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10/27/2023 9:30 AM     Current Market Spot Prices:     Gold:  $1,984.26/ozt   Silver:  $22.89/ozt   Platinum:  $926.20/ozt   Palladium:  $1,168.05/ozt  

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.
Posted by Caitlyn Diamond at 12:37 AM 0 Comments

Wednesday, September 28, 2011

Gold Futures Gain

Gold futures gained the most in seven weeks as commodities and equities rallied amid optimism that European leaders will take steps to resolve the region's debt crisis.

The Standard & Poor's GSCI index of 24 raw materials surged as much as 3.6 percent, while the MSCI All-Country World Index jumped as much as 4 percent. In the previous three sessions, gold tumbled 12 percent, the most since 1983, on sales by investors to cover losses in other markets amid mounting concern that the global economy would slump.

"Gold is behaving like a classic commodity and is moving in tandem with the equity market," Adam Klopfenstein, a senior market strategist at MF Global Holdings Inc. in Chicago, said in a recently published interview. "The selloff was overdone."

Gold futures for December delivery gained $57.70, or 3.6 percent, to settle at $1,652.50 an ounce at 1:33 p.m. on the Comex in New York, rising the most since Aug. 8. Yesterday, the metal tumbled as much as $104.80 to $1,535, the lowest since July 8.

The precious metal has gained 16 percent this year, surging to a record $1,923.70 on Sept. 6.

"There is a small but growing group who believe this pullback will prove to be a good buying opportunity," Edel Tully, a London-based analyst at UBS AG, said in a report. "Gold needs to stabilize after suffering a good deal of reputational damage with recent wild moves."

Silver futures for December delivery advanced $1.56, or 5.2 percent, to $31.536 an ounce, the biggest gain since July 13. In the previous three sessions, the price tumbled 26 percent, touching a 10-month low of $26.15.
Posted by Caitlyn Diamond at 5:26 AM 0 Comments

Tuesday, September 27, 2011

Why The Drop?

There has been a lot of turmoil in the financial markets in the markets these days, but if there’s one investment that should be going up according to the experts, it’s gold. 

Gold has always been charged as the ultimate investment because it has been a "store of value." But the majority of the experts agree that gold is bound to keep going up as volatility rises, the gold bugs pronounce.

But the question floating around the investment atmosphere is, “Now that markets are struggling, why is gold on a slide?”

Several economists and market watchers seem to the answer. The word on the street is that people prefer to be holding cash as panic spreads across Europe. To get cash, they need to sell their investments including their gold holdings. If we go back to simple supply and demand concepts that explains the temporary price drop on gold.

“It shows you that at times of extreme stress, there is not a suitable substitute to liquidity and although gold is liquid by metal standards, in comparison to Treasurys, when you get this kind of flight to cash, then it really is cash that counts and that means U.S. dollars,” Credit Suisse analyst Tom Kendall said in a recent interview..

His point is quite valid, but he fails to mention any profit-making these investors may have cashed in on. It has been well documented that in recent years gold has been traded as an investment opportunity, rather than a store of value. So while investors were buying into the long-term strategy, big hedge funds and commodity traders were simply waiting for gold to hit a breaking point, just as they waited for metals such as silver to hit a breaking point back in April. As soon as one fund starts to sell, many more do.

It’s situations like this that prove, yet again, that gold is a safe bet. The current market situation demonstrates why some people keep buying and selling the precious metal over the long term. To make the most of any investment strategy you have to understand how or why the value moves.
Posted by Caitlyn Diamond at 8:57 AM 0 Comments

Friday, September 16, 2011

Seller Beware!

We’ve all heard the saying - ”Buyer beware,” but in today’s precious metals industry, the term “Seller beware,” is by far more appropriate.

“The predators are out in full force,” said KMG Gold founder and president, Michael Gupton.  “And unfortunately it’s because they can get away with it. They feed of the fact that today’s consumer is not aware of the options available.”

With the recent upswing in the price of gold and silver, more and more people are turning to gold buyers to sell their unwanted and scrap gold jewelery and coins. Jewelers, pawnshops and even “traveling roadshows” as Gupton calls them have all entered the market in an effort to grab a piece of the action.

“They are nothing short of predators,” Gupton claims when asked about these roadshows. “Don’t do it. They come to the outskirts of town because they are unlicensed and can’t do business in the city. They grab your stuff with an almost insulting offer and leave as fast as they can.”

Gupton has owned and operated KMG Gold, a local refiner and recycling operation in Winnipeg since 2007. He has been committed to educating the public on the precious metals industry and the tragic environment al effects of mining.

“All you have to do ask questions and check out their web sites, “said Gupton.  “ When they state they ‘probably’ pay out the highest rates that should be an immediate red flag. The other thing is ‘they arrange’ to refine and recycle used jewelery. What does that mean? It means they probably send it to us or another refinery. They are just middlemen.”

Michael Gupton founded KMG Gold in 2007 with his wife Karen, hence the name “KMG”, and has since proven himself a leading voice in the gold recycling industry by advocating for consumer interests, by publishing a wide variety of information and resources on the KMG Gold website.  KMG Gold was awarded the Manitoba Chapter of the 2010 Better Business Bureau TORCH AWARD for 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. 
Posted by Caitlyn Diamond at 11:20 AM 0 Comments

Sunday, September 11, 2011

The New Gold Rush?

Some people are referring to this period of time as the new “Gold Rush.” Most will agree, the current market has been a golden opportunity for investors, some consumers, but as usual the con artists have jumped on the band wagon as well.

According to KMG Gold, president and founder, Michael Gupton on CJOB 68 radio, “Beware: pay attention to past scams and watch out for new ones that are circulating via email, newspaper advertisements and flashy television commercials.”

