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Record gold prices create insurance headache for vault keepers
By Eddie Spence
Bloomberg News
Saturday, September 5, 2020
Surging demand for gold means business is booming at the companies that store and protect the world's bullion. But record prices come with a catch: All those piles of yellow bars are suddenly much trickier to insure.
For centuries, gold has been an irresistible target of heists both real and fictional. And though theft on a major scale is rare, it can be hugely expensive. When armed burglars made off with about 3 tons of gold from a warehouse near Heathrow Airport in 1983, Lloyd's of London paid out for the lost metal, which at today's prices would be worth more than $180 million.
... Dispatch continues below ...
Kodiak Drills 282 meters of 0.70% Copper
and 0.49 Grams per Tonne Gold (1.16% CuEq),
Including 45.7 meters of 1.41% Copper
and 1.46 grams per tonne Gold (2.75% CuEq)
Company Announcement
Thursday, September 3, 2020
VANCOUVER, British Columbia -- Kodiak Copper Corp. (TSX-V: KDK; OTC: KDKCF) today reported the discovery of a significant high-grade copper-gold extension of the recently discovered Gate Zone at the company's fully owned MPD copper-gold porphyry project in southern British Columbia. The MPD project is accessible year-round from paved highways 5A and 97C.
Chris Taylor, chairman of Kodiak, said: "As compelling as our 2019 discovery of the Gate Zone was, it now appears we had only grazed the margins of a much stronger copper-gold zone that we have now successfully targeted. Our new results include discovery of a central high-grade copper-gold zone within the wider copper-gold mineralized envelope of the Gate Zone. These drill results are among the strongest reported from this well-established copper mining district. Drilling is ongoing and we will be releasing additional results throughout the coming months."
Kodiak President and CEO Claudia Tornquist said: "While we are just beginning to unlock the untapped potential of the MPD project, we view this new discovery as transformative for the project and by extension for Kodiak. Especially remarkable are the new high gold values, which we would have viewed as a successful stand-alone gold discovery in the absence of any copper. Given our 100% ownership of MPD, and its position adjacent to highways with year-round accessibility, we anticipate a very active remainder of 2020 and that 2021 will be our most exciting and productive year so far."
For the remainder of the announcement:
https://www.kodiakcoppercorp.com/news/news-releases/kodiak-drills-282-m-...
The difficulty is that insurers place a cap on how much financial exposure they'll assume for each vault. As the price of gold rises—it gained as much as 37% this year -- the number of insurable ounces at each site naturally shrinks.
That's not a concern for holders of the biggest stashes of bullion, worth tens of billions of dollars, because those hoards are too valuable to insure fully anyway. Large commercial banks such as JPMorgan Chase & Co. and HSBC Holdings that run some of London's biggest gold vaults assume the rest of the liability themselves.
But for other storage facilities around the world, including the businesslike hangars near Heathrow and strongrooms buried deep in the Swiss Alps, surging gold prices can require a juggling act to ensure that the value of the gold they hold doesn't exceed their coverage. ...
... For the remainder of the report:
https://www.bloomberg.com/news/articles/2020-09-05/gold-gets-trickier-to...
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