Thursday, November 10, 2011
The price of gold edged up this morning but worries about the restructuring in Greece and a deepening debt crisis in Italy weighed on commodities. The dollar extended losses against the euro after better than expected job data from the United States,
Supporting gold, the euro briefly extended gains versus the dollar after U.S. data showed new claims for unemployment benefits declined for a second straight week.
A weaker U.S. currency makes dollar-priced commodities such as precious metals more affordable for holders of other units.
Gains however were capped by worries about the deepening Euro debt crisis, which pushed investors to sell commodities, including precious metals, reducing the bullion safe haven allure.
Italy moved closer to a national unity government on Thursday, with outgoing Prime Minister Silvio Berlusconi reversing a call for early elections, as EU policymakers dithered over an accelerating debt crisis. Some fear that a deepening euro zone crisis will continue to weigh on gold.
Italy, now firmly at the heart of the euro zone crisis, paid a 6.087 percent yield, the most in 14 years, at a one-year debt auction on Thursday but placed the full planned amount of 5 billion euros.
Greek political leaders resumed their search for a deal on a new prime minister after one agreement collapsed.
Emphasising worries, the European Commission said the euro zone economic growth will slow sharply next year as weak confidence undermines investment and consumption and tighter fiscal policies reduce domestic demand.
Gold fundamentals however, remained supportive.
New York's SPDR Gold Trust, the biggest gold-backed ETF, said its holdings rose 0.24 percent on Wednesday from Tuesday, while that of the largest silver-backed ETF, New York's iShares Silver Trust gained 0.26 percent.
Silver rose 0.29 percent to $34.14 an ounce while platinum rose 0.25 percent to $1,627 an ounce and palladium rose 0.15 percent to $645.47 per ounce.
Monday, November 07, 2011
Gold climbed to a six-week high in New York as concerns about Europe’s debt crisis spurred demand for the metal as a protection of wealth.
Italian Prime Minister Silvio Berlusconi’s allies pressured him to step aside after contagion from the region’s sovereign debt crisis pushed Italy’s borrowing costs to euro-era records. That overshadowed Greek Prime Minister George Papandreou’s agreement to step down, sending European equities lower.
Gold for December delivery gained as much as $25.20, or 1.4 percent, to $1,781.30 an ounce, the highest price since Sept. 22, and was at $1,777.70 by 8 a.m. on the Comex in New York. Immediate-delivery gold was 1.2 percent higher at $1,776.10 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 25 percent this year.
Holdings in exchange-traded products backed by gold gained 3.1 metric tons to 2,284.6 tons on Nov. 4, the highest level since Aug. 23, data compiled by Bloomberg.
Silver for December delivery gained 1.5 percent to $34.605 an ounce in New York. Palladium for December delivery was 1.1 percent higher at $662.55 an ounce. Platinum for January delivery rose 0.8 percent to $1,642.90 an ounce.
Saturday, November 05, 2011
Gold eased at the end of the week with a surge in the US dollar, but the precious metal still managed to post weekly gains. After Thursday’s rally on the announcement of the cancellation of the proposed referendum in Greece, the markets seem to calm.
Greek Prime Minister George Papandreou drew criticism during the week after announcing plans to hold a referendum to approve the latest bailout package for the debt-laden country.
The announcement pushed the euro lower as traders feared that the bailout would be rejected by Greek voters, forcing a default and potentially triggering a financial meltdown in Europe. Meanwhile, demand for the safe haven US dollar was high, while gold, which is seen as an alternative asset to the American currency, was in decline.
The markets breathed a sigh of relief on Thursday when Papandreou agreed to cancel plans to hold a referendum following emergency talks with German Chancellor Angela Merkel and her French counterpart Nicolas Sarkozy.
As a result the euro and gold surged, while demand for the US dollar faltered.
Friday, November 04, 2011
A large gold coin which had displaced an Australian coin as the world's biggest, but recently lost the title, was on display this week in Canada's largest city.
The coin, measuring 50 centimeters across, took over two years to make from design to final product. When it was introduced in 2007 by the Royal Canadian Mint, it set a Guinness World Record.
