Wednesday, April 24, 2013
Gold soared 650% from August 1999 to August 2011.
But it's down 24% from the $1,885 peak and in recent days has whipsawed gold investors in a way they haven't experienced in 30 years.
The bear market has gold bugs reaching for the Dramamine. But we reached for the telephone instead and dialed Singapore—and legendary investment guru Jim Rogers.
Many of Wall Street's biggest investment banks are calling for additional blood-letting—meaning gold prices have a lot more room to fall. But in his usual contrarian manner, Rogers dismissed the consensus.
Indeed, the former hedge-fund manager and best-selling author believes this is a badly needed—even healthy—price correction.
And that will set the stage for a new bull market in gold—and a run to record prices that are sure to come in an era of cheap-money policies by the world's central banks, Rogers told Money Morning during an exclusive interview.
"Gold was setting us up for some kind of correction," Rogers said in a Sunday night telephone interview from his home. "Gold needed a correction—it still needs a correction—and I hope this is the proper correction which gold needs. Then gold—somewhere along the way—will make a bottom and we can all join in the bull market as [it] goes higher and higher."
And make no mistake: The shiny metal is going higher—much higher.
"Gold has to go a lot higher over the next decade or so, because [the world's central banks] keep printing money," he said.
Of course, it was just one week ago when gold suffered its worst two-day rout in 30 years. And even though that's been followed by a five-day winning streak that was capped off by a 2.3% gain yesterday, gold is still in bear-market territory.
"Gold is going to shake out the mystics—there are still a lot of mystics in the market," Rogers said. "I have guys writing me saying this couldn't be happening. I say, "Well, get out your quote machines, it is happening'."
Pundits have identified a litany of catalysts for the metal's decline.
One was Cyprus. When reports surfaced that the tiny country was planning to sell some of its gold reserves to help finance its bailout, they immediately sparked fears that the similarly troubled Portugal, Ireland, Greece, Spain and Italy might follow suit and dump their own gold holdings—no small worry given that those five countries have an aggregate $145 billion in reserves.
Wall Street was also identified as a culprit. Big investment banks such as Goldman Sachs Group Inc. (NYSE: GS) were already forecasting much-lower gold prices, and had even urged customers to "short' the metal. When the sell-off strengthened, many of those institutions slashed their target prices anew—and intensified the decline, the pundits said.
While those were certainly contributing factors, they weren't the root cause, Rogers told Money Morning.
With the advent of exchange-traded funds (ETFs), it's become much easier for individual investors to "buy" gold. As Rogers noted, "people just switched from the miners to the real stuff, [creating] another reason it went up so much [and] set the base for what's happening now."
Exacerbating the situation was the fact that the run-up hasn't been offset by any type of pressure-relieving correction.
"Gold was up 12 years in a row, which is extremely unusual," Rogers said. "I don't know of any asset that's gone up 12 years in a row without a down year. . .equally important is the fact that gold has one correction of 30%—as much as 30%—in 12 years. Now that's very strange. Most [assets] correct 30% every year or two. That's just the way markets work. The peculiar action in gold has been the 12 years [without that correction]. So it was certainly setting us all up for some kind of correction."
The last down year for gold was 2000, when the yellow metal fell 2.8%. The last correction of any magnitude before this one was in Sept. 2011, when it declined 14.7%. That followed a July-September rally of 28.4%, according to our Real Asset Returns research service—and was less than half of the 30% correction that Rogers quantified as being meaningful.
There's obviously no way to predict where gold will bottom, Rogers has said. He's often cited $1,200 an ounce since that would represent a 30% decline. But even if it's more, investors need to keep in mind the inflation-fueling policies the world's central banks seem intent on pursuing. They're bullish for long-term gold prices.
At some point, then, gold becomes too cheap to ignore, Rogers said—displaying the mix of wit, analysis and insight that results in a steady flood of interview requests.
"If it gets to $1,200, I hope that I'm smart enough to buy even more," he said. "If it gets to $1,100, I hope I'm smart enough to buy even more. Speak to the chartists. . .the technicians. . .and [look at] the retracements, or whatever they call them. A 50% retracement is not unusual. A 60% retracement is not unusual. You can do the same math that I can. You can figure out what a 40%, 50% or 60% retracement would mean for someone."
Here's his key point. With declines that steep—taking gold prices down to $1,150, $950 or $750 an ounce—a lot of would-be gold investors will literally throw in the towel, and will abandon gold. That's when negative sentiment will have been maximized, and gold will have bottomed.
"Until people start accepting reality instead of denying reality, we're not going to make the bottom," he said. "Until a lot of people just pack it in and throw gold out the window. . .then gold will make a beautiful bottom and we can all participate in a multi-year bull market."
One of the allures of gold as an investment is that there are so many available options.
"There's ETFs, there's coins, there's bars," Rogers said. "There are many, many ways to invest. But please don't do so unless you've done your homework."
That's especially true of some of the other investment vehicles—including futures contracts and miners.
"Some of the gold-mining stocks are extraordinarily beaten down," he said. "Many of them deserve to be beaten down. I think more money has been lost in buying gold-mining shares over the past 100, 150 years than any other sector, including airlines and railroads. If you know the right ones, or right one, buy it, or them - because somebody will make a lot of money."
Rogers achieved legendary Wall Street status with The Quantum Fund, a hedge fund that's often described as the first real global investment fund, which he and partner George Soros founded in 1970. Over the next decade, Quantum gained 4,200%, while the Standard & Poor's 500 Index climbed about 50%.
It was after Rogers "retired" from Wall Street in 1980 that Main Street investors got to see him in action-and benefit from his acumen.
Rogers traveled the world (several times), and penned such bestsellers as "Investment Biker" and the "Bull in China." And he made some historic market calls: Rogers predicted China's meteoric growth a good decade before it became apparent, and he subsequently foretold of the powerful updraft in global commodities—an investment category that he continues to favor.
And with both China and commodities, he introduced America's retail investors to profit opportunities that were once the sole purview of Wall Street.
Those prescient calls, his best-selling books, and his regular appearances on popular investment programs on CNBC and elsewhere have made Rogers into a household name.
Over the past five years, he's also helped develop roughly a dozen commodities-based funds—making that once-arcane asset class accessible to a much broader audience of investors.
Wednesday, April 24, 2013
After rebounding for three consecutive days, the U.S. Comex gold futures fell 0.87 percent on Tuesday and ended at $1,408.08. As of Wednesday Asian morning, the gold futures surged close to one percent. The Dollar Index traded above 83 on Tuesday and was up 0.40 percent in the past two days.
The S&P 500 index and the Euro Stoxx 50 Index shot up 1.51 percent and 3.41 percent this week after falling 2.11 percent and 2.21 percent respectively last week. The CRB Commodity Index continued to fall in the past two days by 0.77 percent after dropping 1.40 percent last week.
Grimmer Global Growth Outlook
China kicked off with a weaker-than-expected April flash manufacturing PMI at 50.5 compared to 51.6 in March. According to Deutsche Bank, the slower growth is related to the anti-corruption campaign, the policy tightening in the real estate sector and the onset of the bird flu crisis. However, investment should reaccelerate in 2H of 2013. The April Eurozone composite PMI contracted for the fifteenth month at 46.5, likely pressuring the ECB to boost stimulus.
The Bundesbank also projects that Germany's recovery will be delayed past Q1 due to the weaker industrial production growth and the extreme weather. The April U.S. Markit Preliminary PMI also was weaker than expected at 52 compared to the projected 53.9.
Weaker growth data from the U.S., China and Europe have caused the commodities to sell off. Industrial commodities were particularly hard hit. The market also fears a further slowdown in China, which does not bode well for the demand for gold. Year-to-date, the CRB Commodity Index dropped 4.75 percent. Goldman Sachs lowered its expectation on commodities in the next three and twelve months although it closed its well-timed recommendation to short-sell gold. Barclays pointed out that the net gold-backed ETP redemptions have reached 117 tonnes in April, the weakest month on record. Barclays calculated that about 270 tonnes of gold holdings were bought above the current prices, posing further downside risks on gold prices.
However, the net short positions in gold have decreased, indicating that short-covering has taken place. India and China's physical demand has also responded very well to the cheaper gold prices. Gold volumes in the Shanghai Gold Exchange broke record for three consecutive days. High inflation, growing wealth and the gold culture in these emerging countries mean that gold will continue to be bought for the longer-term. In the words of Grant Williams, a fund manager, you have to distinguish between "the gold price", which reflects the paper gold futures prices and has collapsed, and "the price of gold", which represents the physical price of gold and has remained well-supported.
Thursday, April 18, 2013
The monumental short selling on COMEX on Friday and Monday had the desired effect - it took out key technical levels and precipitated a cascade of further selling as traders who were long the June contract capitulated. The selling begat more selling and the rest is history. A classic short squeeze executed to perfection.
The trading decision to short gold was taken, we think, after successful smaller attempts by a few hedge funds in January and December who had 'cased the joint' following what appeared to be a 'normalizing economy', an argument strengthened by golds apparent failure to rally on Cyprus, Bank of Japan QE and of course North Korea. It was then a question of timing... On the gold futures exchange the traders have a gearing of about 20:1 over the physical traders aided in great part by a reduction in the margin requirements by CME last November (they have since reversed that position).
