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| Updated: July 28,2004 |
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Why this will occur: The USDX decreased 12.7% in 2003, while gold prices increased 16.2%, which when the dollar weakness is taken into account amounts to only a 3.5% increase in the price of gold for 2003. New uses for gold have been developed in the past couple of years, such as those published by the World Gold Council, below: "Gold alloy catalysts are used in the commercial production of vinyl acetate monomer (VAM). BP Chemical's VAM plant at Hull in the UK uses the new 'Leap Process' in the production of the monomer, which is essential in the manufacture of emulsion-based paints, wallpaper paste and wood glue. "Gold based material could be used to make better filters, more efficient sensors, and faster catalysts." For the first time, scientists have created a material with a gradient of gold nanoparticles on a silica covered silicon surface using a molecular template. The material, which was developed at North Carolina State University (NCSU) and tested at the U.S. Department of Energy's Brookhaven National Laboratory, provides the first evidence that nanoparticles - each about one thousand times smaller than the diameter of a human hair - can form a gradient of decreasing concentration along a surface. Researchers at the National University of Singapore have just patented novel gold complexes for use in pharmaceuticals for the treatment of cancer. Currently, the most widely used treatments for many types of cancers are platinum based drugs, with the major drawback of serious side effects. Associate Professor Leung Pak Hing and his team have discovered that phosphine supported gold complexes have excellent anti-tumor activity and clinical trials are likely to begin in the near future. " -------------------------------------------------------------------------------- The World Gold Reserves are currently 31,964 tons, of which the US holds 25% (Germany, Italy, France and Switzerland hold 33%). Gold production is roughly 3,500 tons annually, with demand taking about 99% of the production. About 75% of annual gold production goes into jewelry manufacturing. About 10% of annual gold production goes into dental and industrial products, most of the remainder goes into coins and gold bars. The Asian economies, as well as the US and European economies should continue to improve in 2004, which historically means increased buying of jewelry. The new commercial applications for gold should translate into more gold used for industrial uses. Investors will continue to hold and purchase gold as a hedge in their diverse portfolios. When all of the information is considered, it bodes fairly well for this colorful precious metal for the year of 2004. Happy New Year, Au. -------------------------------------------------------------------------------- SILVER: Silver prices will stay in the range of $5.90/ounce to $6.50/Oz for 2004. Silver has been in the gutter long enough for supply to drop a bit and demand is starting to pick up, which will bode well for this plentiful precious metal in the near future. But that's just my opinion. Charles Kubach Mine-Engineer.Com 31 December, 2003 |
