Friday, October 14, 2011
Gold Rises Again
In the opening markets, gold rose on track to post its biggest weekly gain in more than a month. There is still uncertainty in the markets with the anticipated G20 meeting whose agenda will be dominated by the euro zone debt crisis and steps to tackle spreading issues.
Spot gold rose 0.4 percent to $1,671.99 an ounce at 1139 GMT, from $1,666.20 late in New York on Thursday.
Reflecting growing concern about the region's debt crisis, ratings agency Standard and Poor's downgraded the long-term credit rating of Spain by one notch, just as policymakers get ready to pressure Europe to act swiftly to tackle its financial woes at a weekend meeting.
Although investors are not expecting any concrete resolutions to the debt crisis, they hope it will provide an opportunity for officials to agree on the outlines of a plan in time for a European Union summit on October 23.
"Like always, the big picture remains positive,” said Michael Gupton, founder and president of KMG Gold. “The supply-demand fundamentals are in place and everything still looks good.”
Also helping boost gold was a fall in the dollar, which dipped against a basket of currencies. A weak dollar makes commodities priced in the U.S. unit cheaper for holders of other currencies.
Gold prices are up 2.3 percent so far this week, on track to post its strongest weekly gain since early September.
U.S. gold gained 0.4 percent to $1,674.80 an ounce, while spot silver rose 0.2 percent to $31.85 an ounce.
Spot gold rose 0.4 percent to $1,671.99 an ounce at 1139 GMT, from $1,666.20 late in New York on Thursday.
Reflecting growing concern about the region's debt crisis, ratings agency Standard and Poor's downgraded the long-term credit rating of Spain by one notch, just as policymakers get ready to pressure Europe to act swiftly to tackle its financial woes at a weekend meeting.
Although investors are not expecting any concrete resolutions to the debt crisis, they hope it will provide an opportunity for officials to agree on the outlines of a plan in time for a European Union summit on October 23.
"Like always, the big picture remains positive,” said Michael Gupton, founder and president of KMG Gold. “The supply-demand fundamentals are in place and everything still looks good.”
Also helping boost gold was a fall in the dollar, which dipped against a basket of currencies. A weak dollar makes commodities priced in the U.S. unit cheaper for holders of other currencies.
Gold prices are up 2.3 percent so far this week, on track to post its strongest weekly gain since early September.
U.S. gold gained 0.4 percent to $1,674.80 an ounce, while spot silver rose 0.2 percent to $31.85 an ounce.
Friday, September 23, 2011
Crucial Steps In Buying Gold
The world economic scenario has undergone a lot of turbulence and uncertainty in the past few decades. Therefore, it is a secure alternative to make long term investments. The retirement accounts are decreasing, the stock exchange is also subject to huge fluctuations and the value of all currencies is on a decline. Gold has become a prized investment in such these circumstances. Gold has emerged as a winner because it has been able to withstand all the lashes of recession. Apart from being used in ornaments, gold also possesses immense historical value and importance. What’s more is that by buying gold at a lower price and selling it at a higher price, one can make money.
To ensure that gold proves to be a secure and reliable investment, people should understand some simple steps to buy gold. To gain a full understanding of the ins and outs of the market, people should thoroughly analyze the gold market. If one wants to know the potential value of gold holdings, people should understand the value of the metal and have complete knowledge of its historical relevance. Moreover, people should be aware that gold investment is not restricted to one specific option. People can buy metal futures, certificates, stocks of mining companies, wafers, physical bars and coins and mutual funds of precious metals amongst others.
Before settling on one form of investment, people should have a thorough understanding of the gold industry. In addition, the mode of investment which is selected should enable people to make money and should also be within means. Those investors should look for gold coins that have a limited allocation. Not only these coins have immense historical value, but are easy to transport and convenient to store and hold.
Finding a reliable gold dealer is the next step which has to be followed. It is essential to find a dealer who is honest, trustworthy and follows all business ethics from the ones which are available locally as well as online. All Canadian cities like Toronto, Calgary, Kamloops, Vancouver, Winnipeg, Victoria etc have their own gold dealers.