Since then, the Q1 economic growth story has faded fast, but the trap had already been set. The selling on COMEX was large and fast - a really spectacular display of shock and awe. There is no other way.
With gold falling to a low of $1335, physical demand started slowly but has picked up momentum. The Indian market was the first to respond as prices bottomed (no surprise there - they are always adept at spotting bargains), followed soon after by Dubai, Japan, Europe and now China. Sourcing small denomination bars is now proving difficult as stocks evaporate and dealers can expect to wait between 4 and 6 weeks for fresh stocks from the gold refiners. Premiums on bars, as one might expect, are rising fast.
Rarely has the gold market seen such a clear split, with the paper traders heading south while the physical heads north. The former has the advantage of leverage (via the futures) while the latter has scale.
Most encouragingly for gold bulls has been the resoluteness of gold ETF buyers - a hybrid if you will of physical and paper - who are the real investors and appear to be largely unshaken by the decline ; in the week to Apr 17th ETF holdings have fallen by only 1.8 moz to 80.21 moz in holdings - a decline of about 2%. Figures from the CFTC have not yet been released but we would expect futures selling to outweigh this by a factor of about 300-fold.
Disappointingly on the other hand for gold bulls has been the price reaction to the decline which again can only be described as lacklustre - we would have expected prices to rise to $1450 (a 50% retracement on the move lower) and then the key technical level of $1540.
This leaves the market with a large long and large short position - and they cannot both be right - gold is therefore set up over the next few weeks as specs take on investors - place your bets please ...
Tuesday, November 01, 2011
The demand for gold fell in India during the peak festival season over the past one month as high inflation and tight household budgets dented consumer spending according to the World Gold Council. The council also said that sales of bars and coins maintained the same volume both in the organized sector--sold through banks and post office outlets--and the unorganized sector, such as jewelers.
The shift towards the purchase of more coins and bars, traditionally smaller in quantity than jewelry could be an indication that more consumers wanted to buy at least some of the precious metal as a long term investment.
Traditionally, gold sales in the world's largest consuming nation are strongest during this period as it is considered auspicious for purchases. This year, the festival season began in the first week of October and culminated with Diwali, the festival of lights, on Oct. 26. The largest purchases during this period usually happen on Guru Pushya Nakshatra, or the day of auspicious ventures, which fell on Oct. 20, and on Dhanteras, celebrated on Oct. 24.
"Overall, the market reported a reduction in demand compared to last year," the World Gold Council said in an issued statement.
The council didn't specify gold sales volume for the period, but is likely to give the detailed statistics in late November as well as its outlook for the year ahead.
"Large jewelers who we spoke to reported similar or slightly lower levels of sales than the previous year. The overall market though reported a fall in jewelry in volume terms," the council said.
The council said that buying sentiment was muted because of tighter household budgets, high inflation as well as expectation that gold prices could fall post the festival season if the Indian rupee strengthens against the U.S. dollar.
India imports nearly all its annual gold requirement and, therefore, local prices are heavily influenced by the currency exchange rate. The rupee has depreciated about 11% against the dollar since April and was quoting at 48.87 to the dollar Monday.
Sunday, October 30, 2011
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.
Friday, October 28, 2011
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.
Tuesday, October 25, 2011
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.
Monday, October 24, 2011
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.
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.
Friday, October 21, 2011
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.
Thursday, October 20, 2011
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.
Thursday, October 20, 2011
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.
Wednesday, October 19, 2011
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.
Tuesday, October 18, 2011
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.
Monday, October 17, 2011
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.
Saturday, October 15, 2011
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
Friday, October 14, 2011
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.
Thursday, October 13, 2011
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.
Wednesday, October 12, 2011
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.
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
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.
Saturday, October 08, 2011
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.
Wednesday, October 05, 2011
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
Tuesday, October 04, 2011
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.
Monday, October 03, 2011
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.
Sunday, October 02, 2011
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?
Saturday, October 01, 2011
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.
Friday, September 30, 2011
Everyone has heard the term karat but few know the meaning or the original of the word. In the gold industry, karats is used to describe the purity of the gold used to make the piece. The word dates back to ancient Mediterranean and Middle Eastern civilizations that used carob seeds to measure the weight of gold.
The word carat is derived from the Greek word kerátion , which means “fruit of the carob.” Carob seeds were used as weights on precision scales because of their reputation for having a uniform weight. The other reason for the seeds use was that it was in order to keep regional buyers and sellers of gold honest, potential customers could retrieve their own carob seeds on their way to the market, to check the tolerances of the seeds used by the merchant. If this precaution was not taken, the potential customers would be at the mercy of "2 sets of carob seeds". One set of "heavier" carob seeds would be used when buying from a customer (making the seller's gold appear to be less). Another, lighter set of carob seeds would be used when the merchant wanted to sell to a customer.
As the softest metal in existence, pure gold is not the best for creating jewelry. Because of its softnesss. gold is often strengthened with zinc, copper, or silver. Rarely is pure gold used in the manufacturing of jewelry and the karat system is used to determine the concentration of its content.
Most gold jewelry in the U.S. is 10, 14, or 18k. A piece that is 18k is 75 percent pure gold, making it the most valuable of the three. Even when pieces have equal weight, the item with the higher number of karats will be more valuable. An 18k gold item will contain more yellow in the colored tint. Though 14k is more popular in the U.S., 18k gold is purchased by most European consumers.
Just because jewelry is stamped 18K does not mean it is. Laws vary between countries in terms of ensuring that these stamps are accurate. The U.S. is just one country that may not pursue a manufacturer for using a misleading stamp. Some countries mandate that gold purity be verified by a third party before a piece of jewelry may be stamped.
Those who buy gold coins are familiar with 24k gold because it is often used to make modern bullion coins. However, since it is often too soft for jewelry-making purposes, 18k is usually the highest number found on jewelry, though 22k is also available.
Wednesday, September 28, 2011
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.
Thursday, September 22, 2011
The Royal Canadian Mint is on track to raise sales of its silver bullion coins by around 30 percent to 25 million ounces this year and to match last year's record gold sales of around 1 million ounces, an executive from the Mint said.
Speaking on the sidelines of the London Bullion Market Association annual conference, John Moore, executive director of bullion and refinery services at the Mint, told Reuters investors believed silver had more room to rise than gold.
"In terms of our sales this year, year to date we're tracking to the same volumes as we had last year in gold, which were record volumes for us. heading toward a million ounces," he said.
"In silver, we are 30 percent ahead of where we were last year," he said. "We finished last year with 18 million ounces of silver (sales). We are looking at increasing those sales by about 30 percent to the end of this year, to around 25 million ounces."
While silver sales have been strong, very few scrap coins are being returned to the market despite a rally in silver prices to record highs near $50 an ounce in late April.
The metal dropped sharply from that high, however, falling by around a third in just six sessions after its record high, unsettling some investors.
"Analysts are still calling for silver to follow gold and go back up to $50," Moore said. "If you believe gold is going to $2,000, you will probably believe that silver will follow it and go to $50."
Wednesday, September 21, 2011
Gold climbed to a record $1,921.15 an ounce on Sept. 6. Prices more than doubled since the end of 2007 as stock markets slumped, economies contracted and central banks and governments pumped more than $2 trillion into the global financial system. It all sounds perfect but there are issues involved.
Deep in the 7.4-acre Singapore Freeport next to Changi International Airport’s runways is the bullion vault of Swiss Precious Metals, behind seven-metric-ton steel doors built to survive a plane crash or earthquake.
The rooms are almost full after demand rose fivefold in the year since the Geneva-based company opened the facility. The firm is planning on an expansion to cope with the surge of investors willing to pay as much as 1 percent of the value of their holdings each year to keep them secure.
“The European debt crisis and its impact on the solvency of European financial players are driving European customers to find safe investment opportunities like physical gold and other precious metals,” a representative said.
Barclays Capital is building a new vault, The Brink’s Co.and Deutsche Bank may add more space to there facilities, and the Perth Mint may expand for the first time since 2003. It’s a sign they expect demand to keep increasing after the 11-year rally during which prices increased sevenfold. Investors in exchange-traded products backed by gold bought 2,198 tons of bullion since 2003, exceeding all except four countries’ official stockpiles.
Gold rose 28 percent to $1,813.15 this year. The metal will exceed $2,000 this year, according to the average estimate of 16 respondents in a Bloomberg survey at the London Bullion Market Association’s conference in Montreal. The metal will peak at $2,268 next year, the survey showed.
Storage companies are responding. The 112-year-old Perth Mint, which refines more than 8 percent of all supply and is owned by the Western Australian state government, may add a new vault within the next year, according to Treasurer Nigel Moffatt. The mint sells everything from gold coins to 400-ounce (12.4-kilogram) bars.
Brink’s, the largest bullion carrier in the U.K., is considering adding more storage after opening a new London vault earlier this year. Barclays, based in London, is building a vault in the city that will open next year, the bank said in a statement last week.
“With gold prices where they are, we encourage people to keep it in safety-deposit boxes at banks or vaults, which gives that sense of security,” said Scott Carter, chief executive officer of Goldline International Inc., a Santa Monica, California-based precious-metals retailer established a half-century ago.
“Many vaults are hitting the insurance limit as prices of gold have surged and even if space is available, the full replacement insurance may not be available,” said Savneet Singh, the CEO of New-York based Gold Bullion International, which offers precious-metals storage to wealthy individuals, hedge funds and financial institutions. “The smaller customers are already getting squeezed.”
Tuesday, September 20, 2011
Jewellers scale are a must have for people who deal in precious metal items. Such items include diamonds, semi-precious stones, silver and gold.
What Is A Jewellers Scale?
This is a weighing machine that can measure very minute objects. The scales are digital and are available in stores that stock jewellery and precious metals. Resellers are also popular users of these scales. They weigh carats either for gold or diamond, and help in determining the value of the underlying precious metal.
How Gold Is Weighed
Currently, gold is weighed as:
1 ounce - 31.1 grams
1 kilogram - 32.2 ounces
One buying a scale must be careful so as to get the best scale. Reputable makers of these scales have evenly distributed their products in the market. There are some guidelines that can help a buyer know exactly what to look for in a scale. These are mainly requirements that have been set by the industry in regard to the ideal scales. These are:
A jewellers’ scale must have a digital display that gives accurate measurements. The scales are convenient because they give quick results, in seconds! Whether a person is seeking to buy or to sell precious metal items, a jewellers scale offers more efficiency than other weighing methods. Accurate measurements lead to accurate transactions which are necessary for business efficiency.
b)Source of power
Jewellers scale are very convenient for use. For people who are always on the move, battery run scales are available. They are also portable hence ideal for field studies.
Uses Of Jewellers Scales
Though the word jewellery is used in its name, jewellers scale can be used by just about anyone. Insurance firms use them use them to ascertain the inherent values of items such as rings, bracelets, gold items and other precious metal items. They do these tests so as to determine the amount of insurance cover that is payable for the precious metal items.
Auction houses also have these scales for establishing the values of items from diamonds, silver, gold or semi-precious metals.
Individuals are also users of these scales. They use them to determine the value of the jewellery they buy. It is important to know that the item one is buying is genuine and that the value stated is indeed the true value.
Modern systems weigh gold in grams though the price of gold is quoted in ounces. Knowing the ounce equivalents of these grams helps an individual get the correct price for gold items.
Therefore, one should invest in a jewellers scale that is properly calibrated as this is the first step to determinig the true value of a precious metal item. Consider your options carefully!
Saturday, September 17, 2011
Silver is a soft, white, lustrous transition metal. The metal occurs naturally as an alloy with gold and other metals. It is also available in minerals such as argentite and chlorargyrite. However, most of the silver is a byproduct of copper, gold, lead and zinc refining.
Silver is a valued precious metal used to make ornaments, jewellery, high-value tableware and currency coins. Today, silver has found an array of use as conductors, catalysts, disinfectants as well as in photography.
Silver In Photography
Photography has been around since the early 1800’s. Silver was used in photography for making silver based films. Its popularity grew steadily over the years. However, the recent introduction of digital cameras has reduced the use of silver in photography.
Silver halide crystals were used to cover a film. The crystals, once exposed to light would set. Due to their stability, they produced high definition photos and was therefore the best photographic method.
In the medical and industrial fields, X-rays use silver based films. Industrial inspections involve routine tests of cast metals. Scanning of machinery parts to display hidden flaws is done using these silver based X-ray films.
However, the use of digital cameras has greatly reduced the demand of silver in photography. In 2007, the demand for silver in photography was about 12 – 15% of the years’ total production. This was approximately half the silver that was demanded ten years before. With this large decline, silver is still significant in the industry.
Crime Scene Cameras
Silver based films are widely used and are the recommended technology for evidentiary photography and other field applications. These cameras are preferred because they offer high resolution and the highest dynamic range. Of the available camera technology options, these cameras possess the best colour range.
Compared to digital storage media, silver based films have a more lasting storage medium which is readily available.
Advantages Of Silver Based Films
1.They have a high resolution quality that gives a sharp image. The small sized silver crystals are the ones that give the cameras this high resolution.
2.The films are readily available and are manufactured by many reputable companies.
Disadvantages Of Silver Based Films
1.The films require separate processing and printing facilities.
2.They use up a lot of time in processing.
3.Processing this films produces environmentally hazardous byproducts.
4.The film needs a lot of care in handling before it is processed. This is because exposure to humidity and temperature destroys the content.
5.The images taken can not be viewed immediately like in digital cameras, unless an instant film was used.
6.They do not have provisions for editing the images taken hence all faults are processed with the images.
Wednesday, September 14, 2011
The United States Mint will offer 2011 American Eagle Silver Uncirculated Coins beginning at noon Eastern Time ( ET ) on September 15, 2011. The one-ounce .999 silver coin is currently priced at $60.45. As with all products sold by the United States Mint containing precious metals, pricing is subject to change.
Struck on specially burnished blanks, American Eagle Silver Uncirculated Coins feature a finish similar to their bullion counterparts but carry the "W" mint mark, indicating production at the United States Mint at West Point. Each coin is encapsulated in protective plastic and placed in a blue presentation case accompanied by a Certificate of Authenticity.
The obverse ( heads side ) design of the American Eagle Silver Uncirculated Coin features an image of Lady Liberty in full stride enveloped in the folds of the American flag with her right hand extended and branches of laurel and oak in her left. The reverse ( tails side ) design of the coin depicts a heraldic eagle with shield, an olive branch in the right talon and arrows in the left.
Orders will be accepted at http://www.usmint.gov/catalog or at 1-800-USA-MINT ( 872-6468 ). Hearing- and speech-impaired customers with TTY equipment may order at 1-888-321-MINT ( 6468 ). A $4.95 shipping and handling charge will be added to all domestic orders. There is no household order limit.
The United States Mint, created by Congress in 1792, is the Nation's sole manufacturer of legal tender coinage and is responsible for producing circulating coinage for the Nation to conduct its trade and commerce. The United States Mint also produces proof, uncirculated and commemorative coins; Congressional Gold Medals; and silver, gold and platinum bullion coins.
Monday, September 12, 2011
The world economic scenario has undergone a lot of turbulence and uncertainty in the past few decades. Therefore, it is a secure alternative to make long term investments. The retirement accounts are decreasing, the stock exchange is also subject to huge fluctuations and the value of all currencies is on a decline. Gold has become a prized investment in such these circumstances. Gold has emerged as a winner because it has been able to withstand all the lashes of recession. Apart from being used in ornaments, gold also possesses immense historical value and importance. What’s more is that by buying gold at a lower price and selling it at a higher price, one can make money.
To ensure that gold proves to be a secure and reliable investment, people should understand some simple steps to buy gold. To gain a full understanding of the ins and outs of the market, people should thoroughly analyze the gold market. If one wants to know the potential value of gold holdings, people should understand the value of the metal and have complete knowledge of its historical relevance. Moreover, people should be aware that gold investment is not restricted to one specific option. People can buy metal futures, certificates, stocks of mining companies, wafers, physical bars and coins and mutual funds of precious metals amongst others.
Before settling on one form of investment, people should have a thorough understanding of the gold industry. In addition, the mode of investment which is selected should enable people to make money and should also be within means. Those investors should look for gold coins that have a limited allocation. Not only these coins have immense historical value, but are easy to transport and convenient to store and hold.
Finding a reliable gold dealer is the next step which has to be followed. It is essential to find a dealer who is honest, trustworthy and follows all business ethics from the ones which are available locally as well as online. All Canadian cities like Toronto, Calgary, Kamloops, Vancouver, Winnipeg, Victoria etc have their own gold dealers.
There are several gold dealers located in each city. It can be seen that people can save on the transportation and shipping costs can be saved if one opts to use a local dealer. On several occasions, people can gain confidence by investing in smaller items.
People can choose any gold refinery in Canada for confirming gold authenticity of gold with the help of gold assay services. KMG Gold Recycling is a suitable choice when looking for a precious metal refinery in Canada. People can make a decision once the refinery has analyzed the gold. KMG would be the ideal choice as it conducts all its transactions with honesty.
Sunday, September 11, 2011
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.
Saturday, September 10, 2011
KMG Gold founder and president, Michael Gupton will appear live on CJOB Radio. At 10:00pm on Saturday, Sept 10, Michael talks live on the Greg Glatz Show in an active discussion on the current market trends in the precious metals industry.
With the price of gold reaching near record highs, many people have been looking for the best, easiest and SAFEST way to sell their unused jewelry, coins and other precious metals. Gupton has become the leading authority on the gold buying industry and will be a perfect fit for Greg's program.
"I think a talk show is the crown jewel of broadcasting because it gives people a chance to say what they need to say. For that reason, my shows have always been built around the idea that the callers matter most. I say exactly what I need to say and I give listeners their chance to do the same."
Thursday, September 08, 2011
The price of silver has been closely tracking that of gold during the precious metal’s bull run lately. Silver’s role as a precious metal has, at times has avoided any price negative news that has affected the other industrial commodities.
Silver benefits from gold’s rising prices largely because investors, whether in the paper or the physical markets, view it as an attractive leveraged play on gold. Silver offers exposure to the rising demand for safe haven assets at a cheaper price, sometimes earning it the title of “poor man’s gold.”
