Gold Demand on the Upswing -- North Springs Resources and MineFinders Corp Poised to Benefit
22 February 2012 - 12:20AM
Marketwired
Gold stocks have been on a tremendous run in 2012 with precious
metals demand showing no signs of slowing. The Market Vectors Gold
Miners ETF (GDX) is up more than five percent this year, while the
Market Vectors Junior Gold Miners ETF (GDXJ) is performing even
better -- up more than 12 percent in 2012. Five Star Equities
examines the outlook for companies in the Gold industry and
provides equity research on North Springs Resources Corporation
(OTCBB: NSRS) and MineFinders Corporation Ltd. (NYSE Amex: MFN)
(TSX: MFL). Access to the full company reports can be found at:
www.fivestarequities.com/NSRS www.fivestarequities.com/MFN
Earlier this month the World Gold Council (WGC) said in its
quarterly Gold Demand Trends report that gold demand hit 14-year
highs in 2011, driven by record investment and buying in China,
which could overtake India in 2012 as the world's top consumer.
Total demand for gold in China in 2011 rose 20 percent to 769.8
tons, driven by jewelry and investment demand, compared with a 7
percent fall in demand in India to 933.4 tons as a result of
volatile gold prices and a weak rupee.
Meanwhile gold mine output reached a new annual record of
2,809.5 tons last year, marking a 4 percent rise on 2010, while
recycling fell 2 percent on the year to 1,611.9 tons.
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The WGC reported that the gold producer hedge book increased for
the first time in a decade last year, with 18 tons of hedging added
to the estimated outstanding global hedge book of 158.0 tons. "2011
was noteworthy for being the first year of net producer hedging
since 1999. However, absolute levels of hedging remain
insignificant and are likely to fluctuate around zero over the year
ahead," the WGC said.
MineFinders is a precious metals mining and exploration company
and operates the multi-million ounce Dolores gold and silver mine
in Mexico.
North Springs Resources Corp. focuses on the evaluation,
acquisition, exploration, and development of mineral resource
properties, primarily precious metal properties in Nevada.
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