Wednesday, November 02, 2011
The Royal Canadian Mint is pleased to announce its initial public offering of Exchange Traded Receipts (ETRs) under the Mint's new Canadian Gold Reserves program. Each ETR provides evidence of ownership in physical gold bullion held in the custody of the Mint at its facilities in Ottawa, Ontario. The Canadian Gold Reserves program marks the expansion of the Mint's successful core bullion and refinery business.
"We believe that this new program will build on our reputation and continued success as a world-class custodian of precious metals," said Ian E. Bennett, President and CEO of the Royal Canadian Mint. "With the introduction of the Canadian Gold Reserves ETR program we hope that investors will see this as a convenient, efficient and secure method for investing in and owning physical gold."
Unlike other gold investment products, the purchaser of an ETR owns the actual gold rather than a unit or share in an entity that owns the gold. The net proceeds of the offering will be used to purchase gold on behalf of the initial purchasers of ETRs at the London pm fix price on the closing date of the offering (Closing Date). Subject to certain restrictions, ETR holders will be entitled to redeem their ETRs for physical gold products in the form of 99.99 per cent pure gold bars or coins, or for cash based on the future gold price or market price of the ETRs.
Subject to market conditions, the initial offering of ETRs is targeting an issue size of approximately CAD$250 million. The issue price per ETR will be CAD$20.00 or the USD equivalent and the Per ETR Entitlement to Gold will be determined on the Closing Date and will be reduced daily by an annual service fee of 0.35 per cent.
Subject to the satisfaction of certain conditions, the ETRs will be listed on the Toronto Stock Exchange and commence trading on the Closing Date. ETRs will be listed in both Canadian and U.S. dollars and may be traded in either currency.
Through a competitive process, the Mint has selected a syndicate of investment dealers led by TD Securities Inc. and National Bank Financial Inc., and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., Canaccord Genuity Corp., Cormark Securities Inc., MGI Securities Inc. and Raymond James Ltd. to distribute the ETRs on a best efforts agency basis.
Closing is expected to occur in late November 2011. The offering is being made on a prospectus-exempt basis pursuant to the terms of an order of the Ontario Securities Commission dated August 30, 2011.
The ETRs have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States. This media release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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
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.
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.
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.
Friday, October 07, 2011
On several days recently gold shops in Hanoi and Ho Chi Minh City have sold out their supplies of the precious metal, according to state media reports, as anxious consumers have rushed to protect themselves against Asia’s highest inflation rate.
Vietnam’s Communist government is keen to tackle inflation, restore confidence to the currency and stabilize the shaky banking sector. But it is also concerned that too much tightening may hit economic growth in this export-dependent country.
Officials must find a delicate balance between growth and inflation at a time when their room for maneuver has been severely limited by the global slowdown and their own policy mis-steps and about-turns, which have seriously undermined investor confidence.
Part of the problem is communication, or the lack thereof. Thursday’s move by the central bank to increase a key inter-bank lending rate from 14 per cent to 15 per cent should have been a reassuring signal of the government’s commitment to the stay the course when it comes to tight monetary policy.
But, as usual, the decision was published with minimal explanation to either bankers or the wider public, leaving many scratching their heads again as they tried to divine the motive behind the latest decree from Vietnam’s less-than-transparent rulers.
Thursday, October 06, 2011
Gold firmed in Europe on Thursday as a strong recovery in equity markets cut selling of the precious metal to cover losses elsewhere, and as physical buyers took advantage of lower prices to stock up. Keep checking the KMG Gold websites for updates on the price.
Spot gold was up 0.7 percent at $1,651.49 an ounce at 0910 GMT, extending the previous session's 1 percent gains. Trade is expected to be choppy ahead of a policy meeting and press conference from the European Central Bank later.
Concerns over the outlook for the euro zone, as the bloc wrestles with its stubborn debt crisis, were a key factor pushing gold to a record $1,920.30 an ounce last month.
"It is extremely hard to see where the solution will come from," said VM Group analyst Carl Firman. "I think (the euro zone authorities) will be forced into a solution, but the volatility is based around whether it will be sufficient, or another stop-gap."
"We need to see some more definitive news, and in the meantime, we will have a hell of a lot of volatility across the markets," he said.
Gold saw its biggest decline in nearly three years last month as pressurized selling to cover heavy stock market losses pulled prices more than 20 percent from record highs and prompted a period of intense volatility.
European equities extended the previous day's strong gains on Thursday on hopes officials will succeed in their efforts to support Europe's financial sector, while data raised optimism the U.S. economy might avoid slipping into recession.
ECB President Jean-Claude Trichet is expected to prepare the ground for a pre-Christmas interest rate cut at his final policy meeting and offer banks further protection against the euro zone's worsening debt storm.
The euro rose against the dollar and German government bonds fell on optimism over Europe's efforts to aid the financial sector, ahead of the ECB meeting.
ECB President Jean-Claude Trichet is expected to prepare the ground for a pre-Christmas interest rate cut at his final policy meeting and offer banks further protection against the euro zone's worsening debt storm.
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.
Thursday, September 29, 2011
If you’re like us, you’re surprised these Cash-For-Gold 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 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 on 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 the Cash-For-Gold groups. 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, 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!
