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No wonder even China is trying to talk gold down
There isn't enough for the government AND the people.
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Gold Demand in China Jumps on Stock Slump, Cooling Measures, Exchange Says
By Feiwen Rong
Wednesday, July 7, 2010
BEIJING -- Gold demand in China, the world's second-largest consumer, gained in the first half as government measures to cool the property market and falling equities spurred investment demand, the Shanghai Gold Exchange said.
The total volume of gold traded on the exchange jumped 59 percent in the first six months from a year earlier to the equivalent of 3,174.5 metric tons, said Song Yuqin, vice general manager at the exchange. Silver turnover soared more than fivefold, Song told a conference in Beijing today.
Gold surged to a record last month as investors sought to protect their wealth against the market turmoil caused by the European sovereign debt crisis, including declining currencies. Song's remarks add to signs that investors worldwide are boosting holdings of the commodity.
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Sona Resources Expects Positive Cash Flow from Blackdome,
Plans Aggressive Exploration of Elizabeth Gold Property
On May 18, 2010, Sona Resources Corp. (TSXV: SYS, Frankfurt: QS7) announced the release of a preliminary economic assessment for gold production at its flagship Blackdome and Elizabeth properties in British Columbia.
Sona Executive Chairman Nick Ferris says: "We view this as a baseline scenario for gold production. The project is highly sensitive to the price of gold. A conservative valuation of gold at $1,093 per ounce would result in a pre-tax cash flow of $54 million. The assessment indicates that underground mining at the two sites would recover 183,600 ounces of gold and 62,500 ounces of silver. Permitting and infrastructure are already in place for processing ore at the Blackdome mill, with a 200-tonne per day throughput over an eight-year mine life. Our near-term goal is to continue aggressive exploration at Elizabeth and develop a million-plus-ounce gold resource, commencing production in 2013."
For complete information on Sona Resources Corp. please visit: www.SonaResources.com
"Gold- and silver-trading volume expanded sharply in the first half of this year because a declining stock market, the government's efforts to cool the property market, and the general volatility in the global financial market have all fueled the investors' enthusiasm," Song said.
Gold for immediate delivery has risen for nine years and touched an all-time high of $1,265.30 an ounce on June 21. The metal, which traded at $1,190.35 today, may surge to more than $1,300 an ounce in the second half, GFMS Ltd. Executive Chairman Philip Klapwijk said in Beijing at the same conference.
"I expect China's gold demand to rise by 11 to 12 percent this year to 440 to 450 tons because Chinese investors have shown their willingness to buy more when prices are on the rise," Hou Huimin, deputy secretary-general at the China Gold Association, said today by phone. "I expect prices will rise over the remainder of this year and next year."
Chinese authorities intensified a crackdown on property speculation after announcing the economy expanded at an 11.9 percent annual pace in the first quarter, the most since 2007. Measures have included raising minimum mortgage rates and down payment ratios for some home purchases. Officials may also start a trial property tax, according to state media.
The efforts have contributed to a slump in Chinese real-estate sales and sent an index tracking 34 Shanghai-listed developers down almost 30 percent in 2010, even as prices kept rising. The Shanghai Composite Index is Asia's worst performer this year, tumbling 26 percent.
Sales of gold products such as bars and coins by China National Gold Group Corp., owner of the country's largest gold deposit, jumped as much as 40 percent in the past six months, Song Quanli, deputy party secretary at the company, said today in an interview. "We have witnessed some really good sales in our retail outlets," said Song at China National.
China's gold output may rise about 5 percent this year, solidifying the nation's position as the world's largest producer, China National's Song said. China produced 313 tons of gold last year, the executive said.
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Prophecy to Become Coal Producer This Year
with 1.5 Billion Tonnes of Resource
Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.
For Prophecy's complete press release about its production plans, please visit: