| 05/28/2023 10:15 PM Current Market Spot Prices: | Gold: $1,945.80/ozt | Silver: $23.27/ozt | Platinum: $1,044.88/ozt | Palladium: $1,468.48/ozt |
Sunday, October 30, 2011
Acid Testing For Authenticity
Gold is one of the most popularly traded metals on an international basis and now more than ever, eyes are focused on the precious metal. While other investments have incurred losses due to the uncertainty and upheavals in the market, gold has remained fairly stable. Gold has become one of the most reliable investments available today. It has become the top choice of investors because of its ability to make money. People opt to invest in gold when they come to know and understand the unique facts about gold. But there are times when one finds that they have bought a fake metal when it is tested for authenticity. This is a risk associated with gold as an investment and can lead to huge losses.
A gold buyer can check gold purity at home without much trouble. The acid test is the most popular of the several methods used for gold testing. A number of acids are used in this test but the most common are nitric acid and hydrochloric acid. When acid methodology is used, the sample will change colour to green if it contains copper and will not react at all if it’s pure gold.
A local chemical lab or a chemical supplier can be used to procure the ingredients to perform this test. In addition, people can also buy a dropper along with the acids to make their handling easier. The dropper is very useful during the testing because the acids are corrosive and hazardous in nature. For safety reasons, people should utilize protective clothing. In order to perform the test, people need to make a scratch on the gold sample which has to be tested.
Ten seconds should be given to allow the sample to react to the acids after they have been applied. The sample should be cleaned properly to remove the chemicals remains of the acids. When people have to do a retest, this should be done immediately. Otherwise, the leftover residue might create confusion and not give discernible results. The sample can be washed with water for proper cleaning.
Professionals who offer gold assay services to the public make use of this particular method for gold testing. Both, a gold buyer and refiner can use this acid testing method for checking their gold purchases. When people wish to test authenticity of gold which they are purchasing, it is better to use the services of a well reputed refiner or tester. Premixed acid kits are also available for people who wish to avoid handling acids. These kits are available on the internet and can be used by amateurs. When you apply it on your gold, you will discover how accurate the gold acid test can be.
A gold buyer can check gold purity at home without much trouble. The acid test is the most popular of the several methods used for gold testing. A number of acids are used in this test but the most common are nitric acid and hydrochloric acid. When acid methodology is used, the sample will change colour to green if it contains copper and will not react at all if it’s pure gold.
A local chemical lab or a chemical supplier can be used to procure the ingredients to perform this test. In addition, people can also buy a dropper along with the acids to make their handling easier. The dropper is very useful during the testing because the acids are corrosive and hazardous in nature. For safety reasons, people should utilize protective clothing. In order to perform the test, people need to make a scratch on the gold sample which has to be tested.
Ten seconds should be given to allow the sample to react to the acids after they have been applied. The sample should be cleaned properly to remove the chemicals remains of the acids. When people have to do a retest, this should be done immediately. Otherwise, the leftover residue might create confusion and not give discernible results. The sample can be washed with water for proper cleaning.
Professionals who offer gold assay services to the public make use of this particular method for gold testing. Both, a gold buyer and refiner can use this acid testing method for checking their gold purchases. When people wish to test authenticity of gold which they are purchasing, it is better to use the services of a well reputed refiner or tester. Premixed acid kits are also available for people who wish to avoid handling acids. These kits are available on the internet and can be used by amateurs. When you apply it on your gold, you will discover how accurate the gold acid test can be.
Friday, October 28, 2011
Gold Stocks Push TSX
Gold stocks pushed the Toronto stock market slightly higher Friday while commodity prices stepped back as relief over an agreement to deal with the European debt crisis faded.
The S&P/TSX composite index was 25.87 points higher to 12,491.31 while the TSX Venture Exchange was off 2.27 points to 1,612.53.
The Canadian dollar was down 0.52 of a cent to 100.36 cents US after closing above parity with the American currency Thursday for the first time since Sept. 20.
U.S. markets were also weak as the Dow Jones industrial index stepped back 18.61 points to 12,189.94. The Nasdaq composite index was down 8.8 points to 2,729.83 and the S&P 500 index lost 4.41 points to 1,280.18.
Global stock markets racked up solid advances Thursday after eurozone leaders unveiled a plan to cut Greece’s debt, increase the firepower of the continent’s bailout fund to €1 trillion euros and strengthen the region’s banks, partially so they can sustain deeper losses on Greek bonds.
The TSX jumped 279 points while the Dow industrials surged 339 points.
However, investors stepped back Friday after analysts raised questions about the lack of detail in the plan.
Confidence was further undermined after Italy saw its borrowing costs rise in a sale of €7.9 billion in sovereign debt. The interest rate demanded by investors to lend the Italian government 10-year money topped six per cent, surpassing the 5.86 per cent rates paid a month ago.
Italy has seen its borrowing costs rise under pressure from Europe’s sovereign debt crisis. The European Central bank for weeks has been buying Italian bonds to keep rates at manageable levels.
The gold sector was ahead 0.74 per cent while December gold was $5.70 lower to US$1,742 an ounce. Goldcorp Inc. improved by 95 cents to C$48.80 while Barrick Gold Corp. fell 99 cents to $49.60.
The S&P/TSX composite index was 25.87 points higher to 12,491.31 while the TSX Venture Exchange was off 2.27 points to 1,612.53.
The Canadian dollar was down 0.52 of a cent to 100.36 cents US after closing above parity with the American currency Thursday for the first time since Sept. 20.
U.S. markets were also weak as the Dow Jones industrial index stepped back 18.61 points to 12,189.94. The Nasdaq composite index was down 8.8 points to 2,729.83 and the S&P 500 index lost 4.41 points to 1,280.18.
Global stock markets racked up solid advances Thursday after eurozone leaders unveiled a plan to cut Greece’s debt, increase the firepower of the continent’s bailout fund to €1 trillion euros and strengthen the region’s banks, partially so they can sustain deeper losses on Greek bonds.
The TSX jumped 279 points while the Dow industrials surged 339 points.
However, investors stepped back Friday after analysts raised questions about the lack of detail in the plan.
Confidence was further undermined after Italy saw its borrowing costs rise in a sale of €7.9 billion in sovereign debt. The interest rate demanded by investors to lend the Italian government 10-year money topped six per cent, surpassing the 5.86 per cent rates paid a month ago.
Italy has seen its borrowing costs rise under pressure from Europe’s sovereign debt crisis. The European Central bank for weeks has been buying Italian bonds to keep rates at manageable levels.
The gold sector was ahead 0.74 per cent while December gold was $5.70 lower to US$1,742 an ounce. Goldcorp Inc. improved by 95 cents to C$48.80 while Barrick Gold Corp. fell 99 cents to $49.60.
Wednesday, October 26, 2011
BBB Awards 2011 Torch Award To KMG Gold
For the second year in a row, KMG Gold Recycling recently won the 2011 BBB Torch Award for marketplace excellence, truth in advertising, honesty and ethics.
KMG Gold Recycling - a international buyer and refiner of precious metals based in Winnipeg, Manitoba – credits its focus on transparent pricing and top-notch customer service with cementing its reputation as the industry's most “trusted” gold buyer. KMG Gold purchases gold, silver, platinum and diamonds from consumers throughout Canada and the United States through their website business (www.kmggold.com),
KMG has direct to the refinery shipping outlets in Sacramento California, Edmonton Alberta Canada and also at participating The UPS Stores® locations in Vancouver, Burnaby, Surrey, Kamloops, Winnipeg, and Calgary, Canada. Shipping direct to the refinery will always net the customer the most money for their gold, platinum and silver.
The gold buying industry, spurred by skyrocketing gold prices, has come under the media microscope. But, by conducting its business with a high level of honesty and integrity, KMG Gold has distinguished itself from the pack.
“Our transparent business practices and superior customer service wins us a loyal following,” says Michael Gupton, founder of KMG Gold. “We pay more money than all of our competitors and post our prices every day on our website. We lead the industry by providing Canada's only precious metal shipping insurance, a written evaluation and offer to purchase.” And, adds Gupton, “Our new website lets consumers browse and see the prices we pay and what we buy. It helps consumers have a better idea of the value of their own items before they send their gold to us.”
Gupton, a 25+ year gold industry veteran and published author is often tapped by consumers advocacy groups and charitable organizations to speak about gold and gold value.
“At KMG Gold, we believe strongly in educating consumers about the value of their gold. The more information the consumer has, the less likely they will be misled by dishonest dealers,” says Gupton. “We provide a extensive range of information on our website and have an excellent customer service team to quickly respond to emails and phone calls.”
KMG Gold Recycling - a international buyer and refiner of precious metals based in Winnipeg, Manitoba – credits its focus on transparent pricing and top-notch customer service with cementing its reputation as the industry's most “trusted” gold buyer. KMG Gold purchases gold, silver, platinum and diamonds from consumers throughout Canada and the United States through their website business (www.kmggold.com),
KMG has direct to the refinery shipping outlets in Sacramento California, Edmonton Alberta Canada and also at participating The UPS Stores® locations in Vancouver, Burnaby, Surrey, Kamloops, Winnipeg, and Calgary, Canada. Shipping direct to the refinery will always net the customer the most money for their gold, platinum and silver.
The gold buying industry, spurred by skyrocketing gold prices, has come under the media microscope. But, by conducting its business with a high level of honesty and integrity, KMG Gold has distinguished itself from the pack.
“Our transparent business practices and superior customer service wins us a loyal following,” says Michael Gupton, founder of KMG Gold. “We pay more money than all of our competitors and post our prices every day on our website. We lead the industry by providing Canada's only precious metal shipping insurance, a written evaluation and offer to purchase.” And, adds Gupton, “Our new website lets consumers browse and see the prices we pay and what we buy. It helps consumers have a better idea of the value of their own items before they send their gold to us.”
Gupton, a 25+ year gold industry veteran and published author is often tapped by consumers advocacy groups and charitable organizations to speak about gold and gold value.
“At KMG Gold, we believe strongly in educating consumers about the value of their gold. The more information the consumer has, the less likely they will be misled by dishonest dealers,” says Gupton. “We provide a extensive range of information on our website and have an excellent customer service team to quickly respond to emails and phone calls.”
Tuesday, October 25, 2011
Gold Set For A Nice Ride
The growing optimism over the ability of European to step in and address the overseas debt crisis has gold poised for a third consecutive daily rise.
European leaders are set to meet on Wednesday with plans in place for Greece's debt to be reduced, bail-out packages for the European banks, and the euro zone's EFSF rescue fund to be increased to provide partial insurance for the sovereign bond markets.
Uncertainty about just how close European Union leaders will come to solving the debt crisis kept many markets trading quietly and gold was no exception.
Spot gold was last up 0.4 percent on the day at $1,658.40 an ounce, having risen by 2.5 percent over the last three trading days, its best three-day performance in a month, although this month, it has underperformed most major markets.
Silver rose by 0.3 percent to $31.75 an ounce, on course for its third straight daily rise.
Options on U.S. silver futures expire on COMEX on Wednesday. Most open interest centers on put options -- which give the holder the right, but not the obligation to sell metal at a pre-determined price by that date -- at $32.00 an ounce and on call options -- which give the holder the right but not the obligation to buy metal -- at $31.00.
Platinum was up by 0.8 percent at $1,550.49 an ounce, also having risen for three days in a row, marking its largest three-day gain since mid-August.
Platinum has fallen by more than 12 percent this year, as concern has grown about the impact to car demand, particularly in Europe, from the euro zone debt crisis. Europe is home to the world's largest market for diesel-fueled vehicles, which require a higher loading of platinum in their catalytic converters.
