Gold Posts New All-Time High as U.S. Dollar Decline Continues

Comex gold prices are trading solidly higher and hit another new all-time record high of $1,330.00 an ounce in December futures as of this writing Tuesday morning. More weakness in the U.S. dollar and generally stronger commodity futures prices Tuesday morning are supporting buying interest in the yellow metal. December Comex gold last traded up $11.60 an ounce at $1,328.40. Spot gold was last quoted up $12.30 at $1,327.75.

The U.S. dollar index hit another fresh 8.5-month low Tuesday as the Euro currency strengthened following some upbeat manufacturing data coming out of the European Union. Many investors believe a fresh round of quantitative easing of U.S. monetary policy is in the offing, and that continues to boost the gold market bulls and keep selling pressure on the greenback. The Bank of Japan and the Reserve Bank of Australia central banks overnight announced they are adopting more stimulative monetary policies, which only bolsters notions of a U.S. monetary policy easing coming soon.

More @ Kitco News

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Security Reminder from VGMC.com

8/14/2010

Dear Shareholders,

It has been brought to our attention that "phishing" sites that looks similar to vgmc.com has appeared  recently with the intention to capture your shareholder id, password  or personal details. Please be informed that www.vgmc2u.com is not related to vgmc.com. Shareholders are reminded not to login through or surf www.vgmc2u.com as it may contain Trojans or viruses that may compromise your hardware security as well. We will be consulting our legal and IT team to contemplate further action that we may take against the operator of the said website while for the mean time shareholders are strongly advised to avoid going to www.vgmc2u.com.


Thank you.

Regards,
Virgin Gold Admin Department

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Gold Prices May Zoom to $3K in 5 Years

Gold price may more than double to $3,000 (£2,080) per ounce over the next five years, claim fund managers, citing record inflows into the yellow metal this week. The inflow resulted after speculations that American, British and other Governments had intentions to inflate their way in a bid to lower excessive debt to some extent.

Notably, spending cuts and higher tax are being imposed by heavily indebted governments throughout the developed world to fill deficits of black-hole dimensions in public finances. Both are expected in Britain's June 22 emergency Budget as well. But another option to reduce the real value of debt, feel economists, is by keeping interest rates lower than inflation and letting the currency take the strain. However, not many politicians are in its favor.

Bringing down the purchasing power of money only robs the people of their savings, but cuts on spending leads to inflation, which tends to hit older people hardest and the young have to battle unemployment.

Graham French, Manager of the M & G Global Basics Fund, said: "In a scenario of rising sovereign risk, where government finances are hugely overstretched and central banks have been systematically devaluing paper money, gold's value as a safe haven and a stable physical currency can only increase over the medium term”.

Against this backdrop, the gold price could go much higher than these already elevated levels. It wouldn't be too farfetched to see it rising above $2,000, or even up to $3,000, Graham asserts.

Source : http://topnews.us/content/220415-gold-prices-may-zoom-3k-5-years

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Peak Gold

Most have heard about Peak Oil – the proposition that world oil production has peaked and is in terminal decline. Now, Peak Gold is being proclaimed by industry experts. Vincent Borg, spokesman for the world’s biggest gold producer Barrick Gold, says gold production has been in decline since 2001. Total gold production peaked at 2,600 tonnes per year around 2000. The reason gold production has peaked is that existing mines are being depleted and new discoveries are few and small. Also, it takes many years to bring a resource discovery into production.

Demand, on the other hand, has increased to 3,800 tonnes in 2009 according to the World Gold Council. Over the decade from 1999 to 2009 central banks have sold 3,867 tonnes of their gold under various Central Bank Gold Agreements. These agreements have now ended and no more central bank selling is planned. Even with central bank selling the gold price has increased well over 200% since 1999. During the last several years a number of Gold Exchange Traded Funds have appeared. These are funds that sell shares to investors that track the price of gold. These funds must purchase and hold physical gold to back the shares. Currently these funds hold 2,000 tonnes of gold and represent a major new source of demand. The financial crisis that began in 2007 adds other demands as large institutional investors that have never owned gold before move into the market. New small investors are attracted to buy into the funds, coins and jewellery.

