VHGI Operating Divisions
VHGI Holdings ( OTCQB: VHGI) through its wholly owned subsidiaries VHGI Gold LLC, VHGI Energy LLC and VHGI Coal LLC and Medical Office Systems (MOS) has initiate steps to leverage the current bull run within the Gold and Precious Metal Mining and Energy Production Markets. While Gold is selling at historic highs; Oil & Gas continue to be trading at significant premiums as well and coal remains the dominant recourse necessary for approximately 77% of electrical generation in the world. Global economic events have created significant opportunities within these markets while assets if properly vetted remain available. VHGI continues to pursue these opportunities through Lease-Purchase opportunities, Property Acquisitions and Joint Ventures.
The US Dollar has fallen to the lowest level since July 2008 – just prior to the Lehman Bros' collapse – on its trade- weighted index. Crude oil rose to new 31-month highs.
This information should be carefully considered together with U.S. Fed Chairman Bernanke's remarks that were consistent with the current market forecast for no rate hikes for the foreseeable future.
The Fed's announcement was as expected," agrees the commodities team at Standard Bank. "[So] our view on gold remains the same...upside towards year-end is a strong possibility, given that real interest rates remain low, government borrowing is high and global liquidity though easing is still growing. "The tone from the Fed remains dovish," says Deutsche Bank's Daniel Brebner, speaking to Bloomberg, "resulting in further weakness in the US Dollar. "Inflationary threats may be seen to be building as the Fed continues to sit on the sidelines," says Brebner, pushing more money into silver and gold today.
At the same time Coal remains "KING" having many important uses worldwide. The most significant uses are in electricity generation, steel production, cement manufacturing and as a liquid fuel. Around 6.1 billion tonnes of hard coal were used worldwide last year and 1 billion tonnes of brown coal. Since 2000, global coal consumption has grown faster than any other fuel. The five largest coal users - China, USA, India, Russia and Japan - account for 77% of total global coal use.
In this macroeconomic environment including low interest rates, increased liquidity and fiscal policies are supportive of higher gold prices. The outlook for US inflation and interest rates is the key component of gold prices in the medium to long term.
We expect a continued slow US economic recovery to keep inflation rates low in 2011 and 2012 and lead the US Federal Reserve to maintain its short-term interest rate target rate to remain near zero. Continuing low US real interest rate scenario in 2011 and 2012 will likely allow gold prices to continue to rise higher during this period.
The overall outlook for GOLD, SILVER and OIL, NATURAL GAS and COAL remains strong and with our growing list of related assets we believe we are well place to make positive and profitable moves in the immediate future.
Our current Gold Mining opportunities are located in just outside of Prescott (in Yavapai County), AZ while we continue toward the purchase of a Coal Mining operations in Greene County, Indiana. We are also continuing our efforts t begin our drilling programs in North Central Tennessee. For more Information concerning these project please see Projects section of our web site.
