Coins Remain a Bright Spot for Gold | Blackhawk Mining News

A blog post from: BHM Weebly  | Sales of gold coins are booming even as the metal's price is falling, a testament to gold's continued appeal for small investors and collectors despite its first bear market in more than a decade. The heightened appetite for physical gold is a rare bright spot in a market that saw hedge funds and other large investors head for the exits last year. Gold futures prices tumbled 28% in 2013, their worst performance since 1981. But at mints and coin shops around the world, gold continued flying off the shelves.

Demand for gold coins shot up 63% to 241.6 metric tons in the first three quarters of 2013, according to the latest figures available from the World Gold Council.

The Blackhawk Mining news…

Sales of Gold Maple Leaf coins by the Royal Canadian Mint MNT.T +0.07% surged 82.5% to 876,000 ounces in the first three quarters of 2013 from the same period of 2012. The Perth Mint, Australia's national coin and bar producer, saw sales rise 41% to 754,635 ounces last year, while the U.S. Mint sold 14% more American Eagle gold coins than it did in 2012, along with a record amount of silver coins. Coin buyers tend

to be small investors who view gold as an insurance policy against financial shocks, said Bart Melek, a senior commodity strategist with TD Securities Inc. Because these investors intend to hold onto their gold for years or decades, many see the recent drop as an opportunity to buy more at a cheaper price, he added.

"They're not under any pressure to get a yield or a return in a year," Mr. Melek said.

Gold-market participants of all stripes keep close tabs on coin sales, which make up about 10% of global demand for the metal, according to the World Gold Council. Because 90% of gold use comes from jewelry-making and investment, it is up to buyers ranging from Indian brides to German coin collectors and U.S. pension funds to absorb the roughly 4,500 metric tons produced by miners each year.

Many traders and analysts believe a flurry of buying by Asian coin and jewelry dealers, for example, helped halt a two-day, 13% slide in the gold-futures market last April. Some think the continued strength of physical gold buying will prevent prices from falling much further, as it becomes clear that a core group of investors is sticking with the market, said Jeffrey Christian, managing partner of research consultancy CPM Group LLC in New York.

"The gold price is largely determined by physical supply and demand, with investment demand being the single most important determinant for gold prices," Mr. Christian said.

Gold prices tumbled last year amid speculation that the Federal Reserve would soon wind down its stimulus efforts, which had weakened the dollar, heightened inflation fears and drove many investors into gold. The Fed said on Dec. 18 that it would begin reducing bond purchases in January. A day later, gold futures hit a more-than three-year low of $1,195 an ounce.

On Thursday, futures ended up 1.9% at $1,225 an ounce. Prices are still down 35% from their record high of $1,888.70 hit in August 2011. Since April, gold has been in a bear market, defined as a drop of 20% or more from a recent high. Last year, gold posted its first annual loss since 2000. Many analysts believe the dollar, which rallied against many currencies on Thursday, is likely to rise more, further denting the case for owning gold. But concerns about inflation remain vital with gold coin buyers like 60-year old Jimmy McClintock, of Rockwall, Texas, who added a gold American Buffalo coin last week to a collection he has been building since the 1990s.

"It's obvious to me that at some point our dollar will see a downturn in its value," said Mr. McClintock, who runs a contract post office. "Gold is just a good comfort, it's a commodity that anybody in the world knows and you don't need to be an expert to understand."

Michael Barber, who owns the Arcade Coin & Stamp Galleries in Toronto, said he scooped up "quite a few" 100-year old Canadian coins offered by the Royal Canadian Mint after detecting a "surprising" level of interest from buyers looking to hold them as an investment. Mr. Barber said collectors' coins typically aren't a good investment because too many are produced and mints tend to charge above the market price for gold. But he said those factors haven't deterred buyers so far.

"People buy them because of the marketing," he said. "As long as they're promoting it, there is a lot of hype and interest."