It appears that Peak Gold is real. Given the current climate – the gold price has only one way to go.

An interesting fact: The total amount of gold ever produced will fill a little more than 3 Olympic-size swimming pools. Here is the calculation. The World Gold Council estimates 163,000 tonnes of gold exists above ground today. That is 163,000,000 kg. The density of gold is 19,300 kg per cubic meter. Dividing 163,000,000 kg by 19,300 kg per cubic meter gives 8456 cubic meters as the volume of all the gold in existence. The volume of an Olympic-size swimming pool is 2,500 cubic meters (50 m by 25 m by 2 m). Dividing 8456 cubic meters by 2,500 cubic meters give 3.34 Olympic-size swimming pools as the volume of the gold in the world. 

 

Source : http://gold.goldprice.org/

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Gold well supported at $1100, to hit $1,227 soon

Published on: March 24, 2010 at 17:20

Commodity Online

Gold prices look well supported at $1100 and will hit its record high of $1,227 by mid-year and $1500 by year-end, according to Jeffrey Nichols, precious metals economist and Senior Economic Advisor to Rosland Capital.. However, the market will experience continued volatility with big swings in both direction around an upward trend this year and beyond, he added.

Here are Jeff Nichols takes on the recent gold price activity:

- Gold's strong negative correlation with the dollar, measured against either the Euro or a basket of currencies, is breaking down. - This is positive forward-looking indicator of gold's coming strength. Historically, gold's biggest advances have occurred at times when gold was moving up against not just the dollar but the other major currencies as well - and it looks like we are entering just such a period.

-Gold prices have fallen in recent times as investors shed long positions or went short in December and January who will return to the long side of the market.

-India is buying more gold these days, as purchases are up ahead of marriage season which could provide additional support.

-Turning westward, gold's recent rally to record highs in euro and sterling is a sign of the metal's broadening appeal to European investors in the face of European sovereign debt fears. Some investors selling the euro have chosen gold - in addition to or in place of - the greenback as an alternative.

-After the sovereign debt crisis in Europe, USA may be next in line-historically high government deficits and accumulated debt-present in the United States.

-Indeed, the single-most important factor promising higher U.S. dollar-denominated gold prices are inflationary U.S. monetary and fiscal policies characterized by:

unprecedented provision of liquidity into the financial system,

unprecedented low interest rates for an extended period,

unprecedented Federal budget deficits and accumulated debt in absolute terms and as a percentage of GDP, and

a dysfunctional government that remains incapable of dealing effectively with these immense issues.

-China will continue to be a bullish factor in gold market despite recent monetary tightening.

Source: http://www.commodityonline.com/news/Gold-well-supported-at-$1100-to-hit-$1227-soon-26809-3-1.html

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A new beginning

Dear Shareholders

Today mark the beginning of a great chapter of this corporation and I proudly take this opportunity to represent the Executive Board to welcome all shareholders that has been supporting our business operations for the past decade.

Today we launch our online shareholder account and begin to offer Virgin Gold Convertible Preferred Stocks (CPS) to the global community. This exercise will raise a lot of working capital for Virgin Gold to increase our global operations and profitability. This online shareholder account allows more flexibility for shareholders to manage their own portfolio and presents other income earning opportunities such as Gold Trading that were not able to be offered previously. I am proud to say that many in this industry including many PLCs are still not able to offer such financial flexibility and opportunity to their shareholders.

CPS is now offered at USD0.80 per share. The value of our shares will appreciate in tandem with the value of this corporation as it increases over time. CPS holders’ dividend is fixed at 1oz of gold for every 10,000 shares subscribed. Two basic reasons why anyone would invest in a particular stock are good dividend and share value appreciation. Virgin Gold CPS fits perfectly into this category. We thought so too.

Again, the Board thank you for your kind support throughout 2009 and we promise to deliver even better results for 2010 and beyond.

President of Virgin Gold Mining Corporation
Johann Hansen
1st Jan 2010

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