Of course, choosing silver as an alternative to gold has its risks, especially since the white metal isn’t entirely a precious metal. Silver’s price movements can be heavily impacted by favourable or unfavourable market sentiments regarding the health of the industrial sector, making the silver market highly volatile and prone to large swings in prices.
“Regardless of what happens, silver is still silver,” says Michael \Gupton of KMG Gold in Winnipeg. “It is considered both a precious metal with monetary overtones and also an industrial metal – two positive traits that affect its value.”
Worth the risk?
In spite of the risks, many people still find silver an attractive investment as it has the potential to bring far greater return on investment. The return on investment for silver can surpass gold as price movements over the last year have shown. From August 31, 2010, the price of silver year-over-year gained 115 percent compared to 47 percent for gold; meaning, that one hundred ounces of gold you bought last year for $124,770 made you $57,750 if you sold it one year later. However, you could have put that $124K all into silver and made nearly $143K for a total return of 147 percent more than your return on gold.
Over this next year, analysts expect gold prices to reach even higher and for silver to continue outperforming gold. “When we look at gold versus silver, we feel that silver prices could enjoy more of a gain over the next year or so." stated Gupton.
Wednesday, September 07, 2011
Of all asset classes in today’s markets, gold is unique. And for a number of reasons.
Firstly it acts as a long-term hedge and a short-term flight to safety instrument against virtually all other asset classes. Secondly, it supports a wide range of instruments, including physical delivery (bullions, coins and jewellery), gold-linked legal tender, gold-based savings accounts, plain vanilla and synthetic ETFs, derivatives and producers-linked equities and funds. All of these are subject to diverse behavioural drivers of demand. Thirdly, gold is psychologically and analytically divisive, with media coverage oscillating between those who see gold as either a long-term risk management tool, or a speculative “bubble”.
In the latter context, it is interesting to look closer at the less-publicized instrument -- gold coins, traditionally held by retail investors as portable units to store wealth. Due to this, plus demand from collectors, gold coins are less liquid and represent more of a pure ‘store of value’ than a speculative instrument.
Classical bubbles arise when speculative motives (bets on continued accelerating price appreciation) exceed fundamentals-driven motives for holding gold. In later stages of the “bubble”, we should, therefore, expect demand for gold coins to fall compared to the demand for financially instrumented gold.
The U.S. Mint data on sales of gold coins suggests that we are not in the last days of the “bubble”. But there are warning signs to watch into the future.
August sales by the U.S. Mint were up a whooping 170 per cent year on year in terms of total number of coins sold, while the weight of coins sold is up 194 per cent. On the surface, this gives some support to the theory of gold becoming overbought by retail investors. However, monthly comparatives reflect a huge degree of volatility in U.S. Mint sales and August results comfortably fit within statistical normals for the crisis period since January, 2008. August results also fall within the historical mean (1987 through Monday).
At 112,000 oz of gold coins sold, August, 2011 is only the 19th busiest month in sales since January, 2008. Since 1988 there were 87 months in which average gold content per coin sold by the U.S. Mint exceeded the August, 2011 average and on 38 occasions, volumes of gold sold exceeded last month’s. In other words, current gold coinage sales do not represent a dramatic uptick in demand.
Thursday, June 16, 2011
KMG Gold Recycling
NEW YORK (MarketWatch) — After six down weeks and a savage slump on Tuesday, the specter of a 2008 Crash haunts Wall Street. But two certified doomsters are (slightly) more cautious.
This is the problem, as summarized by the latest Aden Forecast:
“Many respected analysts are warning that another financial crisis could be on the horizon similar to the one in 2008. They claim that since the 2008 meltdown was not allowed to end naturally, the conclusion is still coming. This is a real possibility since the fundamental, underlying factors that triggered the crisis to begin with still persist. Another possibility is just a renewed recession.”
One service that indisputably did call the Crash of 2008 (“a financial tsunami”) was Harry Schultz’s International Harry Schultz Letter. Schultz had a long and checkered career, especially as monitored by the Hulbert Financial Digest in its closing phase. But its last years were brilliant. Greatly to the disappointment of columnists seeking colorful copy, the letter closed last winter after 45 years of publication. ( See Jan. 10 column .)
However, Schultz still publishes a monthly essay in the Aden Forecast. The good news: As of last week, he doesn’t seem to see another Crash…yet.
Schultz has always had a scatter-shot style, combining eccentricities and insight, and this tendency seems to have become more pronounced. This is his only comment on the stock market:
“Chart talk: Dow Jones Industrial Average /quotes/zigman/627449/delayed DJIA +0.54% is in a multi-year 2000-2011 BT (broadening top). It suggests a new high, followed by a collapse. Broadening Tops are often seen in individual stock charts, rarely in a stock average. Is credible…”
This fits generally with Schultz’s view of gold and the economy — which, using a favorite device, he expresses by quoting a surrogate:
“The run-up to the peak in markets like gold is between now and 2015. I think it will all be over by 2015, a lot of it depends on how aggressively paper monies get printed from here on in. I think $3,000 is an absolute minimum gold target. I can believe in targets certainly above $5,000 and it’s theoretically possible to go to $12,000…If we get as high as $12,000, a lot of very bad things will have happened to our economies.”
In a hopeless effort to forestall the usual abuse in the comment thread, I repeat: Schultz really did foresee the Crash of 2008 (plus, for that matter, the Great Inflation of the 1970s). And his record, according to the HFD, was latterly very strong.
His new hosts at the Aden Forecast also have a strong record by HFD count. I named Aden Forecast Letter of the Year in 2010. ( See Dec. 30, 2010 column .)
Unlike Harry Schultz, however, Pamela and Mary Anne Aden’s world view is comprehensive, systematic and closely-reasoned. It’s ultimately just as apocalyptic, but the Adens explicitly temper it with disciplined observation of and sensitivity to short-term market trends, which they acknowledge can often be paradoxical.
In the most recent Aden Forecast, they write:
“What concerns us is that interest rates are now signaling a major trend reversal to the downside…If that proves to be true, it’ll be a very bearish sign for stocks. In other words, this interest rate change could well be providing an early warning that some sort of crisis, or another recession, lies ahead. If so, then stocks could be headed for a steep fall.”
The Adens’ response to this is measured:
“All things considered, we feel this is a time to play it safe and lighten up on your stock holdings. Since the major stock trends are still up, we recommend keeping a smaller 15% position in the strongest stocks (down from 25%), but sell the weaker ones.”
The balance of the Adens’ recommended asset allocation: 40% precious metals (physical, shares and exchange-traded funds); 30% cash (Swiss francs, Canadian and U.S. dollars); 15% energy and resource stocks.
KMG Gold Recycling
Monday, May 09, 2011
May 9, 2011, 2:58 p.m. EDT
SAN FRANCISCO (MarketWatch) — Silver futures closed more than 5% higher Monday, leading a recovery in the precious-metals sector, and gold topped $1,500 an ounce, rebounding from last week’s decline as some weakness in the U.S. dollar and concerns over European debt woes lured investors back to metals.
Silver futures for July delivery rose $1.83, or 5.2%, to settle at $37.12 an ounce on the Comex division of the New York Mercantile Exchange after tapping a high of $37.98 overnight.
The contract skidded $2.63, or 1%, on Friday to complete its worst week in more than three decades. The metal was still down 24% so far in May. Read about Friday’s action in metals.
June gold futures GCM11 +1.43% , meanwhile, rose $11.60, or 0.8%, to settle at $1,503.20 an ounce, extending Friday’s $10.20, or 0.7%, increase. Prices are still more than 3% lower in May.
“The gold success today is a nice reflection — a mirror image almost — of the dollar index failure today along the 75 fault line,” said Richard Hastings, a macro strategist at Global Hunter Securities.
The U.S. dollar index DXY -0.25% , which measures the greenback against a basket of six currencies, fell to 74.690 from 74.790 late Friday after Standard & Poor’s lowered its credit rating on Greece, reviving worries that peripheral euro-zone debt woes will force European officials to change the terms of bailouts. Read about Monday’s currencies action.
The dollar index did break the 75 level but “is not holding strong, so the technical weakness around this level is helping silver and gold,” said Hastings.
Paul Mladjenovic, author of “Precious Metals Investing for Dummies,” said gold looks “very strong” and any pullback will be minor, as the market expects some dollar strength and some euro weakness.
He said he doesn’t expect gold to go much lower than $1,450 in the short term but does expect a strong run toward $1,600 during the September-to-October period.
Good and bad
The precious-metals complex may have seen some support Monday from political unrest over the weekend in Syria, Egypt and Bahrain, according to Ben Potter, markets strategist at IG Markets in Melbourne.
Several protesters were reportedly killed in Syria over the weekend in clashes with government forces, while the Los Angeles Times reported 12 deaths in Egypt in the wake of violent riots between Muslims and Christians.
Meanwhile, a decline in the euro in the wake of a Standard & Poor’s Ratings Services downgrade on Greece may also be helping to buoy investment prospects for the precious metals. Read about Greece’s credit rating downgrade.
But analysts at TheBullionDesk.com warned early Monday in a note to clients that “volatility is likely to remain high in the coming sessions, with traders and investors cautious of another bout of long selling, particularly in silver.”
