MESA, Ariz., Sept. 1, 2010 (GLOBE NEWSWIRE) -- B2 Digital, Inc. (Pink Sheets:BTDG) would like to update its shareholders by commenting on the global precious metals, base metals, and industrial mineral areas.
Current Market and Economic Conditions
During the past 12 months the price of silver and gold has continued to rise from its lows of 2008 with gold and silver up approximately 30% and 34%, respectively on a 12 month basis as of early August. Both metals remain near their highs of late 2009 of $1,200/oz gold and $18.50/oz silver. Since 2005 the price of silver has had a 95% correlation to the gold price but with larger percentage swings both to the upside and during corrective periods. Prior to the 2008 markets the silver to gold ratio was an average of approximately 55:1 for many years suggesting that silver may be undervalued relative to gold at the current level of 65:1, based on gold at $1,200/oz and silver at $18.50/oz.
The fundamentals for both silver and gold appear strongly supportive for higher prices based on global monetary factors, and especially in terms of the investment demand both metals have seen over the past several years in all forms including Exchange Traded Funds (ETF's), bars and coins. Silver has the dual attributes of both an industrial metal and a hedge against inflation similar to gold. As a result, investment demand has increased significantly driving the price forward in the face of a weak economy. The increased use in industrial applications ranging from biomedical to high technology is notable as it has become an increasingly larger percentage of the total annual demand. Up until the recent global economic crisis, industrial demand for silver had risen consistently on an annual basis over the 6 year period starting from 2002. Total global silver supply peaked in 2005 and has been flat to falling since that year. With an anticipated rebound in industrial demand as the global economy comes back to life, the fundamentals look quite bullish for higher silver prices with a return to growing industrial demand coupled with continued strong investment demand and flat to falling total global supplies of silver.
Most gold and silver related equities have traded down to sideways since the short term highs in May along with the actual metals, with many of the equities appearing to have recently established solid bases and looking to move higher as they move toward the more bullish fall season for precious metals. Equity prices of many exploration and development-stage companies have continued to remain more volatile than the larger producers and generally lower relative to historical levels.
We believe the current trend in precious metals, base metals, and industrial mineral areas provide a wide range of opportunities for both Castle Creek and B2 Digital, Inc. shareholders and have modified our business plan accordingly.
About B2 Digital
B2 Digital is a technology development company with interests in various media sectors involving the use of B2 Digital's technology development experience, which is dedicated to shareholder value through the acquisition and development of promising 21st century businesses, within the technology sector and outside of the technology sector. More information on B2 Digital can be found at http://www.b2digital.us.
About Castle Creek Silver
Castle Creek's strategy is to become a mid-tier silver producer through an aggressive acquisition and development plan focused on advanced-stage projects with known silver resources exhibiting potential for expansion. Castle Creek Silver is primarily focused on pursuing early and advanced stage silver-based opportunities in North America, South America, and Mexico. More information on Castle Creek Silver can be found at http://www.castlecreekmining.com.
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risk and uncertainties, including but not limited to those detailed from time to time in the Company's filings with Pink Sheets.com. Mining projects are subject to numerous risk factors including changing regulations, volatile commodity prices, and other factors that may preclude production should commercially viable reserves be established on property and exploration plans dependent on funding and approval of any required permits. Please review on www.pinksheets.com as posted: July 29, 2010, Exhibit 1.02, Page 1 "Risk Factors".