Monday, May 01, 2006

Gold Investing

Why Buy Gold?
For millennia gold has been used as money, a store of value and in jewelry. Modern industrial uses include dentistry and electronics. Gold forms the basis for a monetary standard used by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS).

So why all the recent excitement about Gold?

To quote from the World Gold Council Website
Adding gold to an investment portfolio introduces an entirely different class of asset. Gold is unusual because it is both a commodity and a monetary asset. It is an 'effective diversifier' because its performance tends to move independently of other investments and key economic indicators.

"As a global currency, an investment and simply a thing of beauty, gold has held an allure for thousands of years. For the investor, that allure is largely to do with gold’s proven ability to preserve value over time and be a good diversifier within a portfolio."

Gold prices have been climbing and there are good indications that it will continue it's upward price trend.

Gold for June delivery climbed to a high of $663.80 an ounce on the New York Mercantile Exchange before closing up $5.70 at $660.20 an ounce, to mark the highest front-month futures level in more than 25 years, as steep declines in the U.S. dollar and concern about Iran's nuclear-research program fueled safe-haven buying and fed a broad-based metals rally. - MarketWatch, May 01, 2006 17:27

“The trend is up. I have a 50 percent probability that we will get to $800 next year and a 25-30 percent probability to take that up to $850,” Martin Murenbeeld told Reuters on the sidelines of the European Gold Forum, which ended on Thursday. - Daily Times Tuesday, May 02, 2006

A GOLD rush helped push the stock market higher yesterday, with the market winning back all the ground it lost in Friday's sell-off.

Aequs Securities institutional dealer Ric Klusman said the big mining companies made strong gains and gold stocks were the flavour of the day after the yellow metal shot to fresh 25-year highs.

"It's been a strong, strong day," he said. "The gold price in Asia is up and everybody has just been piling into the gold stocks." - Alex Wilson Herald Sun May 02, 2006

Manitoba Ranks Number One In Canada For Minerals Policies

According to the 2005 Fraser Institute survey, mining and exploration companies rank Manitoba first in Canada and third in the world for our minerals policies. - Fraser Institute survey Report Link in PDF Format

According to a January 05, 2006 press release from Manitoba Industry, Economic Development and Mines Minister Jim Rondeau, it is anticipated that Over $24 Million in mineral exploration in the province will supported with $1.4 Million from the Mineral Exploration Assistance Program (MEAP)from the department.

It is felt that much of this new exploration is being driven by High Commodity Prices For Gold and Nickel. The provinces announcement of $1.4 million in new investment assistance to the mineral exploration sector is testimony of the commitment to mining development

The MEAP program offers almost $2.5 million in assistance annually in the spring/summer and fall/winter to encourage and support Manitoba's mining industry. It provides assistance of up to 25 per cent of approved eligible expenses to a maximum of $300,000. There are higher levels of assistance, up to 35 per cent to a maximum of $400,000, to encourage exploration in under-explored frontier regions such as the Northern Superior, Far North and Hudson Bay Lowland regions, and areas that need new discoveries to sustain existing communities such as Lynn Lake/Leaf Rapids and Bissett. - MB Press Release Link and MEAP projects by region

Over the last 10 years, mineral exploration expenditures in Manitoba have averaged $31.8 million annually. This year's increased activity is expected to bump expenditures upwards of $52.7 million. Mining is the second largest primary resource sector and employs approximately 3,800 people directly and 11,000 indirectly through spinoff business, many of them in northern regions.

Increased exploration and mineral prospecting is both welcomed and encouraged by all stakeholders in the industry.

Anyone that has been following gold prices realizes that there is renewed world wide interest in gold and gold investments. Savvy investors are steadily increasing their holdings in precious metals and mining stocks.

All indications are that 2006 is going to be an active year for companies exploring for and producing precious metals and mineral commodities.