Archive for 'Precious Metals'

Commodities Ready for Rebound?

The picture for the Commodities Markets in the last month shows some pretty bleak numbers.  Precious metals, Oil, Ag and Livestock are all down, down and down. But we all know that nothing lasts forever, not even bad news.  Here’s the report below from Credit Suisse Asset Management

Commodities were lower in July, driven by macroeconomic factors and supply fundamentals, according to Credit Suisse Asset Management.

The Bloomberg Commodity Index Total Return performance was negative for the month, with 21 out of 22 Index constituents trading lower.

Credit Suisse Asset Management observed the following:

  • Energy was the worst performing sector, down 14.47%, led lower by WTI Crude Oil. In addition to continued increased OPEC production, towards the end of the month there was also a slight rise in U.S. rig counts.
  • Agriculture decreased 11.11%, led lower by Kansas City Wheat and Chicago Wheat as limited rainfall in the U.S. Midwest supported harvest progress. Sugar also weighed on the sector as recent rainfall in Thailand contradicted expectations that El Nino would limit sugar crop growth.
  • Industrial Metals declined 7.30%, led lower by Copper as concerns that the recent volatile decline in the Chinese equity market may further dampen economic growth, decreasing demand expectations for the sector.
  • Precious Metals ended the month 6.37% lower. Improved U.S. economic data, including lower jobless claims and higher housing starts, bolstered expectations that the Federal Reserve may raise interest rates later this year as the economy continues to recover. The prospect of higher interest rates strengthened the U.S. dollar and reduced safe haven demand for gold and silver.
  • Livestock decreased 2.17%, led lower by Live Cattle, as the United States Department of Agriculture reported further supply increases compared to the same time last year.

Nelson Louie, Global Head of Commodities for Credit Suisse Asset Management, said: “Major macroeconomic headlines, such as the Greek debt negotiations and the decline in Chinese equity markets, raised global growth concerns. Although the turmoil surrounding the impasse in Greece impacted consumer confidence across the Eurozone, preliminary Purchasing Managers’ Index data showed that economic growth in Europe only lost slight momentum in July. The European Central Bank’s easing measures may continue to support future growth prospects. In China, economic data reflected declines in the manufacturing sector amid decreased consumer demand and weakened equity market conditions. However, the Chinese government has also shown resolve in its commitment to supporting the economy through various stimulus measures.”

Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, “Meanwhile, in the U.S., inflation expectations remain below the U.S. Federal Reserve’s 2% target. However, the pace of economic progress in the U.S. versus the rest of the world increased expectations of divergent central bank policy. Macroeconomic factors may also continue to affect commodity demand expectations. So far, in the current phase of the business cycle, most U.S. asset classes have outperformed relative to non-U.S. asset classes. Central bank efforts may broaden the economic recovery into other regions, which may be supportive of commodity demand longer-term.”

About the Credit Suisse Total Commodity Return Strategy

Credit Suisse’s Total Commodity Return Strategy is managed by a team with over 28 years of experience, and seeks to outperform the return of a commodities index, such as the Bloomberg Commodity Index Total Return or the S&P GSCI Total Return Index, using both a quantitative and qualitative commodity research process. Commodity index total returns are achieved through:

  • Spot Return: price return on specified commodity futures contracts;
  • Roll Yield: impact due to migration of futures positions from near to far contracts; and
  • Collateral Yield: return earned on collateral for the futures.

As of July 31, 2015, the Team managed approximately USD 10.0 billion in assets globally.

Credit Suisse AG

Credit Suisse AG is one of the world’s leading financial services providers and is part of the Credit Suisse group of companies (referred to here as ‘Credit Suisse’). As an integrated bank, Credit Suisse is able to offer clients its expertise in the areas of private banking, investment banking and asset management from a single source. Credit Suisse provides specialist advisory services, comprehensive solutions and innovative products to companies, institutional clients and high net worth private clients worldwide, and also to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 46,000 people. The registered shares (CSGN) of Credit Suisse’s parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

Asset Management

In its Asset Management business, Credit Suisse offers products across a broad spectrum of investment classes, including hedge funds, credit, index, real estate, commodities and private equity products, as well as multi-asset class solutions, which include equities and fixed income products. Credit Suisse’s Asset Management business manages portfolios, mutual funds and other investment vehicles for a broad spectrum of clients ranging from governments, institutions and corporations to private individuals. With offices focused on asset management in 19 countries, Credit Suisse’s Asset Management business is operated as a globally integrated network to deliver the bank’s best investment ideas and capabilities to clients around the world.

All businesses of Credit Suisse are subject to distinct regulatory requirements; certain products and services may not be available in all jurisdictions or to all client types.

