Gold Hits Fresh Highs, Gold Stocks Lag

This week, precious metals prices continued their bullish trend as gold surpassed a record (nominal) price of $1,150. Silver and platinum prices reached highs unseen in over 15 months, surpassing $18.00 and $1,400 respectively. However, precious metals-related stocks traded well below highs set in recent months.

Russian Central Bank to Acquire 30 Tonnes of Gold

The Russian central bank will buy nearly 30 tonnes of gold directly from the Russian state gold repository this year. The repository will use the funds from the sale to buy diamonds from state mining company Alrosa.

Billionaire Hedge Fund Manager Paulson to Start Gold Fund

John Paulson, head of Paulson & Co., will put up $250 M towards a new hedge fund that invests in gold stocks and derivatives. This move comes after Paulson put 10% of his company’s $30 B under management into gold investments earlier this year.

Rubicon (RBY) Launches Phase II Drilling Program at Red Lake

After recently discovering significant extensions to its F2 gold zone, and upon imminent completion of Phase I drilling, Rubicon has outlined a new C$60 M Phase II drilling program for its Phoenix Gold. The new program will include a 12-month stage of 120,000 meters of underground and surface drilling.

US Mint’s Silver Eagle Sales Hit 25,000,000

Silver Eagle sales at the US Mint have hit new highs of 25,000,000 for the year. The coin’s popularity has picked up in recent weeks as silver prices have surged.

Gold Hits New Highs as Asian Demand Increases

The price of gold reached record (nominal) highs this morning of $1,123 as India reported a 45% increase in gold imports. In Vietnam, the government lifted its ban on unlimited gold imports for the first time in over a year. The move is aimed at limiting high speculation, which recently led gold prices in Vietnam to a high equivalent to $1,280/oz.

Continuing demand for gold trading in China will be eased with the Hong Kong Mercantile Exchange’s announcement that it would offer gold futures contracts by January 2010.

Junior Miners Index ETF Debuts

Yesterday the Junior Miners Index ETF (GDXJ) began trading on the NYSE. 80% of the fund is invested n 38 select precious metals stocks, of which 2.17% is invested in Rubicon Minerals (RBY). Shares reached a high of $499.99 in the opening minute and closed the day near $25.

Roxmark/Premier (PIRGF/RMKMF) JV Expands Gold Zone at Hardrock

Drilling at the the Hardrock JV project in Northwestern Ontario hit high grade gold of up to 71 g/t. Resource estimates
for the property are set to be released by year’s end.

Gold Hits Record High Near $1,100

Gold quickly bounced back from a low near $ 1,025 last week to a record high of $ 1,095 yesterday, as the IMF reported on Tuesday that it sold 200 tons of gold to the India Reserve Bank almost 2 weeks ago. Today, Sri Lanka’s Central Bank announced that it too has been steadily adding to its gold reserves.

Wesizwe (WSZWF) Takeover Talk Drives Investor Interest

Wesizwe Platinum, a young South African junior platinum producer has been at the heart of talks of an Impala Platinum takeover. Impala Platinum, the world’s second largest platinum producer dropped a bid earlier this year for Mvelaphanda Platinum, citing poor economic conditions. Now that an economic recovery is expected, speculation has risen over Impala’s attempts to acquire Wesizwe instead.

Exeter Resource (XRA) Discovers New Gold Zone

Today Exeter Resource released details of its ongoing drilling project at Cerro Moro, Argentina, where it discovered more high grade gold and silver. Drill holes included grades of up to 550 g/t au and 23,000 g/t ag West of the Escondida high-grade gold vein.

PC Gold (PCGLF) Hits Bonanza Grade Gold

PC Gold reported drill results on Monday indicating high-grade gold of up to 112.5 g/t. It’s been less than 1 month since the company began its drilling program at its Pickle Crow Gold mine, a 7 square mile property in Northwestern Ontario.

US Mint Sales Hit All Time Highs

October gold and silver coin sales were at record highs. Most notably, sales of Silver Eagles neared 3 million last month, twice as many as in October 2008.

5 Undervalued Gold Stocks

Rubicon Minerals (RBY)

Rubicon is one of the largest landholders in North America’s most mineral-rich regions. It is currently drilling at Phoenix Gold, a small portion of its 100 sq. mile properties in the Red Lake, ON region. To date, gold grades of up to 2,600 g/t au have been intercepted right next door to a top-producing Goldcorp (GG) mine. Most recent drill results showed up to 400 g/t au and significant extensions and depth to its central gold vein. In addition to Phoenix Gold, Rubicon fully owns a 593 sq mi property near the prolific Pogo mine in Alaska and a 351 sq mi. property near the Carlin Trend in Nevada.

Great Basin Gold (GBG)

Currently valued at under $1.50, Great Basin Gold is both a low-cost gold miner and an exploration company with new high-grade gold discoveries. Its two 100%-owned properties include the Burnstone, South Africa mine which presently produces 254,000 oz. of gold annually at just $495/oz., next to a Harmony Gold (HMY) mine. Its other property, the Hollister property, is located on the prolific Carlin Trend, producing 120,000 ounces of gold annually at a recently-revised cash cost of $324/oz. Most notably, recent discoveries at Hollister have shown gold grades of up to 2,156 g/t au.

Exeter Resources (XRA)

Exeter currently owns several mineral rich properties in politically-stable Argentina and Chile. The company most recently reported drill results of up to 924 g/t au at its 100%-owned Cerro Moro, Argentina property. Ongoing drilling at its optioned Capische, Chile property has revealed significant gold, silver, and copper resources.

Claude Resources (CGR)

Claude has an active mine at its Seabee, Saskatchewan property and ongoing drilling programs at both Seabee and its Madsen, Red Lake, ON property. Last year, Seabee produced 45,000 oz. au at a total cash cost of C$683; however, it recently reported that it increased its Q3 gold production by a remarkable 80%. Seabee also reported recent drill results with grades of up to 20 g/t au. Gold grades were even higher at Madsen, where up to 141 g/t au were intercepted.

Northern Abitibi Mining Corp. (NOMNF)

Northern Abitibi derives its name from its location in the northern part of the Abitibi subprovince of western Quebec, where it has a joint venture gold drilling project. However, its most promising discoveries have been in Newfoundland. Recent drill results at its Viking, Newfoundland property uncovered grades of up to 27.7 g/t au; however, previous results have included grades of about 218 g/t au. Its 119 sq. mi Taylor Brook property and 47%-owned Voisey Bay property have significant nickel and copper resources.