The gold spot price is back up above $900 today, and a search for some information on the rise gave me some interesting analysis. Calls on the SPDR Gold ETF (GLD is the other one) are up 4 times normal over Friday, and share prices of the miners were up as well.
Analysts are predicting the price of gold to rise for the next few months, too. However, the Indian market wants a lower price, of course, as they go into their marriage season so that brides will have ample dowries going into a marriage. If she doesn't have enough gold going into the marriage, the grooms family can cancel the marriage, or there can be other consequences for the bride. This is why the Indian marriage season is so important to the price of gold and gold jewelry, and gifts to the bride are always in 21 to 24K gold jewelry, not in coins or bars, or raw gold.
On the world scene, Guyana is expecting as much as a 50% drop this year in gold prospecting, after an 18% increase in '08. I have been reading that many of the exploratory companies are also scaling back exploration this year.
As to us, I don't think we will be scaling back our own gold exploration, so you can bet you'll be seeing us around the gold bearing areas in Colorado this summer. Looking forward to a very pleasant and profitable gold season, ourselves.
Good Prospecting to You,
Shirley Weilnau
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