As the dollar hit a two month low versus the euro on Monday, February 26th, and oil resumed its climb upward from $61 a barrel, gold hit a nine month high of $685.80 per ounce and has many seeing its magical $700 mark within reach.
Since early January, gold has risen some 14.5%, leaving it only about $45 away from last year’s 26-year high of $730. The falling dollar combined with rallies in other commodities such as oil and base metals have also served to enhance the appeal of investing in gold.According to London-based Central Banking Publications on Monday, a survey conducted among 47 central banks resulted in almost nine out of ten banks stating that they see “ample scope for further currency and asset diversification of foreign exchange reserves,” thus holding a favorable view of investment in gold.
Gold has long been deemed as a safe haven for investors. Because it is an investment that retains its value even in uncertain economic times, gold is comforting to those investors who are concerned over plunging share prices or failures in other industries. Many prognosticators point to gold’s steady climb in value over the past five to ten years as a big reason for believing that gold will continue to rise in value, surpassing the $700 mark by the end of March. Some even predict that it could reach $1000 per ounce by the end of this year. The fact is that the price of gold has kept pace with inflation for around 200 years or so, and it is with good reason that gold has long been deemed as a safe haven for investors. Because it is an investment that retains its value even in uncertain economic times, gold is comforting to investors who are concerned over plunging share prices or failures in other industries.
Gaia Resources, Inc., an early development stage Nevada mining traded on the OTC pinksheets has recently formed a wholly owned subsidiary in the State of Arizona known as Gaia Exploration, Inc. (GIAS.PK) for the purpose of holding mining assets attributed to its gold mining operations within Arizona. The formation of Gaia Exploration, Inc. was a necessary step in acquiring the rights to 482.66 acres of prime mining claims in Cochise County, Arizona (MHF property) as well as future acquisitions of prime targeted areas.
The MHF property is south of the famous Commonwealth Mine that is located in Pearce County, just east of the Dragoon Range. Following finalization of this acquisition Gaia plans to begin an aggressive drilling and bulk sampling program on the targeted property, commencing this spring. The MHF property has access to water and electricity which will speed up the time to set up exploration. One of the key properties that Gaia is positioned to acquire was once held by the Santa Fe Pacific Gold Corp. in Cochise County. This property is adjacent to the Mexican Hat Property, which has drill indicated reserves of approximately 400,000 ounces. Placer Dome spent over 1.9 million dollars conducting these tests in the nineteen eighties. Gaia has established a working relationship with Thunder Gulch Resources Ltd [TGR] that holds options on several other sections in the immediate area which also show high potential for development.
Thunder Gulch Resources Ltd. Principal, Norm Pearson, Gaia’s Senior Consultant/Project Manager, has over 30 years experience in the mining business as an operator, prospector and trouble shooter. According to Pearson, the area is an excellent target and should be drilled and trenched for hard rock gold, and also evaluated for the alluvial or placer gold that is present. There have been recent discoveries and current operations in the surrounding areas north, south, east and west of these properties.
Needless to say this is a prolific region, and Gaia has projects situated in close proximity to numerous known deposits. The Commonwealth Mine, just north of the MFH Property, was said to be one of the richest mines ever found in Arizona. Gaia is currently reviewing areas throughout the United States along popular trends in Arizona, Nevada, California, Oregon, and Alaska. Locations in British Columbia, the Yukon Territories, and in South America are also being reviewed.
Disclosure: The author has no position in any of the above-mentioned securities.