There are several gold dealers located in each city. It can be seen that people can save on the transportation and shipping costs can be saved if one opts to use a local dealer. On several occasions, people can gain confidence by investing in smaller items.
People can choose any gold refinery in Canada for confirming gold authenticity of gold with the help of gold assay services. KMG Gold Recycling is a suitable choice when looking for a precious metal refinery in Canada. People can make a decision once the refinery has analyzed the gold. KMG would be the ideal choice as it conducts all its transactions with honesty.
To ensure that gold proves to be a secure and reliable investment, people should understand some simple steps to buy gold. To gain a full understanding of the ins and outs of the market, people should thoroughly analyze the gold market. If one wants to know the potential value of gold holdings, people should understand the value of the metal and have complete knowledge of its historical relevance. Moreover, people should be aware that gold investment is not restricted to one specific option. People can buy metal futures, certificates, stocks of mining companies, wafers, physical bars and coins and mutual funds of precious metals amongst others.
Before settling on one form of investment, people should have a thorough understanding of the gold industry. In addition, the mode of investment which is selected should enable people to make money and should also be within means. Those investors should look for gold coins that have a limited allocation. Not only these coins have immense historical value, but are easy to transport and convenient to store and hold.
Finding a reliable gold dealer is the next step which has to be followed. It is essential to find a dealer who is honest, trustworthy and follows all business ethics from the ones which are available locally as well as online. All Canadian cities like Toronto, Calgary, Kamloops, Vancouver, Winnipeg, Victoria etc have their own gold dealers.
There are several gold dealers located in each city. It can be seen that people can save on the transportation and shipping costs can be saved if one opts to use a local dealer. On several occasions, people can gain confidence by investing in smaller items.
People can choose any gold refinery in Canada for confirming gold authenticity of gold with the help of gold assay services. KMG Gold Recycling is a suitable choice when looking for a precious metal refinery in Canada. People can make a decision once the refinery has analyzed the gold. KMG would be the ideal choice as it conducts all its transactions with honesty.
Thursday, September 22, 2011
Silver Sales Rise 30%
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."
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."
Tuesday, September 06, 2011
Gold Prices
The London Gold Fixing is the most common benchmark for the price of gold. The London Gold Fix refers to a twice daily telephone meeting of committee members from five bullion trading companies on the London Bullion market.
Representatives from the five firms meet twice daily to set the price of gold bullion. However, gold trading goes on world over based on the intra-day spot price, which is typically taken from over-the-counter gold-trading markets globally.
Recent Price Increases
The recent increase in the price of gold can perhaps be traced back to 2008, when the gold price went above US$1,000 to peak at US$1,004.38. However, after the March 2008 increase, Gold prices once again fell to a low of US$712.30 per ounce.
But it wasn’t long before the prices begun to rise again in late February 2009. Towards this time, the gold price provisionally went above US$1000 but later experienced a slight decline towards the end of the first quarter of 2009. By the end of 2009, the earlier March intra-day spot price record of US$1,033.90 was surpassed numerous times in October.
The price of gold effectively began climbing new highs in late 2009, peaking at about US$1226 before a sudden slight decline. However, as of August 19, 2011, the price of gold had peaked at a new all time high of US$1852.00 at the London Gold Fix.
A number of factors account for the fluctuating price of Gold.
Like any other goods, the price of gold is largely determined by speculation, supply and demand. On the one hand though, saving and disposal also affect greatly the price of gold more than its consumption. The fact is, most of the world’s gold ever mined can be found in bullion bars or jewelry, but with minimal value in terms of gold’s fine weight. As of the end of 2006, estimates indicate that all gold ever mined globally summed up to 158,000 tons.
Considering the fact that vast amounts of gold are stored above ground than annual gold production, the gold price is mainly driven by alternating sentiment (demand), as opposed to annual production (supply).
Estimates from the World Gold Council indicate that annual mine production of gold in recent years has been around 2,500 tons. Out of this amount, about 2,000 tons goes into the jewelry and dental industry and a further 500 tons is used by retail investors and exchange traded gold funds.
