Continent, where are the nuggets of giant


This was allowed to cover the emerging deficit. Factors shaping the evolution of the gold market in the last two decades, seems to continue to operate. Demand from the jewelry industry, as in a mirror, reflects the growth of financial income related to economic growth. Gold mining remains an important factor in the global supply, but production is slow to respond to the decline in real prices. So that in the medium term, production does not have a major impact on prices. Recharge comes from the reserves of the central banks (through sale and loans) and private reserves.

Reduction of official gold reserves found itself two decades ago, but that in recent years this process gained momentum. Decline in real prices for the metal, the possibility of higher returns at relatively low risk support this trend in developed countries. In Europe, the current situation in the medium and long term will lead to the elimination of a large part of central bank reserves. The likely to continue strong sales of gold by the official sector and low inflation suggest that real prices will continue to decline until 2005. In many Asian countries - India, Thailand, China - gold is widely used in religious and social celebrations. And it is clear that developing countries gold is still seen primarily as a repository of financial value.

Buy coins and bars

Gold is used in many areas. Each year, about 600 tons is given to the medical, telecommunications and other industries. Gold is difficult to break, and thus it is very flexible. It clearly reflects the warmth and non-toxic. All of this suggests that the potential areas of application of this precious metal will only expand. For these reasons, the importance of gold as a financial product has declined. Nevertheless, it still is regarded as a reliable financial support. For many, gold ownership is preferable to, for example, government securities. So many people around the world hold their savings in gold bars and coins.

Bars and coins are one of the most attractive investment instruments. Other instruments of investment in the precious metal are numismatic coins (as opposed to the accumulation of coins), futures, options and shares of gold mining. Interesting fact the last time - the Malaysian government decided to make the standard gold bars and coins. By adopting this solution, Malaysia was in this area was the first among developing countries. According to the Prime Minister of Malaysia, Mahathir Mohamad, Malaysian coins quality comparable with the famous American Gold Eagle, South African Krugerrandom, Filamonikerom Austrian and Canadian gold maple leaf. In mid-January last year, the first Malaysian coins went on sale.

"Loco London" in Sydney

Most of the gold trade is realized through the spot or futures. Spot sales in the markets, "the counter" are carried out under the terms of delivery and payment, within two working days after the conclusion of the contract. Initially, this type of trade was named "Loco London" - gold supplied to the British capital for the members of the London bullion Market Association. Today the "Loco London" is sold in many other shopping centers. In Asia, the main centers where professional dealers operate on "Loco London" are Hong Kong, Tokyo, Sydney and Singapore. Prices are usually set against the American dollar. The most important futures markets are located in the U.S. and Japan. Auctions are held, respectively, in the COMEX, division of the New York Mercantile Exchange (NYMEX), and the Tokyo Commodity Exchange (TOCOM). It also sold options on gold futures.

Gold industry was the most important area of investment in Australia for 150 years. It remains so with the advent of the new millennium. In the 80 years of the gold mining industry in Australia has received the necessary working capital in the securities markets. However, in 90 years this trend has changed, and now there is a movement towards industry with more funding, based on debt, which exceeds the flow of funds generated by the industry itself.

This means that small companies in recent years suffered from a lack of working capital. Receive significant funding through the sale of shares was typical of the late 80's - early 90's. Later, these revenues have decreased dramatically. And the larger producers decided: the issue their securities at a low price, it is better to borrow. This trend is likely to be maintained in the future. Now the country's gold industry debt of 1.7 billion Australian dollars (two years ago - 2.2 billion). Limitations of credit markets may make it difficult in the near future further increase debt. This, and the limited opportunities for capital on the stock market inevitably leave the industry in the coming years based on its internal cash flow and look for more efficient ways of investment.

A global player

In late 2000, the Australian Gold Council published a review of 200 producers, hunters and service structures working in the industry. On the basis of this unique analysis led to the following conclusions. Australian gold mining industry spends about $ 4.5 billion on capital projects, exploration of new deposits and the actual production. Manufacturers expect growth of spending by 11% relative to the level of 2000, which at the beginning means increased cost gold producers by $ 340 million. In rural areas is expected to increase spending by 49% to more than $ 1 billion is also expected that employment would grow by 2.3%, more than 16 thousand jobs.

The gold industry is investing across Australia, including those in remote parts of the continent - in Queensland, the Northern Territory and much of Western Australia. Together with investments introduced by gold miners annually, a study of the gold reserves cost of $ 500 million.

We can say that gold mining in Australia in recent years has become a global player (Table 3). Here are the positive impact of rationalization and consolidation. While the Australian mining companies are too small in comparison with their counterparts in North America and South Africa, but the answer is not far off.

Another challenge facing the industry is seeking new investment opportunities. Funds are required for the development and replacement of the currently used resources. At the same infrastructure and services in the gold sector in Australia - one of the best on the continent.