GOLD ETFS & GLD NEWS – Gold ETFs held steady Monday as the SPDR Gold Trust (GLD) rose 0.1% to $150.33 per share in morning trading. The stability in gold ETFs and GLD came as gold bullion’s safe haven status attracted investors amid escalating concerns over the sovereign debt crisis in Europe. With today’s rise in gold ETFs, the GLD extended its year-to-date gain to 8.7%.
While gold ETFs such as the GLD held firm, other precious metals turned lower amid-broad based liquidation on Wall Street. Silver tumbled 2.5% to $35.63 per ounce, while palladium slid 1.7% to $765.65 per ounce. Platinum, however, held up reasonably well, with just a 0.4% dip to $1,727 per ounce.
Platinum, which offers not just a hedge against ongoing currency debasement, but also provides exposure to emerging markets’ economic growth through its industrial component, has been the topic of a number of bullish reports by industry analysts. GFMS, the world’s leading metals consultancy firm, forecasted in its annual Platinum and Palladium Survey that platinum will be “comfortably north” of $1,900 per ounce by the end of 2011.
With regard to platinum, there is only a small set of publicly-traded companies around the world. Platinum Group Metals (PTM.TSX, PLG: AMEX) controls a large land package on one of the most prolific platinum-producing belts in the world. Since October 2008, shares of PLG have soared 194%, providing investors with substantial leverage to the platinum price.
This morning, Platinum Group Metals announced the appointment of Timothy Marlow to the Company’s Board of Directors. The Company noted that the Nomination Committee of the Board of Directors completed a process including a professional search with the objective of adding depth and operating mining experience to the Board of Directors.
R. Michael Jones, President and CEO and Platinum Group Metals, commented that “We are very pleased that Mr. Timothy Marlow has accepted our offer to join the Board as an independent director. He has more than 30 years of mining engineering and mine operating experience in North America, South America, Africa and Asia. He has held roles ranging from project engineer, services and maintenance superintendent, and general manager to Vice President of Operational Excellence for a multi mine group. He adds senior mine operational experience to our Board and I am looking forward to working with him as a Board member.”
Platinum Group Metals is in progress at the WBJV Project 1 with a $ 100 million investment for underground access, as part of a planned $ 443 million, 275,000 ounce per year platinum mine in South Africa. Project finance discussions with a large number of banks are advancing and a formal mining right application has been properly filed with the Department of Mineral Resources of South Africa.
With euro zone sovereign debt concerns remaining front and center, central banks have demonstrated that the primary policy response has included significant currency debasement. Investors have moved into gold ETFs, platinum, and other precious metals to protect against the inflationary consequences of these actions. With this trend unlikely to end anytime soon, gold ETFs such as the GLD, platinum, and other precious metals may continue to benefit.
Platinum Group Metals Expands Board of Directors
- Platinum Group Metals is in progress at the WBJV Project 1 with a $ 100 million investment for underground access, as part of a planned $ 443 million, 275,000 ounce per year platinum mine in South Africa.
- Project finance discussions with a large number of banks are advancing and a formal mining right application has been properly filed with the Department of Mineral Resources of South Africa.
- Timothy Marlow is a graduate of the Camborne School of Mines and is registered as a C.Eng, Registered Charter Engineer in the UK.