But the Perth Mint reclaimed the record for the world's biggest bullion coin last week when it unveiled a 1,000-kilogram coin. It previously held the title with a 10kg coin until 2007, when the Canadian mint launched its 100kg coin.
Although it is now only the second biggest gold coin in the world, the Royal Canadian Mint's huge gold coin is still the purest, according to the mint, and it has traveled the world.
"It's been to the Middle East, it's been to China, it's been to Europe," said Royal Canadian Mint spokesperson Alex Reeves, noting that the coin has a face value of $1 million and the gold is 99.999% pure.
One side of the coin features a maple leaf design, while the head of Queen Elizabeth II is on the other side.
Thursday, November 03, 2011
The price of gold rose again this morning, helped by a resurgent euro. The turmoil overseas has been hitting the financial markets due to political chaos in Greece as European leaders contemplated the country's exit from the euro zone.
Gold has been easing higher in the past week. With the threat of a potentially disastrous Greek financial collapse, gold’s safe-haven appeals to those who fear a liquidity crunch in case of a default.
Gold's rise off the earlier losses was echoed in other financial markets. Early losses in stocks and the euro turned to gains on hopes that Greece might ditch a plan to hold a referendum which will test its resolve to stay in the currency bloc.
France and Germany, angered at Greece's shock move to call for a referendum on its latest bailout plan, have issued statements to Prime Minister George Papandreou that Athens would not receive EU aid until it decides whether it wants to stay in the euro zone.
Spot gold was up 0.8 percent at $1,752.29 at 1222 GMT, off an intraday high of $1,758.63, from $1,737.70 on Wednesday. U.S. gold was up 1.3 percent at $1,752.70.
The prospect of a hard Greek default and euro exit hung over a meeting of G20 leaders beginning in Cannes on Thursday. Eyes are also on the European Central Bank, which will meet on Thursday and is expected to hold interest rates steady.
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.
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.
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.
Saturday, October 22, 2011
A weaker dollar and the growing optimism over the debt crisis in Europe drew some investors into the market, the price of gold and the precious metals focus climbed. On Friday, gold rose for the first day this week.
Some investors buy gold on the philosophy that the metal holds its value better than most other assets during economic turmoil including the dollar. For years gold has been considered the safe haven currency. But some market participants are still wary of gold after a sell off last month but the overall history of gold has always been positive. They forecast a price of $1,800 per ounce by the year's end.
Gold futures for December delivery gained 1.4 per cent to settle at $1,636.10 an ounce at 1:46 p.m. on the Comex in New York, the biggest advance since Oct. 10. Still, the metal dropped 2.8 per cent this week, the first weekly loss in three.
Bullion slipped to $1,604.70 yesterday, the lowest since Oct. 5.
Bullion is in the 11th year of a bull market and futures reached a record $1,923.70 on Sept. 6 as investors sought to diversify away from equities and some currencies.
The metal has advanced 15 per cent this year.
Silver futures for December delivery rose 3 per cent to $31.193 an ounce, the biggest gain since Oct. 10. The metal has gained 3.7 per cent this month.
On the New York Mercantile Exchange, platinum futures for January delivery advanced 1.3 per cent to $1,509.20 an ounce, rising for the first time this week. Palladium futures for December delivery jumped 5.8 per cent to $618.25 an ounce, the biggest gain since Nov. 18.
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.
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.
Monday, October 17, 2011
Today, Hong Kong’s Chinese Gold & Silver Exchange Society, a century-old bullion house, started trading gold quoted in yuan, boosting the city’s status as an offshore hub for the currency.
The contract may generate as much as HK$6 billion ($770 million) in trades a day, exchange President Haywood Cheung said in an Oct. 14 interview. Daily bullion trading volume at the society, which has 171 active members, has jumped to HK$136 billion this year from last year’s HK$31 billion on appetite for gold as a haven from stock declines, he said.
“There’s triple demand for this yuan product,” said Cheung on Oct. 14. “Investors can enjoy the bull market in gold, the yuan’s appreciation and hedge gold denominated in other currencies against the yuan.”