“While the corrections are likely to entice fresh demand from physical and investment sources buyers, may hold-off until some price stability emerges with the metals still vulnerable to downside pressure,” they said. Read about investors pulling money from commodity-sector funds.
Overall, there is some price risk for the precious metals from a possible rebound in the dollar when the U.S. Federal Reserve’s second round of quantitative easing is diminished, said Hastings.
“This should result in a brief rebound in the dollar and perhaps some pressure on some materials prices, but it will very likely be temporary,” he said in emailed comments.
“There is also the risk that higher demand for dollars due to diminished Fed buying could result in faster cycling of dollars into non-dollar assets ... so the longer-term outlook for gold remains favorable with a much longer pathway for silver to make it back above $43 and then back to $47,” he said.
Other analysts remained upbeat on silver’s outlook, as well.
“Despite the sell-off the big picture trend is higher,” said Mark Leibovit, chief market strategist at VRTrader.com.”Too many people are being convinced that the recent rally was a bubble. I would bet these same people didn’t buy silver and gold when I did in 2001.
Mladjenovic said that “seasoned investors and speculators understand that last week’s 34% correction in silver had nothing to do with any major changes in silver’s overall fundamentals or long-term outlook.” Read about smart money leaving silver.
“They understood that silver was temporarily overbought, and the tipping point was the unprecedented margin increases by the exchange,” he said.
For now, precious metals should be bought on dips, according to Jeb Handwerger, editor of GoldStockTrades.com. “This market is warning us not to chase prices higher, but to wait for selloffs in precious metals, which will occur during this secular bull market.”
In other metals trading Monday, July platinum futures PLN11 +0.60% climbed $8.70 to close at $1,795.10 an ounce, and June palladium PAM11 +1.77% added $12.70 to end at $729 an ounce. July copper HGN11 +2.04% rose 4 cents to close at $4.02 a pound.
Friday, May 06, 2011
(Reuters) - Silver rose 2 percent on Friday, snapping a five-day losing streak that cut prices by almost a third, while gold rose after encouraging U.S. jobs data triggered a broad bounce in beaten-down commodities.
KMG Gold Recycling
Silver, hit by a succession of margin hikes that nearly doubled costs, had suffered the biggest sell-off since prices collapsed in 1980. Dealers, however, said the 30 percent slide from last week's record high was overdone.
Precious metals rallied early with other markets after data showed private-sector hiring hit a five-year high in April. But metals pared gains when the dollar surged against the euro after a German media report suggested Greece had raised the possibility of leaving the euro zone. Greece denied the report.
"There is no reason why silver should have taken such a big hit. It's all margin-related," said COMEX floor option trader Dominic Cognata.
"At some point, it becomes a buying opportunity for people who missed out on the last silver rally to get back in right now."
Investors also bought bullish silver options as the prices of options fell heavily over the last week, Cognata said.
Spot silver initially traded as low as $33.22, its weakest since February 25, pressured by follow-through selling after it plunged 12 percent on Thursday. It was up 1.8 percent at $35.30 by 4:10 p.m. EDT. U.S. futures trading was active, with volume nearly three times its 250-day average.
KMG Gold Recycling
COMEX OPEN INTEREST UP
Open interest in U.S. COMEX silver futures rose 3 percent on Thursday even as prices fell sharply, a sign the market remains vulnerable to further selling, traders said.
"We find it disconcerting for it means that the liquidation that is needed to clear the market's collective head has not actually taken place," said Dennis Gartman, publisher of the Gartman Letter.
The price of the U.S. June silver contract fell as much as 13 percent on Thursday, leading a broad decline in the commodities sector. On Friday, June was down over 2 percent.
"There was liquidation, but then there were new people getting in and going with the momentum trade" to short-sell silver, said COMEX options floor trader Jonathan Jossen.
Silver is heading for its worst week since the Hunt Brothers collapse in 1980, after shedding 26 percent this week as higher futures margin requirements prompted speculators to unwind bullish positions.
Silver has slumped around 35 percent since touching a record high of $49.51 an ounce on April 28. A major factor behind the sell-off was higher margins for silver traded on the Chicago Mercantile Exchange Group (CME.O), which raises trading costs.
A record $1 billion outflow from the iShares Silver Trust (SLV.P) in the week ended Wednesday helped feed silver's torrid price decline, just as the fund's earlier inflows aided the prior rally.
"The ease of access from exchange-traded products can be the tail that wags the dog," said Roger Nusbaum, chief investment officer at Your Source Financial. ETF trading and share redemptions "can be a disruptive force in the short term, but it is the sort of thing that will flame out," he said.
The commodities sector was broadly higher after the positive U.S. jobs report which suggested the economic recovery would regain speed this quarter after stumbling in the first three months of the year. That view suffered setbacks earlier this week as other reports pointed to a slowing labor market.
GOLD UP ON PHYSICAL BUYING
Gold also bounced on Friday as jewelers, physical buyers and bargain hunters, especially in Asia, took advantage of lower prices.
Spot gold gained 1.4 percent to $1,491.80 an ounce, still sharply below a record high of $1,575.79 posted on May 2. COMEX June gold futures settled up $10.20 at $1,491.60, moving in a range from $1,471.10 to $1,498.50.
For the week, gold lost 5 percent, the worst weekly performance since late February 2009. Sentiment among precious metals investors also took a hit after high-profile investor George Soros, who was bullish on gold and a top investor in gold funds, has been selling gold and silver in the past month or so, traders said.
Indians, the world's biggest buyers of bullion, took gold's latest tumble as another incentive to buy on Akshaya Tritiya, one of the major gold-buying festivals, and as India's wedding season gathered pace.
Platinum group metals also rose in tandem with gold and silver. Spot platinum gained 1.3 percent to $1,782 an ounce and palladium was up 0.6 percent at $711.22.
KMG Gold Recycling
Friday, May 06, 2011
KMG Gold Recycling
- Silver futures fell, capping the biggest weekly plunge since at least 1975, on mounting sales by investors following increases in Comex margin requirements. Gold rebounded, halting a three-day slide.
Silver tumbled 27 percent this week after CME Group Ltd., the Comex owner, boosted the cash amount needed for a speculative position by 84 percent in two weeks. Yesterday, holdings of the metal in exchange-traded products dropped the most in three years. Gold had the largest weekly drop in a year.
“At the close of business on Monday, silver’s got another bump in margins,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “Gold doesn’t have the technical breakdown that silver’s had. All gold has to do is hold its value when everything else crumbles around it.”
Silver futures for July delivery fell 95.3 cents, or 2.6 percent, to settle at $35.287 an ounce at 2:11 p.m. on the Comex in New York. On April 25, the price reached $49.845, a 31-year high.
The minimum amount of cash that must be deposited when borrowing from brokers to trade will rise to $21,600 a contract after May 9, CME Group said on May 4. That’s an increase from $11,745 two weeks ago.
“The higher cash-margin requirements simply cannot be met by all participants, and when a trader can’t make margin, the underlying security is often liquidated,” Lachlan Shaw, a commodity analyst at Commonwealth Bank of Australia (CBA), said in a report. “Further silver-price falls are possible.”
ETP Holdings Tumble
Silver assets held in ETPs tumbled 3.6 percent to 14,546.99 metric tons yesterday, the biggest decline since Jan. 2, 2008, while gold holdings fell 0.7 percent to 2,057.08 tons, the biggest drop in three months, according to data compiled by Bloomberg.
The liquidation in precious metals has been “egregiously violent,” said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter. “Speculative fervor needed to have a bit of cold water splashed in its face.”
Gold futures for June delivery rose $10.20, or 0.7 percent, to $1,491.60 an ounce. Yesterday, the price touched $1,462.50, the lowest since April 14. This week, the metal dropped 4.2 percent, the most since May 2010.
“Gold below $1,500 is a line in the sand,” said Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago. “There’s a scramble for gold because a lot of people don’t want to miss the move up.”
The metal reached a record $1,577.40 on May 2.
Barclays Capital recommended buying gold after the 4.9 percent drop in the previous three days.
Palladium futures for June delivery rose $5.50, or 0.8 percent, to $716.30 an ounce on the New York Mercantile Exchange. This week, the metal dropped 9.6 percent, the most since July.
Platinum futures for July delivery gained $8.20, or 0.5 percent, to $1,786.40 an ounce. This week, the price dropped 4.2 percent, the most since November.
KMG Gold Recycling
Thursday, May 05, 2011
The gold price moved lower Thursday morning, declining $10.00 to $1,509 per ounce. KMG Gold Recycling live gold prices
The gold price moved lower overnight, falling below $1,500 to a low of $1,496.25 amid broad-based liquidation in stock and commodity markets. Silver remains immersed in a violent correction, dropping another 3.1% to $38.10 per ounce after touching a low of $37.36 earlier this morning. Silver prices have crashed 21% this week while the gold price has lost 3.5%.
The share prices of gold and silver mining companies moved lower, led by declines in Barrick Gold (ABX) and Goldcorp (GG), which sank 2% and 1%, respectively. Barrick, the worlds’ largest gold producer has dropped 7.5% over the past eight trading days on the back of soft gold prices and a takeover bid for copper company, Equinox Minerals that has been ill-received by the market.