There has never been a better time to sell gold given the high price of gold currently in the international bullion market. Generally, the price of gold has also historically gone up in uncertain economic situations, such as inflation, as investors rush to hedge against financial losses.
Representatives from the five firms meet twice daily to set the price of gold bullion. However, gold trading goes on world over based on the intra-day spot price, which is typically taken from over-the-counter gold-trading markets globally.
Recent Price Increases
The recent increase in the price of gold can perhaps be traced back to 2008, when the gold price went above US$1,000 to peak at US$1,004.38. However, after the March 2008 increase, Gold prices once again fell to a low of US$712.30 per ounce.
But it wasn’t long before the prices begun to rise again in late February 2009. Towards this time, the gold price provisionally went above US$1000 but later experienced a slight decline towards the end of the first quarter of 2009. By the end of 2009, the earlier March intra-day spot price record of US$1,033.90 was surpassed numerous times in October.
The price of gold effectively began climbing new highs in late 2009, peaking at about US$1226 before a sudden slight decline. However, as of August 19, 2011, the price of gold had peaked at a new all time high of US$1852.00 at the London Gold Fix.
A number of factors account for the fluctuating price of Gold.
Like any other goods, the price of gold is largely determined by speculation, supply and demand. On the one hand though, saving and disposal also affect greatly the price of gold more than its consumption. The fact is, most of the world’s gold ever mined can be found in bullion bars or jewelry, but with minimal value in terms of gold’s fine weight. As of the end of 2006, estimates indicate that all gold ever mined globally summed up to 158,000 tons.
Considering the fact that vast amounts of gold are stored above ground than annual gold production, the gold price is mainly driven by alternating sentiment (demand), as opposed to annual production (supply).
Estimates from the World Gold Council indicate that annual mine production of gold in recent years has been around 2,500 tons. Out of this amount, about 2,000 tons goes into the jewelry and dental industry and a further 500 tons is used by retail investors and exchange traded gold funds.
There has never been a better time to sell gold given the high price of gold currently in the international bullion market. Generally, the price of gold has also historically gone up in uncertain economic situations, such as inflation, as investors rush to hedge against financial losses.
Thursday, August 18, 2011
Buying Gold Bullion In Winnipeg
There has been a drastic increase in gold investment in the city of Winnipeg. People often chose to invest the spare cash they have into gold and then liquidate it when prices rise. Like other cities in Canada such as Calgary, Vancouver, Montreal, Victoria etc, Winnipeg is also becoming the hub of gold trading. Buying Canadian gold bullions can lead to a variety of options for people in regard to investment. As there is no lock period for the purpose of liquidating your investment, you can sell your gold when you want.
People reap certain benefits when they purchase gold:
• It is said to be the safest and most reliable form of investment, because the gold bullion is offered to people by the government. A variety of options are offered by the Canadian Mint for to invest in gold bullion. When you want to buy gold, you have the option of public or private parties. Trading is conducting with the help of spot prices but premium may also be charged. A Winnipeg gold buyer should remember that for gold investment, there are numerous ways. There are different ways to invest in gold so it is not necessary to purchase gold bullion.
• People can make use of the internet to make an online purchase and thus make an investment in gold. In this manner, people can use gold as a means of trading as they will not get their hands on tangible gold but it will instead be available in the form of stock or a commodity. But this is only applicable in situations where gold is bought for investment purposes.
• For people who are newcomers in the market and are making gold investments for the first time, there are literature and magazines which can offer all the necessary information about the gold market and explain its trends which can lead to better decision making. Reading them will be helpful in comprehending the moods and trends of the market and will help people in deciding the correct time for making or selling investments.
To earn top dollar as a buyer, one needs to spend time in educating oneself about the trends of the market and the different trading strategies which are used and will eventually allow you to get higher returns from your investment. If one wants good results, then for starters, small investments should be used and once people have analyzed and understood the market conditions and trends, huge investments can be made. To make a great profit in a short time, people can make large investments once they have gained confidence. The most liquid and highly paying investment is gold. But it requires large investments so one should be cautious. Before investing in private parties, people should get feedback from old clients and research it thoroughly. Before entering the market, one should be aware of the trends and political conditions.