Chinese Vice Premier Li Keqiang pledged the nation’s support for yuan business in Hong Kong two months ago. The city’s richest man, Li Ka-shing, sold Hong Kong’s first renminbi shares in April and the city’s bond sales in the currency have more than tripled this year. Yuan deposits in the former British colony rose 93 percent this year to a record 609 billion yuan ($96 billion) in August.
“It’s part of a larger trend in Hong Kong to increase investments priced in renminbi,” said Zhang Qiang, an analyst in Shanghai at Haitong Futures Co., China’s largest futures brokerage by registered capital. “It’s a good proposition for investors who want exposure to both gold and renminbi, however, this would depend largely on the two moving in tandem.”
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.
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.
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.
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.
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.
Tuesday, September 27, 2011
There has been a lot of turmoil in the financial markets in the markets these days, but if there’s one investment that should be going up according to the experts, it’s gold.
Gold has always been charged as the ultimate investment because it has been a "store of value." But the majority of the experts agree that gold is bound to keep going up as volatility rises, the gold bugs pronounce.
But the question floating around the investment atmosphere is, “Now that markets are struggling, why is gold on a slide?”
Several economists and market watchers seem to the answer. The word on the street is that people prefer to be holding cash as panic spreads across Europe. To get cash, they need to sell their investments including their gold holdings. If we go back to simple supply and demand concepts that explains the temporary price drop on gold.
“It shows you that at times of extreme stress, there is not a suitable substitute to liquidity and although gold is liquid by metal standards, in comparison to Treasurys, when you get this kind of flight to cash, then it really is cash that counts and that means U.S. dollars,” Credit Suisse analyst Tom Kendall said in a recent interview..
His point is quite valid, but he fails to mention any profit-making these investors may have cashed in on. It has been well documented that in recent years gold has been traded as an investment opportunity, rather than a store of value. So while investors were buying into the long-term strategy, big hedge funds and commodity traders were simply waiting for gold to hit a breaking point, just as they waited for metals such as silver to hit a breaking point back in April. As soon as one fund starts to sell, many more do.
It’s situations like this that prove, yet again, that gold is a safe bet. The current market situation demonstrates why some people keep buying and selling the precious metal over the long term. To make the most of any investment strategy you have to understand how or why the value moves.
Monday, September 26, 2011
The price of gold was down again on Monday as investors traded the metal for the perceived safety of cash. "Essentially gold is a victim of its own success," said Edel Tully, a precious-metals strategist at UBS in London.
The price of spot gold fell to its lowest in two and a half months, and is now down 9% from the record high of $1,920.94 a troy ounce that it notched on Sept. 6. The price of spot gold was recently at $1,615.0/oz, down 2.4% from its close in New York on Friday.
“It’s a good time to sell,” said Michael Gupton of KMG Gold in Winnipeg. “It always is if you apply my Dollar Averaging concept,” Gupton explained referring to his upcoming publication, As Good As Gold.
Analysts said gold is suffering at the hands of investors who are cashing in on gold's recent bull run to shore up their books and cover losses elsewhere. Gold was one of the main beneficiaries during the turbulence in financial markets this summer and the growing aversion among investors toward risky investments.
Mr. Gupton added that the extent of the selloff was not surprising, and reflected the strong demand for cash amid a strengthening dollar. “Gold is a safe alternative and this action just proves my point.”
The price of silver was recently down 7.7% at $28.56/oz. It had earlier traded as low as $26.100/oz.
The price of spot platinum was 3.8% lower at $1,543.70/oz, while the price of spot palladium was down 1% at $625.50/oz.
Sunday, September 25, 2011
China has installed the country’s first gold vending machine in a busy shopping district in Beijing. Largest Gold producer and second largest to India in consuming, China becomes the sixth nation to open a gold vending machine for its people.
Gold vending machines are now operating in the US, UAE, Germany, Spain and Italy. According to reports, China is set to open vending machines, made by the same German company TG Gold Super Market that supplied machines to other countries.
Shoppers in the popular Wangfujing Street can insert cash or use a bank card to withdraw gold bars or coins of various weights based on market prices. The machine was launched Saturday by the Beijing Agricultural Commercial Bank and a gold trading company, the report said.
