Gold Falls Most in 2 Weeks on Stimulus Bets

Source: Bloomberg, Pham-Duy Nguyen (11/3/10)

"Fed's stimulus plan may fall below economists' estimates."

Gold fell the most in two weeks on bets that the Federal Reserve will announce a U.S. stimulus below estimates by economists, boosting the dollar and eroding the appeal of the metal as an alternative investment.

Before today, gold gained 8.7% since Sept. 1, while the dollar dropped 7% against a basket of major currencies amid speculation that policy makers will announce another round of so-called quantitative easing to bolster the economy. The metal reached a record $1,388.10 an ounce on Oct. 14.

"You've got nervous longs exiting this market,” said Matthew Zeman, a metal trader at LaSalle Futures Group in Chicago. "If the Fed disappoints with a smaller amount of quantitative easing, you might start to see the dollar gain, and gold is going to go down.”

Gold futures for December delivery dropped $25.20, or 1.9%, to $1,331.70 at 11:31am on the Comex in New York. A close at the price would mark the biggest decline for a most- active contract since Oct. 19. Earlier, the metal climbed as much as 0.6%.

The Fed has kept its benchmark interest rate at zero% to 0.25% since December 2008 and purchased $1.7 trillion in Treasuries and mortgage-backed assets to spur growth.

Estimates for the size of the Fed's next round of asset purchases range from $1 trillion at Bank of America-Merrill Lynch to $2 trillion at Goldman Sachs Group Inc. Economists at both firms agree the Fed may start by announcing a $500 billion plan.

Silver futures for December delivery dropped 74.1 cents, or 3%, to $24.095 an ounce.

Platinum futures for January delivery fell $17.10, or 1%, to $1,702 an ounce on the New York Mercantile Exchange.

Palladium futures for December delivery declined $8.80, or 1.4%, to $636.65 an ounce.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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