People reap certain benefits when they purchase gold:
• It is said to be the safest and most reliable form of investment, because the gold bullion is offered to people by the government. A variety of options are offered by the Canadian Mint for to invest in gold bullion. When you want to buy gold, you have the option of public or private parties. Trading is conducting with the help of spot prices but premium may also be charged. A Winnipeg gold buyer should remember that for gold investment, there are numerous ways. There are different ways to invest in gold so it is not necessary to purchase gold bullion.
• People can make use of the internet to make an online purchase and thus make an investment in gold. In this manner, people can use gold as a means of trading as they will not get their hands on tangible gold but it will instead be available in the form of stock or a commodity. But this is only applicable in situations where gold is bought for investment purposes.
• For people who are newcomers in the market and are making gold investments for the first time, there are literature and magazines which can offer all the necessary information about the gold market and explain its trends which can lead to better decision making. Reading them will be helpful in comprehending the moods and trends of the market and will help people in deciding the correct time for making or selling investments.
To earn top dollar as a buyer, one needs to spend time in educating oneself about the trends of the market and the different trading strategies which are used and will eventually allow you to get higher returns from your investment. If one wants good results, then for starters, small investments should be used and once people have analyzed and understood the market conditions and trends, huge investments can be made. To make a great profit in a short time, people can make large investments once they have gained confidence. The most liquid and highly paying investment is gold. But it requires large investments so one should be cautious. Before investing in private parties, people should get feedback from old clients and research it thoroughly. Before entering the market, one should be aware of the trends and political conditions.
Tuesday, August 16, 2011
Buying Gold- Knowing All The Workings
Because of the economic turbulence prevailing worldwide, it has become very difficult for people to come across a secure and long term investment option nowadays. Fluctuation of stock exchange, shrinking of retirement accounts and erosion of the value of money are the reasons which contribute to it. Investors are now using gold to enhance their investment portfolio as they have come to accept and believe in its historical importance and value and not thinking of this precious metal as a jewelry making commodity only. By opting to buy gold, people can make money through it later as it can be sold at a higher price.
There are a few steps which one has to follow when choosing to buy gold in order to make a safe investment. Getting all the knowledge about the gold market is the first crucial step which should be taken. A gold buyer should role and historical importance of gold as this will give them knowledge of the potential gold holds as a mode of investment. It should also be understood that the five primary methods of gold investment are certificates, stock in mining companies, metal futures, tangible bars and coins and precious metals mutual funds.
Before deciding on an investment option, research should be done on each option. You can choose one based on your budget or the mode which has the possibility of giving you most money. The ideal choice is gold coins if one has a limited or small budget. This is because they are easy to transport, store as well as hide. They also have historical value. Selecting a dealer is the next step when one has decided to buy gold. It’s difficult to choose one dealer or company as there are numerous who sell gold. No matter which dealer or company they select, the dealer should follow all business ethics.
When people wish to ascertain the value of their gold, they can get assay services at a gold refinery. KMG Gold Recycling is a very suitable choice when you are looking for a refinery which practices honesty. Instead of choosing an online dealer who is virtual, it is better to choose one with whom you can meet face to face. People can select any dealer they want as there are different dealers in every Canadian city such as Calgary, Victoria, Kamloops, Toronto, Winnipeg, Vancouver etc.
By using a local dealer, transportation and shipping costs can be saved. Once the gold has been tested by the refinery, people can finalize their decision. People should invest in what they can afford and thus start with small gold coins. By offering gold assaying services, KMG Gold Recycling helps to ensure that your investment is safe and sound.
There are a few steps which one has to follow when choosing to buy gold in order to make a safe investment. Getting all the knowledge about the gold market is the first crucial step which should be taken. A gold buyer should role and historical importance of gold as this will give them knowledge of the potential gold holds as a mode of investment. It should also be understood that the five primary methods of gold investment are certificates, stock in mining companies, metal futures, tangible bars and coins and precious metals mutual funds.
