China’s Golden era may have Finally Arrived

16th September 2009

The Golden era may have finally arrived, with this weeks gold seeming to sustainably hold its value at and around the $1000 mark, the dawn of a new monetary value may be upon us.

At the time of writing Gold remains buoyant at $1,015.75. An optimistic, and for gold investors, extremely pleasing level.

This week we’ve seen the IMF announce that they intend to sell in the region of 400 tonnes of gold. With Both China and India pawing over the possibility.

With China hoarding an estimated $1.4 trillion in dollar-based assets, it’s little wonder why they are eyeing any opportunity to buy gold with the decline of the dollar.

China are aiming to become the super power of Asia, with the collapse of the Japanese economy, they are shrewdly buying gold, with little competition from their neighbouring countries.

But it may well be India in poll position to buy up the Gold being touted about by the IMF, like a poverty stricken horse owner that’s just brought his prized stallion into town.

The two nations will undoubtedly lock horns and do battle over such a prestigious prize.

Gold Mining

Remaining with our Chinese theme today, we take a look at the AIM listed company China Goldfields (AIM: GGG):

UK-registered China operating gold and copper miner Central China Goldfields (AIM: GGG), saw a dramatic increase in the its London share price by over 50% yesterday, and at the point of writing had risen from 1.55p on Monday to 3.248p at 9 a.m. this morning, and then settling back down to 2.80p by 4.30 p.m. this afternoon.

Source Google Finance

The company may well be living off the recent hype of China’s public courtship of the yellow metal. However, recent internal events may well have played their part.

On the 3rd September Ciceron ‘Jun’ Angeles was elected to the board as technical director. He has worked extensively throughout China, and recently been working in Inner Mongolia and the Heilongjiang Province of China.

The AIM listed companies only gold production project to date, is the Dong Mao Huo Gold mine in Northern China. Dong Mao Huo is located in the autonomous region of Inner Mongolia, which has predominately Han Chinese inhabitants and is a 3 hour drive away from Hohhot, the Inner Mongolian capital.

Presumably this was a key factor in the appointment of Ciceron, with his previous working knowledge and expertise of the area. China Goldfields also has two further licences enabling them to explore other areas of the autonomous region that boarders Mongolia.

It is unclear as of yet why the share price has risen so highly, maybe their has been a development in the vast baron land of Inner Mongolia? We cannot say at this precise time, but it is certainly an exciting share to keep an eye on at the moment.

That’s all for this week,

Best Regards,

Digger
Gold Price Today

Important

Information in Gold Price Today is for general information only and is not intended to be relied upon by individual readers in making (or not making) specific investment decisions. Appropriate independent advice should be obtained before making any such decision.