European leaders are set to meet on Wednesday with plans in place for Greece's debt to be reduced, bail-out packages for the European banks, and the euro zone's EFSF rescue fund to be increased to provide partial insurance for the sovereign bond markets.
Uncertainty about just how close European Union leaders will come to solving the debt crisis kept many markets trading quietly and gold was no exception.
Spot gold was last up 0.4 percent on the day at $1,658.40 an ounce, having risen by 2.5 percent over the last three trading days, its best three-day performance in a month, although this month, it has underperformed most major markets.
Silver rose by 0.3 percent to $31.75 an ounce, on course for its third straight daily rise.
Options on U.S. silver futures expire on COMEX on Wednesday. Most open interest centers on put options -- which give the holder the right, but not the obligation to sell metal at a pre-determined price by that date -- at $32.00 an ounce and on call options -- which give the holder the right but not the obligation to buy metal -- at $31.00.
Platinum was up by 0.8 percent at $1,550.49 an ounce, also having risen for three days in a row, marking its largest three-day gain since mid-August.
Platinum has fallen by more than 12 percent this year, as concern has grown about the impact to car demand, particularly in Europe, from the euro zone debt crisis. Europe is home to the world's largest market for diesel-fueled vehicles, which require a higher loading of platinum in their catalytic converters.
Monday, October 24, 2011
Gold Is Still The Bright Spot
Gold rose for a second day on concerns about the European debt crisis and monetary policy in the U.S. has increased the demand for the metal as a protection of wealth and safe haven investment.
European leaders have ruled out tapping the European Central Bank’s balance sheet to boost the region’s rescue fund and outlined plans to aid banks. Federal Reserve Vice Chairman Janet Yellen said on Oct. 21 that a third round of large-scale securities purchases may become warranted to boost the U.S. economy.
Gold for December delivery gained $21.60, or 1.3 percent, to $1,657.70 an ounce by 8 a.m. on the Comex in New York. Prices slipped 2.8 percent last week. Immediate-delivery gold was 0.9 percent higher at $1,657.13 in London.
Bullion is in the 11th year of a bull market and futures reached a record $1,923.70 an ounce on Sept. 6 as investors sought to diversify away from equities and some currencies. The metal is up 17 percent this year.
Crisis Summit
Europe’s 13th crisis-management summit in 21 months also explored how to strengthen the International Monetary Fund’s role. The leaders excluded a forced restructuring of Greek debt, sticking with the tactic of enticing bondholders to accept losses to help restore the country’s finances. Another summit will be held in two days.
Gold imports by India, the world’s largest bullion consumer, may decline by as much as 30 percent this month as higher prices weaken demand, Prithviraj Kothari, president of the Bombay Bullion Association, said in a recent interview from Mumbai. Imports may be 70 metric tons to 80 tons in October, compared with 100 tons a year earlier, he said.
Silver for December delivery rose 1.2 percent to $31.555 an ounce. Palladium for December delivery was up 1.9 percent at $629.95 an ounce. Platinum for January delivery gained 1.9 percent to $1,538.60 an ounce.
European leaders have ruled out tapping the European Central Bank’s balance sheet to boost the region’s rescue fund and outlined plans to aid banks. Federal Reserve Vice Chairman Janet Yellen said on Oct. 21 that a third round of large-scale securities purchases may become warranted to boost the U.S. economy.
Gold for December delivery gained $21.60, or 1.3 percent, to $1,657.70 an ounce by 8 a.m. on the Comex in New York. Prices slipped 2.8 percent last week. Immediate-delivery gold was 0.9 percent higher at $1,657.13 in London.
Bullion is in the 11th year of a bull market and futures reached a record $1,923.70 an ounce on Sept. 6 as investors sought to diversify away from equities and some currencies. The metal is up 17 percent this year.
Crisis Summit
Europe’s 13th crisis-management summit in 21 months also explored how to strengthen the International Monetary Fund’s role. The leaders excluded a forced restructuring of Greek debt, sticking with the tactic of enticing bondholders to accept losses to help restore the country’s finances. Another summit will be held in two days.
Gold imports by India, the world’s largest bullion consumer, may decline by as much as 30 percent this month as higher prices weaken demand, Prithviraj Kothari, president of the Bombay Bullion Association, said in a recent interview from Mumbai. Imports may be 70 metric tons to 80 tons in October, compared with 100 tons a year earlier, he said.
Silver for December delivery rose 1.2 percent to $31.555 an ounce. Palladium for December delivery was up 1.9 percent at $629.95 an ounce. Platinum for January delivery gained 1.9 percent to $1,538.60 an ounce.
Saturday, October 22, 2011
Weaker Dollar Pushes Gold Higher
A weaker dollar and the growing optimism over the debt crisis in Europe drew some investors into the market, the price of gold and the precious metals focus climbed. On Friday, gold rose for the first day this week.
Some investors buy gold on the philosophy that the metal holds its value better than most other assets during economic turmoil including the dollar. For years gold has been considered the safe haven currency. But some market participants are still wary of gold after a sell off last month but the overall history of gold has always been positive. They forecast a price of $1,800 per ounce by the year's end.
Gold futures for December delivery gained 1.4 per cent to settle at $1,636.10 an ounce at 1:46 p.m. on the Comex in New York, the biggest advance since Oct. 10. Still, the metal dropped 2.8 per cent this week, the first weekly loss in three.
Bullion slipped to $1,604.70 yesterday, the lowest since Oct. 5.
Bullion is in the 11th year of a bull market and futures reached a record $1,923.70 on Sept. 6 as investors sought to diversify away from equities and some currencies.
The metal has advanced 15 per cent this year.
Silver futures for December delivery rose 3 per cent to $31.193 an ounce, the biggest gain since Oct. 10. The metal has gained 3.7 per cent this month.
On the New York Mercantile Exchange, platinum futures for January delivery advanced 1.3 per cent to $1,509.20 an ounce, rising for the first time this week. Palladium futures for December delivery jumped 5.8 per cent to $618.25 an ounce, the biggest gain since Nov. 18.
Some investors buy gold on the philosophy that the metal holds its value better than most other assets during economic turmoil including the dollar. For years gold has been considered the safe haven currency. But some market participants are still wary of gold after a sell off last month but the overall history of gold has always been positive. They forecast a price of $1,800 per ounce by the year's end.
Gold futures for December delivery gained 1.4 per cent to settle at $1,636.10 an ounce at 1:46 p.m. on the Comex in New York, the biggest advance since Oct. 10. Still, the metal dropped 2.8 per cent this week, the first weekly loss in three.
Bullion slipped to $1,604.70 yesterday, the lowest since Oct. 5.
Bullion is in the 11th year of a bull market and futures reached a record $1,923.70 on Sept. 6 as investors sought to diversify away from equities and some currencies.
The metal has advanced 15 per cent this year.
Silver futures for December delivery rose 3 per cent to $31.193 an ounce, the biggest gain since Oct. 10. The metal has gained 3.7 per cent this month.
On the New York Mercantile Exchange, platinum futures for January delivery advanced 1.3 per cent to $1,509.20 an ounce, rising for the first time this week. Palladium futures for December delivery jumped 5.8 per cent to $618.25 an ounce, the biggest gain since Nov. 18.
Friday, October 21, 2011
Decade Long Hot Streak
Most people in the industry know that gold has been on a decade-long hot streak, but it’s interesting to understand how great and sustained the increase has been.
The price of gold itself quintupled in value against the dollar from April 2001 to its all-time high in August of $1,913 per ounce. Even though prices have cooled to around $1,600 per ounce, gold is still priced much higher than 10 years ago, when gold prices stood at just $280 an ounce.
Unlike other precious metals like platinum, silver and copper, which have industrial uses, gold is used only for accumulation and investment. Gold has been criticized by billionaire investor Warren Buffett in the past: "You can fondle [gold], you can polish it, you can stare at it. But it isn't going to do anything... I'd bet on a good producing business to outperform something that doesn't do anything."
So why is gold considered so valuable?
The main reason: It's been recognized for centuries as a limited form of currency, able to withstand economic pressures that paper currency cannot.
Gold is typically used as a safe haven during times of inflation, weak currency, economic instability and uncertainty or war. While we don’t have high levels of inflation right now, it is a looming threat that many fear is unavoidable.
With that said, let's look at some of the main reasons why gold prices have been so high lately:
When the dollar is weak (as it has been for almost a decade), many investors trade their dollars for gold as it better preserves its intrinsic value. That's because it's a limited resource and a medium of exchange that can't be replicated or reprinted like paper money..
Because gold is valued in dollars, a declining dollar value actually means the price of gold goes up. For example, let's say for illustration purposes gold is worth $1 per ounce. If the dollar falls 10% in value, you'll need $1.10 to buy the same ounce of gold because your dollar has less purchasing power; thus gold would then be worth $1.10 per ounce.
The price of gold itself quintupled in value against the dollar from April 2001 to its all-time high in August of $1,913 per ounce. Even though prices have cooled to around $1,600 per ounce, gold is still priced much higher than 10 years ago, when gold prices stood at just $280 an ounce.
Unlike other precious metals like platinum, silver and copper, which have industrial uses, gold is used only for accumulation and investment. Gold has been criticized by billionaire investor Warren Buffett in the past: "You can fondle [gold], you can polish it, you can stare at it. But it isn't going to do anything... I'd bet on a good producing business to outperform something that doesn't do anything."
So why is gold considered so valuable?
The main reason: It's been recognized for centuries as a limited form of currency, able to withstand economic pressures that paper currency cannot.
Gold is typically used as a safe haven during times of inflation, weak currency, economic instability and uncertainty or war. While we don’t have high levels of inflation right now, it is a looming threat that many fear is unavoidable.
With that said, let's look at some of the main reasons why gold prices have been so high lately:
When the dollar is weak (as it has been for almost a decade), many investors trade their dollars for gold as it better preserves its intrinsic value. That's because it's a limited resource and a medium of exchange that can't be replicated or reprinted like paper money..
Because gold is valued in dollars, a declining dollar value actually means the price of gold goes up. For example, let's say for illustration purposes gold is worth $1 per ounce. If the dollar falls 10% in value, you'll need $1.10 to buy the same ounce of gold because your dollar has less purchasing power; thus gold would then be worth $1.10 per ounce.
Thursday, October 20, 2011
Gold Scams
If you’re like us, you’re surprised these Cash-For-Gold and travelling roadshow scams and predators are still around considering the options available today. At KMG Gold, we're determined to educate the consumer so they can make the wisest decision possible.
Walking around the corner or even outside the city limits to sell gold coins and used jewelry for cash seems may seem appealing to some, it is definitely not the best idea. Businesses that provide cash for gold pay pennies for the true value of gold.
If individuals absolutely must sell their gold items for cash, they should be aware that the price of gold is only a small factor in the offer price provided by these operations. A person may make a profit on a piece of jewelry or a coin purchased ten years ago just because the item is worth more than what was paid for it. The buyer in turn makes their money by reselling the item to a refinery. You have the option of dealing directly with the refiner hence cutting out the middleman.
Jewelry stores significantly mark up the price of gold items so they can make a profit. When a piece of gold jewelry is traded for cash, the offer received is not based on what the item is worth in metal value, it is based on how the store will use the item. If the gold piece is sent off somewhere to be melted, the store will receive the value is based on the melt weight.
With the high price of gold, it pays to be informed about the industry and the different transactions available. The more you know, the money may end up in your pocket and not theirs.
Walking around the corner or even outside the city limits to sell gold coins and used jewelry for cash seems may seem appealing to some, it is definitely not the best idea. Businesses that provide cash for gold pay pennies for the true value of gold.
