Kyodo Securities More Gold Mining Mergers Ahead

Online, December 10, 2010 (Newswire.com) - Kyodo Securities believes that junior mining acquisitions may be about to surge as the price of gold approaches new nominal highs.

James Debden, senior vice president of M&A at "Kyodo Securities", told investors gathered at a recent mining convention, that current production levels were unable to meet demand from the investment community and jewelers and that larger operators were becoming more predatory towards junior miners. He added that this activity could earn significant profits for those exposed to certain junior mining companies.

China recently announced that it had imported five times as much gold in the year to October 2010 than it had in 2009 in order to satisfy demand from investors seeking a hedge against inflation which is rumored to be far higher than the official rate of 4.4%.

A "Kyodo Securities" analyst said, "The Chinese authorities have advocated gold and silver as "good investments" to their citizens and it appears that their advice has proven correct. Silver has gone through the $30 an ounce mark and gold is well over $1400 an ounce."

The firm is keen to point out that the current bull market in precious metals is not a "one-way street" and that clients exposed to them should expect corrections in the price from time to time.