Top 10 gold-producing countries in the world

A list of the Top 10 gold-producing countries in the world by kilograms.

Moneychoices.com has put together a great infograhic on where the world’s gold comes from. Here’s a list of the Top 10 gold-producing countries in the world by kilograms:

South Africa 272,128 kg
China 247,200
Australia 247,000
United States 242,000
Peru 203,268
Russia 159,340
Canada 104,198
Mali 85,411
Uzbekistan 84,000
Ghana 66,205

Who’s Got All The Gold and Who’s Mining It [Infographic]
[Source: Money Hacker]

Silvercorp Metals Inc. (NYSE:SVM): The Most Under-Bought Silver Stock on the Market?

If inflation does hit, expect to see Silvercorp Metals Inc. (NYSE:SVM) around its May peak of just under $9 per share.

All signs appear to be pointing to a bull market in metals as gold finished off a remarkable August, where it surged from $1,180 to $1,245 per ounce. Silver’s ride was less consistent. The metal rose from $18 to just under $19 per ounce, but it did most of it’s moving in the last week of the month.

With inflation fears held at bay by fear of a double-dip recession, you would think that investors would have give up on precious metals all together, but that’s not the case. Gold’s chart (see below) looks like it’s in the heart of a trend that will likely steepen once inflation becomes a reality.

30-Day Gold Chart

That brings us to one of my favorite stocks: Silvercorp Metals Inc. (NYSE:SVM). Trading at a P/E ratio of 26.85, Silvercorp would be appropriately valued if the threat of inflation didn’t appear to be around the corner. Throw that in the mix, and the Chinese metal producer could look like it’s trading at bargain prices a year from now. Indeed, the stock was recently upgraded by BMO Capital Markets, and it looks and heads and shoulders better than its competitors Silver Wheaton Corp. (NYSE:SLW), which is trading at a P/E of 42 and Pan American Silver Corp. (NASDAQ:PAAS), which is trading at a P/E of 28.

Even better than the upgrade? Silvercorp’s gross profit surged to $26.5 million in the quarter ending June 30. That’s better than the company has done in the past four quarters, and the stock maintained its dividend of $0.02 per share. That’s good for a 1 percent yield on top of any appreciation the stock might see. If inflation does hit, expect to see this stock around its May peak of just under $9 per share.

Lackluster day for gold stocks despite powerful market rally

Irrationality in the markets leaves gold stocks in the dust while driving up just about every other sector. The perfect short environment seems like it’s just around the corner.

The dollar dropped an average of roughly 1 percent against the Pound and the Euro. The Dow rallied 208 points (1.99 percent), and the FTSE was up 2.65 percent. What’s going on with gold? Despite an early surge on the New York NYMEX, the yellow metal spot price and corresponding stocks couldn’t keep pace with other equities. Here’s a handful of the most obvious underperformers in gold stocks:

  • Hecla Mining Company (NYSE:HL), +1.01 percent
  • Coeur d’Alene Mines Corporation (NYSE:CDE), +0.46 percent
  • Richmont Mines Inc. (AMEX:RIC), +2.12 percent
  • DRDGOLD Ltd. (NASDAQ:DROOY), +1.21 percent
  • Allied Nevada Gold Corp. (AMEX:ANV), +0.75 percent

The best performers were the international majors who are more tied to basic materials. Among them:

  • Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), +4.56 percent
  • Rio Tinto (NYSE:RTP), +5.26 percent

It appears better-than-expected earnings have created a micro-bubble, that could present some excellent short opportunities – particularly in the technology and basic materials stocks. In two weeks, earnings will taper off, and I expect reality to start setting in.

The ECRI, for instance, is pointing to a recession. Alan Greenspan’s calling for a double dip, and I’m try to free up capital and move into dividend stocks after my shorts blew up in my face today. I want to short at the top, and I think we’ll have that opportunity in the next two weeks – no matter what sector you’re in.

Things looking up for SPDR Gold Trust (NYSE:GLD)?

A mid-day pop in the SPDR Gold Trust (NYSE:GLD) could have been pointing to a good day today.

After the close of the New York NYMEX last night, the price of spot gold started a slow climb that might have been hinted at in yesterday’s mid-day pop in gold prices. The pop is evident in this five-day SPDR Gold Trust (NYSE:GLD) chart:

The jump in pricing occurred around the time the June retail sales numbers came in. The news was bad, of course, with a 0.5% decline. Negative sentiment in Asia seemed to be pushing gold prices higher.

“I’m bullish for gold, with the metal seen attempting to rise as far as $1,240 in the coming week,” Hong Kong’s director of Asia commodities Wallace Ng told Bloomberg Business Week. “Still, a major breakout to another record may be difficult for the present.”

Around 11:30 p.m. last night, the metal was trading at $1,211 up from an intraday NYMEX low below $1,205. A bevy of bad economic news may put further upward pressure on gold prices. The central tendency growth forecast was lowered to a range of 3 percent to 3.5 percent, U.S. industrial production will post a drop and China’s GDP is showing signs of slowing as the government there tries to rein in growth.

All that paints a gloomy picture for stocks and a rosy one for gold. If the stimulus isn’t working, after all, we’ll likely see a bit of deflation before governments are forced to inflate currencies in a malingering economic environment.