If individuals absolutely must sell their gold items for cash, they should be aware that the price of gold is only a small factor in the offer price provided by these operations. A person may make a profit on a piece of jewelry or a coin purchased ten years ago just because the item is worth more than what was paid for it. The buyer in turn makes their money by reselling the item to a refinery. You have the option of dealing directly with the refiner hence cutting out the middleman.
Jewelry stores significantly mark up the price of gold items so they can make a profit. When a piece of gold jewelry is traded for cash, the offer received is not based on what the item is worth in metal value, it is based on how the store will use the item. If the gold piece is sent off somewhere to be melted, the store will receive the value is based on the melt weight.
With the high price of gold, it pays to be informed about the industry and the different transactions available. The more you know, the money may end up in your pocket and not theirs.
Thursday, October 20, 2011
Gold Down But Still A High
The spot gold price was down slightly in Europe as uncertainty over the euro-zone continues to weigh on investor sentiment ahead of an eagerly awaited summit in the region at the weekend. The spot price of gold was $1,651.40 a troy ounce, down 0.2% on the day.
"The price of gold has not really profited from the growing uncertainty," instead moving lower with assets seen as relatively risky and trading inversely to the dollar, seen as a refuge in times of uncertainty, Commerzbank said in a press release.
The bank's analysts argued, though, that there "would certainly be grounds for a rise in price; it is becoming increasingly clear that a fast and comprehensive solution to the euro zone debt crisis will not be found at the EU summit this weekend."
They forecast a price of $1,800 per ounce by the year's end.
Dennis Gartman, an independent market consultant pointed to the metal's slow recovery from the late September lows as a sign that prices may continue to struggle. Since toppling 20% from an all-time high at $1,920.94 on Sept. 6 to a two-and-a-half month low at $1,533.23 on Sept. 26, the metal has only risen around 8%.
"Given the severity of the break in mid-September, if the gold market was still technically healthy it should have bounced sharply back, regaining that which it had lost rather swiftly," said Mr. Gartman.
"Taking twice or three times as long to regain only a third or so of what had been lost seemed at least awkward and at worst bearish," he added.
In other metals, spot silver was down 1.0% at $31.702 per ounce, spot platinum was flat at $1,527.20 and spot palladium fell 0.3% to $616.75 per ounce.
"The price of gold has not really profited from the growing uncertainty," instead moving lower with assets seen as relatively risky and trading inversely to the dollar, seen as a refuge in times of uncertainty, Commerzbank said in a press release.
The bank's analysts argued, though, that there "would certainly be grounds for a rise in price; it is becoming increasingly clear that a fast and comprehensive solution to the euro zone debt crisis will not be found at the EU summit this weekend."
They forecast a price of $1,800 per ounce by the year's end.
Dennis Gartman, an independent market consultant pointed to the metal's slow recovery from the late September lows as a sign that prices may continue to struggle. Since toppling 20% from an all-time high at $1,920.94 on Sept. 6 to a two-and-a-half month low at $1,533.23 on Sept. 26, the metal has only risen around 8%.
"Given the severity of the break in mid-September, if the gold market was still technically healthy it should have bounced sharply back, regaining that which it had lost rather swiftly," said Mr. Gartman.
"Taking twice or three times as long to regain only a third or so of what had been lost seemed at least awkward and at worst bearish," he added.
In other metals, spot silver was down 1.0% at $31.702 per ounce, spot platinum was flat at $1,527.20 and spot palladium fell 0.3% to $616.75 per ounce.
Wednesday, October 19, 2011
Doing The Right Thing With The Wrong Motives Only Turns Out Bad
Fortunately, we live in a world where many people like to give with an open heart to help others in need. But unfortunately, that also means we've created a climate that's ripe for fake charity scams and scam artists to step in and take advantage of good intentions. They know they can tug at our heartstrings and walk away with the cash. But doing the right thing with the wrong motives will only turn out bad.
In the aftermath of a natural disaster or as we draw close to the holiday season, donating to a charity can sometimes bring much needed relief to victims in need. But not every charitable opportunity is on the up and up. Scammers preying on people's emotions and desire to help are so plentiful that its difficult to determine what is real and what isn't. And, this is the big one, what will benefit the one’s in need the most.
Too often, especially during this time of the year, we see businesses and organizations offering a portion or proceeds of their business if you use their service or buy their product. In some cases the “charitable” portion has been quietly hidden in the price.
We have to ask ourselves, would the organization give to the charity even if we didn’t participate? Is my business support really going to go towards making a difference? The whole concept of charitable giving is to, well give without some type of limitations placed.
Some businesses will raise their price to cover their so called gift, while others will lower their service level to make up the difference.
Sometimes you have to ask yourself if dealing with a particular organization that claims to give is really going to follow through with their promise or is it a just a way to grab more business. Don’t get drawn in by letting these operations pull on your heartstrings.
When it comes to selling precious metals, one has to take good hard look at the offer they receive from an organization. Is the amount being offered fair? Is that amount with a charitable donation the best use of the item you are considering?
As an example, if a gold ring is worth $100 in metal value and the organization is offering to purchase it for $30 plus expecting a $10 donation that leaves you with a total of $40 less the donation amount. You still walking away with only $30.
If another organization offers $70 for the same ring, you can make still more substantial donation and have more money in your pocket.
In precious metals like gold, silver and platinum, If possible, get several quotes to ensure you are getting the best deal possible and the organization is true to their word.
There's always going to be unscrupulous people that try to get in the middle of the flow of money to charities. Making sure it's an actual charity still doesn't always mean they are going to do great things, but at least make sure it's not an individual walking away with your money and your good intentions.
In the aftermath of a natural disaster or as we draw close to the holiday season, donating to a charity can sometimes bring much needed relief to victims in need. But not every charitable opportunity is on the up and up. Scammers preying on people's emotions and desire to help are so plentiful that its difficult to determine what is real and what isn't. And, this is the big one, what will benefit the one’s in need the most.
Too often, especially during this time of the year, we see businesses and organizations offering a portion or proceeds of their business if you use their service or buy their product. In some cases the “charitable” portion has been quietly hidden in the price.
We have to ask ourselves, would the organization give to the charity even if we didn’t participate? Is my business support really going to go towards making a difference? The whole concept of charitable giving is to, well give without some type of limitations placed.
Some businesses will raise their price to cover their so called gift, while others will lower their service level to make up the difference.
Sometimes you have to ask yourself if dealing with a particular organization that claims to give is really going to follow through with their promise or is it a just a way to grab more business. Don’t get drawn in by letting these operations pull on your heartstrings.
When it comes to selling precious metals, one has to take good hard look at the offer they receive from an organization. Is the amount being offered fair? Is that amount with a charitable donation the best use of the item you are considering?
As an example, if a gold ring is worth $100 in metal value and the organization is offering to purchase it for $30 plus expecting a $10 donation that leaves you with a total of $40 less the donation amount. You still walking away with only $30.
If another organization offers $70 for the same ring, you can make still more substantial donation and have more money in your pocket.
In precious metals like gold, silver and platinum, If possible, get several quotes to ensure you are getting the best deal possible and the organization is true to their word.
There's always going to be unscrupulous people that try to get in the middle of the flow of money to charities. Making sure it's an actual charity still doesn't always mean they are going to do great things, but at least make sure it's not an individual walking away with your money and your good intentions.
Tuesday, October 18, 2011
Gold soars but be careful when selling your jewellery, warns BBB
As stock markets plunge in the wake of the U.S. credit rating downgrade, gold prices continue to soar, now topping $1,700 an ounce.
This new high and increasing demand for the precious metal makes it very tempting for consumers to trade their unwanted jewellery for cash. Options to sell gold online, at in-home ‘gold parties’, or through local jewelers continue to gain in popularity, but the BBB would like consumers to think before they try to cash in on the gold rush.
“Selling old or unwanted gold is a growing trend for consumers during these uncertain economic times,” says Lynda Pasacreta, Vancouver BBB President and CEO. “Whether you do it through a gold party, over the Internet, or through a local jeweler, consumers need to get informed before they sell their jewellery.”
BBB suggests consumers consider the following before selling your gold:
Find a trustworthy appraiser. For an appraisal, if possible, go to someone locally whom you know and trust. Check with the Better Business Bureau in your area for listings. The BBB suggests obtaining two or three appraisals to compare prices, prior to any sale.
The true price of gold may not be what you receive. If gold is worth $1,700 per ounce, you aren't going to be paid $1,700 for every ounce of gold you have. Ask what you will be paid (if an online company, make sure you ask for specifics and give details on items you’ll be sending). Understand that the ounce quote is for pure gold only. For instance, 14-karat gold is composed of just 58.5 per cent gold. Ask how much the company’s going rate is for each ounce of each karat you are sending. The lower the karat, the less the gold content.
Don’t let jewellery of different karat value be weighed together. Some dealers will weigh all jewellery together and pay you for the lowest karat value. Separate your jewellery by karat value before attending a gold party.
Don't let anyone steal your diamonds from gold pieces. Single gold stud earrings might be worth $5 or $10, yet diamonds in the earrings can be saved. Some are too small, and the labor to remove them might exceed their value, but engagement ring diamonds, for example, should be given a value separate from the gold.
Know the terms and conditions when sending items by post. Make sure your items are insured when being shipped, so if they are lost you can recover the value.
•Obtain appraisals prior to mailing items, so if they are lost you have proof of their value.
•Check the company’s policy as to what they will reimburse if they lose your product. Many limit their liability.
•Make a list of the items included in the package, keep a copy for yourself, and put a copy in the envelope.
•Take a picture of the items you are sending, including any identifying marks.
This new high and increasing demand for the precious metal makes it very tempting for consumers to trade their unwanted jewellery for cash. Options to sell gold online, at in-home ‘gold parties’, or through local jewelers continue to gain in popularity, but the BBB would like consumers to think before they try to cash in on the gold rush.
“Selling old or unwanted gold is a growing trend for consumers during these uncertain economic times,” says Lynda Pasacreta, Vancouver BBB President and CEO. “Whether you do it through a gold party, over the Internet, or through a local jeweler, consumers need to get informed before they sell their jewellery.”
BBB suggests consumers consider the following before selling your gold:
Find a trustworthy appraiser. For an appraisal, if possible, go to someone locally whom you know and trust. Check with the Better Business Bureau in your area for listings. The BBB suggests obtaining two or three appraisals to compare prices, prior to any sale.
The true price of gold may not be what you receive. If gold is worth $1,700 per ounce, you aren't going to be paid $1,700 for every ounce of gold you have. Ask what you will be paid (if an online company, make sure you ask for specifics and give details on items you’ll be sending). Understand that the ounce quote is for pure gold only. For instance, 14-karat gold is composed of just 58.5 per cent gold. Ask how much the company’s going rate is for each ounce of each karat you are sending. The lower the karat, the less the gold content.
Don’t let jewellery of different karat value be weighed together. Some dealers will weigh all jewellery together and pay you for the lowest karat value. Separate your jewellery by karat value before attending a gold party.
Don't let anyone steal your diamonds from gold pieces. Single gold stud earrings might be worth $5 or $10, yet diamonds in the earrings can be saved. Some are too small, and the labor to remove them might exceed their value, but engagement ring diamonds, for example, should be given a value separate from the gold.
Know the terms and conditions when sending items by post. Make sure your items are insured when being shipped, so if they are lost you can recover the value.
•Obtain appraisals prior to mailing items, so if they are lost you have proof of their value.
•Check the company’s policy as to what they will reimburse if they lose your product. Many limit their liability.
•Make a list of the items included in the package, keep a copy for yourself, and put a copy in the envelope.