The machines will dispense gold bars weighing up to 2.5 kilograms and work just like the normal automatic teller machines (ATMs), cnr.cn reported, and citing sources close to the matter.
The machines can accept both cash and credit cards. The cash-for-gold machines will be on trial at Beijing’s upscale clubs and private banks during the initial period for security reasons. They plan to install an unspecified number of machines in secure locations such as gold shops and up market private clubs.
Gold is often used as a hedge against inflation and the machines could prove popular among Chinese consumers looking for a convenient way to safeguard their cash amid rising prices.
Chinese consumer demand for gold soared 27% year-on-year to 579.5 tonnes in 2010, according to the World Gold Council. India, the world’s top consumer, saw a 66% increase to 963.1 tonnes.
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
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!”
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.
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.
Tuesday, September 13, 2011
A crown is a form of dental restoration which is used on a tooth or a dental implant. They are used when a cavity develops on a tooth and are applied on the tooth using dental cement. Their purpose is to improve the appearance and strength of a tooth. Different materials are used for making the crowns. Gold is the most common.
Full Gold Crowns
These are the most common gold crowns used by dentists. Though they are called gold crowns, they are made up of a number of elements: the noble metals (gold, platinum and palladium) and the base metals (silver, copper and tin). Gold crowns that have a high noble content are of better quality.
Technique For Making Gold Crowns
Gold crowns are made through a process known as the Lost-wax technique. A dentist takes the impression of the tooth to be replaced, those adjacent and those opposite. The dimensions of the cast crown are then done in three dimensions, that is, the height, width and depth.
The measurements are recorded on an impression material and send to a dental lab. Dental stone or plaster is used to make the models of the tooth. The models are then ditched, died and articulated so that their arches meet properly.
To this tooth analog, known as a die, is applied wax. The wax is carefully moulded to gain the shape and exact dimensions of the tooth being replaced. Before the wax is applied, a die spacer is applied. This helps provide a space between the actual tooth and the gold crown.
A lubricant is also applied to ease in removal of the wax pattern once preparation is complete. The wax pattern is then invested in a plaster like material. It is then placed in a furnace which burns off all the wax and plastic that was in the wax pattern, hence the name Lost-wax technique. A hollow is left which is known as the investment pattern.
To this hollow is shot pennyweights of melted gold. Once it has cooled, the crown is polished to high shine. Touching up is done at the place of attachment as the dentist checks to see if fits in with the adjacent teeth.
Advantages Of Gold Crowns
•Gold is very strong and resistant to corrosion. It is mostly applied on the back teeth that have biting forces.
•It adapts and fits well as a crown.
•Preparing a tooth for a gold crown is easy as no healthy tooth structure is tampered with.
•It provides longevity in service.
Disadvantage Of Gold Crowns
Full Gold Crowns have one major disadvantage. This is the fact that they are cosmetic and hence not suitable for front teeth.
Saturday, September 10, 2011
This is a technique that has been in use for quite a few years. It is used in the analysis of gold and platinum group elements. The process aids in the separation of minerals from ores. It is by far the most common and widely used process in metals analysis.
Whether the application is applied with large or small samples, the procedure is generally the same. It involves addition of a lead based flux that has been added to the test sample. The resulting mixture is then fused at temperatures of 1650 F. Silver is usually added to this mixture as it helps in the collection of gold. For samples that have trace amounts of gold, the addition of silver collects the traces therefore enhancing gold collection.
The material obtained from the fusion is poured onto a mould and cools into a lead button. This contains all the precious metal that was in the sample. A silica glass slag is placed at the bottom of the mould which is removed later.
The next step is the separation of the precious metal from lead. This is done through a process known as cupellation. It uses a porous crucible known as a cupel which is made of magnesium oxide and bone ash. Heating the cupel and the lead button in the same furnace leads to oxidation of the lead. It is absorbed into the cupel, leaving only the precious metal which has may have traces of silver.
The addition of nitric acid separates the gold from silver. This possible because silver is soluble in acid. The gold then undergoes a procedure known as gravimetric finish, which is the determination of the golds’ original grade. However, the gravimetric finish is only applicable on large gold samples. For gold that has small particles, they are dissolved in hydrochloric acid and the resulting concentrate measured using AAS.