Gold prices showed a muted reaction to news early Thursday that applications for jobless benefits rose 43,000 to 474,000 last week, considerably worse than the 400,000 to 420,000 consensus among economists. The bleak outlook on the employment front should keep Bernanke and the Fed in the dovish camp on monetary policy, lending support for the gold price.
KMG Gold Recycling live gold prices
Wednesday saw the gold price continue to retreat, as the yellow metal fell to as low as $1,505 before paring its losses and closing near $1,515 per ounce. Silver tumbled alongside the gold price, briefly dropping below $39 before finishing down by $2.44, or 5.9%, at $39.19 per ounce.
The sell-off in the gold price on Wednesday was fueled by a Wall Street Journal report that several large investors – including George Soros and John Burbank – liquidated a considerable portion of their gold and silver holdings. The story noted that Soros Fund Management purchased gold and silver over the past two years to protect against the Federal Reserve’s response to the risks of deflation. However, Soros now believes that deflationary risks have dissipated significantly, making the rationale for holding positions tied to the gold price less attractive.
Burbank, founder of hedge fund Passport Capital, reduced the size of his gold positions in order to lock in profits, according to an individual close to the firm. However, the source noted that Burbank remains bullish on the gold price over the longer-term, but feels that the price of gold is due for a meaningful correction at this time.
Late Wednesday afternoon, a report surfaced that legendary investor and billionaire Carlos Slim, the world’s wealthiest individual, has been actively selling silver futures contracts 2-3 years out. Silver prices moved lower yet again this morning on the heels of the news and on liquidation of speculative net long positions on the COMEX.
Returning to gold, in contrast to the views of George Soros, another prominent investor reiterated his bullish forecast on the yellow metal. John Paulson – who with $36 billion under management at Paulson & Co. runs the world’s third-largest hedge fund – told investors this week that the price of gold could reach $4,000 per ounce.
Paulson’s bullish prediction on the gold price echoed positive comments he recently made to France’s Les Echos. There, the hedge fund magnate stated that “In these times of uncertainty for paper based currency, I feel more secure in holding gold; [it] offers good protection against the paper currencies devaluation and even the possibility of generating a return on fixed investment.”
Paulson went on to discuss the Federal Reserve’s quantitative easing programs, contending that “It is undeniable that this monetary expansion is equivalent to running the printing press.” He later stated that “gold has always been a safe haven against inflation and a safe haven in times of political instability.”
As a result, Paulson forecasted that inflation will reach double digits in the next three to five years, and investors will continue to seek out investments tied to the gold price in order to protect against these inflationary risks.
KMG Gold Recycling live gold prices
Thursday, May 05, 2011
TORONTO — The Canadian dollar closed down just over a full US cent Thursday as oil prices plunged amid demand worries and volatility arising from tumbling silver prices.
KMG Gold Recycling gold bullion sales
The currency lost 1.05 of a cent to 103.28 cents US, adding up to a drop of almost two and a half cents this week as prices have also fallen sharply for gold and copper.
"We’ve seen extended moves in a lot of commodity markets and so today is a day of retracement and profit-taking," observed Scotia Capital chief currency strategist Camilla Sutton, adding that a big part of the story was also a stronger American currency.
"The catalyst which started it is a combination of higher margins in silver prices and . . . some Asian central banks hiking rates, which raises worries that Asian growth could be slowing and should Asian growth slow, then it weighs on the outlooks for commodities."
The June crude contract on the New York Mercantile Exchange dropped $9.44 to US$99.80 a barrel, down from a 2½-year high above US$114 late last week and its lowest level since mid-March.
Metal prices also retreated with the June gold contract on the Nymex down $33.90 at US$1,481.40 an ounce. The June copper contract fell 14 cents to US$4 a pound and the July silver contract in New York fell $3.15 to US$36.24 an ounce.
Silver continued to plunge after the main U.S. metals exchange announced further hikes to margin requirements, or the money needed to be put up to trade the precious metal.
KMG Gold Recycling gold and silver bullion sales in Canadian dollars
The latest hike amounts to an 84 per cent increase in margin requirements in two weeks by CME Group Ltd., spread over four separate changes.
Silver prices are down more than 20 per cent this week and analysts say volatility in the sector has spread to other areas since investors have been forced to sell other securities to meet higher margin calls. Silver had surged from under US$31 an ounce late last year to almost US$50 at the end of last week.
Analysts also pointed to signs that U.S economic growth is faltering for the slide in commodities, including a disappointing read on employment growth and much lower than expected expansion in the service sector.
And on Thursday, the U.S. Labour Department reported that claims for unemployment insurance surged to 474,000 last week from 431,000. The U.S. government is scheduled to announce April non-farm payroll numbers Friday.
Meanwhile, the European Central Bank left its key interest rate unchanged at 1.25 per cent after raising rates a quarter-point last month from the record low of one per cent. The bank also signalled that it won’t raise interest rates as fast as the markets had been expecting.
The Bank of England announced it was keeping its key interest rate at a record low of 0.5 per cent amid sluggish economic growth and a surprise drop in the inflation rate.
KMG Gold Recycling silver bullion sales
Monday, May 02, 2011
Source: David Banister, Market Trend Forecast (5/2/11)
"After consolidation, buy silver stocks on any pullback with haste."
KMG Gold Recycling
Last August, I told my subscribers to prepare for a monster rally in silver, which at the time of my forecast was $18.73 per ounce. I drew up a chart and predicted a huge rally to $29 an ounce, and we ended up at $31 or so just a few months later. This was entirely a crowd behavioral move that I foresaw in advance, based on patterns that R.N. Elliott developed in the 1920's and 1930's. My theory was besides the crowd pattern (a 20-month odd Triangle consolidation), that investor's would begin to view silver as "Poor man's gold" and buy it. Literally, the idea is as simple as investors will simply think that "gold is too expensive, but silver is cheap". That is the explosion power that is behind this move from $19 to $50 an ounce since late August 2010.
KMG Gold Recycling
KMG Gold Recycling
Below is the original chart I sent to my subscribers outlining this triangle pattern and the likely move.
KMG Gold Recycling
After silver ran hard and fast, it left a lot of talking heads on CNBC and everywhere else scratching their heads and wondering what just happened. If you learn and understand the basics of Elliott Wave Theory, you can begin to foresee what is about to happen and stop scratching your head all the time. Watching the analysts on CNBC is like watching the Monday morning quarterbacks following an NFL Sunday. After that massive silver run from $18 to $31, it was time for a correction and I called for $25 to $26.50 as likely in a normal pessimistic crowd wave 2 pattern down. Once that completed, I sent my subscribers the chart below outlining another Bull wave to $39–$45 per ounce.
KMG Gold Recycling
Silver then eventually ran to $45 per ounce in April of 2011 and had a brief spike to near $50 to test the all time highs just in the past week or so. The action has been wild since then, because after a wave pattern from $18 to $31, then back to $26, then up to $47… the crowd will begin to turn mildly pessimistic in a current "wave 4 " correction pattern. This is when you will begin to hear excuses for silver dropping, including believe it or not blamed on the death of Osama Bin Laden. In truth, whatever happens near term to explain the current correction in silver is simply Monday morning quarterbacking. Using the current day's headlines to explain the action that I already know is coming. Other excuses are the change in margin requirements on silver contracts and the squaring of positions at end of month.
I expect silver to correct to the 40 to $42.75 areas based on my Fibonacci work and Elliott Wave views, and after this 4th wave consolidation we will see a surge to as high as $60/oz. Any pullbacks in silver should be bought here and same with the silver stocks post haste. Below is my latest chart forecast on silver.
Friday, April 29, 2011
Thursday, April 28, 2011
KMG Gold Recycling
Gold Price Close Today : 1530.80
Change : 14.20 or 0.9%
Silver Price Close Today : 47.520
Change : 1.562 or 3.4%
Gold Silver Ratio Today : 32.21
Change : -0.786 or -2.4%
Silver Gold Ratio Today : 0.03104
Change : 0.000739 or 2.4%
Platinum Price Close Today : 1841.20
Change : 18.20 or 1.0%
Palladium Price Close Today : 776.50
Change : 11.50 or 1.5%
S&P 500 : 1,375.13
Change : 1.47 or 0.1%
Dow In GOLD$ : $171.84
Change : $ (1.12) or -0.6%
Dow in GOLD oz : 8.313
Change : -0.054 or -0.6%
Dow in SILVER oz : 267.79
Change : -8.35 or -3.0%
Dow Industrial : 12,725.40
Change : 34.44 or 0.3%
US Dollar Index : 73.12
Change : -0.404 or -0.5%
KMG Gold Recycling
Sorry I sent no commentary yesterday, but I was finishing my monthly Moneychanger newsletter for paid subscribers, who can log in to www.the-moneychanger.com and pick up the April issue.
Listening to Ben Bernanke today quoted from his press conference yesterday, I was amazed how incompetent he sounded, stuttering like someone telling an uncertain lie. If he's the best the central bankers have, their gunwales are deeper under water than I even I suspected.
