This week as we sat down with a coffee and ran through the gold news we stumbled upon the unusual story that Scotland is hiding gold, and apparently not just a wee amount. Scotgold, the Australian-funded mining company, have found deposits of gold around Tyndrum, a small Scottish village. They’ve also announced they are going to ask for planning permission to start mining approximately 4.5 million tonnes of gold at their Canonish mine, again in Scotland. This mine was drilled twenty years ago and it’s never been commercially worked…A week ago Gold Fields announced they aim to produce 1m ounces from South America by 2015. All across the board we’re seeing mining companies motivated by the current surge in gold prices.
The gold price has shaped companies that rely on it and this doesn’t just include miners. This week Franco-Nevada, the mining royalty company said it experienced record gold royalty revenue for the third quarter.
The Gold Fever grips politics
The strength of the gold price has led to political maneuvering. We see changes in government policies as a direct result of a high bullion value…But where the price of gold goes up it’s usually in the face of other currencies going down, as we mentioned in our dollar gold relationship article a few weeks back. When you factor in the South African state run utility company, Eskom’s, proposal to triple power tariffs, an appreciating currency doesn’t seem so enviable.
As the gold price continues to hit new highs watch out for all it’s related statistics on our website… and hold your breath till next week.
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