Important Legal Information

This document was produced by and the opinions expressed are those of Credit Suisse as of the date of writing and are subject to change without obligation to update. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of Credit Suisse to any person to buy or sell any security. Any reference to past performance is not a guide to future performance. The information and analysis contained in this publication have been compiled or arrived at from sources believed to be reliable but Credit Suisse does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof.

Certain information contained in this document constitutes “Forward-Looking Statements” (including observations about markets and industry and regulatory trends as of the original date of this document), which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “target”, “project”, “estimate”, “intend”, “continue” or “believe”, or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties beyond our control, actual events, results or performance may differ materially from those reflected or contemplated in such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Credit Suisse has no obligation to update any of the forward-looking statements in this document.

Certain risks relating to investing in Commodities and Commodity-Linked Investments: 

Exposure to commodity markets should only form a small part of a diversified portfolio. Investment in commodity markets may not be suitable for all investors. Commodity investments will be affected by changes in overall market movements, commodity volatility, exchange-rate movements, changes in interest rates, and factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Commodity markets are highly volatile. The risk of loss in commodities and commodity-linked investments can be substantial. There is generally a high degree of leverage in commodity investing that can significantly magnify losses. Gains or losses from speculative derivative positions may be much greater than the derivative’s original cost. An investment in commodities is not a complete investment program and should represent only a portion of an investor’s portfolio management strategy.

Copyright © 2015, CREDIT SUISSE GROUP AG and/or its affiliates.  All rights reserved.

CONTACT: Justin Perras, Communications, T: (212) 538-2206; E: justin.perras@credit-suisse.com

RELATED LINKS
http://www.credit-suisse.com

Gold, Silver, Copper & Oil-Oh My!

Gold prices hit a five year low earlier this week and some have attributed the decline that Chinese investors are selling to meet margin demands.  There’s also less  Chinese demand for copper, silver,  iron , oil and palladium and that decreased demand will continue through the rest of the year. You also have to factor in the relation of a stronger US  Dollar to weaker commodity prices overall.

See more about Gold and Oil

Gold Prices Dip Lower

Polski: Sztabka złota ważąca 12,5 kg. Własność...

Gold Prices(Photo credit: Wikipedia)

Global gold demand in Q3 2012 was 1,084.6 tonnes (t), down 11% from the record Q3 2011 figure of 1,223.5t.   This dip in demand is in comparison with exceptional demand in Q3 last year. Gold demand remains resilient. Q3 2012 was above the five year quarterly average of 984.7t, according to the World Gold Council’s Gold Demand Trends Report.

In value terms gold demand was 14.0% lower year on year at $57.6bn and the average gold price of $1,652/oz was down 3% on the record average Q3 2011 price.

The key findings from the report are as follows:

  • Global investment in ETFs over the quarter was up significantly by 56% on the previous year.
  • The Indian market is showing signs of recovery, up 9% to 223.1t from 204.8t in Q3 2011 following increases in both jewellery and investment demand. In comparison with Q3 2011 jewellery demand was up 7% to 136.1t and investment demand rose by 12% to 87.0t. Investors moved into the imitation coin market*, up 59%, whilst jewellery increased due to re-stocking ahead of the Indian wedding and festival season. Indians appear to have acclimatised to recent price trends and have been buying into a rising market.
  • In China  demand fell 8% to 176.8t in Q3 2012 from 191.2t in Q3 2011 due to falls in jewellery of 6% and investment of 12% mainly as a result of negative sentiment surrounding China’s slowing economy.  Jewellery demand was 123.8t in Q3 2012, due to a decline in purchases of 18k pieces and a notable slowdown in the expansion of the retail network, as stock-building reduced. Investment demand was down to 53.0t Demand this quarter remains 19% above the longer term average.
  • Central banks bought 97.6t in the quarter. In six out of the last seven quarters, central bank demand has been around 100t, which is a sharp increase from as recently as 2010. The year to date figure for central bank buying is up 9%.

 

Marcus Grubb, Managing Director, Investment at the World Gold Council said:

“Gold is beginning to re-establish itself as part of the fabric of the financial system. In the medium term, the quantitative easing initiatives in the West and the continuing growth story in the East, particularly in India and China, coupled with the seasonally strong quarter coming up in Asia, are excellent indicators for further growth in the gold market.

“Against a backdrop of continued global economic uncertainty and elections in China and the US, it is clear from five year rising demand trends that gold’s fundamental property as a vehicle for capital preservation continues to endure, as evidenced by this quarter’s increase in global ETF investment, up 56% and continued purchasing by central banks, the ultimate long term investors.”

