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Osisko Metals Inc V.OM

Alternate Symbol(s):  OMZNF

Osisko Metals Incorporated is a Canadian exploration and development company creating value in the critical metals sector, with a focus on copper and zinc. The Company owns a 100% interest in the past-producing Gaspe Copper mine. The Gaspe Copper mine is located near Murdochville in Quebec's Gaspe Peninsula. In addition to the Gaspe Copper project, the Company is working with Appian Capital Advisory LLP through the Pine Point Mining Limited joint venture to advance the past-producing zinc mining camps, the Pine Point project, located in the Northwest Territories. The Pine Point project is located on the south shore of Great Slave Lake, Northwest Territories, close to infrastructure. Its Mount Copper Expansion Project hosts the undeveloped copper resource in Eastern North America. The Company also owns a group of 199 claims adjacent to its Gaspe Copper Project. The claims cover additional ground near the Gaspe Copper project.


TSXV:OM - Post by User

Bullboard Posts
Post by landlubberon Dec 03, 2010 9:40pm
541 Views
Post# 17799821

Escalation of China Gold Demand

Escalation of China Gold Demand

Lear Capital: Escalation of China Gold Demand

It seems breaking news regarding escalating Chinese gold demand ishaving a hard time keeping up with the pace in which Chinese gold demandis escalating. Everywhere I turn it seems that topic headlines much ofthe breaking gold news. I found something, though, that may put alittle different perspective on the topic.

It's been about 4years since China relaxed rules for gold ownership by its citizens. Atthat time, reports estimate the size of the middle class population ofChina was 18% of its total - about 180,000,000. Evidence shows it isthe middle class that is purchasing gold at the behest of government toprotect against the devaluation of foreign currencies.

Today thatnumber is estimated to have risen to 230 million which may well accountfor China's fivefold increase in gold imports throughout the first 10months of this year. Here's where it gets interesting. The size of themiddle class population is expected to rise to 600 million by 2015.That's 100 million people per year. If each of those newly dubbedmiddle class buys just one ounce of gold next year, that amounts to morethan 300 tonnes of new gold demand. At today's prices that amounts toan additional $140 billion.

Last year, Chinese gold imports camein at 45 tonnes. Compare that to 209 tonnes in the first 10 months ofthis year and you see one big reason gold prices are up over 27% so farin 2010. I am sure it is safe to conclude that even without a new batchof middle class making their way to prosperity, China gold demand willgrow regardless. This just adds to the pressure.

And if thisisn't enough to evidence why the gold bull market has longer legs than aVictoria Secret Angel, consider this statement found today in another Bloomberg article highlighting Chinese gold demand.

"Chinashould consider adding to its gold reserves as a long-term strategy topave the way for the yuan's internationalization, central bank adviser Xia Bin wrote in the China Business News today."

AsI pointed out in yesterday's article, a shift of just one percent ofU.S. Household assets to gold would bring an additional $422 billion ofdemand to the gold market. We've already gone through periods where theU.S. Mint has had to announce they are out of gold. Look for similarannouncements in days or months to come.

https://www.ibtimes.com/articles/20101203/lear-capital-escalation-of-china-gold-demand.htm


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