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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (41947)	8/23/2009 3:05:36 PM
From: LoneClone	Read Replies (1) \| Respond to of 195238

Strong Aug – Oct seen for Canadian, US gold equities miningweekly.com By: Creamer Media Reporter 20th August 2009 TORONTO (miningweekly.com) – North American gold stocks will likely put in a good performance this month, as well as in September and October, Investec Asset Management said on Thursday. Canadian and US gold equities have historically tended to outperform their benchmark indices during the three-month period, and “we believe that this strength is likely to be repeated this year”, portfolio manager George Cheveley wrote in a commentary accompanying Investec's 'Commodities and resources indicator' for August. August and September have traditionally been the two strongest months for gold prices, usually because of increased demand, partially partially driven by the Indian wedding season. This year, however, the price will also likely get a boost from increased investor demand for precious metals as a store of value, as global fiscal stimulus efforts, quantitative easing and increased money supply pose the threat of broad currency devaluation, negative real interest rates and the return of high rates of inflation. The main headwind to investor demand earlier this year was destocking and scrap selling in the physical markets in India and Middle East but scrap supplies are now drying up, Investec said. “China is also likely to continue adding gold reserves above the 1 054 t announced recently, which is still less than 2% of total foreign reserves, and Middle East investors are likely to continue re-cycling their petro-dollars into gold reserves.” Over the next three to six months, Investec sees both gold prices and equities trending higher. Silver prices are expected to be flat, while silver shares may trend down, and, although platinum-group metals prices should improve, equities are seen flat. Edited by: Liezel Hill