•Take a picture of the items you are sending, including any identifying marks.
Tuesday, October 18, 2011
Mint Unveils Five New Commemorative Coins
by Rachel Man
The Royal Canadian Mint has capped off the celebration of Parks Canada's centennial year by unveiling five new commemorative circulation coins which immortalize Canadians' pride in their legendary natural heritage and capture their trademark passion for the great outdoors. The commemorative circulation coins unveiled by
Canadian government officials and representatives of Parks Canada and the Mint, at a public ceremony hosted at the Canadian Museum of Civilization in Gatineau, Quebec. The collection includes: the 2011 Parks Canada Centennial one-dollar circulation coin; the 2011 Boreal Forest two-dollar circulation coin; and three new 25-cent circulation coins (half of which will be coloured) featuring the Orca, Peregrine Falcon and Wood Bison. The 2011 Parks Canada Centennial one-dollar coin will begin circulating in the coming weeks, followed by the remaining 2011 commemorative circulation coins later this year, and in early 2012.
"The Royal Canadian Mint is proud to help Canadians celebrate their country's legendary natural heritage with five new commemorative circulation coins honouring our great outdoors and a century of nature conservation by Parks Canada," said Ian E. Bennett, President and CEO of the Royal Canadian Mint. "I am very pleased that Canadians of all ages will be able to collect these coins as keepsakes of their fondest memories of our national parks, our forests, and our precious wildlife."
"This new series of commemorative circulation coins from the Royal Canadian Mint captures the essence of Canada's natural, historical and cultural treasures," said the Honourable Peter Kent, Canada's Environment Minister and Minister responsible for Parks Canada. "By creating the world's first national parks service, Canada has made nature conservation a prized Canadian value and inspired countries around the world to protect their unique wilderness regions."
The Mint will invite the public to trade their loose change to obtain the one-dollar Parks Canada centennial circulation coin at its boutiques in Ottawa, Winnipeg and Vancouver. Parks Canada will also offer it in a face value coin exchange at many national park and historic site locations across Canada. For more details, visit www.pc.gc.ca.
The Royal Canadian Mint has capped off the celebration of Parks Canada's centennial year by unveiling five new commemorative circulation coins which immortalize Canadians' pride in their legendary natural heritage and capture their trademark passion for the great outdoors. The commemorative circulation coins unveiled by
Canadian government officials and representatives of Parks Canada and the Mint, at a public ceremony hosted at the Canadian Museum of Civilization in Gatineau, Quebec. The collection includes: the 2011 Parks Canada Centennial one-dollar circulation coin; the 2011 Boreal Forest two-dollar circulation coin; and three new 25-cent circulation coins (half of which will be coloured) featuring the Orca, Peregrine Falcon and Wood Bison. The 2011 Parks Canada Centennial one-dollar coin will begin circulating in the coming weeks, followed by the remaining 2011 commemorative circulation coins later this year, and in early 2012.
"The Royal Canadian Mint is proud to help Canadians celebrate their country's legendary natural heritage with five new commemorative circulation coins honouring our great outdoors and a century of nature conservation by Parks Canada," said Ian E. Bennett, President and CEO of the Royal Canadian Mint. "I am very pleased that Canadians of all ages will be able to collect these coins as keepsakes of their fondest memories of our national parks, our forests, and our precious wildlife."
"This new series of commemorative circulation coins from the Royal Canadian Mint captures the essence of Canada's natural, historical and cultural treasures," said the Honourable Peter Kent, Canada's Environment Minister and Minister responsible for Parks Canada. "By creating the world's first national parks service, Canada has made nature conservation a prized Canadian value and inspired countries around the world to protect their unique wilderness regions."
The Mint will invite the public to trade their loose change to obtain the one-dollar Parks Canada centennial circulation coin at its boutiques in Ottawa, Winnipeg and Vancouver. Parks Canada will also offer it in a face value coin exchange at many national park and historic site locations across Canada. For more details, visit www.pc.gc.ca.
Monday, October 17, 2011
Gold Steady In Early Trading
Gold was steady on overseas early Monday, after posting its biggest weekly gain since early September, as investors await concrete steps to tackle the euro zone debt crisis that could come out of a European Union summit this weekend.
Finance ministers and central bank governors of the Group of 20 major economies said they expected the Oct. 23 summit to "decisively address the current challenges through a comprehensive plan".
Many investors have stayed away from gold given market turbulence in the past few months caused by the deepening euro zone debt crisis, the fight over raising the US debt ceiling and fears that the global economy would plunge into another recession.
Spot gold edged up 0.2 per cent to $1,682.39 an ounce by 0320 GMT, after rising around 2.5 per cent in the previous week.
US gold inched up 0.1 per cent to $1,684.70. "Gold has not been showing its safe haven property in the past few weeks," said Ong Yi Ling, an analyst at Phillip Futures in Singapore.
"If we see risk assets continue to rally with concrete steps in Europe in place, gold will have the potential to break the $1,700 resistance."
Managed money in US gold futures and options raised their net long positions for the second time in the past 10 weeks in the week ended on Oct. 11, data from the US Commodity Futures Trading Commission showed.
Gold bar premiums in Hong Kong eased slightly from last week, as shipments ordered over the past week or so started to arrive.
The buying interest softened as prices have rebounded from the end of September when prices dipped well below $1,600.
"People are waiting for more information from Europe by the end of the month," said a Hong Kong-based dealer, "The shipments have released the pressure on supply, and the premium has fallen to about $2."
A second dealer reported premiums between $2.50 to $3.50 above spot prices, from $3 to $4 last week.
"On the Asian side, $1,650 is an attractive level for physical buyers," he said.
Finance ministers and central bank governors of the Group of 20 major economies said they expected the Oct. 23 summit to "decisively address the current challenges through a comprehensive plan".
Many investors have stayed away from gold given market turbulence in the past few months caused by the deepening euro zone debt crisis, the fight over raising the US debt ceiling and fears that the global economy would plunge into another recession.
Spot gold edged up 0.2 per cent to $1,682.39 an ounce by 0320 GMT, after rising around 2.5 per cent in the previous week.
US gold inched up 0.1 per cent to $1,684.70. "Gold has not been showing its safe haven property in the past few weeks," said Ong Yi Ling, an analyst at Phillip Futures in Singapore.
"If we see risk assets continue to rally with concrete steps in Europe in place, gold will have the potential to break the $1,700 resistance."
Managed money in US gold futures and options raised their net long positions for the second time in the past 10 weeks in the week ended on Oct. 11, data from the US Commodity Futures Trading Commission showed.
Gold bar premiums in Hong Kong eased slightly from last week, as shipments ordered over the past week or so started to arrive.
The buying interest softened as prices have rebounded from the end of September when prices dipped well below $1,600.
"People are waiting for more information from Europe by the end of the month," said a Hong Kong-based dealer, "The shipments have released the pressure on supply, and the premium has fallen to about $2."
A second dealer reported premiums between $2.50 to $3.50 above spot prices, from $3 to $4 last week.
"On the Asian side, $1,650 is an attractive level for physical buyers," he said.
Monday, October 17, 2011
Triple Demand In Hong Kong Opens New Market
Today, Hong Kong’s Chinese Gold & Silver Exchange Society, a century-old bullion house, started trading gold quoted in yuan, boosting the city’s status as an offshore hub for the currency.
The contract may generate as much as HK$6 billion ($770 million) in trades a day, exchange President Haywood Cheung said in an Oct. 14 interview. Daily bullion trading volume at the society, which has 171 active members, has jumped to HK$136 billion this year from last year’s HK$31 billion on appetite for gold as a haven from stock declines, he said.
“There’s triple demand for this yuan product,” said Cheung on Oct. 14. “Investors can enjoy the bull market in gold, the yuan’s appreciation and hedge gold denominated in other currencies against the yuan.”
Chinese Vice Premier Li Keqiang pledged the nation’s support for yuan business in Hong Kong two months ago. The city’s richest man, Li Ka-shing, sold Hong Kong’s first renminbi shares in April and the city’s bond sales in the currency have more than tripled this year. Yuan deposits in the former British colony rose 93 percent this year to a record 609 billion yuan ($96 billion) in August.
“It’s part of a larger trend in Hong Kong to increase investments priced in renminbi,” said Zhang Qiang, an analyst in Shanghai at Haitong Futures Co., China’s largest futures brokerage by registered capital. “It’s a good proposition for investors who want exposure to both gold and renminbi, however, this would depend largely on the two moving in tandem.”
The contract may generate as much as HK$6 billion ($770 million) in trades a day, exchange President Haywood Cheung said in an Oct. 14 interview. Daily bullion trading volume at the society, which has 171 active members, has jumped to HK$136 billion this year from last year’s HK$31 billion on appetite for gold as a haven from stock declines, he said.
“There’s triple demand for this yuan product,” said Cheung on Oct. 14. “Investors can enjoy the bull market in gold, the yuan’s appreciation and hedge gold denominated in other currencies against the yuan.”
Chinese Vice Premier Li Keqiang pledged the nation’s support for yuan business in Hong Kong two months ago. The city’s richest man, Li Ka-shing, sold Hong Kong’s first renminbi shares in April and the city’s bond sales in the currency have more than tripled this year. Yuan deposits in the former British colony rose 93 percent this year to a record 609 billion yuan ($96 billion) in August.
“It’s part of a larger trend in Hong Kong to increase investments priced in renminbi,” said Zhang Qiang, an analyst in Shanghai at Haitong Futures Co., China’s largest futures brokerage by registered capital. “It’s a good proposition for investors who want exposure to both gold and renminbi, however, this would depend largely on the two moving in tandem.”
Saturday, October 15, 2011
Another Positive Outlook
A weekly gold survey by Bloomberg revealed that traders have turned the most positive on the yellow metal in three months. The latest results showed that 88% of respondents expect the price of gold to rise next week – the highest level since mid-July.
The positive sentiment was attributed to ongoing concerns over “Europe’s debt crisis, slowing growth and a bear market in equities,” according to Bloomberg.
Twenty-two of 25 people surveyed by Bloomberg expect the metal to rise next week, the highest proportion since mid-July. Prices rebounded 9.2 percent since reaching a two-month low at the end of September and investors are adding to their holdings in gold-backed exchange-traded products for the first time in a month, according to data compiled by Bloomberg. Traders also expect gains in copper, sugar, corn and soybeans, surveys show.
Gold slumped as much as 20 percent since reaching a record $1,923.70 an ounce on Sept. 6 as investors sold the metal to cover losses in other markets. As much as $4.2 trillion was erased from the value of global equities in the past month on mounting concern that economies will tip back into recession and European lawmakers will fail to prevent sovereign defaults. The last time traders and analysts were this bullish, bullion surged 21 percent to an all-time high within eight weeks.
"Like always, the big picture remains positive,” said Michael Gupton, founder and president of KMG Gold. “The supply-demand fundamentals are in place and everything still looks good.”
COMEX gold futures, per the December 2011 contract, pared their gains as morning trading progressed on Friday. The yellow metal hit an intra-day high of $1,685.50 earlier, but was up just $3.00 at $1,671.50 per ounce as of 10:55am ET
The positive sentiment was attributed to ongoing concerns over “Europe’s debt crisis, slowing growth and a bear market in equities,” according to Bloomberg.
Twenty-two of 25 people surveyed by Bloomberg expect the metal to rise next week, the highest proportion since mid-July. Prices rebounded 9.2 percent since reaching a two-month low at the end of September and investors are adding to their holdings in gold-backed exchange-traded products for the first time in a month, according to data compiled by Bloomberg. Traders also expect gains in copper, sugar, corn and soybeans, surveys show.
