How to Maximize Your Money in the Gold and Silver Bull Markets: The gold and silver markets will likely perform well in 2017 as a whole. However, the weakness of the U.S. dollar will undermine the prospects for profits in some of the bullion producing regions. The dollar is expected to weaken as the U.S. economy performs better and the Federal Reserve makes more significant increases to its asset purchasing programs. This will lead to higher prices for the U.S. dollar, which will potentially favour the gold and silver market and will do so over a period of time. Consequently, the following companies will benefit most from the strengthening of the U.S. dollar in 2017.
Let us start with El Dorado Gold Corporation, which is a South American mine that offers investors the opportunity to obtain gold at the most attractive price. El Dorado Gold Inc. (NYSE: ELD ), which is headquartered in Johannesburg, South Africa, is a wholly owned subsidiary of South African mining company Randgold Resources Pty Ltd. (NASDAQ: RNG). ELD was incorporated on June 19, 2000 and was registered as a Limited Liability Company under the South African Securities Act in 2000.
According to Bill Oreilly El Dorado Gold’s major asset is its current presence in Colombia, where it owns some 5,000 tons of gold. In Colombia, the gold is stored in the Rocio gold mine, which is under the ownership of IGLH Solares S.A., the mining company formerly known as Metalor Goldcorp. The company is also involved in extracting copper from the gold mine in Peru. According to statistics from Randgold Resources, the amount of gold extracted from the Rocio mine in 2016 was about 220 tons, while about 130 tons of the gold was shipped to London for an estimated value of $9.4 million. In Colombia, the company also generates some $1 billion of income. From the current gross reserve of 3,000 tons, approximately 1,000 tons are being shipped annually to London for a proposed value of about $700 million.
As long as the gold industry remains strong in Colombia, El Dorado Gold is probably well positioned to surpass the gold price performance of other companies in the company’s portfolio. The company has a 5.5% invested holding in Silver Sky Gold Mines Inc. (SLSM), which is one of the gold companies that are located in Chile. The project is operated by the Intuviation Operators and Transport (IOT), with the aim of preparing the area for mining of some 3,000 tons of gold. The gold mine is located north of Chile’s Antarctic Peninsula, near the Chilean-Swedish border and about 125 km north-west of the northern Patagonian city of Aysen. At RareMetalBlog you can find all about Gold IRA.
El Dorado Gold, like many other gold mining companies, is also actively involved in extracting copper from the Silver Sky mine in the area known as Patagonia Patagonica. This mineral deposit, approximately 150 km north-west of the Chilean border, is approximately 110 km wide, as well as 12 km deep, and is mainly located at high altitudes near 1,500 meters above sea level.
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