Gold trading alongside euro with little physical interest

In the Lead

Reuters News reports that “China's imports of crude oil, copper, coal and iron ore are expected to drop for the second consecutive month in July as a stuttering economy and high stockpiles keep buyers at bay. China is the world's biggest consumer of commodities, and last month saw global iron ore prices tumbling 13 percent and thermal coal prices hitting a 30-month low, declines that would normally have encouraged restocking.”

We close today with a couple of news items on the topic of gold production; current and future. First, it was reported that China’s gold mining production climbed 7.7% to 177 tonnes in the first six months of this year. The country is firmly cementing its first-place ranking among global gold producers.

Further, The Guardian reports that “A “new frontier” in mining is set to be opened up by the underwater extraction of resources from the seabed off the coast of Papua New Guinea, despite vehement objections from environmentalists and local activists. Canadian firm Nautilus Minerals has been granted a 20-year license by the PNG government to commence the Solwara 1 project, the world’s first commercial deep sea mining operation. Nautilus will mine an area 1.6km beneath the Bismarck Sea, 50km off the coast of the PNG island of New Britain. The ore extracted contains high-grade copper and gold. The project is being carefully watched by other mining companies keen to exploit opportunities beneath the waves.”

Until Friday, hum along….

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About the Author
Jon Nadler Jon Nadler is a Senior Analyst at Kitco Metals Inc. North America
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