Gold demand and supply statistics for Q3 2012:

  • Third quarter gold demand of 1,084.6t was down 11.0% in comparison to Q3 2011.
  • The value measure of gold demand was 14.0% lower year on year at $57.6bn.
  • The average gold price of $1,652/oz was down 3% on the record average Q3 2011 price.
  • Investment demand (the sum of ETFs and total bar and coin demand) was 429.9t, down 16% compared to the same quarter last year, but was 23% above the five year average.
  • Demand for ETFs and similar products in Q3 was up by 56.0% on the previous year to 136.0t.
  • Demand in the jewellery sector was down 2.0% to 448.8t compared to 458.0t in the same quarter in 2011. The ongoing slowdown in China continued to dampen demand in the second largest regional jewellery market
  • Third quarter demand for gold in the technology sector was down on Q3 2011 by 6.0% at 108.0t though remains stable. Use of gold in electronics has shown a steady level of incremental growth since Q4 2011, driven by demand for tablet devices and mobile phones among others.
  • Both the supply of gold and recycling were down 2% in the third quarter compared to year earlier levels, with mine production down 1% for Q3 2012.

 

The Q3 2012 Gold Demand Trends report, which includes comprehensive data provided by Thomson Reuters GFMS, can be viewed at: http://www.gold.org/media and on our new iPad app which can be downloaded from http://www.itunes.com and a video can be seen here.

Note to editors:

*Imitation coin market in India

In India an imitation coin is the term used to describe a round medallion bought for savings or gift purposes. These coins are generally rectangular, oval or round shapes and more than 50% are expected to be exchanged for jewellery over time. Demand tends to be seasonal, sold mainly during the marriage seasons and at festivals, especially at the time of Diwali.

World Gold Council

The World Gold Council is the market development organisation for the gold industry. Working within the investment, jewellery and technology sectors, as well as engaging in government affairs, our purpose is to provide industry leadership, whilst stimulating and sustaining demand for gold.

We develop gold-backed solutions, services and markets, based on true market insight. As a result, we create structural shifts in demand for gold across key market sectors.

We provide insights into the international gold markets, helping people to better understand the wealth preservation qualities of gold and its role in meeting the social and environmental needs of society.

Based in the UK, with operations in India, the Far East, Europe and the US, the World Gold Council is an association whose members include the world’s leading and most forward thinking gold mining companies.

CONTACT: For further information please contact: Melissa McVeigh, World Gold Council, T +44(0)207826-4754, Emelissa.mcveigh@gold.org; Giles Abbott, Capital MSL, T +44(0)20-7307-5340, E giles.abbott@capitalmsl.com

Precious Metals Take a Dive in September

Precious Metals Take a Dive in September

Precious Metals Take a Dive in September-Image by digitalmoneyworld via Flickr

Nelson Louie, Global Head of Commodities in Credit Suisse’s Asset Management division, said, “Investor and consumer sentiment has continued to deteriorate and this may further impact the rate of economic growth.  However, fundamentals for certain commodities remain positive.  Prices will continue to be sensitive to exogenous shocks (i.e. labor unrest, geo-political risk, weather related disruptions) in the face of tightening global supplies and higher demand over the last several years.  While investors have been increasingly focused on a possible sharp China slowdown this year, the main source of volatility in commodities demand over the coming months may be derived from European economies rather than from China.”

Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, “Overall, fiscal and monetary policies in the US and Europe are expected to remain accommodative.  In addition, the amount of easing and the length of the stimulus period are likely to increase as policy makers continue their debate.  Such measures will most likely increase the odds of greater-than-expected inflation over time.  The reconciliation of these issues can impact traditional asset classes and commodities in different ways.  We believe investors will continue to benefit from the long term diversification benefits that commodities provide.”

The Dow Jones-UBS Commodity Index Total Return was down by 14.73% in September.  Overall, 17 out of 19 index constituents decreased in value.  Industrial Metals was the worst performing sector, given the sector’s high correlation with global growth, ending the month down 20.06%.  Signs continued to suggest growth would slow in the developed world while worries over the sustainability of China’s growth intensified.  Chinese and European Purchasing Managers Index (“PMI”) readings came in weaker than expected.  However, Chinese trade data has continued to hold up thus far.  Refined Copper imports continued their recovery from April’s lows; Aluminum imports rose sharply, turning China once more into a net importer; and Zinc imports climbed strongly month-on-month.  Agriculture ended the month lower, losing 18.97%, as grains led the complex lower on improved weather conditions and better-than-expected inventories.  Precious Metals also ended the month lower, losing 15.61%, led by Silver. The flight to US Treasuries and demand for US dollars towards the end of the month resulted in Gold being liquidated alongside other assets.  The Energy sector posted a loss of 11.23%, with all components trading lower.  While global Crude Oil demand growth has slowed from the high base of last year, fundamental data releases remain broadly supportive for the crude complex and demand remains healthy versus historical standards.  Livestock was the strongest sector, gaining 7.65% for September due to continued strong export demand and falling grain prices.