Still, the importance of gold coins has been eclipsed in recent years by the rapid growth of exchange-traded funds, some analysts say. ETFs, such as the SPDR Gold Trust, allow institutional investors to quickly buy or sell large gold positions without having to handle the metal themselves. Total gold ETF holdings fell by 27.94 million troy ounces last year to 56.67 million ounces, according to TD Securities.  Hedge funds can also borrow money to accumulate futures contracts or options, while coin buyers tend to pay cash, limiting the amount they can buy, said Mr. Melek, the TD Securities analyst.

"Folks like hedge funds tend to overpower the impact of physical gold purchases," Mr. Melek said. "Relatively little money gets them an awful lot of market power."

Unlike hedge funds, who may leave when prices fall, many coin buyers are in for the long haul.

After giving birth to twin girls two years ago, Nelam Molnar, 30, an attorney and real estate broker in Los Angeles, decided she would buy two gold coins on their birthday each year until her girls turn 21. She said she has faith that the coins will be worth more in 20 years, recalling how her parents bought gold for $800 an ounce when she was in high school.

"Most people who buy physical gold aren't doing it for the same reason you'd purchase a stock," said Mike Getlin, vice president with Merit Financial, a bullion and coin dealership in Santa Monica, Calif. "They tend to have a much longer investment horizon. They tend to hold onto them forever and pride of ownership is a huge factor in that."

A similar trend has occurred in the silver market, where coin sales by the U.S. Mint rocketed to a record high 42.675 million troy ounces in 2013 from a year earlier even as prices slumped 36% to $19.339 a troy ounce.

Investment Banks Moving To Neutral on Mining Stocks

“At least for a few investment banks like JP Morgan Cazenove and Citigroup, the negative tides for mining stocks appear to shifting towards the positive as they have changed their views from bearish to neutral. JP Morgan Cazenove is still taking a guarded position towards mining stocks but sees companies within the industry aggressively cutting costs which is one of the reasons why mining stocks rise.”- BHMpromotion news

Citi analysts stay negative in their short-term outlook of the sector except furthermore observe some positivity in mining stocks in six months. “We believe that the large miners, such as Rio Tinto and BHP Billiton, are now reaching yield support as they are trading on higher yields than the market,” Citi said. Eric Lemieux, mining analyst with Laurentian Bank Securities in Montreal, remains bullish on mining stocks, saying that the commodities super cycle has not ended and despite slowdowns in the economy, there is still strong metals consumption.

The hit that commodity prices and miners have taken in 2013 may not necessarily be a bad thing, he said. “With this downturn, in the scope of things, I think it’s positive for the industry because we did have a period of micro inflation where costs had gone up tremendously in terms of labor and engineering firms; it just overheated,” Lemieux said. “This retreat and decline in commodity prices, although it hurts, there’s some positives here in terms of cost settling down.”

JP Morgan mentioned a bottoming out in Chinese commodity import volumes and Chinese commodity inventories coming off recent highs as a possible catalyst for stronger metals demand. While it boils down to consumption and a need for commodities for Lemieux. “If you look at what’s going on in Asia, even though there’s been a slowdown in China, they’re still consuming, they still have to modernize,” Lemieux said. “I have a sense that things will eventually bounce back up. “I think the end game is that commodities have some way to go and I wouldn’t be neutral,” he added.

Congress demands CBI enquiry for Uliburu mining scam

Accuses chief minister of complicity in the irregularities

                The state Congress unit today sprang into action after the Uliburu forest area mining scam surfaced a week ago and accused the Chief Minister Naveen Patnaik of complicity in the incident saying he was in charge of the forest and environment department when the irregularities happened.

"When iron ore was being taken away from the Uliburu reserve forest area, the chief minister was in charge of forest and environment department. The vigilance probe is just eyewash because with home department under his control, the sleuths cannot charge the chief minister," said Jayadeba Jena, the Pradesh Congress Committee (PCC) chief, at a press meet here.

Naveen Patnaik held the portfolio of forest and environment from 2004 to 2009. The Uliburu mining scam also took place during this period. Patnaik is currently in charge of home department and hence, impartial probe cannot be conducted by state vigilance, alleged Jena.