Before deciding on an investment option, research should be done on each option. You can choose one based on your budget or the mode which has the possibility of giving you most money. The ideal choice is gold coins if one has a limited or small budget. This is because they are easy to transport, store as well as hide. They also have historical value. Selecting a dealer is the next step when one has decided to buy gold. It’s difficult to choose one dealer or company as there are numerous who sell gold. No matter which dealer or company they select, the dealer should follow all business ethics.
When people wish to ascertain the value of their gold, they can get assay services at a gold refinery. KMG Gold Recycling is a very suitable choice when you are looking for a refinery which practices honesty. Instead of choosing an online dealer who is virtual, it is better to choose one with whom you can meet face to face. People can select any dealer they want as there are different dealers in every Canadian city such as Calgary, Victoria, Kamloops, Toronto, Winnipeg, Vancouver etc.
By using a local dealer, transportation and shipping costs can be saved. Once the gold has been tested by the refinery, people can finalize their decision. People should invest in what they can afford and thus start with small gold coins. By offering gold assaying services, KMG Gold Recycling helps to ensure that your investment is safe and sound.
Tuesday, July 26, 2011
Gold and Silver
Gold and silver are some of the oldest rare metals known to man and have been used for varying purposes throughout history. Today, Gold and Silver are used widely in industry amongst other applications.
Gold Uses
Gold is increasingly finding usage in industry due to its range of favorable properties. Gold has been used in dentistry, jewelry as well as in the manufacture of industrial applications. The use of Gold has been necessitated by favorable properties such as:
•Its resistance to corrosion
•Efficient electrical conductivity.
•Gold has suitable Thermal Conductivity
•Infrared reflectivity
•High Ductile and Malleable
Today, Gold is used in a variety of industrial applications such as manufacture of electronics components, equipment such as computers, mobile phones and home appliances. These applications have been made possible by Gold’s superior electrical conductivity, high malleability and resistance to wear and corrosion.
With a high infrared reflectivity, Gold has found suitable usage in the manufacture of shielding used to protect spacecrafts and satellites from the effects of solar radiation. In addition, industrial and medical lasers also make use of a Gold coated reflector that focuses light energy. In medical research, Gold is extensively being used as it portends no harm to the body. Gold has traditionally been used in the treatment and management of arthritis amounts others intractable diseases.
There has been a steady growth in industrial demand for Gold. Currently, most of the world’s gold supply goes into the Jewellery industry.
Silver Uses
Silver has been used historically for various purposes, ranging from medicine, coinage to industry. Silver has the best electrical conductivity properties of all metals and does not corrode. Silver has widely been used in the production of coins and silverware. However, recent years have witnessed a fall in global silver supply, as demand from industry continues to grow.
Silver use in industry has also been made possible by the metal’s favorable properties. Today, the US leads in overall global silver consumption. The photography industry also takes a considerable amount of the overall silver supply globally. Silver is used in the manufacture if color film used in shutter cameras.
However, the advent of the digital camera has somewhat affected the uptake of silver in the photography industry. Silver demand is also driven by the electronics industry. Electronics manufacturers prefer silver due to its high electrical conductivity per unit volume. However, its high price and unavailability has seen silver replaced by Copper.
Silver is also used in the manufacture of switch and relay contacts for vehicles and automotive window heating systems. Today, a very small amount of silver is used in coinage. Major silver miners in the world include Peru, the US, Canada, Spain, Australia and Mexico.
Gold Uses
Gold is increasingly finding usage in industry due to its range of favorable properties. Gold has been used in dentistry, jewelry as well as in the manufacture of industrial applications. The use of Gold has been necessitated by favorable properties such as:
•Its resistance to corrosion
•Efficient electrical conductivity.
•Gold has suitable Thermal Conductivity
•Infrared reflectivity
•High Ductile and Malleable
Today, Gold is used in a variety of industrial applications such as manufacture of electronics components, equipment such as computers, mobile phones and home appliances. These applications have been made possible by Gold’s superior electrical conductivity, high malleability and resistance to wear and corrosion.
