Europe’s QE3 to Boost Gold and Silver

GoldStockTrades.com – Gold is finding support and presenting a potential discount buying opportunity. It is important to buy when the public is disinterested.

Gold is pulling back to long term support and is able to be purchased at a discount. Investors may be seeking riskier assets due to fears of inflation and higher interest rates. Right now industrial metals such as copper/ nickel, oil and blue chips are outperforming due to their value of being hedges against inflation and represent the riskier assets.

Gold and silver which has in the past represented risk off is still in consolidation mode. Eventually investors will realize that the monetary metals can do well in both a deflationary risk off environment as well as an inflationary risk on environment and the trend will turn significantly higher as it has for the past decade.

Julian Phillips on Warren Buffett’s Misunderstanding of Gold and Silver Investments

BENONI – The last few weeks have seen a larger consolidation pattern forming in gold, pointing to a much bigger consolidating pattern that implies far more than just a short-term trading move just ahead of us. The forces that drive both supply and demand in the very short-term are just about in balance, so it is appropriate that we look at these forces to see how they influence gold prices in the short, medium, and long term.

The forces that influence the gold and silver markets are very different from those that affect industrial and base metals. They go far beyond simple prices and the technical picture of demand and supply. They encompass trust, confidence, dependability, and protection that have little or nothing to do with gold’s uses. Warren Buffett is quite right about the “uselessness” of gold. But he has missed the point as to its value. Such a master of management and investment must find such an unmanageable metal virtually useless to him. But therein lays its value as an investment.

Great Panther Silver Reports $11.5 Million in Earnings on $57.8 Million in Sales

Great Panther Silver (NYSE-Amex: GPL; TSX: GPR) increased revenue for fiscal year 2011 by 37% to $57.8 million.  The Company’s gross profit or earnings from mining operations increased by 64% to $26.9 million for 2011, and net earnings increased 8% to $11.5 million.  Additional highlights from 2011 include:

• 64% increase in Adjusted EBITDA (refer to “Non-IFRS Measures” below) to $24.7 million;
• 70% increase in net cash from operating activities to $19.1 million for 2011;
• Cash and cash equivalents increased to $39.4 million at December 31, 2011, from $14.0 million at December 31, 2010;
• Working capital increased to $53.8 million at December 31, 2011 from $18.8 million at December 31, 2010;
• 19% increase in mined and processed ore to 216,181 tonnes from 182,393 tonnes for 2010; and
• Closed bought deal financing with a syndicate of underwriters for $22.5 million in net proceeds.

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Mexico Mike is Bullish on Silver Companies in Mexico

TORONTO – 

The Gold Report: Last September, you predicted gold would rise above $2,000/ounce (oz) by the end of the year. It didn’t quite get there. What do you see as a price limit now?

Mike Kachanovsky: I also suggested that silver would hit $50/oz before the end of last year. I was dead wrong on that prediction as well. But my outlook hasn’t changed. It’s difficult to put a specific timeline on price trends. It’s more important to have confidence that the factors that have contributed to the rise in both gold and silver prices for the last decade are still in effect. What we can accurately predict is how factors driving these prices will play out, while sometimes delays and countertrends and mini bear markets occur along the way.

We are currently trading at a sideways consolidation for gold in the $1,600-1,700/oz range and silver $30-35/oz. I am confident that we are going to see a lot higher than $2,000/oz gold and higher than $50/oz silver. Metal trading is volatile. But I feel very strongly that before the end of 2012, we’ll see both of those levels surpassed.

Great Panther Silver Schedules Conference Call for Q4 and 2011 Year End Results

Great Panther Silver (NYSE-Amex: GPL; TSX: GPR) will release its 2011 fourth quarter and year-end consolidated financial results on Monday, March 12, 2012 after market close. A conference call to discuss the results has been scheduled for Tuesday, March 13, 2012 at 7:00 AM Pacific Standard Time, 10:00 AM Eastern Standard Time.  To participate in the call, please use the following conference call numbers:

Dial in number (Toll Free): 1-877-407-8033
Dial in number (International): +1-201-689-8033
No passcode is required

Replay number (Toll Free): 1-877-660-6853
Replay number (International): +1-201-612-7415
Replay Passcodes (both are required for playback):
Account #: 286
Conference ID #: 389736

A replay of the teleconference call will be available on March 13, 2012 from 10:00 AM Pacific Standard Time, 1:00 PM Eastern Standard Time until March 29, 2012 by dialing the numbers above. In addition, the call will be archived on the Company’s website.

