The future for gold and the companies to benefit most

The future for gold and the companies to benefit most

There are a huge number of factors all pointing to a disparity between gold exploration and production in the years ahead which make the right gold junior investment a real potential moneyspinner.

Author: Rick Mills
Posted: Sunday , 16 Dec 2012

COQUITLAM, BC – Investors seeking leverage to precious metals should focus on junior resource companies who own the world’s undeveloped gold and silver deposits as they provide the best exposure to a rising precious metals price environment.

You need to find the quality management teams with money in the treasury, the ability to raise more and owning the advanced projects that are well along the development path towards a mine.

A mine that is going to be a long life, lowest quartile all-in cost producer in a geo-politically safe country.

These companies are the world’s future gold/silver producers and of course many will be in the sights of mid-tier and major producers for takeover candidates as reserve replacement targets.

The gold mining industry needs to discover 90 million ounces of gold every year just to stay even.

But despite increased exploration expenditures, a record US$8b in 2011, and an increasing gold price, gold ounce discovery is not keeping up to the rate needed to replace mined ounces.

The Metals Economic Group estimates that the 99 significant discoveries (defined as greater than 2 mil oz) found between 1997 and 2011 replaced only 56 percent of the gold mined during that same period.

According to the Thomson Reuters GFMS’s Gold Survey 2012 global gold mine production was flat (output rose 0.1 percent to 1,366 metric tons) in the first half of 2012……..

Rick Mills’ latest analysis of the gold junior scene and of the gold sector itself is a fascinating correlation of the number of complementary factors which make the right gold junior investment scene potentially one of the most investment-worthy. It is illustrated with some 15 charts covering various aspects of the industry, all pointing to reasons to invest in the sector – To read the full article and review the charts yourself, click here

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