Month: June 2015

Gold Mining Sector Shows Signs Of Growth, GFMS Predicts $1,250 Gold In 2016

The gold mining industry has seen $2 billion in projects completed through the first five months of this year, twice 2014’s pace. This points towards that the precious metals industry, despite stagnant prices, remains stalwart amid decreasing demand at the numerous retail levels.

In the first quarter 2015, Paris asset manager Carmignac Gestion purchased 11.65 million shares of Goldcorp. “The perception that mining equities show good value is starting to spread,” according to Hedley Widdup, a fund manager at Melbourne-based Lion Selection Group. “Since the start of this year, there has definitely been a change in sentiment.”

Thomson Reuter’s GFMS holds a $1,170 price target per ounce for this year, with a 2016 forecast of $1,250. “We felt that finally it looked as though you might be able to pick up projects,” said Marc Prefontaine, Chief Executive of Canadian gold miner Orla Mining.

Annual gold mine production grew for the sixth straight year in 2014, increasing 2% to a record 4,114.4 tons. Mine production grew 2%  to 729.2 tons in Q1 2015.  The price decline in precious metals had undermined the bottom line for miners. Demand for gold has fallen across sectors, from technological applications to dental gold.  Overall Jewelry consumption fell 6.7% in Q1 2015 compared to Q1 2014, while retail purchases of physical bars and coins has decreased 17% compared with one year prior.

US-RetailIn the US, physical gold demand declined 6% compared to the same period in 2014 – the lowest level of physical gold demand since Q1 2007. This includes a decline of 13% in retail investment demand, accounting for 31% of US demand during the period.

 

There are many inherent risks to gold exploration and mining, such as political conflicts, environmental hazards, industrial accidents, unexpected geological conditions, labor force disruptions, unavailability of supply and so on and so forth. Despite all of this, there remains strong demand to tap into this market in consideration of global financial and economic volatility. The GFMS prediction of $1,250 reflects this sentiment.

 

 

“There has been more interest from generalists at the broker conferences for meetings,” said David Harquail, Chief Executive of gold royalty company Franco-Nevada Corp. “Often these generalists have no positions in the gold sector.”

“I don’t think commodity prices are going to dramatically go up from here, but I do think that the individual companies’ ability to cut costs will differentiate their performance,” he said. In the gold sector, he favors South Africa’s AngloGold Ashanti.

“There is recognition that there is value in the sector and the market is starting to sense that the companies are better managed now,” said Joseph Forster, portfolio manager at Van Eck.

BitGold Strives To Go Public & Offer Services In US, Raises Another $17 Million For Gold Storage

At the end of last week, BitGold announced it raised $17 million in a deal that began as a $14.8 million offering. This deal is one of many in recent months which has put the company at the forefront of the financial press. Alongside the millions in recently raised capital, BitGold founder Joshua Crumb has stated the company strives to be public and operating in the US by the end of the year.

“Post our acquisition of GoldMoney and the institutional raise, we are taking steps for both main board listing on the TSX as well as a US listing strategy,” co-founder and chief strategy officer Joshua Crumb said. “We would like to be listed and offering services in the US later in the year.” Crumb also stressed how BitGold is different from other online gold platforms; namely, the platform allows investors to buy gold within 1% of real-time prices.

“We built our own exchange to get the best price possible and reduced settlement from a couple of days to instantly,” Crumb said.

In an exclusive interview with James Turk, which only appears in Jeff Berwick’s TDV Paid Newsletter,  Jeff Berwick discussed GoldMoney’s merger/acquisition with BitGold with founder of GoldMoney, James Turk. In the interview, Turk gives interesting insights into why he went forward with the deal, and the benefits of the deal for GoldMoney clients.

Turk has 40 years of experience in international banking, finance and investments, having begun his career at Chase Manhattan Bank.  In 2001, Turk co-founded GoldMoney and remains a director of the group today.

In the interview, Turk mentions that GoldMoney will now enjoy additional regulatory overview since it is a part of BitGold, which is listed on the Toronto Stock Venture Exchange. GoldMoney customers will enjoy the same operation as before, yet with the addition of new products offered by BitGold.

“Technology is evolving rapidly and BitGold is in the forefront of this evolution with Aurum, which represents the latest developments in software and hardware to conduct online financial services efficiently, safely and securely,” Turk tells Berwick. “The services made available by BitGold also enables GoldMoney shareholders to continue pursuing their original vision, to return gold to the center of global commerce by enabling the circulation of digital gold currency.”  Turk tells Berwick that, with GoldMoney’s long history, and BitGold’s new technology in Aurum, the two companies are complementary.

“GoldMoney brings critical mass and 15 years of experience, and BitGold brings technology and a management team with a clear vision of what GoldMoney had always set out to achieve as its long-term goal, the circulation of digital gold currency (DGC).” There are also new products planned by BitGold and GoldMoney.

“These include a plastic debit card that enables customers to spend their gold balance at any traditional point of sale, where credit/debit cards are accepted, or to withdraw local currency from any traditional ATM,” Turk says. “Also, there will soon be a mobile application for iPhone, Android and Blackberry, allowing full dealing and payments capabilities.”

“In addition to the 400-ounce, kilo and 100-gram bars available through GoldMoney, customers can take delivery of GoldMoney Cubes or BitGold Cubes in as little as 10 gram increments.” The rest of the interview is available by clicking here and subscribing to the TDV Newsletter.

Gold, Silver & Bitcoin Interest Increasing In Greece

 

With Greece inching closer to a default, and European partners putting pressure on the southern Greek nation, Greeks have pulled money out of banks to the tune of 2 billion euros this week. Alongside this trend, we see an increasing interest in the precious metals sector, as well as the crypto-currency sector, on Google Trends.

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Gold, too, has seen a spike in interest.

 

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And, finally, Bitcoin, which last saw a spike in interest in 2013, has also seen an increase in interest.

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Bitcoin Is [Not] A Man’s World

When one goes to a Bitcoin event, they are greeted by a scene of mostly men, many of whom flex their egos and their low-end Rolex watches as if they have a lot going for them. Some, mostly VCs, who have only been into bitcoin a short time, pretend that they are pioneers, trying to cement themselves as their own sort of pariah at least in their own. Oh yeah, and a lot of them want to hold your money or for you to invest in their redundant Bitcoin projects. There is very little networking and working together, just peacocking and unfounded confidence or insecurity.  Many males seem to have forgotten that they are not, in fact, Satoshi Nakamoto.

But while male ego might dominate many crypto-currency scenes for now, a dedicated group of Crypto Moms is working to change that. Meet Crypto Moms. Read More

Denarium Hopes To Pick Up Where Casascius Left Off




“Low-cost” physical bitcoins (basically coins with enough data on them to retrieve a certain number of bitcoins) have always enjoyed demand from the Bitcoin space, however numerous startups which pursued the idea faced headwinds due to regulatory concerns early on in their evolution. Now, a Finnish Bitcoin startup is running with the idea, an idea which led to the best known company, Casascius coins, which go for a pretty penny to this day. That company ceased operations in 2013. 

Denarium hopes to supply such coins to appease the demand for physical bitcoins.

“What we hope to achieve is to allow everyone to have an easy-to-understand gateway to the world of Bitcoin. Our first product is a simple, low-cost product that anyone can afford,”  Denarium co-founder, Henry Brade, told Crypto Coins News.
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