Gold fell to $900 level after President Obama and FED Chairman made statements that the United States recovery will already be realized within the year of 2009. Despite the confidence of Obama in his speech before the officials, cabinet members, and legislators in Washington, several analyst are in doubt whether the stimulus package can revive the ailing American economy.
Silver and Platinum also dropped, yet Silver remained constantly closed to the $14 level as market confidence sunk to one of lowest level in years.
Meanwhile local mining companies are bullish on shifting to gold production, Philex Mining Corp., the Philippines’ largest mining company, is now more focused on producing Gold than copper as the precious metal hits $1,000 per ounce.
With gold prices prices recovering from slump and copper costs falling to record lows – owing to “declining demand in the US and European housing and automobile industries," values of the company’s concentrate shipments have recently reversed.
“The company’s latest export now indicate that gold accounts for 72 percent of the concentrates’ value while copper accounts for only 28 percent," Philex said in a statement.
Gold values in Philex’s concentrate shipments have consistently outstripped copper values since the last quarter of last year, the company said.
“This trend is expected to remain as the world recession continues to hit the entire developed world and has begun to spill over into the developing world," the company said.
Besides being considered as a safe investment haven, gold is also considered as hedge against inflation, a commodity whose prices rise as major currencies fall. The precious metal “has been testing new price highs while copper, which is very dependent on housing and automobile markets have seen prices decline by more than half since its highs in 2008," the company said.
“Thus, Philex is a good “natural hedge" against base metal prices because gold prices are expected to stay up during this financial crisis and as the financial crisis subsides, gold prices are expected to soften while copper prices will firm up as the world recovers from depression," the company added.
Currently, the company is drilling and developing only gold properties and copper deposits with gold values (in dollars per ton of ore) higher than the dollar value of the copper in the ore. These gold/copper projects take at least three years to develop.
The company’s board recently declared a stock dividend of 25 percent to be presented for shareholders’ approval at the special meeting to be held on April 21, 2009.
Shares of Philex fell P0.30 to P5.10 during Wednesday’s trading at the Philippine Stock Exchange (PSE).
Silver and Platinum also dropped, yet Silver remained constantly closed to the $14 level as market confidence sunk to one of lowest level in years.
Meanwhile local mining companies are bullish on shifting to gold production, Philex Mining Corp., the Philippines’ largest mining company, is now more focused on producing Gold than copper as the precious metal hits $1,000 per ounce.
With gold prices prices recovering from slump and copper costs falling to record lows – owing to “declining demand in the US and European housing and automobile industries," values of the company’s concentrate shipments have recently reversed.
“The company’s latest export now indicate that gold accounts for 72 percent of the concentrates’ value while copper accounts for only 28 percent," Philex said in a statement.
Gold values in Philex’s concentrate shipments have consistently outstripped copper values since the last quarter of last year, the company said.
“This trend is expected to remain as the world recession continues to hit the entire developed world and has begun to spill over into the developing world," the company said.
Besides being considered as a safe investment haven, gold is also considered as hedge against inflation, a commodity whose prices rise as major currencies fall. The precious metal “has been testing new price highs while copper, which is very dependent on housing and automobile markets have seen prices decline by more than half since its highs in 2008," the company said.
“Thus, Philex is a good “natural hedge" against base metal prices because gold prices are expected to stay up during this financial crisis and as the financial crisis subsides, gold prices are expected to soften while copper prices will firm up as the world recovers from depression," the company added.
Currently, the company is drilling and developing only gold properties and copper deposits with gold values (in dollars per ton of ore) higher than the dollar value of the copper in the ore. These gold/copper projects take at least three years to develop.
The company’s board recently declared a stock dividend of 25 percent to be presented for shareholders’ approval at the special meeting to be held on April 21, 2009.
Shares of Philex fell P0.30 to P5.10 during Wednesday’s trading at the Philippine Stock Exchange (PSE).
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