The Credit Suisse Total Commodity Return Strategy group periodically produces updates on relevant industry topics. For a copy of the team’s white paper, “Commodities Outlook: Increased Volatility, Increase Opportunity?“, please email csam.commodities@credit-suisse.com.

About the Credit Suisse Total Commodity Return Strategy

Credit Suisse’s Total Commodity Return Strategy has been managed for 17 years and seeks to outperform the return of a commodities index, such as the Dow Jones–UBS Commodity Index Total Return or the S&P GSCI Total Return Index, using both a quantitative and qualitative commodity research process. Commodity index total returns are achieved through:

  • Spot Return: price return on specified commodity futures contracts;
  • Roll Yield: impact due to migration of futures positions from near to far contracts; and
  • Collateral Yield: return earned on collateral for the futures.

As of September 30, 2011 the team managed approximately USD 10.1 billion in assets globally.

An investment in commodities is not a complete investment program and should represent only a portion of an investor’s portfolio management strategy.  Investment in commodity markets may not be suitable for all investors. Commodity markets are highly volatile and the risk of loss in commodities and commodity-linked investments can be substantial.

Credit Suisse AG

Credit Suisse AG is one of the world’s leading financial services providers and is part of the Credit Suisse group of companies (referred to here as ‘Credit Suisse’). As an integrated bank, Credit Suisse offers clients its combined expertise in the areas of private banking, investment banking and asset management. Credit Suisse provides advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 50,700 people. The registered shares (CSGN) of Credit Suisse’s parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

Asset Management

In its Asset Management business, Credit Suisse offers products across a broad spectrum of investment classes, including hedge funds, credit, index, real estate, commodities and private equity products, as well as multi-asset class solutions, which include equities and fixed income products. Credit Suisse’s Asset Management business manages portfolios, mutual funds and other investment vehicles for a broad spectrum of clients ranging from governments, institutions and corporations to private individuals. With offices focused on asset management in 19 countries, Credit Suisse’s Asset Management business is operated as a globally integrated network to deliver the bank’s best investment ideas and capabilities to clients around the world.

All businesses of Credit Suisse are subject to distinct regulatory requirements; certain products and services may not be available in all jurisdictions or to all client types.

Important Legal Information

This document was produced by and the opinions expressed are those of Credit Suisse as of the date of writing and are subject to change without obligation to update. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of Credit Suisse to any person to buy or sell any security. Any reference to past performance is not a guide to future performance. The information and analysis contained in this publication have been compiled or arrived at from sources believed to be reliable but Credit Suisse does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof.

Certain information contained in this document constitutes “Forward-Looking Statements” (including observations about markets and industry and regulatory trends as of the original date of this document), which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “target”, “project”, “estimate”, “intend”, “continue” or “believe”, or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties beyond our control, actual events, results or performance may differ materially from those reflected or contemplated in such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Credit Suisse has no obligation to update any of the forward-looking statements in this document.

Certain risks relating to investing in Commodities and Commodity-Linked Investments:   Exposure to commodity markets should only form a small part of a diversified portfolio. Investment in commodity markets may not be suitable for all investors. Commodity investments will be affected by changes in overall market movements, commodity volatility, exchange-rate movements, changes in interest rates, and factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Commodity markets are highly volatile. The risk of loss in commodities and commodity-linked investments can be substantial. There is generally a high degree of leverage in commodity investing that can significantly magnify losses. Gains or losses from speculative derivative positions may be much greater than the derivative’s original cost. An investment in commodities is not a complete investment program and should represent only a portion of an investor’s portfolio management strategy.

Copyright © 2011, CREDIT SUISSE GROUP AG and/or its affiliates.  All rights reserved.

CONTACT: Katherine Herring, Corporate Communications, +1-212-325-7545, katherine.herring@credit-suisse.com

Web Site: http://www.credit-suisse.com

Silver Prices Poised for Rebound-New Reveal

Silver prices have fallen, and some investors are selling. But the silver bull market is not over. Global commodities expert Peter Krauth knows exactly what’s causing the slide and shows readers why this is not the end of the silver boom.

Silver bull market investors have watched prices drop more than 20% in less than a week.

And several high-profile investors, such as George Soros, John Burbank and Eric Sprott, are taking profits off the table and selling. It has sent silver bulls into a panic.

But this isn’t the end of the silver bull market.

According to global commodities expert Peter Krauth, who recommended silver to his readers way back when it was selling for $19.40 last August, the silver bull market has a long way to run before it tops out.

In fact, Krauth has gone on record saying that silver prices could reach as high as $250 per ounce before the silver bull finally stops running.

That’s a far cry from today’s silver prices. And it could mean major gains are in store for those who know how to play the silver bull in coming weeks.

Krauth has isolated three causes behind the recent silver-price slide. All of these causes, he says, are artificial factors that will only be able to hold down silver for a limited time:

·Silver prices rose a long way in a very short time, making them vulnerable to downward pressure from other catalysts.

