You are here
U.S. has lost control of budget deficit, Greenspan tells French finance minister
By Zachary Howard
Reuters
Sunday, September 25, 2005
http://today.reuters.com/news/newsArticleSearch.aspx?
storyID=128066+25-Sep-2005+RTRS&srch=miners+Denver
DENVER -- Gold companies will have much on their minds when they
present their corporate picture this week at the industry's big
show, the Denver Gold Forum, only days after bullion shot up to
command $475 an ounce for the first time in nearly 18 years.
The industry is contemplating not only the usual issues for gold,
such as price or demand or the dollar's direction, but also fresh
challenges to miners like replacing reserves and meeting what some
analysts are calling a "social license to operate."
At the 16th annual meeting, which starts on Sunday and runs through
Wednesday, 78 companies will make their cases to mining analysts on
the sell-side and more than 100 people on the buy-side in fund
management, said John Haigh, Denver Gold Group's executive director.
The mining companies attending have a total market capitalization of
$110 billion, or 99 percent of the gold industry as represented by
market cap, Haigh said.
In all, about 450 people are expected to show, up from 425 last year
and 400 in 2003.
Slated to give the keynote speech on Monday is Pierre Lassonde,
president of the world's largest gold producer, Newmont Mining Corp.
Victor Flores, a mining analyst at HSBC, said there would be much
discussion about the gold price at the meeting, as there always
is. "Obviously, it's going to have everybody excited. But how much
higher can it go after it broke to a new high?" he asked.
With investors buying up gold in recent weeks in a hunt for a haven
from inflationary pressures and uncertainty in currency and energy
markets, prices now stand a long way from lows near $250/oz. low
reached in the bear market of the 1990s.
Indeed, many producers are calling for gold to climb to historically
high levels within the next few years, helped by various economic
factors.
Ian Telfer, chief executive of mid-tier, low-cost Canadian producer
Goldcorp Inc., said last week gold could hit $500 by year's end and
$800 within one to two years.
"I think this price rise is a little bit different and it's going to
last for a while," Telfer said.
But David Rinehimer, director of commodities research at Citigroup
Global Markets in New York, said he wondered about the future of
demand in the gold market, especially with escalating prices.
"What kind are we going to see from both the fabrication side and
from investors at these price levels, because we're up over $40 in
less than a month?" he asked.
Other topics likely to be part of the buzz this year were cost
pressures for producers -- principally oil prices during a hectic
U.S. hurricane season -- and new project development, HSBC's Flores
said.
On the "social license" issue, miners must comply with local
environmental, social and political standards, in order for their
projects to be well-received, he said.
Concerns about increased political risk have arisen after Venezuelan
President Hugo Chavez moved last week to tighten government control
of the mining industry by revoking concessions.
The nation's gold riches have drawn investment from foreign
companies such as U.S. Hecla Mining and Canada's Crystallex
International Corp., which is waiting for a permit to build a mine.
Some analysts wondered if this signaled an emerging trend in which
countries were becoming more nationalistic with respect to their
natural resources.
Meanwhile, Merrill Lynch said last week that at its recent mining
conference in Canada, a key focus of companies was reserve growth.
Increased exploration spending, rising production bases for some
companies and a continuing rise in cash costs also were some key
considerations, it added.
Merger and acquisition activity has been focused on development
projects and gold-producing mines, with the most popular targets
having at least 2 million ounces of reserves capable of an annual
output of 200,000/oz. of gold.
----------------------------------------------------
To subscribe to GATA's dispatches, send an e-mail to:
gata-subscribe@yahoogroups.com
To unsubscribe, send an e-mail to:
gata-unsubscribe@yahoogroups.com
----------------------------------------------------
RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
http://www.cbs.marketwatch.com
http://www.usagold.com/amk/usagoldmarketupdate.html
http://www.capitalupdates.com/
http://www.silver-investor.com
http://www.thebulliondesk.com/
http://www.goldismoney.info/index.html
http://www.minersmanual.com/minernews.html
http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html
http://www.investmentrarities.com
http://www.kereport.com
(Korelin Business Report -- audio)
http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)
http://www.resourceinvestor.com
http://www.goldpennystocks.com/
Subscription sites:
http://www.lemetropolecafe.com/
http://www.interventionalanalysis.com
http://www.investmentindicators.com/
Eagle Ranch discussion site:
http://os2eagle.net/checksum.htm
Ted Butler silver commentary archive:
http://www.investmentrarities.com/
----------------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
http://www.blanchardonline.com
Centennial Precious Metals
3033 East First Ave., Suite 807
Denver, Colorado 80206
1-800-869-5115
http://www.USAGOLD.com
Michael Kosares, Proprietor
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
http://www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
http://www.eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net
Gold & Silver Investments Ltd.
Mespil House
37 Adelaide Rd
Dublin 2
Ireland
+353 1 2315260/6
Fax: +353 1 2315202
http://www.goldinvestments.org
info@gold.ie
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
http://www.gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
http://www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Lone Star Silver Exchange
1702 S. Highway 121
Suite 607-111
Lewisville, Texas 75067
214-632-8869
http://www.discountsilverclub.com
Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
http://www.mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
http://www.buysilvernow.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
The Moneychanger
Box 178
Westpoint, Tennessee 38486
http://www.the-moneychanger.com
Franklin Sanders
1-888-218-9226, 931-766-6066
----------------------------------------------------
HOW TO HELP GATA
If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.
By check:
Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA
By credit card (MasterCard, Visa, and
Discover) over the Internet:
http://www.gata.org/creditcard.html
By GoldMoney:
http://www.GoldMoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L
Donors of $1,000 or more will, upon request,
be sent a print of Alain Despert's colorful
painting symbolizing our cause, titled GATA.
Donors of $200 or more will receive copies
of "The ABCs of Gold Investing" by Michael
Kosares, proprietor of Centennial Precious
Metals in Denver, Colorado, and "The Coming
Collapse of the Dollar" by James Turk and
John Rubino.
GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.
