Gold Alert: Why 2011 Could Be “Year of the Deal” for Companies Like (LODE, NOX, SLGLF) Selling Gold a “Huge Mistake”

(EMAILWIRE.COM, December 03, 2010 ) San Diego, CA - The steep increase in gold prices has created different opinions on the future of the world's favorite metal. Naysayers are quick to quip that the bull rally is over.

Not so fast. As stated in an article by Market Leader on November 25, 2010 -- a 24% increase in the price of gold didn't stop George Soros, John Paulson, and Paul Touradji from buying it in droves. Data provided by the SEC indicates the biggest volumes of gold were bought by Soros Fund Management LLC, Paulson & Co. and Touradji Capital Management LP. Even more telling: the total volume of gold owned by the three companies is a hefty 2,088 tons. That startling figure roughly equals the volume produced by the USA in the last ten years!

It's difficult to even fathom how much gold that is. Assuming 2,000 pounds per ton at $1,400 USD per ounce -- or 66,816,000 ounces of gold -- the current market value would equate to approximately $9,354,240,000. Talk about hedging inflation.

Speaking of inflation, an extra $600B into the US economy through placing government bonds may not be completely reflected in gold's price. Since the Fed has constantly been reducing interest rates

while the credit markets dry up -- Gold has maintained a steady incline, while the S&P has lost about 20%. Many experts believe the "Quantative Easing 2 program" which includes the $600B in bonds will only accelerate Gold's uptrend.

It's no wonder why Canadian miners are predicting that 2011 will be the "year of the deal." Major companies and financiers that are sitting on cash could spur a flurry of activity, especially in the junior mining sector. Many predict new J/V agreements, expanding reserves, and new companies entering production.

Per an article on December 1st, 2010-- Brenda Bouw of Mining reporter writes that nearly three-quarters of Canadian mining executives say they will likely pursue deals in 2011, citing a survey by consultant KPMG, LLP. The survey shows that a full 70 percent of Canadian miners will pursue acquisitions next year, and only 8 percent said it was not in their plans. The majority of respondents also said they expect the next major area of mining consolidation will be in gold and precious metals.

Silverado Gold Mines Ltd. (OTCBB: SLGLF), headquartered in Vancouver with impressive properties and mining claims in Alaska, could be one junior miner that benefits from the corresponding increase in Gold prices. Silverado Gold Mines is traded under the symbol SLGLF on the OTC Bulletin Board. Trading below a penny as of this editorial, Silverado has completed pre-feasability analysis on Nolan Creek, and currently seeks to enter production.

Another interesting junior miner in the North is NioGold (TSX: NOX), who recently announced a $6,000,000 bought deal.

With the flurry of activity surrounding gold, and macro-economic climate favoring a longer-term bull rally -- savvy investors are likely to keep a keen eye on Canada, and all the junior miners like Silverado Gold Mines Ltd. (OTCBB: SLGLF).

Related Articles:

Gold Prices Close in on $1400 – Gold prices were climbing to $1400 on US Dollar Weaknesses and Continued Eurozone Debt Worries

http://finance.yahoo.com/news/Gold-Prices-Close-In-on-tsmf-698142207.html?x=0&.v=2

Mineweb.com – Selling Gold a Mistake

http://www.mineweb.com/mineweb/view/mineweb/en/page103855?oid=115811&sn=Detail&pid=110649

Market Leader – “Gold bubble” or secret of successful investment from George Soros

http://www.profi-forex.us/news/entry4000000492.html

TAGS: Silverado, Gold, Gold Stocks, Penny Stocks