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Julian Phillips: Gold Confiscation – Part II

BENONI – 

EASILY REVOKED PRIVILEGE

We previously stated that gold ownership was made illegal on 1^st May 1933. What we did not tell you was that U.S. citizens, under Order 6102, were allowed to own up to $100 in gold coin [+5 ounces]. Today that would be worth under $8,400, a mere token gesture to real gold owners. It acted as a tiny escape valve to the general body of citizens and did not detract from the fact that effective gold ownership was abolished. So that we fully understand the attitude of governments to gold, which remains real money in times of crisis, we add this paragraph:

Congress could easily revoke the privilege again. In fact, at no time during this century has the U.S. government recognized the right of private gold ownership. The Trading with the Enemy Act, which President Roosevelt invoked in 1933 to restrict private gold transactions, remains law.  Although private ownership of gold in the United States was legalized on August 15, 1974, the power to confiscate gold remains in the hands of the President. The President still retains the right, under the Emergency Banking Relief Act, to “investigate, regulate or prohibit…the importing, exporting, hoarding, melting or earmarking of gold” in times of a declared national emergency. It is highly unlikely that either the Courts or Congress would successfully argue that confiscatory powers are not implicit in the Emergency Banking Relief Act if a currency crisis or other fiscal emergency prompted the President to, once again, nationalize gold.

Gold and Silver Still Believed to be Fundamentally Stable

JOHANNESBURG – Gold prices slipped below $1700 an ounce on Monday after China lowered its economic growth target and data on business activity in the Eurozone showed a contraction in the region. At the annual meeting of the National People’s Congress in Beijing, China’s Premier Wen Jiabao announced that China’s economic growth target has been revised down to 7.5% for this year while inflation target will stay at 4%. This is the first time since 2005 that China sees its growth at below 8%. The statements made by Wen Jiabo impacted on global equity markets and the price of gold slipped a few dollars an ounce.

Investment Capital Flowed Into Commodities in January Versus Withdrawals in December

LONDON (Reuters) – Investment flows into commodities turned positive in January after heavy withdrawals the previous month, boosting hopes that money entering the sector will rise this year from the weakest levels in nearly a decade in 2011, Barclays Capital said.

Commodities saw $7.7 billion of net divestment in December, Barclays estimated, after many funds suffered heavy losses in volatile markets, but sentiment has improved this year amid reduced concerns about the European debt crisis and a hard landing of the Chinese economy.

“Towards the end of last year we did see a lot of liquidation of commodity holdings by institutions, by hedge funds and by retail investors who’d been buying things such as exchange-traded products,” said Kevin Norrish, managing director of commodities research at Barcap.

2012 Will Be Good for Gold and Silver Stocks

TORONTO – 

The Gold Report: Mark, what do you think will determine your company’s success in 2012, especially regarding the junior resource sector?

Mark Raguz: What we need to see is the embracing of less risk aversion and the desire of investors to move further along the liquidity curve toward the junior resource space. There are signs this is starting to happen. In the meantime, we believe we can add value by drawing on our expertise in the resource sector and filtering out the best names, whose value might be realized over time.

TGR: How do you determine the best names?

MR: We see things very early and we look at a lot of different names. Finding the gems becomes a lot easier as we have a lot of experience in this area and a lot of comparables to use because of the amount of companies we look at. My goal is to draw out the best management teams with the best assets, given our exposure to most of the names in the space.

India Predicted to Import 5000 Tonnes Silver in 2012, Price to Exceed $60/oz

Silver prices in India are set to surge to $2,033 (Rs 100,000) a kilo (over US$60/ounce) in 2012 given the uncertain global economic situation, according to an official of the Bombay Bullion Association, an apex traders body that deals in gold and silver. The world’s largest importer of silver, India, could well import 5,000 tonnes this year as compared to about 4,800 tonne in 2011, the official pointed out.

“India is one of the largest users of silver and is ranked third in the world after USA and Japan. With average silver imports per annum of around 3,100 tonnes, the country’s imports jumped to 4,800 tonnes in 2011. The previous year, India imported just 2,800 tonnes,” said Jitendra Jain of the Association.

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