If someone really wants to buy gold, don't fall for late-night TV pitches or telephone sales calls that come out of the blue. Think about it: Why would a stranger want to tip you off to a hot gold mine investment?

"If gold is hot, you'll see gold scams," warned Gerri Walsh, vice president for investor education for the Financial Industry Regulatory Authority, the nation's largest independent securities regulator.

Gold futures hit a record $1,923.70 an ounce Tuesday before falling back, a good reminder that this is a volatile investment -- even the legitimate deals.

Many of people have never invested or sold gold and have no idea how to go about such a transaction like this. Scam artists take advantage of the fact that individuals are basically unaware. They see the hype and headlines, plus the knowledge that many investors are turning to gold out of anxiety over wildly swinging stock prices.

Take your time. Do your research and only go with companies that have been in the gold business for a long time.

"If you are going to buy or sell a piece of gold, always buy from a reputable dealer who can provide the verification on the purity and authenticity of the piece," Gupton stated. 

The Financial Industry Regulatory Authority, the nongovernmental regulator for securities firms in the U.S., issued an investor alert recently to warn potential investors about the possibility of getting bit by the latest gold bug.

The North American Securities Administrators Association also listed schemes involving gold and other precious metals in its top 10 investor traps.

In one, a fast-talking promoter tried to raise capital for extraction equipment to reopen a long-dormant gold mine in exchange for a full refund on your investment, plus interest and a stake in the mine.

In another, operators claimed to have special coins or nuggets that they could store or trade for investors in special markets for high profits and returns.

In both cases, investors suffered heavy losses.

Be warned, too, about some gold-related investment scams that pitch stocks supposedly connected to mining or exploration. One false promise could be that a given company's stock is a buyout target for other mining companies.
Posted by Caitlyn Diamond at 6:41 AM 0 Comments

Friday, September 09, 2011

UBS Lifts 2012 Gold-Price Outlook by 50% to $2,075

According to UBS, the “ongoing global macroeconomic disappointments” has allowed them to boost its 2012 gold-price forecast by 50 percent. The metal will average $2,075 an ounce next year, up from an earlier estimate of $1,380, the bank recently stated in a report. Prices will average $1,725 in 2013, compared with a previous forecast of $1,200, UBS analysts led by London-based Edel Tully said.

Bullion has surged 28 percent this year, touching a record $1,923.70 an ounce in New York yesterday, as escalating debt woes in Europe and the U.S. spurred concern that the global economy will falter, lifting demand for haven assets. Gold is in the 11th year of a bull market as record-low U.S. borrowing costs boosted demand for an inflation hedge.

“The maintenance of U.S. rates close to zero means that gold is not in competition with assets that offer yield,” UBS said. “Economic growth expectations globally are declining, high debt burdens in Europe will continue to hamper growth, and the risk of a U.S. recession is rising. All of these factors are individually positive for gold. Taken together, they are a potentially explosive cocktail.”

Federal Reserve Bank of Chicago President Charles Evans said that the central bank should move “aggressively” to reduce unemployment and “seriously consider” further stimulus measures. The Fed has pledged to hold rates low for about two years. Unemployment has remained at around 9 percent or higher since April 2009.

Gold futures for December delivery fell $55.70, or 3 percent, to settle at $1,817.60 on the Comex in New York.

The metal will be “increasingly used as the line of defense against additional negative market outcomes,” UBS said. “Money will likely flow into the gold market over the months ahead and into 2012, and this should have significant price implications.”

Posted by Caitlyn Diamond at 10:58 AM 0 Comments

Tuesday, August 16, 2011

Buying Gold- Knowing All The Workings

Because of the economic turbulence prevailing worldwide, it has become very difficult for people to come across a secure and long term investment option nowadays. Fluctuation of stock exchange, shrinking of retirement accounts and erosion of the value of money are the reasons which contribute to it. Investors are now using gold to enhance their investment portfolio as they have come to accept and believe in its historical importance and value and not thinking of this precious metal as a jewelry making commodity only. By opting to buy gold, people can make money through it later as it can be sold at a higher price.

There are a few steps which one has to follow when choosing to buy gold in order to make a safe investment. Getting all the knowledge about the gold market is the first crucial step which should be taken. A gold buyer should role and historical importance of gold as this will give them knowledge of the potential gold holds as a mode of investment. It should also be understood that the five primary methods of gold investment are certificates, stock in mining companies, metal futures, tangible bars and coins and precious metals mutual funds.

Before deciding on an investment option, research should be done on each option. You can choose one based on your budget or the mode which has the possibility of giving you most money. The ideal choice is gold coins if one has a limited or small budget. This is because they are easy to transport, store as well as hide. They also have historical value. Selecting a dealer is the next step when one has decided to buy gold. It’s difficult to choose one dealer or company as there are numerous who sell gold. No matter which dealer or company they select, the dealer should follow all business ethics.

When people wish to ascertain the value of their gold, they can get assay services at a gold refinery. KMG Gold Recycling is a very suitable choice when you are looking for a refinery which practices honesty. Instead of choosing an online dealer who is virtual, it is better to choose one with whom you can meet face to face. People can select any dealer they want as there are different dealers in every Canadian city such as Calgary, Victoria, Kamloops, Toronto, Winnipeg, Vancouver etc.

By using a local dealer, transportation and shipping costs can be saved. Once the gold has been tested by the refinery, people can finalize their decision. People should invest in what they can afford and thus start with small gold coins. By offering gold assaying services, KMG Gold Recycling helps to ensure that your investment is safe and sound.
Posted by Caitlyn Diamond at 1:06 PM 0 Comments