·The exchange on which silver trades made it tougher for traders by boosting margin requirements several times starting last week.

·And several high-profile investors have reportedly sold silver, exacerbating investor nervousness.

The basic fundamentals behind the silver bull market remain the same, according to Krauth. And these three factors won’t be able to keep down silver prices for long.

Money has already started flowing back into silver.

But there is a way to use the current depressed prices to advantage as futures begin to climb in the silver bull market.

Best of all… investors don’t need to buy silver coins from a fly-by-night silver “broker” on the internet or know anything about the silver futures market to take advantage of the silver bull.

Investors can find potential profits as the silver bull market steams ahead in one easy “set it and forget it” investment.

To find out how to turn the silver price tumble into a profit opportunity for the future, simply read, “The Silver Bull: Despite This Week’s Sell-Off, We See Higher Prices Ahead” to learn where to invest in the silver bull market.

(**) Please feel free to repost this story on your website. If you do so, though, please include a link to the original article in Money Morning.

Everyday, Money Morning.com supplies its more than 600,000 readers with valuable investment research and analysis from top industry and market expert. We offer unique insights and information on new market trends and unknown companies and industries, while showing our readers the truth behind today’s largest business news stories.

Contact:
William Patalon III
Executive Editor
Money Morning

Two Gold Mining Vets Sign Joint Venture

Evolving Gold Corp. (TSX: EVG) (FSE: EV7) (the “Company”) is pleased to announce that it has signed a Letter Agreement with a subsidiary of Agnico-Eagle Mines Ltd. to form a joint venture on its Rattlesnake Hills project in Wyoming.

Under the terms of the Letter Agreement, Agnico-Eagle (USA) Ltd. (Agnico-Eagle) has the option to earn up to a 70% interest in the Rattlesnake Hills project by carrying Evolving Gold through completion of a feasibility study.  In order to earn a 70% interest over a seven-year period Agnico-Eagle is required to make payments to EVG totaling $12 million, to purchase $23 million in the common shares of EVG, and to expend a minimum of $41 million on exploration/development work on the project.

“The partnership with Agnico-Eagle will provide the Rattlesnake Hills project with the financial strength required for sustained exploration and development programs,” comments Bill Gee, CEO of Evolving Gold.  “Agnico-Eagle also brings experience and expertise for successful mine development.  This agreement provides $76 million in benefits to the Company and to the project, while Evolving Gold retains fully-funded exposure to the project’s exploration potential and development success, all with minimal shareholder dilution.”

“A joint venture at Rattlesnake is a significant and positive step in the Company’s strategy for providing shareholder returns”, continues Mr. Gee.  “This agreement allows the Company to focus on its core strength, the discovery of major new gold deposits. With this agreement now in place, Evolving Gold plans to focus its assets and expertise on the exceptional opportunity for a major gold discovery on the prolific Carlin Trend and on our other properties in Nevada.”

Under the terms of the Letter Agreement, a binding joint venture agreement is to be completed by June 1st, 2011, with a drill program ensuing shortly after.  Agnico-Eagle’s minimum work expenditure for the first year is $3 million.  The 2011 exploration program will include drilling extensions of the two main gold zones, drilling targets between these two zones, testing previously identified targets in the core area, and a regional program to define additional drill targets on the large Rattlesnake Hills property.

“We are pleased with Agnico-Eagle’s enthusiasm for the Rattlesnake Hills project, and our exploration team looks forward to supporting its efforts and providing continuity during the transition to a joint venture program,” remarks Quinton Hennigh, President and Chief Geologist of Evolving Gold.

On the Company’s website an updated corporate presentation is available containing additional discussion on the Rattlesnake agreement and its impact on our exploration strategy going forward.  Please click here to view it: http://www.evolvinggold.com/assets/files/pdf/evg_ppt_april19_2011.pdf.

About Evolving Gold Corp.
Evolving Gold is focused on exploring its four gold properties in and adjacent to the productive Carlin district of northern Nevada, and on its gold discovery at Rattlesnake Hills, Wyoming. In compliance with National Instrument 43-101, Quinton Hennigh, Ph.D., P.Geo., is the Qualified Person responsible for the accuracy of this news release.

For more information about Evolving Gold please visit: www.evolvinggold.com. To receive regular updates or to receive a follow-up call from Investor Relations please sign up at: http://evolvinggold.com/sign-up.php.

On Behalf of the Board of Directors
EVOLVING GOLD CORP.

“William Gee”
William Gee
CEO and Director

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company’s actual results and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company’s control. These factors include: results of exploration activities and development of mineral properties, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing, currency fluctuations, general market and industry conditions and other risks disclosed in the Company’s filings with Canadian Securities Regulators.

Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. We seek safe harbour.

Investing in Gold Ranks Second for Most Americans

Investing in Gold Ranks Second for Most Americans-Image via Wikipedia

Michael Haynes, CEO of APMEX, appeared on CNBC Worldwide Exchange to talk about how Americans lag behind Europeans in using Gold to diversify their investment portfolios. Middle America is just now beginning to realize the importance of Gold in a balanced portfolio.

Michael R. Haynes, CEO, the American Precious Metals Exchange, Inc. (APMEX) told CNBC Worldwide Exchange today that investors need to diversify their portfolios with precious metals, like Gold and Silver, due to the track record of traditional investments over the past decade. “The American population is just now beginning to realize that their 401K turned into a 201K and we’ve got to have something to counterbalance the typical cash, stocks and bonds in our portfolios,” Haynes told Christine Tan of CNBC.

”Europeans buy twice as much physical gold as the citizens of the United States buy. Europeans definitely understand the need to hold something like physical gold as a part of their portfolio because they understand the history of changing governments and changing currencies,” said Haynes.

“Given the turmoil in the world’s financial and political arenas, we are seeing strong worldwide demand for gold and precious metals as an investment,” said Haynes. “Historically, precious metal investing has provided a hedge against economic instability, sovereign risk, and the lowering of U.S. currency values through inflation and the overprinting of currency. Now considered an asset class of its own alongside cash, stocks and bonds, precious metals like gold, silver, platinum and palladium, are an important part of a sensible, efficient, and diversified portfolio approach.”

Michael R. Haynes, CEO of The American Precious Metals Exchange (APMEX), is a 30-year veteran of the precious metal and rare coin markets. Mr. Haynes has served as a board member, president, COO or CFO of nine different public and private companies engaged in the specialty retail, distribution, e-commerce and manufacturing businesses.

About the American Precious Metals Exchange, Inc. (APMEX)

APMEX is one of the world’s largest and most trusted dealers for buying and selling precious metals through the website http://www.APMEX.com and its newly launched mobile e-commerce site at mobile.APMEX.com. APMEX was created to serve as a source where investors could diversify their portfolios with gold, silver, platinum and palladium at very competitive prices with the convenience and security of the Internet and private delivery. APMEX prides itself on educating investors and allowing them to make their own investment decisions.

  • APMEX maintains one of the world’s largest selections of precious metal and semi-numismatic items available on the Internet, including the most popular Gold and Silver American Eagle Coins, and the Gold and Silver Maple Leaf Coins
  • APMEX provides gold and precious metals access through the Internet to every individual investor around the world who seeks a balanced investment portfolio
  • APMEX serves thousands of customers with 401K and IRA approved precious metal investments

 

Vista Gold Corp. (TSX & NYSE Amex Equities:  VGZ) (“Vista” or the “Company“) is pleased to announce that it has closed its previously announced offering of 9,000,000 common shares of Vista (“Common Shares“) at a price of C$3.30 per Common Share (the “Issue Price“) for aggregate gross proceeds to the Company of C$29,700,000 (the “Offering“).  The Offering was completed on a bought deal basis with GMP Securities L.P. and Wellington West Capital Markets Inc. as underwriters (the “Underwriters“).  The Common Shares were sold in Canada by way of a prospectus supplement to Vista’s existing base shelf prospectus dated April 27, 2009 and filed with the securities commissions in all of the provinces and territories of Canada (other than the Province of Quebec) and were sold in the United States by way of a prospectus supplement to the Company’s base shelf prospectus included in the Company’s shelf registration statement filed with the U.S. Securities and Exchange Commission (the “SEC“) on April 27, 2009.

As part of the Offering, Vista granted the Underwriters an over-allotment option to purchase up to an additional 1,350,000 Common Shares at the Issue Price.  The over-allotment option remains exercisable at any time up to May 20, 2011.

As compensation to the Underwriters in connection with the Offering, Vista paid to the Underwriters a cash commission of C$1,485,000 and granted the Underwriters 450,000 compensation options (the “Compensation Options“).  Each Compensation Option is exercisable until April 20, 2013 to purchase one Common Share at the Issue Price.

The Company intends to use the net proceeds of the Offering as follows: (i) advancement of the Mt. Todd Project; (ii) exploration at the Guadalupe de los Reyes gold-silver project; (iii) permitting process at the Concordia gold project; and (iv) general corporate administration purposes of the Company.

Vista has filed a prospectus supplement to its base shelf prospectus with the Canadian securities regulatory authorities in each of the provinces and territories of Canada, except Quebec, and a prospectus supplement to its base prospectus in its shelf registration statement with the SEC.  You may obtain a copy of the prospectus supplement and the accompanying base shelf prospectus filed in Canada from GMP Securities L.P. (fax (416) 943-6134 or request a copy by telephone at (416) 943-6130). You may obtain a copy of the prospectus supplement and the accompanying base prospectus filed in the United States from Griffiths McBurney Corp. c/o GMP Securities L.P. Attn: Equity Capital Markets, 145 King St. W., Suite 300, Toronto, Ontario, M5H 1J8, Canada, email your request to ecm@gmponline.com or fax your request to (416) 943-6134.

