terms of how far outside factors will drive
the price of gold in the market. As each quarter files a
chapter in the history of gold's ascend toward new
levels, in retrospect, there may be much to learn from
each individual step made along the way. If there is one
thing to be said for the commodity, it is that it holds
a reflection on current global circumstances.
Commodity Gold Trading Prices
I had no idea, but at the time sugar was in a major bull
market trading at around 11 cents and destined to reach
45 cents later in the year. Gold, silver and copper were
also making new highs. Bunker Hunt was cornering silver
on its way to $50 an ounce. Gold was destined to hit
$800. Anyway, this kid from Boston was on fire and told
me I was missing the opportunity of a lifetime in sugar
futures contracts. He wanted to mail me some hot news
off the commodity news wire. He was looking for a
$15,000 stake; a lot of money in the late 70's. He said
he would buy me four futures contracts of sugar. I
didn't know anything about commodities at this point,
but told him to send over the info anyway.
|
|
|
|
|