Gold slumped as much as 20 percent since reaching a record $1,923.70 an ounce on Sept. 6 as investors sold the metal to cover losses in other markets. As much as $4.2 trillion was erased from the value of global equities in the past month on mounting concern that economies will tip back into recession and European lawmakers will fail to prevent sovereign defaults. The last time traders and analysts were this bullish, bullion surged 21 percent to an all-time high within eight weeks.
"Like always, the big picture remains positive,” said Michael Gupton, founder and president of KMG Gold. “The supply-demand fundamentals are in place and everything still looks good.”
COMEX gold futures, per the December 2011 contract, pared their gains as morning trading progressed on Friday. The yellow metal hit an intra-day high of $1,685.50 earlier, but was up just $3.00 at $1,671.50 per ounce as of 10:55am ET
Friday, October 14, 2011
Gold Rises Again
In the opening markets, gold rose on track to post its biggest weekly gain in more than a month. There is still uncertainty in the markets with the anticipated G20 meeting whose agenda will be dominated by the euro zone debt crisis and steps to tackle spreading issues.
Spot gold rose 0.4 percent to $1,671.99 an ounce at 1139 GMT, from $1,666.20 late in New York on Thursday.
Reflecting growing concern about the region's debt crisis, ratings agency Standard and Poor's downgraded the long-term credit rating of Spain by one notch, just as policymakers get ready to pressure Europe to act swiftly to tackle its financial woes at a weekend meeting.
Although investors are not expecting any concrete resolutions to the debt crisis, they hope it will provide an opportunity for officials to agree on the outlines of a plan in time for a European Union summit on October 23.
"Like always, the big picture remains positive,” said Michael Gupton, founder and president of KMG Gold. “The supply-demand fundamentals are in place and everything still looks good.”
Also helping boost gold was a fall in the dollar, which dipped against a basket of currencies. A weak dollar makes commodities priced in the U.S. unit cheaper for holders of other currencies.
Gold prices are up 2.3 percent so far this week, on track to post its strongest weekly gain since early September.
U.S. gold gained 0.4 percent to $1,674.80 an ounce, while spot silver rose 0.2 percent to $31.85 an ounce.
Spot gold rose 0.4 percent to $1,671.99 an ounce at 1139 GMT, from $1,666.20 late in New York on Thursday.
Reflecting growing concern about the region's debt crisis, ratings agency Standard and Poor's downgraded the long-term credit rating of Spain by one notch, just as policymakers get ready to pressure Europe to act swiftly to tackle its financial woes at a weekend meeting.
Although investors are not expecting any concrete resolutions to the debt crisis, they hope it will provide an opportunity for officials to agree on the outlines of a plan in time for a European Union summit on October 23.
"Like always, the big picture remains positive,” said Michael Gupton, founder and president of KMG Gold. “The supply-demand fundamentals are in place and everything still looks good.”
Also helping boost gold was a fall in the dollar, which dipped against a basket of currencies. A weak dollar makes commodities priced in the U.S. unit cheaper for holders of other currencies.
Gold prices are up 2.3 percent so far this week, on track to post its strongest weekly gain since early September.
U.S. gold gained 0.4 percent to $1,674.80 an ounce, while spot silver rose 0.2 percent to $31.85 an ounce.
Thursday, October 13, 2011
Demand Strong In Asia and India
Physical purchases in China and India, ahead of the key gold-buying wedding and festival season, have been in decent volumes, and are expected to continue to escalate, traders and analysts said.
As of this morning, spot gold fell slightly in Europe as the dollar came back in a rebound. According to the London Price Fix, the spot price of gold was $1,672.20 a troy ounce, down from bid levels of $1,674.50 late in New York on Wednesday.
Some insiders in the market feel the precious metal has found its comfort level around the key $1,700 per ounce region in recent days. The current price has been helped by renewed physical interest from Asia ahead of the festival season in India.
Still, bullion also continues to trade with riskier assets, while it moves against the U.S. dollar. Gold is priced in dollars, so it tends to fall when the dollar gains, making it more expensive to purchase in other currencies.
The dollar gained against the euro Thursday as concerns lingered about Europe's debt problems and slowing global growth, despite recent signs of progress on tackling the European crisis.
Analysts said minutes of the Sept. 20-21 U.S. Federal Reserve Open Market Committee meeting, which revealed a long discussion of what steps could be taken to give the economy further support, should help to provide some support to prices.
In other metals, spot silver had fallen to $32.110 per ounce from about 432.60 late in New York. The market, which is thinly traded and therefore tends to record wider intraday moves than its sister metals, has been range-trading between $31.130 per ounce and $33.050 since Monday.
Meanwhile, spot platinum was at $1,534.25 per ounce, from $1,550 and spot palladium was at $601.25 per ounce, from $613.00.
One London-based trader said the platinum-group metals, which tend to trade in tandem with base metals because of their industrial applications, have held up well given a sharp slide across markets on the London Metal Exchange. In mid morning, LME three-month copper traded down 1.7% at $7,397 a metric ton.
As of this morning, spot gold fell slightly in Europe as the dollar came back in a rebound. According to the London Price Fix, the spot price of gold was $1,672.20 a troy ounce, down from bid levels of $1,674.50 late in New York on Wednesday.
Some insiders in the market feel the precious metal has found its comfort level around the key $1,700 per ounce region in recent days. The current price has been helped by renewed physical interest from Asia ahead of the festival season in India.
Still, bullion also continues to trade with riskier assets, while it moves against the U.S. dollar. Gold is priced in dollars, so it tends to fall when the dollar gains, making it more expensive to purchase in other currencies.
The dollar gained against the euro Thursday as concerns lingered about Europe's debt problems and slowing global growth, despite recent signs of progress on tackling the European crisis.
Analysts said minutes of the Sept. 20-21 U.S. Federal Reserve Open Market Committee meeting, which revealed a long discussion of what steps could be taken to give the economy further support, should help to provide some support to prices.
In other metals, spot silver had fallen to $32.110 per ounce from about 432.60 late in New York. The market, which is thinly traded and therefore tends to record wider intraday moves than its sister metals, has been range-trading between $31.130 per ounce and $33.050 since Monday.
Meanwhile, spot platinum was at $1,534.25 per ounce, from $1,550 and spot palladium was at $601.25 per ounce, from $613.00.
One London-based trader said the platinum-group metals, which tend to trade in tandem with base metals because of their industrial applications, have held up well given a sharp slide across markets on the London Metal Exchange. In mid morning, LME three-month copper traded down 1.7% at $7,397 a metric ton.
Wednesday, October 12, 2011
Gold Gains Again
Gold gained to a two-week high in New York as concern over Europe’s debt woes spurred demand for the metal as a protection of wealth.
Slovakia, the only country in the 17-nation euro area that hasn’t approved a planned reinforcement of the European Financial Stability Facility rescue fund, is headed for a second vote after failing to approve the package. Physical gold demand was “decent” yesterday, UBS AG said today in a report.
Gold for December delivery gained as much as $28.90, or 1.7 percent, to $1,689.90 an ounce, the highest price since Sept. 23, and was at $1,685 by 8:02 a.m. on the Comex in New York. Immediate-delivery gold was 1.3 percent higher at $1,684.03 in London.
The Diwali religious festival later this month in India, the biggest bullion buyer, and then the traditional wedding season, may increase demand.
Gold is in the 11th year of a bull market, the longest winning streak since at least 1920 in London. Futures reached a record $1,923.70 on Sept. 6 as investors sought to diversify away from equities and some currencies. The metal is up 19 percent this year.
No-Confidence Motion
The Slovakian rejection also triggered the fall of Prime Minister Iveta Radicova’s government, as the vote yesterday was tied with a no-confidence motion. European Union and International Monetary Fund officials indicated Greece will get an 8 billion-euro ($11 billion) loan next month, saying the nation has made “important progress.”
Silver for December delivery rose 2.6 percent to $32.83 an ounce. Palladium for December delivery was up 0.4 percent at $607 an ounce. Platinum for January delivery gained 2 percent to $1,549.90 an ounce.
Slovakia, the only country in the 17-nation euro area that hasn’t approved a planned reinforcement of the European Financial Stability Facility rescue fund, is headed for a second vote after failing to approve the package. Physical gold demand was “decent” yesterday, UBS AG said today in a report.
Gold for December delivery gained as much as $28.90, or 1.7 percent, to $1,689.90 an ounce, the highest price since Sept. 23, and was at $1,685 by 8:02 a.m. on the Comex in New York. Immediate-delivery gold was 1.3 percent higher at $1,684.03 in London.
The Diwali religious festival later this month in India, the biggest bullion buyer, and then the traditional wedding season, may increase demand.
Gold is in the 11th year of a bull market, the longest winning streak since at least 1920 in London. Futures reached a record $1,923.70 on Sept. 6 as investors sought to diversify away from equities and some currencies. The metal is up 19 percent this year.
No-Confidence Motion
The Slovakian rejection also triggered the fall of Prime Minister Iveta Radicova’s government, as the vote yesterday was tied with a no-confidence motion. European Union and International Monetary Fund officials indicated Greece will get an 8 billion-euro ($11 billion) loan next month, saying the nation has made “important progress.”
Silver for December delivery rose 2.6 percent to $32.83 an ounce. Palladium for December delivery was up 0.4 percent at $607 an ounce. Platinum for January delivery gained 2 percent to $1,549.90 an ounce.
Tuesday, October 11, 2011
Investors Wait For Vote
Gold declined from a two-week high as investors awaited a vote in Slovakia to approve the European bailout fund.
Bullion for immediate delivery shed as much as 0.6 percent to $1,666.65 an ounce, after climbing to $1,684.63 an ounce, the highest level since Sept. 23. It traded at $1,668.25 at 4:10 p.m. in Singapore. The metal jumped 2.4 percent yesterday, the most since Sept. 8. Futures for December were little changed at $1,669.90 an ounce.
Slovakia is the only country in the 17-nation euro area that hasn’t ratified a planned reinforcement of the European Financial Stability Facility. The nation’s four-part coalition yesterday failed to resolve a dispute with rebel lawmakers, threatening to delay measures to stem Europe’s debt crisis.
U.S. stock futures declined and the euro was little changed after reaching a three-week high against the dollar yesterday as Slovakia’s parliament prepared to vote. German Chancellor Angela Merkel and French President Nicolas Sarkozy pledged at the weekend to deliver a plan by Nov. 3 to stem the debt crisis.
“We’re in the peak seasonal demand period now and that should also help buoy gold prices,” said Wang, who was ranked fifth in a Futures Daily and Securities Times poll of China gold analysts.
In India, the world’s largest consumer, the peak-demand period began in August with Eid, continues in October with Diwali, and is followed by the traditional wedding season. In China, the second-biggest buyer, demand typically picks up during the National Day holidays at the start of October through till the Lunar New Year in January.
Cash silver lost 0.9 percent to $31.8237 an ounce after climbing 1.5 percent to $32.565 an ounce. Spot platinum was little changed at $1,521.75 an ounce, while palladium dropped 0.9 percent to $610.13 an ounce.
Bullion for immediate delivery shed as much as 0.6 percent to $1,666.65 an ounce, after climbing to $1,684.63 an ounce, the highest level since Sept. 23. It traded at $1,668.25 at 4:10 p.m. in Singapore. The metal jumped 2.4 percent yesterday, the most since Sept. 8. Futures for December were little changed at $1,669.90 an ounce.
Slovakia is the only country in the 17-nation euro area that hasn’t ratified a planned reinforcement of the European Financial Stability Facility. The nation’s four-part coalition yesterday failed to resolve a dispute with rebel lawmakers, threatening to delay measures to stem Europe’s debt crisis.