Monday, September 19, 2011
Earning top dollar for a stash of scrap gold begins by selling directly to the refinery. The biggest mistake you can ever make is selling gold, silver, platinum or palladium to local middlemen. Middlemen will rip you off by paying peanuts for scrap gold items. There are as many reputable gold buyers as there are fly-by-night firms run by middlemen.
How to identify reputable refineries
A number of factors can come in handy when looking for reputable refineries. Look out for the following;
Honesty and Integrity
Honesty and integrity will be embodied in accreditations such as Better Business Bureau (BBB), McAfee, VeriSign and TRUSTe. Honesty and integrity are two important cornerstones of any successful business. The Better Business Bureau is a consumer watchdog that fosters trust between customers and companies. A company that lacks accreditations cannot be trusted. It’s too great a risk and chances are you will be paid peanuts for your stash of scrap gold.
High Payout Rates
Refineries pay more money than local middlemen gold buyers, pawn shops or pawn brokers. Refineries will pay an average six times more money than local middlemen. Rather than sell gold, silver, platinum or palladium items to middlemen, deal directly with refineries for the most money. Local middlemen simply collect gold, silver, platinum and palladium items and sell to refineries for top dollar. Middlemen or pawn shops and pawn brokers can never offer top dollar. They are also looking to make top dollar from refineries and will thus pay peanuts for your gold.
Refineries offer faster turnaround, with faster services and payments. Beware of gold buyers who hire summer students or minimum wage workers to test and analyze your gold. All gold, silver, platinum, palladium and rhodium at KMG Gold is professionally tested and analyzed by a KMG Gold Certified Engineering Technologist, Certified Engineering Technician, or Applied Science Technologist. This in turn, results in faster turnaround and payments.
Only the best gold buyers and gold refineries offer real, claimable insurance for your precious metal. UPS, FedEx, Purolator, Canada Post, the US Postal service etc will all sell you insurance, but it is not claimable for precious metals, gems, jewelery, gold bars, silver bars coins wafers etc.
Only KMG Gold Recycling offers genuine, claimable shipping insurance for your gold at one half the costs of the other carriers insurance.
Monday, September 19, 2011
Owning gold is starting to become the “in” thing in the investment industry because it’s perceived as a hedge in troubled economic times. With the current value of gold seemly edging higher almost on a daily basis, there are more and more people who are keeping gold investments at home.
“For many people owning gold jewelry means they are now in possession of a significant value of gold,” stated Cpl. Richard De Jong, spokesperson of the North Vancouver RCMP. “The RCMP is cautioning people to be very mindful of where and how they are storing their gold; thieves have been very specific in residential break and enters by stealing just gold jewelry.”
Several agencies and organizations, including KMG Gold are offering some safety tips to consider for safekeeping your gold:
Bank safety deposit boxes are secure and may offer one of the best protection options from theft or loss.
An in-house, fire-rated securely fastened safe may also provide security.
To mitigate the risk of theft, diversify where you choose to store your gold. Do not store all your gold in one specific hiding place in your residence. If thieves find one storage location they may quickly move on.
Be cautious when telling your friends or neighbours about the value of your gold. Keep quiet about the gold you have and you will not have to worry about being targeted for a break and enter or home invasion.
Assume any potential thief may have a metal detector to locate your gold. Therefore, keep your gold stored in a location that contains other metals that could act as a “camouflage” by naturally setting off a metal detector
Think about ‘providing a facade as bait’ for any potential thief. By having a jewelry box with inexpensive items inside, it may be enough perceived riches for the robber to then leave.
Stay away from hiding your gold in predictable places such as a freezer, a cookie jar or under a mattress. Think outside the box and utilize obscure locations.
Seriously consider placing your gold “on account” with a local refinery or recycler like KMG Gold in Winnipeg. By using this service, you keep the investment without risking the chance of theft or loss.
All locations whether in your home or outside, have advantages and disadvantages. Think smart and be proactive in protecting your gold,” suggests Michael Gupton of KMG Gold. “Your gold is worth it!”
Friday, September 16, 2011
We’ve all heard the saying - ”Buyer beware,” but in today’s precious metals industry, the term “Seller beware,” is by far more appropriate.
“The predators are out in full force,” said KMG Gold founder and president, Michael Gupton. “And unfortunately it’s because they can get away with it. They feed of the fact that today’s consumer is not aware of the options available.”
With the recent upswing in the price of gold and silver, more and more people are turning to gold buyers to sell their unwanted and scrap gold jewelery and coins. Jewelers, pawnshops and even “traveling roadshows” as Gupton calls them have all entered the market in an effort to grab a piece of the action.
“They are nothing short of predators,” Gupton claims when asked about these roadshows. “Don’t do it. They come to the outskirts of town because they are unlicensed and can’t do business in the city. They grab your stuff with an almost insulting offer and leave as fast as they can.”
Gupton has owned and operated KMG Gold, a local refiner and recycling operation in Winnipeg since 2007. He has been committed to educating the public on the precious metals industry and the tragic environment al effects of mining.
