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Time magazine has an online article about gold this week, though I don't think it is in the magazine let alone makes it as a cover story. Remember that National Geographic recently did a cover story about nasty gold.


Is gold really the safest investment?


The longer gold goes without becoming a page one story then the higher it is likely to go in this cycle. I can't believe that the Fed has capitulated so easily on the USD so more volatility ahead (?).

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Total Gold in Trust

Tonnes: 1,084.33




Value US$:






Overnight GLD added yet another 15 tonnes.


Just be aware that the FOMC announcement was made during

electronic trading, and AFTER Comex closed, so the real reaction

may well occur tonight.


Question: Has the US abandoned the USD???


Another couple of repeat nights and USD1000 should be broken!!



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Laura---some will NEVER get it!!! This news should fire things up a bit, especially for those ASX gold miners ripe to be taken over- great pity I'm limited to buying $5000 of LGL at $3.00!!!



Newmont open to union with world's biggest goldminer

Jamie Freed

March 19, 2009 NEWMONT Mining is open to a merger with the world's largest goldminer, Barrick Gold, which would create a $US47.4 billion ($70 billion) industry behemoth with a market value larger than that of Rio Tinto.


In an annual investor briefing in New York on Wednesday Newmont's chief executive, Richard O'Brien, said there were potentially huge cost savings in combining their global operations, particularly in Nevada.


"If you can figure out how to share synergies, that is an obvious thing for us to have happen at some point," he said. "But it has been there in the middle of that table for a long time. It hasn't happened yet, so we'll see."


Newmont and Barrick each own a half share in the Kalgoorlie Super Pit and both have several operations in Australia.


Combined, they expect to produce more than 12.4 million ounces of gold this year, which compares with the 1.6 million ounces Australia's largest independent goldminer, Newcrest Mining, expects to produce.


Mr O'Brien said Newmont had held off on big acquisitions because large mergers were often accompanied by significant dilution of value unless there were material cost savings available.


"Generally, other than areas where we have overlap with somebody like Barrick in Nevada, which is right there in front of us, there really aren't a lot of synergies by combining operations that might be disparate around the world or disparate in a country."


Newmont, which has to work hard to replace its reserves each year, has long been deemed a potential suitor for Newcrest but has never made a bid. None of their Australian operations are adjacent to each other.


Mr O'Brien said Newmont was focusing on potential acquisitions with existing production. In the recent past it had looked more at development projects.


Newmont will soon operate Australia's largest goldmine, when its $US2.6 billion Boddington project is complete by the middle of this year. It has full control of the project since buying a one-third stake from AngloGold Ashanti for about $US1 billion this year.


Mr O'Brien said the successful completion of Boddington was the company's most important priority this year. "The mine will be a cornerstone of our operations in Australia, clearly with 1 million ounces per year plus.


"When we think of cornerstone ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¦ think how long we've been in business in Nevada and that we still are. This will be that kind of cornerstone for us."


Newmont has been reviewing the future of the Super Pit, its highest-cost operation in the world, for a year, and has not ruled out the possibility of a sale.


Newmont's head of operations, Brian Hill, said the miner was working with Barrick to determine the best way to optimise the mine's development.


"That work will go on this year and hopefully let us drive to a solution we can discuss towards the end of this year."


Mr O'Brien said there was "room to run" for the gold price, now trading at more than $US900 an ounce.


Source: The Sydney Morning Herald

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What happened at the peak of the other commodities?


BHP/RIO trying to merge


OXR takes ZFX




At the peak, the companies start taking each over right at the tops.


Funny how history repeats itself.

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Hmmm, I remember Newmont taking over Normandy 4/5 years ago.

I can recall Newmont taking over Franco Nevada back 2002,

Placer Dome took over AurionGold back in 2002/2003


One can go on and on and on, I think it might be wise to lift your shorts.


Major Gold takeovers usually happen prior to the next major run.

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