He announced yesterday that his imagination has been surgically removed. At least, that is MY turn on his idiotically continuing the Keynesian nostrums that have so long and with such historical uniformity failed. Poor boy doesn't have imagination enough to think of anything else. What a punishment, to be subjected to a goof like that!
The US DOLLAR, taking its cue from Bernanke's announcement yesterday that he would surely keep interest rates low and thereby assuring he would keep on inflating, sank like a lump in a churn. Y'all remember that more than any other factor, interest rates determine currency exchange rates. Euro managers raise euro interest rates, Bernancubus suppresses dollar interest rates, and surprise, surprise, the scrofulous buck sinks against the scabrous euro. It's the Clash of the Midgets, seeing who can slither down the drain first.
Whooo. That felt good. Now, back to the buck.
Today the US dollar index sank another 40.4 basis points (0.52%) on top of the 53 basis points it threw away yesterday. Trading now at 73.115 on its way to 40 [sic]. Get this: Bernard O'Bama and the Bernanculus are gutting your dollars to please their masters and keep the parasitism dribbling along a while longer. If that don't make you howling mad, you have no mad gland.
Euro rose like your mama's house guest sitting on a whoopee cushion (I bet you got one memorable whipping for that!). New high for the move at 1.4817 Yen rose 0.8% to Y81.54/$ (122.64c/Y100).
Let me put this stock thing in perspective for y'all. Stocks are now maybe 20% above December 2010, yet against gold they have actually dropped. Against silver they have dropped a lot, down to 90% of their June 2003 peak value. Y'all see now? I don't want your stocks, because they are like those smoke bombs they sell for July 4th -- all smoke and noise, no bang. In fact, stocks remain the government-approved, OSHA-safe imitation cherry bomb in Tennessee Bob's Wholesale Fireworks Investment Store. And will remain.
KMG Gold Recycling
Today the Dow rose 34.44 to 12,725.40, hand in hand with the S&P500 which didn't exactly rise, but, well, barely lifted itself up on the ball of its foot 1.47 points to 1,357.13. Oddly -- he always says that when he sniffs blood somewhere -- all the other indices fell. That's confusion, and confusion doesn’t make for strong markets.
I know some of y'all are going to get madder than a wet wasp, but I have to flip the switch on the caution light on SILVER and GOLD PRICES. After the Bernancubus glued the accelerator pedal to the floor yesterday, silver and gold prices took off wildly. But bear in mind that it is not unusual for the SILVER PRICE to top one day, then the GOLD PRICE to top a few days later. Key is that the Gold/Silver ratio, after a new low 25 April at 31.996, shot up to 33.36 the next day. In all silver and gold's recent upside downs, that hasn't happened. But maybe I am only nervously anticipating when I ought to be contentedly enjoying. Still, a live dog is better than a dead lion.
Today the gold price made a new intraday high at $1,538.30 and a new closing high (all-time since the beginning of the cosmos) at $1,530.80, up $14.20 on Comex. Low came at $1,524.10. In the aftermarket gold's playing footsie with $1,536.
Only target I have to work off is that upside down head and shoulders gold broke out of. That points to $1,525 - $1,557. The gold price would have to close below $1,505 to invalidate this rally.
Ohhh, I HATE parabolas, and silver's chart clearly shows one. They are rally killers, and on this drive the silver price will need every sinew and ounce of strength to burst through that historic brick wall at 5000c per ounce. If it does, it will run straight skyward.
Yet -- O, absolve me, Silver Bugs! -- I had rather capture my silver profits now by swapping silver for gold and miss part of that move, than see the reaction take them all away. Swapping for gold, I will at least get to swap back for MORE silver when the ratio rises. Not swapping, I will only get to cherish the warm, fuzzy memory of reading all those Internet gurus who convinced me the silver price will reach $100 by next Friday.
KMG Gold Recycling
The SILVER PRICE has a threatening double top, reached Monday and today, at 4982c and 4950c. The silver price must clear 5000c immediately and not fall below 4725c, or succumb to the Kryptonite of fifty bucks. This situation is as full of tension as your cheeks when you suck on to a firehose. Here it shall not remain, but must advance or fall back.
KMG Gold Recycling
Wednesday, April 27, 2011
KMG Gold Recycling
Gold Price Close Today : 1503.00
Change : (5.60) or -0.4%
Silver Price Close Today : 45.050
Change : (2.099) or -4.5%
Gold Silver Ratio Today : 33.36
Change : 1.366 or 4.3%
Silver Gold Ratio Today : 0.02997
Change : -0.001280 or -4.1%
Platinum Price Close Today : 1804.50
Change : -20.10 or -1.1%
Palladium Price Close Today : 751.90
Change : -7.90 or -1.0%
S&P 500 : 1,347.24
Change : 11.99 or 0.9%
Dow In GOLD$ : $173.23
Change : $ 2.24 or 1.3%
Dow in GOLD oz : 8.380
Change : 0.109 or 1.3%
Dow in SILVER oz : 279.59
Change : 14.90 or 5.6%
Dow Industrial : 12,595.37
Change : 115.49 or 0.9%
US Dollar Index : 73.77
Change : -0.231 or -0.3%
It pays always to keep your eyes on the horizon, so that the confusing details around you assemble themselves into a larger picture.
From a friend in Iowa I received an email reporting that a friend had gone to buy a US$7,300 piece of farm equipment. When it came time to pay, his friend asked the dealer, "Do you want paper, silver, or gold?"
The dealer brightened and said, "Silver, and I'll give you a discount if you pay in silver."
Behold, the new economy! Here behold the goal and means to free ourselves of the Federal Reserve's fiat money tyranny and economic slavery: we stop using their phony private money and return to [quite legal and constitutional] gold and silver money. We remove ourselves from the economic storms caused by their rotten currency and crooked banking and we rebuild our local economies on a sound silver and gold basis.
Just try it. Next time you pay, ask the person whether they want paper, gold, or silver. See what happens. Worst they can say is NO.
Also, the ever-sagacious Catherine Austin Fitts and I teamed up to create www.silverandgoldaremoney.com. There you can punch in any US dollar amount and in real time convert that to a payment in US 90% silver coin, US gold or silver American Eagles, or a host of non-US gold and silver coins and bullion.
Next time you hand somebody green paper dollars or a credit card, just remember: you are forging your own chains.
And forget the US government threats and persiflage: you have a constitutional and common law right to contract for any payment you please. More than that, all gold and silver coins ever minted by the US government remain "legal tender." Using gold and silver coin is not "bartering", it's MONEY.
You forge your own chains.
We trod not the office steps yesterday, but observed for Easter Monday. Considering yesterday's fireworks, that probably was a great idea.
I know y'all only want to know about silver and gold, but be patient: it all works together.
THE US DOLLAR INDEX has sunk 32.3 basis points since last Thursday, from 74.096 to 73.773. Today alone it lost 21.3 more bp, 0.27%.
Yet look not smugly on. Today the dollar formed a falling wedge, which promises that tomorrow, if it breaks not below 73.744, 'twill rise tomorrow.
And that would surprise. Breaking down past the last low, 73.74, and the December low, 74.23, targets the dollar for 72 or lower. The scabrous euro took advantage of the buck's swoon to rise to another new high for the move (ho-hum) at 1.4643, up 0.77%. Even the yen has gapped up and headed higher. Today it's trading at Y81.55/$ (122.62c/Y100).
Only sign this situation might turn around is that falling wedge on the dollar's daily chart.
Baldly stated, I don't believe the stock market, or more precisely, I DISbelieve the stock market. No economic reason exists for its rise, except the Fed and other central banks pumping out zillions of new money which all runs straight into financial markets. Add to that the Nice Government Men on the Plunge Protection Team steadily meddling in the market, following the Spirit of Potemkin to keep up a cardboard front screening the real and rotten economy.
Today the Dow rose to a new high for the move, 12,595.37, up 115.49. The S&P500 rose 11.99 to 1,347.24.
Hey, here's an idea! Instead of investing your money in stocks, why not take a couple hundred thousand bucks out into your back yard, bury it, and see if a money tree comes up?
There are very few overnight certainties in markets, but it appears that yesterday silver turned down, and gold will probably break as well.
The SILVER PRICE sank 10.5% from its 4985 high Monday to a 4464.7c low. One expects to see that sort of move on a trend reversing day.
I hasten to add that this is no certainty, as every forecast dwells in a foggy nimbus. But a quick calculation shows that if this is the break, then the target might be 3360.
Y'all must bear in mind that the more overhyped and overblown a market becomes, the more severe the following reaction. Every hedge fund in the world has hopped on to silver, and they have almost as much loyalty as a 1915 Irish draftee in the British army. They will dump silver by the truckloads as soon as they sniff a break.
The naïve think this is terrible, that the bull market has ended, that it proves silver is in a bubble. Nothing could be further from the truth. It is a normal process in every market, and clears away the grotesque over-optimism to make way for another advance.
Biggest argument AGAINST a correction in precious metals remains GOLD. It sank a paltry $5.60 today to close Comex at $1,503.00, but that offered no damage. The SILVER PRICE on the other hand fell 209.9c to 4505c, down 4.5% in one day. The gold/silver ratio fell 4.26%, too.
Once the gold price crosses that $1,500 wall protecting investor morale, it will tumble, too. Target there might be $1,445.
