The Gold Economy

While the price of gold has been dropping continually over the past few weeks from its all-time high touching off of the $1900 historical price per ounce it attained just over a month ago, some gold mining companies have intercepted high grade gold structures in their various drilling programs.

Treasury Metals Incorporated, a Canada based mineral exploration company, reported intercepting high grade gold at its flagship asset, the Goliath Gold Project sited in the North-western Ontario. Treasury Metals recorded 6.2 grams per ton gold over 5.7meters drilling area and 8.7 grams per ton gold over 5.5… Continue reading

Gold is known to have many industrial uses besides its investment value as a hedge against inflation. Data provided by the World Gold Council indicates that the industrial applications of gold accounted for about 12 per cent of the world market demand for gold which translates to an average of about 434tonnes of gold per year from 2005 and 2009. Gold is known to be useful in the production of electronics and it is commonly applicable in medicine, dentistry, and nanotechnology.

Uses of gold in electronics: Electronics is the area of technology where… Continue reading

Gold recedes on Thursday unexpectedly for the first time in three days after the performance data of the United States manufacturing sector, the ISM, proves better than the common expectations of many analysts and stocks were lifted up in response to the glad tidings.

Gold had posted a dramatic appreciation in price and its strongest gain in the month of August on the hill of speculations that the Federal Reserve would mint more money to ease the economy which had almost slipped into recession and which could have fuelled more inflation and a further loss of… Continue reading

Presently, gold stocks are striving to outperform gold bullion. We all know the abundance of money one can make if one invests in gold at the right time.

If we look at the historical background, gold stocks have always outperformed gold bullion as mining companies always benefit whenever gold prices go the upward swing while the cost of production remains unchanged so that the excess revenue leads to increase in gross profits.

When there is increase in gross profit without a corresponding increase in the cost of production, the positive side we should expect is… Continue reading