double happiness for gold mining stocks

Hey Dr HLime

When the market settles down, it will wake up to gold stocks and the critical importance of gold bullion to a global economy after a global financial crisis....... Gold is the Foundation of every Financial System! Especially one which has seen trillions of dollars of fiat currency lost, printed spent, printed again and again......:)

We have a bright future with IndoChine and the major institutions invested in our company are aware of this.....otherwise why would they invest in a microcap explorer like IndoChine......:)

Cheers Nectar


Double happiness for gold mining stocks
Peter Ker
June 4, 2012 - 3:52PM

It may be a nightmare day for most of the market, but Australian gold miners are sitting pretty this afternoon thanks to a double dose of positive news for the sector.

Economic jitters over the past 72 hours have seen investors rush back to gold, given its traditional status as a store of value in troubled times.

The gold price has risen 4 per cent in the past six days to about $US1622 per ounce, while the Australian dollar has fallen by close to 2.5 cents against the US Dollar over the same period.
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That combination means the gold price in Australian dollar terms has risen from around $1544 per ounce to almost $1680 per ounce today, fuelling strong gains today for the likes of Newcrest Mining, Integra Mining and Evolution Mining.

Newcrest have snapped their recent losing streak to be 75 cents higher this afternoon at $24.86.

Evolution and Integra are up 6 per cent and 7 per cent respectively, while Tasmanian-focused goldminer Unity Mining is up more than 8 per cent.

Mike Harrowell from BBY said the two factors were helping Australian gold stocks rise above the gloom on today’s market.

“On the day, they are getting a double-whammy because they are getting a very good Australian dollar gold price,’’ he said.

Mr Harrowell said he expected there would be more good times ahead for the gold over the coming three months.

“We wouldn’t be surprised to see gold test the $US2000 mark,’’ he said.

The performance of the gold stocks is at odds with the rest of the mining sector: the big companies like BHP Billiton and Rio Tinto are both down, as are iron ore dominated stocks like Fortescue Metals Group and Atlas Iron.

Weakness in the Australian dollar is worth keeping in mind as an offset to the recent slide in commodity prices, as the Reserve Bank of Australia pointed out in their recent commodity index report for the month of May.

The RBA reported the broader commodity index was down 1.9 per cent in May, yet that translated to 0.9 per cent gain in Australian dollar terms, thanks to the weakening currency.

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Read more: http://www.theage.com.au/business/markets/double-happiness-for-gold-mining-stocks-20120604-1zrm5.html#ixzz1wo7xhig4