U.S. stock futures declined and the euro was little changed after reaching a three-week high against the dollar yesterday as Slovakia’s parliament prepared to vote. German Chancellor Angela Merkel and French President Nicolas Sarkozy pledged at the weekend to deliver a plan by Nov. 3 to stem the debt crisis.
“We’re in the peak seasonal demand period now and that should also help buoy gold prices,” said Wang, who was ranked fifth in a Futures Daily and Securities Times poll of China gold analysts.
In India, the world’s largest consumer, the peak-demand period began in August with Eid, continues in October with Diwali, and is followed by the traditional wedding season. In China, the second-biggest buyer, demand typically picks up during the National Day holidays at the start of October through till the Lunar New Year in January.
Cash silver lost 0.9 percent to $31.8237 an ounce after climbing 1.5 percent to $32.565 an ounce. Spot platinum was little changed at $1,521.75 an ounce, while palladium dropped 0.9 percent to $610.13 an ounce.
Saturday, October 08, 2011
Still A Golden Opportunity
Gold prices rose over $100 an ounce for the third-quarter settling the other day at $1,622.30. I’ll be honest, the 6.5% gain was by no means a cakewalk for anyone interested in the precious metals market and investors. Remember last month? Some of us still have the taste of that $1900 price from just last month.
The uncertainty in the markets has once again refueled the age long debate over the precious metal's position as a safe haven investment. I sometimes laugh when people bring up the doom and gloom of September 10% sell-off, claiming that as the sign the bubble burst. But I couldn’t disagree more.
Gold has been coveted since Biblical times and a few days of down prices will not affect its real value. Even the last quarter’s price increase was better than most equities out on the open market.
To be honest, I don’t believe there will be a huge rally either in the early days of this next quarter but I’m still hearing talk from some market insiders that we’ll see gold rebounding by year-end up to levels between $1,800 - $2,000 an ounce.
The demand driving the precious metal higher is not Western centric. We see gold activity influenced more by technical levels, whereby a consolidation move could be easily fueled into a major correction or crash. But what's easily forgotten is the strength in Asian demand. And of course there's China, a key demand player that has gone from net neutral to a positive demand effect of 300 tons per years according the World Gold Council. China accounted for 6% of total global demand in 2000 and rose to 18% in 2010.
According to the World Gold Council, central banks imported 198.4 tons of gold in the first half of 2011 versus two years ago, they were selling 450 tons a year.
Of course, any gold outlook that doesn't address currency would be remiss. As Europe continues to sort through it's debt crisis, we'll likely see more currency fluctuations. The more instability in the EU, the faster the flight to safety into the US dollar becomes.
The only real advice we can give is to watch the market price, educate yourself and check around at the prices different operations are offering. Right now there is a huge gap in what businesses are paying for used gold and it pays to do your homework.
The uncertainty in the markets has once again refueled the age long debate over the precious metal's position as a safe haven investment. I sometimes laugh when people bring up the doom and gloom of September 10% sell-off, claiming that as the sign the bubble burst. But I couldn’t disagree more.
Gold has been coveted since Biblical times and a few days of down prices will not affect its real value. Even the last quarter’s price increase was better than most equities out on the open market.
To be honest, I don’t believe there will be a huge rally either in the early days of this next quarter but I’m still hearing talk from some market insiders that we’ll see gold rebounding by year-end up to levels between $1,800 - $2,000 an ounce.
The demand driving the precious metal higher is not Western centric. We see gold activity influenced more by technical levels, whereby a consolidation move could be easily fueled into a major correction or crash. But what's easily forgotten is the strength in Asian demand. And of course there's China, a key demand player that has gone from net neutral to a positive demand effect of 300 tons per years according the World Gold Council. China accounted for 6% of total global demand in 2000 and rose to 18% in 2010.
According to the World Gold Council, central banks imported 198.4 tons of gold in the first half of 2011 versus two years ago, they were selling 450 tons a year.
Of course, any gold outlook that doesn't address currency would be remiss. As Europe continues to sort through it's debt crisis, we'll likely see more currency fluctuations. The more instability in the EU, the faster the flight to safety into the US dollar becomes.
The only real advice we can give is to watch the market price, educate yourself and check around at the prices different operations are offering. Right now there is a huge gap in what businesses are paying for used gold and it pays to do your homework.
Friday, October 07, 2011
Shortage In Vietnam
On several days recently gold shops in Hanoi and Ho Chi Minh City have sold out their supplies of the precious metal, according to state media reports, as anxious consumers have rushed to protect themselves against Asia’s highest inflation rate.
Vietnam’s Communist government is keen to tackle inflation, restore confidence to the currency and stabilize the shaky banking sector. But it is also concerned that too much tightening may hit economic growth in this export-dependent country.
Officials must find a delicate balance between growth and inflation at a time when their room for maneuver has been severely limited by the global slowdown and their own policy mis-steps and about-turns, which have seriously undermined investor confidence.
Part of the problem is communication, or the lack thereof. Thursday’s move by the central bank to increase a key inter-bank lending rate from 14 per cent to 15 per cent should have been a reassuring signal of the government’s commitment to the stay the course when it comes to tight monetary policy.
But, as usual, the decision was published with minimal explanation to either bankers or the wider public, leaving many scratching their heads again as they tried to divine the motive behind the latest decree from Vietnam’s less-than-transparent rulers.
Vietnam’s Communist government is keen to tackle inflation, restore confidence to the currency and stabilize the shaky banking sector. But it is also concerned that too much tightening may hit economic growth in this export-dependent country.
Officials must find a delicate balance between growth and inflation at a time when their room for maneuver has been severely limited by the global slowdown and their own policy mis-steps and about-turns, which have seriously undermined investor confidence.
Part of the problem is communication, or the lack thereof. Thursday’s move by the central bank to increase a key inter-bank lending rate from 14 per cent to 15 per cent should have been a reassuring signal of the government’s commitment to the stay the course when it comes to tight monetary policy.
But, as usual, the decision was published with minimal explanation to either bankers or the wider public, leaving many scratching their heads again as they tried to divine the motive behind the latest decree from Vietnam’s less-than-transparent rulers.
Friday, October 07, 2011
Gold - Strong Alternative
Gold will probably stay strong due to a lack of alternative “safe havens” for investors operating in a slowing global economy, top performing commodity fund managers said in a recent interview.
"We consider the current weakness in gold as temporary and also the slump in commodity prices should come to an end soon," said Kurt Hug, an investment adviser for the Antares Precious Metals Fund.
The gold price has risen by nearly 17 percent so far this year, having hit a record $1,920.20 an ounce in early September before correcting sharply downwards. It was around $1,655 an ounce on Friday.
The fund came third in the Lipper Global commodity sector rankings in the third quarter of 2011 by keeping a high percentage of "strategic liquidity" in Swiss francs in anticipation of "a severe, but short-lived commodity shock."
Fund research and analysis organization Lipper, a Thomson Reuters company, covers more than 108,000 funds. The commodity segment covers funds investing in both commodities futures and natural resources-related equities.
Also staying defensive was Paula Bujia, manager of the $330 million Schroders Gold and Precious Metals Fund, which came fourth. Steering clear of precious metals other than gold, and investing in mid-cap gold miners rather than seniors and juniors, helped her outperform, she said.
Those who are not worried about this type of inflation are petrified of deflation. But even in such a scenario, gold is still a better bet than any currency, according to the gold bugs.
If consumer prices were to fall by some 4 or 5 per cent, stock markets could plummet and the global banking system would be placed under great stain.
The price of gold could also fall, but probably not nearly as much, thereby preserving wealth and purchasing power.
Yet, others argue that a better strategy in a deflationary scenario is to invest in fast-growing industries. “People are very persuaded by crash and doom scenarios, and gold offers a cure for it. But there are other, more positive solutions. Invest in electric cars, recycling, renewable energy – these sectors are growing, and they hold massive potential,” says Chris Eibl, co-founder and head of trading of Tiberius Asset Management.
"We consider the current weakness in gold as temporary and also the slump in commodity prices should come to an end soon," said Kurt Hug, an investment adviser for the Antares Precious Metals Fund.
The gold price has risen by nearly 17 percent so far this year, having hit a record $1,920.20 an ounce in early September before correcting sharply downwards. It was around $1,655 an ounce on Friday.
The fund came third in the Lipper Global commodity sector rankings in the third quarter of 2011 by keeping a high percentage of "strategic liquidity" in Swiss francs in anticipation of "a severe, but short-lived commodity shock."
Fund research and analysis organization Lipper, a Thomson Reuters company, covers more than 108,000 funds. The commodity segment covers funds investing in both commodities futures and natural resources-related equities.
Also staying defensive was Paula Bujia, manager of the $330 million Schroders Gold and Precious Metals Fund, which came fourth. Steering clear of precious metals other than gold, and investing in mid-cap gold miners rather than seniors and juniors, helped her outperform, she said.
Those who are not worried about this type of inflation are petrified of deflation. But even in such a scenario, gold is still a better bet than any currency, according to the gold bugs.
If consumer prices were to fall by some 4 or 5 per cent, stock markets could plummet and the global banking system would be placed under great stain.
The price of gold could also fall, but probably not nearly as much, thereby preserving wealth and purchasing power.
Yet, others argue that a better strategy in a deflationary scenario is to invest in fast-growing industries. “People are very persuaded by crash and doom scenarios, and gold offers a cure for it. But there are other, more positive solutions. Invest in electric cars, recycling, renewable energy – these sectors are growing, and they hold massive potential,” says Chris Eibl, co-founder and head of trading of Tiberius Asset Management.
Thursday, October 06, 2011
Gold Price Firm
Gold firmed in Europe on Thursday as a strong recovery in equity markets cut selling of the precious metal to cover losses elsewhere, and as physical buyers took advantage of lower prices to stock up. Keep checking the KMG Gold websites for updates on the price.
Spot gold was up 0.7 percent at $1,651.49 an ounce at 0910 GMT, extending the previous session's 1 percent gains. Trade is expected to be choppy ahead of a policy meeting and press conference from the European Central Bank later.
Concerns over the outlook for the euro zone, as the bloc wrestles with its stubborn debt crisis, were a key factor pushing gold to a record $1,920.30 an ounce last month.
"It is extremely hard to see where the solution will come from," said VM Group analyst Carl Firman. "I think (the euro zone authorities) will be forced into a solution, but the volatility is based around whether it will be sufficient, or another stop-gap."
"We need to see some more definitive news, and in the meantime, we will have a hell of a lot of volatility across the markets," he said.
Gold saw its biggest decline in nearly three years last month as pressurized selling to cover heavy stock market losses pulled prices more than 20 percent from record highs and prompted a period of intense volatility.
European equities extended the previous day's strong gains on Thursday on hopes officials will succeed in their efforts to support Europe's financial sector, while data raised optimism the U.S. economy might avoid slipping into recession.
ECB President Jean-Claude Trichet is expected to prepare the ground for a pre-Christmas interest rate cut at his final policy meeting and offer banks further protection against the euro zone's worsening debt storm.
The euro rose against the dollar and German government bonds fell on optimism over Europe's efforts to aid the financial sector, ahead of the ECB meeting.
ECB President Jean-Claude Trichet is expected to prepare the ground for a pre-Christmas interest rate cut at his final policy meeting and offer banks further protection against the euro zone's worsening debt storm.
Spot gold was up 0.7 percent at $1,651.49 an ounce at 0910 GMT, extending the previous session's 1 percent gains. Trade is expected to be choppy ahead of a policy meeting and press conference from the European Central Bank later.