On the upside, the silver price needs to close over 5000c and gold above $1,525 to suggest that this rally hath yet legs.
On this day in 1983 the Dow Jones Industrial Average broke 1,200 for the first time. I recount that incident to impress upon y'all's minds how far markets can outrun our imagination. The ultimate Dow High was 11,722, about ten times that 1983 figure.
In Florida and Georgia today is Confederate Memorial Day. It was yesterday in Mississippi.
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. KMG Gold Recycling
Tuesday, April 19, 2011
Does gold look any different at $1,500 (U.S.) an ounce? Futures topped that level – briefly – on Tuesday, following any number of global concerns that have sent investors flocking to gold recently. Unrest in the Middle East: check. Concerns about inflation: check. European financial crisis: check. Rising concerns about the U.S. deficit: check. KMG Gold Recycling
All of these factors have been simmering for some time, which is why the actual gain in the price of gold – it rose a much as $8 an ounce, before settling back – is a relatively modest move. Indeed, focusing too much on gold’s steady march to record highs can distort the actual gains for investors.
Over the past five years, to the end of March, gold has made some impressive moves, of course, rising 145 per cent versus a rise of just 14 per cent for the S&P 500. But in recent months, the pace has slowed to a crawl and gold’s returns don’t shine so brightly next to various other assets.
In 2011, gold has risen 5.3 per cent, out-muscling the S&P 500 by a mere 0.7 percentage points. And in Canadian-dollar terms, gold has risen just 1.4 per cent this year, which is half the return of Canada’s S&P/TSX composite index.
Meanwhile, gold isn’t looking so great next to a broader basket of currencies either. The Reuters/Jefferies CRB index of 19 commodities – which includes commodities like lean hogs and wheat, which don’t exactly quicken the pulse – has pulled ahead of gold this year, with a gain of 8.6 per cent.
However, there is something to be said for the power of headlines (look above) and round numbers, and gold at $1,500 an ounce certainly has a nice ring to it that will no doubt be seized upon by gold bulls.
KMG Gold Recycling
Sunday, April 03, 2011
Buying gold & silver right now for Canadians, is in essence, buying US dollars. The loonie buys more gold per Canadian dollar right now than ever before. If your crystal ball tells you the loonie will drop in the future, you might consider investing in gold and silver now. Consider your investment goals. Long term or short term. KMG Gold Recycling
Friday, February 04, 2011
In the last days we have seen the gold price hit $1,324 and yesterday spring to $1,355, (KMG Gold London Fix Prices)
, leaving it in a neutral zone technically speaking. More than 10% of the gold ETF, SPDR in the States has been sold as well as around 10% of the ishares Silver Trust. Investors need to know, “is this the time they should be selling their gold and silver investments?” Traders will look solely at the short-term charts, medium-term investors at the medium –term fundamentals and long-term investors before this checked to see if this was a sufficient correction to disinvest and when will be the right time to re-enter the market. With so much emotion creeping into these decisions, investors need to sweep that away and coldly assess the individual investment situation within their own investment criteria. We will stand back further and look only at, “Is it time to sell Gold & Silver” and leave you to make up your own minds.
In the dollar the gold price has moved into ‘neutral’ territory having halted the downward movement as it hit support between $1,324 and $1,330 after which it bounced to $1,355. The Fix in London was at $1,347.50 up almost $20 from yesterday afternoon’s Fix of $1,328.
Many of you will feel that the dollar gold price is what defines gold’s movements, but we would caution investors who think this way. Gold has fallen back from its recent peak of $1,425 to $1,324. Take a look at the euro price of gold. It has pulled back from its peak of €1,065 and fell back to €962, almost the same amount of fall. And yet we have seen the euro jumping back from its recent low of $1.32 to stand over $1.38 a 4% move. This complicates matters because if you see the relationship of gold reflecting the strength or weakness of the dollar, you would have been wrong-footed. After all, a 4% move in the $ gold price is $65 move from the recent peak.
Recently, the euro weakened, because of the sovereign debt crisis, more rapidly than the dollar fell. Now the euro is recovering because the EU leaders are supposed to come out with a plan that will remove the fear of a euro collapse, in March. With politics playing games with the raising of the borrowing limits of the U.S. fear is growing that confidence in the dollar is going to press it lower against the euro. So you, the investor, have to decide which is the currency that most accurately reflects the demand and supply factors dictating the gold price or which is the one through which to invest to maximize profits? We have our own opinion for sure.
The Fundamental picture
- The gold market has changed its shape since the last century, when it was at the mercy of the developed world’s central banks. Since the beginning of this century, the world’s central banks have completed the gold sales they had planned to make and halted this policy and that of accelerating the production of gold.
- We have seen the jewelry market recover recently in the developed world.
- We are seeing the rise of persistent Asian demand.
- Investment demand in the developed world looks undecided as to whether to invest more or to divest believing gold has had its day. On the other side of investment demand for gold, there is a school that is selling from the gold ETF’ and buying physical gold, to hold overseas.
- We are seeing producers just manage to replace the ounces they have mined with new discoveries, but at such a slow pace that, at best, we expect little to no growth in newly mined supplies, despite the rising gold price.
- In the silver market there is a far greater scope for newly mined supplies, except for those that come as a by-product of base metal production.
- There is also a far greater scope to reclaim silver. However, most new uses of silver do consume the silver used and are not reclaimable.
- Investment demand for silver tends to be more institutional despite silver being the ‘poor man’s’ gold.
- Asian demand for silver is growing as it is the next best investment to gold, so they believe.
However, the silver price moves with the gold price, with more extreme swings either way.
It’s a matter of Perspective
This makes it even more complicated for the investor, for Asian investors buy silver and gold for very different reasons than investors watching the level of interest rates in the U.S.A. The difficult task ahead of investors is to give the correct weighting to the different parts of global gold and silver markets: -
- How far will the east dominate gold & silver prices?
- To what extent will the developed world’s events dictate the direction of the precious metal prices?
- Will an economic recovery in the West lead to more or less demand for the precious metals?
- What are the different characteristics of global investors when it comes to buying and selling?
- What is the future of currencies and their values against gold?
- What effect will the shift in power from West to East have on the precious metals going forward?
Tuesday, October 12, 2010
I wrote the following in response to a long term customer who is a large volume gold party hostess in Atlantic Canada. Some Toronto area gold buyer contacted her offering very high rates for her gold. Rates that seemed to good to be true.
You have to be very careful when gold buyers phone you with pie-in-the-sky numbers for their pay out rates.
If their rates seem to good to be true, then they probably are false. If they claim to pay that much, then they are going to charge you fees.
Gold Experts, for example, advertises rates that are 105% of market price. This is impossible. It is false and misleading. No business can buy gold at 5% more than its worth. It's a marketing gimmick that tricks people.
Gold buyers from Florida call all the time and offer unbelievable rates, rates that cannot be possible, rates that are lies.
There are two Toronto gold buyers that I know of that claim super high rates and zero fees. Then their customers come back to me and say, "Yup, they charged me fees that they didn't tell me about". $125 here and $125 there, $75 assessment fee, $50 handling fee... it all adds up. They are all marketing gimmicks. They work though, and combined with their huge advertising budget, they get a lot of business.
KMG Gold Recycling does not have marketing gimmicks. We are completely 100% transparent in every transaction. No surprises, no hidden fees. We find out this Thursday is we are winners of a Better Business Bureau Torch award. We were chosen as a finalist for the award last week. This award is for being open, honest, transparent, telling the truth, and demonstrating integrity and ethics in the marketplace.
KMG cannot speculate on the purity of scrap gold and charge no fees in addition to paying out 90% of market price.
As you know, KMG pays out more for items with a published purity. Maple Leaf coins, Canadian and US silver coins, gold and silver bars etc.
The speculation on purity is removed on these items.
Scrap jewellery, once melted, is typically 5-7% lower in purity than the hallmarks indicate.
We have two methods of recycling precious metals. Cash Lots, and Refining Lots.
You guys have been selling as "Cash Lots". We buy the metal, no fees. Immediate payments. We do the speculation on the purity and on market fluctuations. We pay out 90% to our dealers.
Refining lots may be better suited to you guys. It all depends on your cash flow situation. Refining lots pay out 98% of market value for gold and 95% on silver.
The whole process takes about 7-10 days. All of your gold is melted in one pot - NO sorting. We melt it all. Assay samples are sent out for independent analysis. Then, when the assay results come back, you can sell your metal on the market, or leave any or all of it in your pool account for sale at any time.
Refining lot fee schedule has been attached.
Our refining lot pay out rates are the Canadian standard rate. All of the "real" Canadian refineries pay out 98%. If anyone claims to pay more, they are using x-ray fluorescence technology and skimming 2% off the purity values.
Refining lots - YOU do the speculation on the purity and the market prices and YOU pay the refining costs. That's why you get 98% instead of 90%.
Refining lots will ALWAYS make you more money than a cash lot for lots above ~200 grams. You guys are way above that volume of gold.
So, if you want more money, and have a week to 10 days to get the assay results, refining your gold will make you more money than selling it as a "Cash Lot".
Michael Gupton, President, KMG Gold Recycling
For more information on refining your precious metal instead of selling it, for 98% of market price, visit: