Caledonia Mining Corporation (CMCL)

[NYBob]

Gold: Summer Rally Time -
Stewart Thomson


June 3, 2014

Liquidity flows into or out of the “love trade” (gold jewellery) and
the “fear trade” (inflation and financial system risk), are
the two main drivers of the price of gold.

The strongest gold jewellery buyers are in India, and the election
of Narendra Modi has already unleashed a huge wave of confidence
amongst jewellers there.

‘Retailers added that the latest steps by the apex bank of
allowing banks to offer gold loans and permitting more entities
to import the precious metal were signs of encouragement.

This could drive up overall demand by 5% to 7% in 2014 from
last year’s level of 975 tonnes, said Manish Kedia, bullion
retailer.
Manoj Thakkar of bullion retailer Amrapali Industries said,
"The premium on gold has gone down from $110 per ounce to
$35 per ounce.
The prices too have come down after the Reserve Bank of India
provided conditional relief in gold imports restrictions by
allowing Star trading houses to import gold.

We are in for better times now."’ –Mineweb News, Mumbai,
June 2, 2014.

While El Nino could delay the arrival of India’s monsoon season
by one or two weeks, an end to the import restrictions
could unleash a tremendous amount of pent-up demand,
more than offsetting the lost crop revenues.

In the big picture, foreign investment is pouring into India.
Last night, India’s central bank announced policy guidance,
suggesting inflation will moderate and GDP growth will improve.
As the economy strengthens, spirits are high, and
this bodes well for the gold jewellery business during
the second half of 2014.

In America, home of the world’s largest gold fear trade,
signs of inflation are beginning to appear.
The Fed uses an eight year business cycle, and the last few years
of that cycle tend to be when inflation appears.

The US economy is entering the tail end of the business cycle now.

On that note,
please read low cost hold producer now -

Caledonia Mining Corporation (CALVF) Estimate Average Target Price -

http://www.marketwatch.com/investing/stock/CALVF/analystestimates



http://www.caledoniamining.com/pdfs/CALPres-05062014.pdf

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God Bless


Ps. Note.
Gold consumption in India, @ current the world’s second-largest user,
will probably increase in the second half as import restrictions
are relaxed by the new government, according to
the World Gold Council.

Demand may climb as high as 1,000 tons this year,
said Somasundaram P.R., the managing director for India.
That compares with 974.8 tons in 2013 and
a record of 1,006.3 tons in 2010, according to data from
the London-based WGC.
Imports plunged 52 percent in the first quarter from a year
earlier, because of import restriction and bolshevistic
high banksters gov. nwo 666 taxes - said in a report.