Recently big names in the gold mining sector united their voices to defend the wounded industry. The Gold Industry Group is now a result of the sector preoccupation about Government’s financial interests and future decisions. In the meanwhile, low prices keep hurting the sector but the precious metal is starting to recover.
Category Archives: All Topics
China & PBOC’s gold announcement and consequences
The severe recent price drop has a few reasons behind it. They go from the financial (and now obvious) matter to the psychological aspects of the market. It becomes a true race between gold and the United States Dollar.
Minor Players in the Gold Mining Sector Now Represent Hope
Despite the near disaster occurring in several markets to the present moment, along with all the panic among gold investors, there is still great news. This well appreciated good news has been born from the bad financial situation itself. Giants in the mining industry are suffering and making entire armies of investors flee. They are in debt and selling plenty of assets, like mines and associated operations.
Business as usual: Markets return to their pre-euro-crisis state as status quo resumes.
Everything in the last week has played out as anticipated, Greece has once again been granted more debt by euro lenders to push the Greek problem away for another day, something we assumed was always going to be the case, something you can check in our previous article from the third of July:
Australia Must Ignore Greece, more focus on Asia.
The media loves the disaster happening in Greece and the world actually falls in that game. Things with the European Union and Greece are really messed up economically, but nobody is paying attention to a bigger crisis occurring right now in Asia.
Sunday Summary: The China Situation, Gambling on Digital Currency, Mixed Demand For Gold
Although seeing massive gains in recent years, the Chinese stock market had it’s first real test in the last week with losses of between 5.1% and 5.5%. This amounts to around 2.4 trillion USD in China’s equities, with flow on effects to commodity markets such as copper, along with limited losses in international stock markets.
Financial Gymnastics: Summary of Recent Factors on Gold’s Price (July 2015)
The entire financial system remains on the brink of collapse, the total national debt of nations have gone ballistic with most of the western world having public debts of over 100 %. America, Brazil, China, Britain and Canada are leading the debt ratios with trillions of dollars in debt, debts are rising faster than economic outputs that pave the way towards higher taxes and according to The Economist debt ratios of above 90 % represent unhealthy economies in general (The Economist, 2015).
Chariot of Fire – The Precious Metal Market (7 July 2015)
Greece is in default; the Chinese stock market has practically crashed which has created a spill over towards US listed Chinese companies, prices of gold took a 20 dollar an ounce tumble and dragged other metal down along with it
Iron ore price collapse deepens as mining industry inquiry abandoned
The cancellation of the inquiry in the mining sector was not a good news for some characters in the industry. Fortescue Metals Group Ltd., one of the biggest players in the iron ore industry at Western Australia failed to convince the government to execute the widely popular investigation in the mining business, making possible the attainment of reliable data.
The Mining Industry is wounded
All the markets around the world are in expectation because the severe problems in the European continent. Many indexes were truly hurt in the last couple of days. Specialised media has talked about all the ups and downs in the equity markets but the commodities are being ignored quite a bit.