Concerns over the outlook for the euro zone, as the bloc wrestles with its stubborn debt crisis, were a key factor pushing gold to a record $1,920.30 an ounce last month.
"It is extremely hard to see where the solution will come from," said VM Group analyst Carl Firman. "I think (the euro zone authorities) will be forced into a solution, but the volatility is based around whether it will be sufficient, or another stop-gap."
"We need to see some more definitive news, and in the meantime, we will have a hell of a lot of volatility across the markets," he said.
Gold saw its biggest decline in nearly three years last month as pressurized selling to cover heavy stock market losses pulled prices more than 20 percent from record highs and prompted a period of intense volatility.
European equities extended the previous day's strong gains on Thursday on hopes officials will succeed in their efforts to support Europe's financial sector, while data raised optimism the U.S. economy might avoid slipping into recession.
ECB President Jean-Claude Trichet is expected to prepare the ground for a pre-Christmas interest rate cut at his final policy meeting and offer banks further protection against the euro zone's worsening debt storm.
The euro rose against the dollar and German government bonds fell on optimism over Europe's efforts to aid the financial sector, ahead of the ECB meeting.
ECB President Jean-Claude Trichet is expected to prepare the ground for a pre-Christmas interest rate cut at his final policy meeting and offer banks further protection against the euro zone's worsening debt storm.
Wednesday, October 05, 2011
Our New Addition - Rachel Man
We are pleased to announce a new addition to the KMG Gold family. Rachel Man joins KMG Gold as our new account manager based in the Winnipeg branch.
“I was amazed at the depth of knowledge she has, her attention to detail and her commitment to client service,” Michael Gupton, President of KMG Gold stated. “Rachel is a perfect fit for us.”
Rachel brings over half a decade of experience in the precious metals industry as well as an in depth knowledge of the gold and silver coin community. She has a keen interest in gemology, coins and military artifacts.
Rachel’s greatest strength is the way she puts the customer first. She is devoted to educate and inform each and every client she comes in contact with.
When it comes to precious metals recycling, KMG Gold Recycling is Canada’s trusted authority, providing a tradition of excellence, high quality and unparalleled service and Rachel is a welcome addition.
In October of 2010, the Manitoba Chapter of the BBB presented KMG Gold with their inaugural Torch Award for Marketplace Excellence demonstrating ethics and integrity in the marketplace. BBB Torch Award winners build trust, advertise honestly, tell the truth, remain transparent, honour their promises, and display integrity in all of their marketplace activities. This prestigious award affirms KMG Gold as a trusted partner for Canadians wanting to get trusted estimates and best value when recycling their precious metals.
KMG Gold leads the gold and precious metals buying industry by making detailed information about precious metals, the current gold buying market environment, and other helpful tips for gold buyers and sellers available online at their website – www.kmggold.ca.
With numerous drop off locations across western Canada, Ontario, and the western United States, KMG Gold is able to accept shipments from anywhere in either country. Precious metals can be dropped off or sent directly to any of these convenient locations in securely packed boxes, or using one of KMG Gold’s exclusive SecureShip™ Envelopes.
KMG Gold is also the first company in the highly publicized gold & metals buying industry to have partnered with the world’s largest insurance underwriter to offer shipping insurance for precious metal shipments from the consumer to their office, reducing any sense of risk. Any metals shipped to KMG Gold using a SecureShip™ Envelope can be fully insured at half the cost of the competition’s shipping insurance – and KMG’s customers can be assured the value of contents contained in their packages is safe, even if the package is lost. No other metals buyer uses shipping insurance that offers this guarantee.
Contact us at 204.452.GOLD
“I was amazed at the depth of knowledge she has, her attention to detail and her commitment to client service,” Michael Gupton, President of KMG Gold stated. “Rachel is a perfect fit for us.”
Rachel brings over half a decade of experience in the precious metals industry as well as an in depth knowledge of the gold and silver coin community. She has a keen interest in gemology, coins and military artifacts.
Rachel’s greatest strength is the way she puts the customer first. She is devoted to educate and inform each and every client she comes in contact with.
When it comes to precious metals recycling, KMG Gold Recycling is Canada’s trusted authority, providing a tradition of excellence, high quality and unparalleled service and Rachel is a welcome addition.
In October of 2010, the Manitoba Chapter of the BBB presented KMG Gold with their inaugural Torch Award for Marketplace Excellence demonstrating ethics and integrity in the marketplace. BBB Torch Award winners build trust, advertise honestly, tell the truth, remain transparent, honour their promises, and display integrity in all of their marketplace activities. This prestigious award affirms KMG Gold as a trusted partner for Canadians wanting to get trusted estimates and best value when recycling their precious metals.
KMG Gold leads the gold and precious metals buying industry by making detailed information about precious metals, the current gold buying market environment, and other helpful tips for gold buyers and sellers available online at their website – www.kmggold.ca.
With numerous drop off locations across western Canada, Ontario, and the western United States, KMG Gold is able to accept shipments from anywhere in either country. Precious metals can be dropped off or sent directly to any of these convenient locations in securely packed boxes, or using one of KMG Gold’s exclusive SecureShip™ Envelopes.
KMG Gold is also the first company in the highly publicized gold & metals buying industry to have partnered with the world’s largest insurance underwriter to offer shipping insurance for precious metal shipments from the consumer to their office, reducing any sense of risk. Any metals shipped to KMG Gold using a SecureShip™ Envelope can be fully insured at half the cost of the competition’s shipping insurance – and KMG’s customers can be assured the value of contents contained in their packages is safe, even if the package is lost. No other metals buyer uses shipping insurance that offers this guarantee.
Contact us at 204.452.GOLD
Tuesday, October 04, 2011
Gold Price Rises
Gold prices rose in Europe on Tuesday as fears that Greece could be heading for a default, potentially sparking a banking crisis in Europe, hurt stock markets and prompted investors to seek out assets seen as lower risk.
European shares fell 2.7 percent in early afternoon trade, while the STOXX Europe 600 Banking Index tumbled as much as 4 percent. World stocks hit a fresh 15-month low.
Spot gold was up 0.3 percent at $1,660.70 an ounce at 1117 GMT. German bunds, which are also seen as a relatively safe store of value, climbed along with gold.
Investors are still wary towards gold after it was caught up in a broad-based financial market rout in late September, which saw heavy selling of the metal to cover losses on other markets. Prices fell 20 percent from the record $1,920.30 an ounce hit early in the month.
"There is still potential for further slides should profit taking again set in. I'm not really convinced gold weakness is over," said Commerzbank analyst Eugen Weinberg.
"But gold is definitely living up to its status as a safe haven at the moment. That is very reassuring for investors."
Despite putting in its weakest performance in nearly three years in September, gold still managed to deliver its biggest quarterly gain of 2011 in the third quarter, and is up more than 15 percent so far this year.
This is even after some gains in the dollar, which has inched up 1.4 percent this year versus the euro. Gold is usually pressured by a stronger dollar, which makes it more expensive for other currency holders.
That traditional relationship has broken down since the credit crunch of 2008 as both the dollar and gold were targeted as stores of value. The dollar rose 0.2 percent against a currency basket on Tuesday, in line with gold.
European shares fell 2.7 percent in early afternoon trade, while the STOXX Europe 600 Banking Index tumbled as much as 4 percent. World stocks hit a fresh 15-month low.
Spot gold was up 0.3 percent at $1,660.70 an ounce at 1117 GMT. German bunds, which are also seen as a relatively safe store of value, climbed along with gold.
Investors are still wary towards gold after it was caught up in a broad-based financial market rout in late September, which saw heavy selling of the metal to cover losses on other markets. Prices fell 20 percent from the record $1,920.30 an ounce hit early in the month.
"There is still potential for further slides should profit taking again set in. I'm not really convinced gold weakness is over," said Commerzbank analyst Eugen Weinberg.
"But gold is definitely living up to its status as a safe haven at the moment. That is very reassuring for investors."
Despite putting in its weakest performance in nearly three years in September, gold still managed to deliver its biggest quarterly gain of 2011 in the third quarter, and is up more than 15 percent so far this year.
This is even after some gains in the dollar, which has inched up 1.4 percent this year versus the euro. Gold is usually pressured by a stronger dollar, which makes it more expensive for other currency holders.
That traditional relationship has broken down since the credit crunch of 2008 as both the dollar and gold were targeted as stores of value. The dollar rose 0.2 percent against a currency basket on Tuesday, in line with gold.
Monday, October 03, 2011
Honesty Is The Best Policy
The old Chinese proverb ‘Honesty is the best policy’ is often ridiculed in today’s business environment, but it’s crucial in ours. In some fields of business, it’s a worthless and extinct virtue. At KMG Gold, we know there is a close relationship between sincerity and truth and people can expect higher revenues in the business world if we combine them in reality.
A business that follows ethical practices is aware of the advantages that honesty can bring to the bottom line. After years of experience in the gold business, we know that customers want to know they have found an honest gold buyer.
You’ll find that people you conduct business with will show you far more respect if you employ the virtue of honesty. Any business must develop a healthy reputation and a strong foundation. With the aid of ethical and honest practices, a business can prosper and succeed in any competitive environment. In this particular field, having a good reputation is valuable and can only be developed if people trust the the entire organization. This provides confidence and a boost to the business which can lead to building strong personal and business relationships.
A business can expect prosperity and success if it complies with honesty, sincerity and truth. If, instead of duping people,current gold dealers chose to carry out open and honest transactions, they could expect success in the long run, but few do.
Honesty holds a lot of benefits. If personnel practice honesty, we will all see a sense of pride. This sense of pride can lead to earning greater revenues because it offers a mental boost to the organization.
Furthermore, a vibrant, strong goodwill can be developed by any honest business. This is especially true in the case of precious metals. Word travels fast in this industry and it doesn’t take long for the public to see who is on the right side of their transaction.
This is and always will be the backbone of KMG Gold.
A business that follows ethical practices is aware of the advantages that honesty can bring to the bottom line. After years of experience in the gold business, we know that customers want to know they have found an honest gold buyer.
You’ll find that people you conduct business with will show you far more respect if you employ the virtue of honesty. Any business must develop a healthy reputation and a strong foundation. With the aid of ethical and honest practices, a business can prosper and succeed in any competitive environment. In this particular field, having a good reputation is valuable and can only be developed if people trust the the entire organization. This provides confidence and a boost to the business which can lead to building strong personal and business relationships.
A business can expect prosperity and success if it complies with honesty, sincerity and truth. If, instead of duping people,current gold dealers chose to carry out open and honest transactions, they could expect success in the long run, but few do.
Honesty holds a lot of benefits. If personnel practice honesty, we will all see a sense of pride. This sense of pride can lead to earning greater revenues because it offers a mental boost to the organization.
Furthermore, a vibrant, strong goodwill can be developed by any honest business. This is especially true in the case of precious metals. Word travels fast in this industry and it doesn’t take long for the public to see who is on the right side of their transaction.
This is and always will be the backbone of KMG Gold.
Sunday, October 02, 2011
Gold Can Still Outshine Cash
Watching the price of gold dive in recent weeks as the eurozone crisis worsened and economic indicators turned particularly gloomy has led some to question the yellow metal’s status as a haven asset.
Investors may disagree on what its price should be or what portion, if any, of a balanced portfolio it should make up, but on one issue there is consensus – gold is all about fear.
With central bankers making good use of their printing presses over the past three years, many investors are increasingly concerned about uncontrollable inflation eating into their cash piles. “Governments do not really understand the long-term effects of printing so much money,” says Dylan Grice, a global strategist at Société Générale Cross Research Alternative View.
