Tuesday, January 24, 2006

 

Gold Demand Stalls, Simmers Tests Tailings

Bloomberg has the latest metal news. "Gold may decline in London as gains last week that sent the precious metal to its highest in 25 years deterred jewellery buyers in India, the biggest gold consumer, and other Asian countries. 'Demand in India has dried out, and as a whole Asian demand has slowed down,' James Moore, TheBullionDesk.com analyst, said."

"New deposits 'are becoming more difficult to identify and more difficult to turn into mines,' Barrick Gold chairman Peter Munk said. 'Right now demand for political reasons and because of new wealth in India and Russia is strong and supply is difficult.'"

"In SA, the world’s biggest gold producer, a strengthening rand has narrowed margins for mining companies.'

And a South African mining venture covered on this blog had a breakthrough. "Junior miner Simmers and Jack Mines (Simmers, SIM) says a substantial new surface uranium and gold resource has been confirmed at its Buffelsfontein operations. 'All indications are that it is highly workable,' said Simmers' CEO Gordon Miller."

"The resources are contained in 283 million tonnes of relatively homogenous tailings dams and metallurgical test work is currently underway to determine the most cost-effective extraction methods. Based purely on the surface re-treatment opportunity, the initial results indicate a 15-year project life, with the potential to extract 12 million pounds of uranium and 1.3 million ounces of gold."

Comments:
This comment has been removed by a blog administrator.
 
Ben!
I've just subscribed to The Dines Letter. He talks convicingly about prospects of Uranium. I ask you to keep Uranium in mind in this blog, because ( following Dines suggestion) it looks like it have unprecedented potential in the near future.
 
Can you recommend any Uranium stocks?
 
Oh, my Gosh, Austin!
I am no expert. I'm just a guy who wants to survive and, if possible, make some money on someone else misery.
(just joking)
I dont do any recomendation, but waht I can do, I can throw some uranium mining names and symbols, I know, but later this evening, if you allow me.
 
Yeah, Mike. Post some symbols and we can track them.

I am also curious if anyone reading has ever bought South African stock?
 
Are you serious? India demand drying up? I have some Indian friends and they are crazy over gold. Their economy has been booming (too fast), and I would imagine a significant portion of wealth would pour into gold.
Perhaps they stockpiled inventory previously so they don't need to buy right now?
 
I don't have South African stock, but I do have some of their currency. It has been the best performing currency in the last 3 months. I'm tempted to put more money into it, but I know it has long term fluxations.
 
Yankee and Ben!
These are the names I follow and i am on track to have in my portfolio.
But, also to be fair to subsribed services, I want to recomend 2 of them:
The Dines Letter and www.zealllc.com.
I have learned a lot reading them.
LAM.V
JNN.V
PALADIN RESOURCES
MGA.V
FRG.TO
PNP.TO
U TORONTO
IUC.TO
SMM.AX
UEX.TO

LAM.V is 700x since 2001. That is right 700 times, not 700%.
 
Thank you.
 
Thanks Mike, I book marked those two. Yahoo doesn't have a profile. Do you have a link to details on these firms?
 
I think I have a websites to those companies, curtesy of Mr. James Dines.
I have almost finished reading his 2006 annual report, and I highly recommend his newsletter.
Do you websites do you any good?
 
Sorry about my language mistakes. ESL
 
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