“All you have to do ask questions and check out their web sites, “said Gupton. “ When they state they ‘probably’ pay out the highest rates that should be an immediate red flag. The other thing is ‘they arrange’ to refine and recycle used jewelery. What does that mean? It means they probably send it to us or another refinery. They are just middlemen.”
Michael Gupton founded KMG Gold in 2007 with his wife Karen, hence the name “KMG”, and has since proven himself a leading voice in the gold recycling industry by advocating for consumer interests, by publishing a wide variety of information and resources on the KMG Gold website. KMG Gold was awarded the Manitoba Chapter of the 2010 Better Business Bureau TORCH AWARD for Torch Award for Marketplace Excellence demonstrating ethics and integrity in the marketplace. BBB Torch Award winners build trust, advertise honestly, tell the truth, remain transparent, honour their promises, and display integrity in all of their marketplace activities.
Friday, September 16, 2011
Platinum has very few sources though its demand has been continously rising. Production of this metal is concentrated in two regions: South Africa and Russia. They produce 90% of the world’s platinum.
Globally, platinum mining companies are less than ten. Other countries like Canada, Zimbabwe and United States mine Platinum from smaller deposits. The increase in demand has been an incentive to the mining companies to develop plans for expansion.
Platinum mining companies require a lot of capital. This is used for production facilities and for ensuring survival by financing exploration and production. Platinum is both a precious metal as well as an industrial metal. Its use as an industrial metal is because of its resistance to chemicals and extreme temperatures as well as stable electric properties.
Mining of platinum is a very involving process. Extraction, concentration and refining may take up to six months. Statistics show that for an ounce of the metal to be obtained, 7 to 12 tonnes of its ore must be processed.
Most platinum occurs underground. Extraction is labour intensive and involves miners drilling holes which are then blasted by use of explosives. The ore is then harvested and taken to the surface. Here it is crushed and milled into smaller particles that expose the minerals (PGM) which contain the platinum.
These particles are then mixed with water and other special reagents, a process known as ‘froth floation’. Air is then blown through the mixture making the PGM particles float on the surface. The floation concentrate is removed . To ensure that all the PGM material is obtained, the material that fails to float is taken through the milling and floation process again.
The floatation concentrate is dried and smelted at temperatures of above 1500? C. This separates the valuable metal as a matte from the unwanted minerals. Periodical tapping of this material removes sulfur and iron. This increases the PGM content to about 1400 grams per ton.
Refing of this PGM material is necessary as it removes nickel, copper and cobalt. This is done through standard electrolytic techniques. The final step of purifying the PGM concentrate is then done. Traces of gold or silver that may be present are removed by a combination of techniques such as, solvent extraction, distillation and ion-exchange. Dissolving the resultant material in hydrochloric acid and chlorine gas obtains soluble metals. These are first gold, then platinum and palladium.
Platinum can also be obtained from scrap material. The autocatalyst sector provides the greatest proportion of recycled platinum. The catalyst substrate is smelted together with iron or copper. Leaching is then done to dissolve the copper or iron, obtaining a concentrare that undergoes the refining process.
Thursday, September 15, 2011
Gold prices are likely to break through $2,000 an ounce by year-end to new record highs, metals consultancy GFMS said in a report on Thursday, as inflation pressures in Asia and debt concerns in the West lead to a recovery in investment demand.
While investment was soft in the early part of this year, jewellery purchasing held up remarkably strongly as prices climbed to records, the company said, while central banks added to holdings and scrap supply remained muted.
World investment in gold is forecast to jump by more than a quarter year-on-year to 1,069 tonnes in the second half, largely on the back of soaring bar demand, and could push the market significantly higher.
"Apparently low investment figures were very much a first-quarter story," said Neil Meader, research director at GFMS. "As soon as that Western disinvestment stops, you then have investment coming back at a time when the jewellery market is still strong and scrap is not doing a huge amount."
"Throw in a couple of hundred tonnes of official sector purchases, and you get some quite interesting price pressures going on," he said.
A forecast for a hefty 43.5 percent year-on-year fall in implied net investment -- chiefly reflecting activity in exchange-traded funds, on COMEX and in over-the-counter trading -- was a reflection of profit-taking early in the year, Meader said.
But the low interest rate environment, poor confidence in paper currencies and concerns over sovereign debt are all still strong factors underpinning interest in gold. In the full year, world investment is seen rising 1 percent to 1,693 tonnes.
Selling out of exchange-traded funds in the first quarter of the year, when the major gold funds recorded the largest quarterly outflow on record, has been partly reversed, suggesting appetite for the products has recovered.
Bullion bar buying, which has been consistently strong this year, rose 43 percent in the first half and is expected to stay strong in the remainder of the year, with GFMS forecasting a further 8 percent rise in the second half.
"We have seen periods where ETF demand wasn't great, and to an extent that was due to some people shifting out of ETFs into allocated metal accounts, because that is a lower-cost vehicle for holding gold," said Meader.
"That phenomenon happens when you have new entrants in the market. The ETFs are very visible and easily understandable, and that attracts new entrants, but once they are more familiar with gold ... and if their positions build to a certain size, they may be in a position to switch into allocated metal."
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.