About Vista Gold Corp.

Vista is focused on the development of the Mt. Todd gold project in Northern Territory, Australia, and the Concordia gold project in Baja California Sur, Mexico, to achieve its goal of becoming a gold producer. Vista’s other holdings include the Guadalupe de los Reyes gold-silver project in Mexico, the Awak Mas gold project in Indonesia, and the Long Valley gold project in California.

This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933, as amended, and U.S. Securities Exchange Act of 1934, as amended, and forward-looking information within the meaning of Canadian securities laws.  All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates will or may occur in the future, including such things as, the intended use of the net proceeds of the Offering and other such matters are forward-looking statements and forward-looking information.  When used in this press release, the words “optimistic,” “potential,” “indicate,” “expect,” “intend,” “hopes,” “believe,” “may,” “will,”, “could”, “if,” “anticipate,” and similar expressions are intended to identify forward-looking statements and forward-looking information.  These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially different from any future results, performance or achievements expressed or implied by such statements.  Such factors include, among others, uncertainty of resource estimates, estimates of results based on such resource estimates; risks relating to cost increases for capital and operating costs; risks relating to delays in the completion of the drilling program, risks related to the adequacy of the design of the drilling program, risks related to the ability to obtain the necessary permits, risks of shortages and fluctuating costs of equipment or supplies; risks relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; potential effects on Vista’s operations of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to political and economic instability in certain countries in which it operates; as well as those factors discussed under the headings “Note Regarding Forward-Looking Statements” and “Risk Factors” in Vista’s latest Annual Report on Form 10-K as filed on March 14, 2011, and other documents filed with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities.  Although Vista has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.  Except as required by law, Vista assumes no obligation to publicly update any forward-looking statements or forward-looking information; whether as a result of new information, future events or otherwise.

For further information, please contact Connie Martinez at (720) 981-1185.

http://www.vistagold.com

Gammon Gold Inc. (TSX:GAM) (NYSE: GRS) Mergers with Capital Gold (NYSE AMEX: CGC) (TSX:CGC)

Gammon Gold Inc. (TSX:GAM) (NYSE: GRS) Mergers with Capital Gold (NYSE AMEX: CGC) (TSX:CGC)-Image via Wikipedia

Gammon Gold Inc. (TSX:GAM) (NYSE: GRS) (“Gammon”) is pleased to announce that it has completed its acquisition of Capital Gold Corporation (NYSE AMEX: CGC) (TSX:CGC). Capital Gold will operate as a subsidiary of Gammon Gold. Shares of Capital Gold will be delisted from trading on the NYSE AMEX effective Friday, April 8, 2011.

Shareholders of Capital Gold voted to approve the merger with Gammon at a special meeting of shareholders held on April 1, 2011. More than 82 percent of Capital Gold’s shareholders voted, of which 32,353,144 shares (or close to 2/3) voted in favour of the transaction.

The acquisition of Capital Gold significantly increases Gammon’s gold production and almost doubles its gold reserves, while strengthening the Company’s position as a leading, low cost, diversified gold and silver producer focused on Mexico.

With Capital Gold’s El Chanate mine contributing to production immediately and El Cubo ramping up to full-scale production, Gammon will shortly be operating three 100% owned, fully built mines in Mexico, advancing two significant development projects, and managing a robust portfolio of exploration stage properties.

“We are pleased to complete the acquisition of Capital Gold with the support of Capital Gold’s shareholders. Gammon’s operational experience and robust cash flow profile will allow our team to immediately enhance operations at El Chanate and accelerate the development of the underground Orion project,” stated Rene Marion, President and CEO of Gammon. He continued, “In approving the transaction, Capital Gold’s shareholders clearly recognized the value of combining the assets of the two companies to create a leading, low cost, diversified gold and silver producer with excellent organic growth opportunities.”

Gammon’s lead financial advisor for the transaction was Dundee Securities. UBS Securities Canada Inc. was also retained as an advisor. Gammon’s Canadian legal counsel was Fasken Martineau DuMoulin LLP and its U.S. legal advisor was Kirkland & Ellis LLP.

Capital Gold’s lead financial advisor for the transaction was Cormark Securities Inc. Stifel, Nicolaus & Company, Incorporated rendered fairness opinions to Capital Gold’s board of directors. Capital Gold’s legal counsel was Ellenoff Grossman & Schole LLC. Ballard Spahr LLP served as legal counsel to the M&A Committee of the board of directors of Capital Gold and Macleod Dixon served as Capital Gold’s Canadian legal counsel.