For platinum group elements, the final measurements, unlike for gold, are done using ICP.
Advantages of fire assay
Fire assay can be used on samples that have tiny particles.
Factors within the precious metals make the method viable. These are:
a)The solubility of these metals in molten metallic lead and insolubility in other molten metals.
b)The metals are easily separated from the lead.
Fire assay is the most accurate method of assaying precious metals and is widely used by refiners. Though it is time consuming and labour intensive, it is the best method for assaying. However, caution must be observed in the process to avoid accidents. It is mostly commonly used by professionals but individuals can do the test for themselves by apply strict guidelines to ensure the right results are obtained.
Wednesday, August 31, 2011
Gold Can't Be Held Down For Long
This has been a summer of more downs than ups in the investment markets but it could finally be coming to an end. We always maintained the opinion that a strong fall is upon us and we are still sticking to that prediction.
Instead of the normal, boring summer doldrums where many small-cap stocks lose 5-10% of their value due to a lack of liquidity, we had a very real, harsh summer correction across all major exchanges. $8 trillion was erased from the global equity markets in August. Even gold, the bright spot of the summer, reminded us this week that every dog has its day. The correction in gold was healthy and necessary for its continued run.
We watched gold's pullback this week as positive, only adding to our belief that gold is far from a bubble. Now, before you write us off as just another group of maniac gold-bugs, keep reading.
If you take the time to really analyze global asset allocation in 2011 compared to what it was a few decades ago, you’ll find that the gold sector is underinvested in and that less than 1% of global assets are situated in gold. How can anyone say that gold is a bubble about to burst given that statistic alone?
To add even more depth on this topic, I found one of the best explanations of why gold is not in a bubble. If you are invested in gold bullion, producing gold companies, or juniors with proven or soon to be proven gold resources - this is a must read!
The below excerpt is taken from the article, "Debunking the Gold Bubble Myth," and was authored by Eric Sprott and Andrew Morris in March of 2011.
"In their Gold Yearbook 2010, CPM Group noted that in 1968, gold held by individuals for investment purposes represented approximately 5% of global financial assets. By 1980 that amount had fallen to roughly 3%. By 1990 it had dropped significantly to 0.6%, and by the year 2000 represented a mere 0.2% of global assets. By the end of 2009, nine years into the gold bull market that began in 2000, they estimate that gold had increased to represent a mere 0.6% of global financial assets - hardly much of an increase. Gold ownership didn't change much last year either, as we estimate that this percentage increased to 0.7% of global financial assets in 2010. So despite gold reaching record nominal highs, the world holds about the same portion of its wealth in gold as it did over two decades ago. While this probably says more about the proliferation of financial assets over the past decade than it does about gold investment, it is surprising to note how trivial gold ownership is when compared to the size of global financial assets.
The increase in gold ownership from 0.2% in 2000 to 0.7% in 2010 is also misleading. If you consider the approximate $227 billion that was invested in gold bullion in 2000, that level of investment would have grown to $1.18 trillion, or 0.6% of financial assets, by the end of 2010 - based purely on gold appreciation alone.
In other words, the actual amount of new investment into gold since 2000 represents only 0.1% of current global financial assets, or about $250 billion. Although this number may seem large, consider that roughly $98 trillion of new capital flowed into global financial assets over the same period, so gold's approximate 0.3% share of global investment flows is essentially trivial.
The 0.7% ownership data point also has interesting implications for global gold ownership going forward. Consider that to return to a meaningful level of gold investment, say to the 5% level of 1968, it would require over $9 trillion of gold investment today, or about 6.5 billion ounces of gold at the current gold price. This would represent well over 1.3 times the amount of gold ever produced throughout history and four times the amount of known gold reserves. So not only is the public relatively underinvested in gold, but at current prices it isn't even possible to increase our gold holdings back to a meaningful level."
Wednesday, August 31, 2011
Gold Prices Stall as Stocks Bounce
were cautious Wednesday as hopes for further government intervention to boost the economy pushed investors into stocks and fears of a double-dip recession faded.
