Nov 23 2005
The strong position of gold in all markets in recent months is especially bullish in Europe, to the benefit of investors in mining and mining exploration companies, according to Nick Nicolaas, President and CEO of Mining Interactive of Vancouver, which represents a number of listed precious metal companies based in Canada.
The veteran market watcher, who has just returned from an international precious metals conference in Munich, Germany, says that "no-one understands gold better than the Europeans, witness the steady rise in the price for gold in Euros over the past year and the smart money is staring to pay serious attention."
Nicolaas says that while the price per ounce for gold has risen by $43.90US (9.8%) on the American exchanges, in Europe the increase to date was more than 22%, an increase of $75.85 Euros, as the commodity grew as a preferred investment strategy for many. A stronger US dollar and a weaker Euro through 2005 also had a bearing on those figures, but certainly not one that was doubled, he adds.
The price of gold hit an 18-year high at $491.30US per ounce and 418.83 Euro per ounce, prompting speculation that it may soar even higher. Best- selling American author Addison Wiggin ('Empire of Debt') said in a recent interview with Dailyreckoning.com that investment in gold is wiser than in currencies, "(because) gold is what people buy when they begin to lose confidence in the economy, the government and its money. Gold is the only investment alternative not susceptible to what ails the dollar."
That augurs well for companies that are exploring new and old sites in Europe, in North, Central and South America, and in Australia. Several exploratory projects are being fast-tracked because of the sustained high interest in the precious metal, says Nicolaas.
http://www.mininginteractive.com/