The state vigilance team today started investigation into the Uliburu mining scam, estimated to be worth more than Rs 1,800 crore. The team was sent for field level investigation after Chief Minister Naveen Pattnaik, on Saturday, ordered a probe into the matter, based on the state revenue minister's recommendation to this effect. Last week, Keonjhar Collector had submitted a report to the minister citing various irregularities in the iron ore mines owned by BK Mohanty.

The Congress said, the outcome of the vigilance probe is doubtful as the probes conducted by the department into allegations of illegal mining activities since 2009 has not yielded any significant result.

The main opposition party also demanded that the government must find out the role of the then Joda deputy director of mines, district forest office and Tehsildar as the mining loot took place in the backward of Barbil town.

"The chief minister must order CBI probe into the matter if he thinks he is running a transparent government here," said Jena.

Black Hawk Mining Articles Queensland Miners Gives their Word for More Local Content

The Queensland Resources Council (QRC) on Thursday listed a local content code of practice that would observe the state’s resources industry strengthen its binds with local contractors. It was in the state and nation’s long-term interest to support flexible and outcomes-based measures to ‘join the dots’ between the resources sector and local suppliers, QRC CEO Michael Roche said.

“The minerals and energy sector is recognised as underpinning the Queensland economy by providing more than 70 000 direct jobs, and through A$28-billion in local purchases, more than 400 000 indirect jobs.

“However, we’re not resting on our laurels. This code is the right vehicle to pursue the twin goals of facilitating a high level of Queensland content in Queensland resource projects, while maintaining and enhancing the sector’s competitiveness in increasingly tough global markets,” Roche said. The code presented enhanced opportunities for local industry participation in major projects, allowing resource companies to tailor their approach, based on their individual circumstances, he added. “It replaces and improves upon the ‘tick-a-box’ regulatory approach embraced by both the previous state government and current federal government using a system built on giving local businesses a ‘full, fair and reasonable’ opportunity to be a supplier to resource projects in Queensland.”

Roche further added that the code adopted a strong “shared responsibility” framework, with the QRC, government, minerals and energy producers and local suppliers working together to deliver on the principle of ‘full, fair and reasonable’ opportunity.

Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney said on Thursday that a new code of practice will see more major resources projects engage local industry suppliers. He noted that the code would be owned, led and managed by industry and focused on ‘full, fair and reasonable’ access for local industry in all aspects of their projects.

“The benefits to Queensland’s economy of resources and energy investments are potentially huge – the pipeline of projects for environmental approval alone is worth a forecast A$71-billion, plus A$56-billion in liquefied natural gas investment already approved. But the maximum benefit depends on Queensland companies and workforce getting access to major project opportunities.”

Resources projects needed practical strategies to engage local industry if they were going to secure enduring community support, deliver projects effectively and maximise benefits for Queenslanders, the Minister noted.

The code would request proponents to take on practical local content tactics to make certain there was early engagement with Queensland industry, all-encompassing procurement practices and presented for guidance and support for proponents to carry out successful strategies. It established an implementation framework, and a group of industry stakeholders including suppliers to monitor and refine delivery. Importantly, the code also provides a means to assess progress and report outcomes publicly, Seeney aid. The project proponents would benefit directly from taking ownership of local content principles he added. “Wherever local companies rise to the challenge, there’s an opportunity for long-term local supply solutions to their needs,” he said. He renowned that the state government would do its part in promoting the adoption of the code, in supplier education and helping to position local industry to tender successfully.

Walker Considers Revising Mining Bill (a black hawk mines reviews)

He (Gov. Scott Walker) would be willing to consider tweaks to last year’s stalled mining bill, as long as the new measure results in actual mining jobs in Wisconsin, the goal of a new bill should be to create jobs.
Walker was bordered by a number of Republican state lawmakers. Earlier in the day, Speaker-elect Robin Vos and Majority Leader Scott Suder, who were also flanked Walker, released a statement saying the first bill the will introduce this session will reform Wisconsin’s mining laws. After moderate Republican Sen. Dale Schultz blocked a bill that had cleared the GOP- controlled Assembly, the Legislature couldn’t reach agreement on a mining proposal. Republicans worked last year to help Gogebic Taconite open a huge iron mine near Lake Superior. To make it easier to open an iron ore mine in Penokee Hills Ashland in northwestern Wisconsin, Gogebic Taconite of Hurley had been lobbying for the bill. According to Walker, he thought the Assembly bill would be a good starting point for creating a new bill.

The Republican governor said that the company was prepared to invest $1.5 billion and that the mine would create thousands of jobs. The mining would create about 700 jobs at the mine itself and an additional 2,100 in related jobs. But the company would need scam prevention assurances that regulations would remain consistent, he added that in return. This would create jobs but would also create disadvantages. And they must not forget, scam prevention. One of the fears is the destruction of the environment. Environmentalists were alarmed that the mine would devastate one of the state’s most pristine regions near Lake Superior. Although they have called for strict guidelines that would ensure the quality of air, water and soil in the area, they could still use some alternative prevention. In relation with this, a lot of work has been going on behind the scenes to craft a new version of the bill that Schultz and Democratic opponents could support.

Assembly Democratic Leader Peter Barca said he wanted to make sure that any new mining bill has bipartisan support. People could start going back to work, but he said the bill needs to broad enough to ensure proper environmental protections as well. We just sure hope that they can also find ways of scam prevention and other ways on how to deal with the disadvantages of mining.

Hyves.nl | Tyrahawkins: Black Hawk Mines Bulletin - Blogspot

From: hyves.nl by tyrahawkins

This blog regularly publishes news and details regarding mining-sites-turned-ghost-towns to educate people interested in history and to gather support for our cause from different parts of the world.

Our group is presently working alongside other associations to keep ghost towns, like the BlackHawk, Colorado, in the map; perhaps, even to try and make them a tourist spot.

Articles | Black Hawk Mines Bulletin

Black Hawk Mining Bulletin Articles: Small town suffers from gold heist

Gold seems to be the soul of the region. In 1851, a mule packer first discovered the presence of local gold and since then, mines like King Solomon, Golden Eagle and Black Bear have thrived.

Most of the communities that belong to Mother Lode are understandably proud of their heritage so they want to display their collections for people to see. However, doing that comes with loads of risks that they have to be aware of.

The county treasurer said that they can use the insurance claim in upgrading the museum but this act does not seem enough to console the residents. full story

Black Hawk Mining Bulletin Articles: Aus Mining Continues Growth

In terms of gold, the average deal is valued at USD 41 million where a premium is almost 50%. Propelling the lucrative market is Australia with 15%, United States with 14% and Canada with 49%.

Considering the bigger picture of the industry, PwC seems to be expecting that this year will see record M&A valuations and volumes in the mining sector worldwide.

According to the company, sovereign wealth funds tend to have more advantage in winning transactions because of their low cost of capital.

PwC is assuming that non-miners like sovereign wealth funds, large pension funds and private equity might reassess their approach to the industry and begin to participate more in M&A. full story

Black Hawk Mines Bulletin: Copper demand expected to rise

Escondida is a joint venture between Rio and BHP with a total stake of over 87%. Almost 8% of the total world production comes from it.

Production of copper has been steadily decreasing worldwide for the past few years, triggering an aggressive pursuance for a big copper prospect like the Oyu Tolgoi in Mongolia and the Olympic Dam in South Australia.

BHP is planning to release USD 2.6 billion on 2 projects to increase their mining output while Rio (with their USD 1.4 billion stake) and Japanese consortium JECO’s respective stakes are going to take care of the rest.

Companies in the mining industry are aggressively investing in minerals and key metals as they maintain an optimistic view that demand from China and other developing countries will continue to grow. In order to improve their overall output by 80%, the biggest copper mine is showing optimism regarding the long-term demand for metals.

Last year, the mine’s produce amounted to more than 700,000 tonnes of copper. full story