“Inflation will be OK if central banks can remove the excess emergency money at just the right time and in the right quantities. I just worry that they are massively overconfident in their ability to do this.” Gold, on the other hand, was created billions of years ago when stars collided in outer space. There is no more where it came from. “Gold may be a mere lump of dense, useless shiny metal, but it’s one which crackpot central bankers can’t print,” Mr Grice notes.
“Fiat currency is a store of value to the extent that people have faith in politicians and central banks. The problem is that trust has been eroded. Central banks are under tremendous pressure to print,” says Tim Price, director of investment at PFP Wealth Management.
This was evident recently when the Swiss National Bank announced it was prepared to buy unlimited amounts of foreign exchange to stop the Swiss franc appreciating further or, in other words, to print unlimited amounts of the franc and debase its currency. With the Swiss having resisted printing money during the crisis, while competitors expanded their monetary bases with abandon, investors have been selling their own currency for the stronger franc.
But Switzerland ended up with an overvalued currency, which was harming its economy and action had to be taken. The bank’s move will boost gold, argues Mr Grice, as it “merely narrow[s] the universe of honest destinations for flight capital with which gold has historically competed.”
Those who are not worried about this type of inflation are petrified of deflation. But even in such a scenario, gold is still a better bet than any currency, according to the gold bugs.
If consumer prices were to fall by some 4 or 5 per cent, stock markets could plummet and the global banking system would be placed under great stain.
The price of gold could also fall, but probably not nearly as much, thereby preserving wealth and purchasing power.
Yet, others argue that a better strategy in a deflationary scenario is to invest in fast-growing industries. “People are very persuaded by crash and doom scenarios, and gold offers a cure for it. But there are other, more positive solutions. Invest in electric cars, recycling, renewable energy – these sectors are growing, and they hold massive potential,” says Chris Eibl, co-founder and head of trading of Tiberius Asset Management.
The recent sharp fall in the price of gold – prompted by declining fears of a surge in inflation in the US and of a collapse in the US dollar – took many analysts by surprise, yet it has done little to alter the fundamentals behind gold’s appeal versus cash today.
Gold may be disliked by some for paying no income, but with the Federal Reserve promising interest rates of close to zero per cent for the foreseeable future, cash deposits are earning no interest either.
“With bank deposits, you’re also fully exposed to the creditworthiness of the bank. It seems unfair especially as in real terms you’re actually losing some 5 per cent per year due to inflation,” says Mr Price.
His portfolio is almost 30 per cent in “real assets”, mostly gold and silver bullion vehicles. But it is not enough, he says, and he is building up the positions. “Fiat money is being printed faster than we can try to protect its value. We’re trapped in an Alice of Wonderland situation, where we’re running just to stay still.”
While no one knows exactly how a Greek default would affect the euro and the other currencies, or quite what would have happened if the US Congress had failed to agree on a debt ceiling deal, the price of the yellow metal works in a different way. “Above all, its value does not depend on the creditworthiness of any government or financial institution, and that may yet prove very significant in the weeks and months ahead,” notes Julian Jessop, chief global economist at Capital Economics, a research group.
Unlike the value of sterling or the dollar, the gold price is not limited by economic and policy considerations. Should Greece default or the eurozone break up, the dollar is expected to be the currency that benefits most given its status as the world’s reserve currency, but even it would be seriously undermined by fears that the US economy would suffer from the fall-out. The ensuing scramble for gold would be likely to boost its price significantly.
An example from the 1930s is often cited by gold bugs as an illustration of gold’s superiority to fiat money. In the midst of the Great Depression, an increasingly desperate president Franklin D. Roosevelt took advantage of a wartime statute that had not been repealed to outlaw “the hoarding of gold coin, gold bullion, and gold certificates within the continental United States”. The possession of monetary gold by individuals or companies became illegal, with some minor exceptions. Those who owned gold had the choice of exchanging it for $20.67 per troy ounce at the Federal Reserve or face a fine of up to $10,000 or up to 10 years in prison.
The order had limited effect as most people could simply hide or take their gold abroad. But to some investors it is a telling example of the arbitrary measures governments can take in a crisis. And it is clear, they argue, that an investor would want to hold gold over cash in such a situation. Gold will retain value even if the entire monetary system collapses. Who knows which currencies will still be around?
Investors may disagree on what its price should be or what portion, if any, of a balanced portfolio it should make up, but on one issue there is consensus – gold is all about fear.
With central bankers making good use of their printing presses over the past three years, many investors are increasingly concerned about uncontrollable inflation eating into their cash piles. “Governments do not really understand the long-term effects of printing so much money,” says Dylan Grice, a global strategist at Société Générale Cross Research Alternative View.
“Inflation will be OK if central banks can remove the excess emergency money at just the right time and in the right quantities. I just worry that they are massively overconfident in their ability to do this.” Gold, on the other hand, was created billions of years ago when stars collided in outer space. There is no more where it came from. “Gold may be a mere lump of dense, useless shiny metal, but it’s one which crackpot central bankers can’t print,” Mr Grice notes.
“Fiat currency is a store of value to the extent that people have faith in politicians and central banks. The problem is that trust has been eroded. Central banks are under tremendous pressure to print,” says Tim Price, director of investment at PFP Wealth Management.
This was evident recently when the Swiss National Bank announced it was prepared to buy unlimited amounts of foreign exchange to stop the Swiss franc appreciating further or, in other words, to print unlimited amounts of the franc and debase its currency. With the Swiss having resisted printing money during the crisis, while competitors expanded their monetary bases with abandon, investors have been selling their own currency for the stronger franc.
But Switzerland ended up with an overvalued currency, which was harming its economy and action had to be taken. The bank’s move will boost gold, argues Mr Grice, as it “merely narrow[s] the universe of honest destinations for flight capital with which gold has historically competed.”
Those who are not worried about this type of inflation are petrified of deflation. But even in such a scenario, gold is still a better bet than any currency, according to the gold bugs.
If consumer prices were to fall by some 4 or 5 per cent, stock markets could plummet and the global banking system would be placed under great stain.
The price of gold could also fall, but probably not nearly as much, thereby preserving wealth and purchasing power.
Yet, others argue that a better strategy in a deflationary scenario is to invest in fast-growing industries. “People are very persuaded by crash and doom scenarios, and gold offers a cure for it. But there are other, more positive solutions. Invest in electric cars, recycling, renewable energy – these sectors are growing, and they hold massive potential,” says Chris Eibl, co-founder and head of trading of Tiberius Asset Management.
The recent sharp fall in the price of gold – prompted by declining fears of a surge in inflation in the US and of a collapse in the US dollar – took many analysts by surprise, yet it has done little to alter the fundamentals behind gold’s appeal versus cash today.
Gold may be disliked by some for paying no income, but with the Federal Reserve promising interest rates of close to zero per cent for the foreseeable future, cash deposits are earning no interest either.
“With bank deposits, you’re also fully exposed to the creditworthiness of the bank. It seems unfair especially as in real terms you’re actually losing some 5 per cent per year due to inflation,” says Mr Price.
His portfolio is almost 30 per cent in “real assets”, mostly gold and silver bullion vehicles. But it is not enough, he says, and he is building up the positions. “Fiat money is being printed faster than we can try to protect its value. We’re trapped in an Alice of Wonderland situation, where we’re running just to stay still.”
While no one knows exactly how a Greek default would affect the euro and the other currencies, or quite what would have happened if the US Congress had failed to agree on a debt ceiling deal, the price of the yellow metal works in a different way. “Above all, its value does not depend on the creditworthiness of any government or financial institution, and that may yet prove very significant in the weeks and months ahead,” notes Julian Jessop, chief global economist at Capital Economics, a research group.
Unlike the value of sterling or the dollar, the gold price is not limited by economic and policy considerations. Should Greece default or the eurozone break up, the dollar is expected to be the currency that benefits most given its status as the world’s reserve currency, but even it would be seriously undermined by fears that the US economy would suffer from the fall-out. The ensuing scramble for gold would be likely to boost its price significantly.
An example from the 1930s is often cited by gold bugs as an illustration of gold’s superiority to fiat money. In the midst of the Great Depression, an increasingly desperate president Franklin D. Roosevelt took advantage of a wartime statute that had not been repealed to outlaw “the hoarding of gold coin, gold bullion, and gold certificates within the continental United States”. The possession of monetary gold by individuals or companies became illegal, with some minor exceptions. Those who owned gold had the choice of exchanging it for $20.67 per troy ounce at the Federal Reserve or face a fine of up to $10,000 or up to 10 years in prison.
The order had limited effect as most people could simply hide or take their gold abroad. But to some investors it is a telling example of the arbitrary measures governments can take in a crisis. And it is clear, they argue, that an investor would want to hold gold over cash in such a situation. Gold will retain value even if the entire monetary system collapses. Who knows which currencies will still be around?
Saturday, October 01, 2011
Gold Ends Quarter On A High
Gold rose Friday on worries of a global economic slowdown, and the price of bullion notched its biggest quarterly gain of this year even after a sharp pullback from a record hit this month.
Gold posted a quarterly gain of 8 per cent – its biggest this year, despite a drop of 11 per cent for September – its largest monthly decline in three years.
For the day, gold finished higher as safe-haven buying resumed despite a rising dollar. Equities and industrial commodities fell after data showed manufacturing in China contracted for a third consecutive month in September.
“I think the correction has run its course. For the first time in quite some time, we actually bought some gold and platinum exchange-traded funds today,” said James Dailey, portfolio manager of the TEAM Financial Asset Management.
Spot gold was up 0.4 per cent at $1,620.60 (U.S.) an ounce by 2:55 PM ET.
U.S. gold futures for December delivery settled up 30 cents at $1,622.30 an ounce, with trading volume sharply below this week’s average as some bullion traders were away for the Jewish New Year holiday.
Gold, which fell this month during a broad selloff of riskier assets as investors worried about euro zone debt and a sluggish U.S. economy, remained 15 per cent below its record of $1,920.30 an ounce set Sept. 6.
Trade has been extremely volatile this month. The wide $400 trading range after the record on Sept. 6 has kept investors wary even as the correction from that high has lifted physical demand.
“In markets that have been shaken as badly as gold market has been shaken, it will take days, perhaps even weeks, before the bullish trend clearly reasserts itself, but we do believe that the margin clerk liquidation has probably run its course,” said independent investor Dennis Gartman.
Gold posted a quarterly gain of 8 per cent – its biggest this year, despite a drop of 11 per cent for September – its largest monthly decline in three years.
For the day, gold finished higher as safe-haven buying resumed despite a rising dollar. Equities and industrial commodities fell after data showed manufacturing in China contracted for a third consecutive month in September.
“I think the correction has run its course. For the first time in quite some time, we actually bought some gold and platinum exchange-traded funds today,” said James Dailey, portfolio manager of the TEAM Financial Asset Management.
Spot gold was up 0.4 per cent at $1,620.60 (U.S.) an ounce by 2:55 PM ET.
U.S. gold futures for December delivery settled up 30 cents at $1,622.30 an ounce, with trading volume sharply below this week’s average as some bullion traders were away for the Jewish New Year holiday.
Gold, which fell this month during a broad selloff of riskier assets as investors worried about euro zone debt and a sluggish U.S. economy, remained 15 per cent below its record of $1,920.30 an ounce set Sept. 6.
Trade has been extremely volatile this month. The wide $400 trading range after the record on Sept. 6 has kept investors wary even as the correction from that high has lifted physical demand.
“In markets that have been shaken as badly as gold market has been shaken, it will take days, perhaps even weeks, before the bullish trend clearly reasserts itself, but we do believe that the margin clerk liquidation has probably run its course,” said independent investor Dennis Gartman.