About Gammon Gold

Gammon Gold Inc. is a publicly traded mid-tier gold and silver producer engaged in the mining, development, exploration and acquisition of resource properties in North America. The Company owns and operates three producing mines in Mexico, the Ocampo mine in Chihuahua State, the El Chanate project in Sonora State , and the El Cubo mine in Guanajuato State . Gammon Gold also owns the Guadalupe y Calvo advanced exploration property in Chihuahua State and the Orion advanced exploration property in the State of Nayarit, and has six exploration properties in various states throughout Mexico. Gammon’s executive office is located in Toronto, Ontario Canada.

Cautionary Statement

This communication may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and comparable “safe harbour” provisions of applicable Canadian legislation, including, but not limited to, statements relating to anticipated financial and operating results, the companies’ plans, objectives, expectations and intentions, cost savings and other statements, including words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend,” “will,” “should,” “may,” and other similar expressions. Such statements are based upon the current beliefs and expectations of our management and involve a number of significant risks and uncertainties. Actual results may differ materially from the results anticipated in these forward-looking statements. The following factors, among others, could cause or contribute to such material differences: the ability to ramp up El Cubo to full-scale production, the ability to enhance operations at El Chanate and to accelerate the development of the Orion project, the ability to realize the expected synergies resulting from the transaction in the amounts or in the timeframe anticipated; the ability to integrate Capital Gold Corporation’s businesses into those of Gammon Gold Inc. in a timely and cost-efficient manner; and the outcome of pending litigation related to the proposed acquisition of Capital Gold Corporation. Additional factors that could cause Gammon Gold Inc. and Capital Gold Corporation’s results to differ materially from those described in the forward-looking statements can be found in the 2009 Annual Report on Form 40-F, as amended by Amendment No. 1 to Annual Report on Form 40-F/A, for Gammon Gold Inc. and the Annual Report on Form 10-K, as amended by Form 10-K/A, of Capital Gold Corporation for the fiscal year ended July 31, 2010 filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission’s Internet site (http://www.sec.gov).

For further information: For further information: please visit the Gammon Gold website at http://www.gammongold.com or contact: Rene Marion, President and Chief Executive Officer, Gammon Gold Inc., +1-647-260-8880; Anne Day, Director of Investor Relations, Gammon Gold Inc., +1-647-260-8880.

 

ESM Refiners, Inc., a subsidiary of Casey Corp. (OTC BB: CCPR) – a recycler of precious metals – began due diligence for the purchase of properties for exploration and mining in the Oriental Region of Paraguay.

Early in 2011, the Company made the strategic decision to enter the gold exploration and mining market and entered into an agreement with Inge Bernt Goran Ostlund for the purchase of 6,300 hectares located in the Guaira Department, Oriental Region of Paraguay.

Currently, Casey Corp. is evaluating several other properties in the Oriental Region of Paraguay, targeting primarily gold and possibly uranium mining. Of particular interest to the Company are sites located in the regions of Guaira, Caaguazu and Caazapa. The Paso Yobai mine is located in Guaira Department, known for significant gold mining and exploration activity. Moreover, previous soil historic workings also provide evidence of the excellent potential for resource discoveries at at Guaira, Caaguazu and Caazapa.

Mr. Eduard Musheyev, Casey Corp.’s, President and CEO, notes, “If we find these areas to be of tangible interest, after completing our due diligence, we expect to acquire at least two more properties.”

Casey Corp. initiated due diligence proceedings this week, consisting of checking and reading existing geological reports and historic workings, as well as collection of surface samples.

Casey Corp.’s move to expand into the exploration and mining industry comes as the Company reached over than $60m in sales over the past 12 months.

About:

CaseyCorp is a wholesale buyer and seller of precious metals, primarily scrap gold. CaseyCorp purchases gold in two ways, wholesale and retail. The wholesale business acts as an aggregator purchasing jewelry and other items containing gold from a client base of several hundred dealers and other trade sources.

The items purchased are melted down and sold immediately to gold refineries at pre-agreed contract prices renewed every day. Buying and selling prices are based on the current gold price, eliminating the possibility of loss in the event of rapid price fluctuation.

Management

Mr. Eduard Musheyev – President and Chief Executive Officer – has over 30 years’ experience in the gold jewelry market having set up and managed successful companies involved in manufacture, retailing and refining.

Safe Harbor statement

Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms “believes,” “should,” “intends,” “will,” or “plans” to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s reports and registration statements filed with the Securities and Exchange Commission.

    Contact Information:

    CaseyCorp Enterprises, Inc
    Sergey Musheyev
    esmrefiners@gmail.com
    http://www.wecashgold.net
    phone: +1-212-3822404

    Investor & Media Relations Contact: esmrefiners@gmail.com
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