Gold for December delivery was adding 80 cents at $1,830.60 an ounce at the Comex division of the New York Mercantile Exchange. The gold price
has traded as high as $1,839.80 and as low as $1,822.30 while the spot gold price was down $7.90, according to Kitco's gold index.
Wednesday, August 31, 2011
Gold dips, but supported by Fed outlook
Gold fell on Wednesday after a near 3% rally the day before sparked by Federal Reserve comments on possible measures to boost U.S. growth, and the bullion price is still set for its biggest monthly gain in nearly two years.
Minutes from the Fed’s policy meeting on Aug. 9 released Tuesday showed the central bank discussed a range of unusual tools it could use to help the economy and more quantitative easing remains an option.
The Fed has thus far given no explicit signal that it will embark on a third round of purchases of government bonds to keep market interest rates low — a measure known as quantitative easing — meaning markets are increasingly jittery and prone to wild swings in response to measures such as economic data.
Spot gold was last down 0.6% on the day at US$1,825.19 an ounce at 1145 GMT, having risen by over 2.6% the day before to a high of US$1,839.40.
So far in August, the price has risen by 12.2 percent, the largest monthly rise since a 12.8% gain in November 2009, compared with a 6.1% loss in the S&P 500.
Monday, August 29, 2011
Investments: Why Buy Gold?
It impacts on the population’s budget significantly as most Georgian citizen's deposits are kept either in USD or EUR accounts in Georgia.
The Euro and U.S dollar rates have been continuously varying since 2010. Therefore, the people with Georgian accounts are in a precarious situation. They cannot confidently decide which currency is reliable, which currency is beneficial for saving money and which currency will not reduce its value.
In such a situation economic experts' advice is to invest in shares of gold. “The price of gold is increasing in relation to the dollar, the Euro and Gel. Therefore, investing in gold is the only way to ensure the safety of your money and to potentially increase it,” said Paata Sheshelidze, the economic expert. “Gold is a natural metal and its availability is limited and the production of certain currencies depends on political decisions. Therefore, gold is much more stable and reliable than the US dollar, Euro or Gel,” he added.
Monday, August 29, 2011
Australia’s gold production jumps 10% on record prices
PERTH (miningweekly.com) ? Australia’s gold production increased 10% year-on-year in the 2011 financial year, as new operations came into production and old mines were reopened on the back of soaring bullion prices, Surbiton Associates director Dr Sandra Close reported.
In its latest quarterly production figures, Surbiton sated that Australian gold production for the three months to June had increased by 5% to 68 t, or 2.1-million ounces, compared with the 65 t produced in the previous quarter.
Gold output for the full year totalled 270 t, an increase of 24 t on the previous financial year.
“There’s a lot of activity in the gold sector, with several operations slated to come on stream in the next 12 months and several others still in the feasibility study stage,” said Close.
She noted that some of the gold deposits that were previously mined in the earlier years of the current gold boom, which has now been in progress for 30 years, have become attractive targets.
“The recent spike in the gold price has certainly drawn attention to the industry but it is the sustained, longer-term, upward trend in the gold price that has prompted companies to re-evaluate older deposits and also explore for new ones.”
Monday, August 29, 2011
Jewellers offer monthly plans as sales fall on high gold prices
MUMBAI: Keen to prop up faltering sales, India's leading jewellery retailers are offering schemes that encourage customers to invest their savings in gold through regular small purchases and get protection from price volatility. Gold has risen $400/ounce between July and August and more than 30% over last year, depressing jewellery demand.
Gold demand typically shoots up in September, with the onset of the festive season, and peaks in spring during the wedding season. However, this year urban consumers are preferring coins and bars for investment over jewellery. In rural India, where almost three quarters of the bullion is sold, demand is likely to remain depressed as net returns from farming drop and cost of living rises.
Three-year-old chain Reliance Jewels, a subsidiary of Mukesh Ambani-owned Reliance Retail, plans to launch a scheme in October that will allow a consumer to invest any amount daily for a year and then buy gold at the rate prevailing on maturity. A consumer can also opt to buy fractional quantities of gold everyday for a year under the scheme and can get jewellery equivalent to grammage accumulated over time upon the scheme's maturity. His purchase thus becomes independent of gold price fluctuations.