now producing gold

Just a artical from SMH I thought Id post. Everyone should keep in mind that FML is a producer and have future intentions of producing up to 100000oz p.a.

Gold jumps on surging oil
Email Print Normal font Large font AdvertisementJuly 12, 2008

Gold rose to the highest since March as record energy costs and slumping equities spurred demand for the metal as a haven. Silver also gained.

Crude-oil futures rose to a record $US147.27 a barrel on speculation Israel may attack Iran, leading to a disruption in Persian Gulf petroleum shipments. The Standard & Poor's 500 Index is headed for the sixth straight weekly loss after turning into a bear market. Gold reached a record $US1033.90 an ounce on March 17.

''You've got the fear factor now, and people are going back to gold,'' said Matt Zeman, a metals trader at LaSalle Futures Group. ''The US economy is falling apart, and there's no reason for equities to move higher. The Iran situation seems to be escalating. The commodity run will continue.''

Gold futures for August delivery climbed $US18.60, or 2%, to $US960.60 an ounce on the Comex division of the New York Mercantile Exchange. Earlier, the price reached $US969.10, the highest for a most-active contract since March 19. Gold gained 2.9% this week, the fourth consecutive advance.

Silver futures for September delivery jumped 50 cents, or 2.7%, to $US18.82 an ounce. The metal climbed 2.4% this week, the fourth straight gain.

Silver has gained 26% this year, while gold is up 15%.

The shares of Fannie Mae and Freddie Mac, the biggest providers of financing for US home loans, fell for a third day on concern the government may have to rescue the companies.

The S&P 500 has erased a 12% rally that was spurred by a government-backed rescue of Bear Stearns for less than its market value in March.

Bear Stearns

Gold peaked four months ago when the Federal Reserve cut the interest rate on direct loans to banks in an emergency meeting and stocks plunged worldwide after Bear Stearns agreed to be bought by JPMorgan Chase to avoid a collapse.

''Gold is ready to climb back above $US1000 within the next few weeks,'' said James Turk, founder of GoldMoney.com, which held $US387 million in gold and silver in storage for investors at the end of June. ''The meltdown in the financial sector continues to highlight one of gold's greatest attributes. Gold is the only money that is no one's liability.''

Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by gold, has climbed to 659.9 metric tons. The fund reached a record 663.8 tons on March 17 and dropped as low as 580.5 tons on April 29.