The economy on a global scale is still very uncertain in light of the pandemic and heightened tensions between the East and the West. Precious metals price movements could be a great indicator to analyze the current global situation.
The remains of Grass Valley’s Idaho-Maryland Mine, a relic from the town’s gold mining past, are about to be reopened. The mining corporation Rise Gold purchased the mine in 2017. The company has reasons to believe that reopening the mine would make financial sense.
The mine was shut down in 1956, because of economic policy, not because there were no gold left to mine. 1944 Bretton Woods Agreement had established a new international monetary system to create stability in exchange rates. As a result, the price of gold was fixed at 35 USD per ounce – gold mining became unprofitable in the US at that time.
Rise Gold mining believes that mining in the US could become profitable once again.
Gold mines are about to reopen in our neighbor country Finland after years of dormancy. The Pampalo mine in Ilomantsi has been paused several times over the years. The last time the Pampalo mine was shut down was in 2018, but now they have reopened.
In Finland there are 4 operating gold mines today:
Reopening gold mines could be a strong indicator of potential long-term spikes in gold prices. Some investors see the gold price to reach 6000 USD per ounce.
*Red lines are downtrend. The heavy red line is the long-term trendline.
*Green lines are uptrend. The heavy green line is a long-term trendline.
*Blue lines are short term support & resistance lines
(Picture 1. Trendlines / Support & Resistance)
(Picture 2. Moving Average & RSI)
Disclaimer: This article is for informational purposes only and is not intended as an investment analysis or recommendation to sell or buy commodities. Tavex is not responsible for any decisions made based on this information. Investing is associated with opportunities and risks, and the market value of commodities can both increase and decrease. Past or future yields on the commodities and financial ratios shown above do not represent a promise or an indication of future earnings.