With a high infrared reflectivity, Gold has found suitable usage in the manufacture of shielding used to protect spacecrafts and satellites from the effects of solar radiation. In addition, industrial and medical lasers also make use of a Gold coated reflector that focuses light energy. In medical research, Gold is extensively being used as it portends no harm to the body. Gold has traditionally been used in the treatment and management of arthritis amounts others intractable diseases.
There has been a steady growth in industrial demand for Gold. Currently, most of the world’s gold supply goes into the Jewellery industry.
Silver Uses
Silver has been used historically for various purposes, ranging from medicine, coinage to industry. Silver has the best electrical conductivity properties of all metals and does not corrode. Silver has widely been used in the production of coins and silverware. However, recent years have witnessed a fall in global silver supply, as demand from industry continues to grow.
Silver use in industry has also been made possible by the metal’s favorable properties. Today, the US leads in overall global silver consumption. The photography industry also takes a considerable amount of the overall silver supply globally. Silver is used in the manufacture if color film used in shutter cameras.
However, the advent of the digital camera has somewhat affected the uptake of silver in the photography industry. Silver demand is also driven by the electronics industry. Electronics manufacturers prefer silver due to its high electrical conductivity per unit volume. However, its high price and unavailability has seen silver replaced by Copper.
Silver is also used in the manufacture of switch and relay contacts for vehicles and automotive window heating systems. Today, a very small amount of silver is used in coinage. Major silver miners in the world include Peru, the US, Canada, Spain, Australia and Mexico.
Thursday, July 14, 2011
Scrap Gold Buyer Online
Scrap gold buyer online in Canada, KMG Gold is the right place to sell gold. KMG Gold is the 2010 BBB Award Winner for Marketplace Excellence, Honesty, Ethics and Integrity in Business. This is enough proof for the integrity and ethics in business. You might want to read through real time customer testimonials in the KMG Gold website.
When we talk about buying precious metal bullion, we mean to talk about buying gold bullion, buying silver bullion, buying platinum bullion, buying palladium bullion, and buying rhodium bullion. It can be either one or more of these bullion types based on your affordability. These metals are precious because they are rare. Whether you are buying gold bullion or selling gold bullion it is very important you understand the reputation of the buyer and then go about the buying process.
Ensure that the dealer from whom you are buying the bullion is providing you with a consistently better price than the rest of the dealers. Since the prices for precious metals are transparently displayed in online gold selling sites you can safely compare the rates from different gold buying and gold selling sites about the price you can pay to buy for your gold or the price you can get for your gold, in case you are selling your gold.
When you set out to buy precious metal bullions you will find a mix of them in different weights, shapes and sizes:
• Gold coins, gold wafers, gold coins of different weights, gold bars, gold kilo bars
• Silver coins, silver wafers, silver coins of different weights, silver bars, silver kilo bars
• Platinum coins, platinum wafers, platinum coins of different weights, platinum bars, platinum kilo bars
• Palladium coins, palladium wafers, palladium coins of different weights, palladium bars, palladium kilo bars
• Rhodium coins, rhodium wafers, rhodium coins of different weights, rhodium bars, rhodium kilo bars
From the assortment of available choices you have to decide the form of bullion you would like to posses and you should make your purchase accordingly. If you want to buy precious metals in Canada whether you are looking to buy gold in Canada, buy silver in Canada, buy platinum in Canada, buy palladium in Canada, or buy palladium in Canada deal with a company who has a stable customer service in case you might want to deal with them after sale. A good dealer will answer your concerns even long after you have completed the purchase.
There are online gold buying websites that allow you to continue with the gold buying and gold selling round the clock. You can take your time and shop at your convenience to reach the best price possible for your purchase.
When we talk about buying precious metal bullion, we mean to talk about buying gold bullion, buying silver bullion, buying platinum bullion, buying palladium bullion, and buying rhodium bullion. It can be either one or more of these bullion types based on your affordability. These metals are precious because they are rare. Whether you are buying gold bullion or selling gold bullion it is very important you understand the reputation of the buyer and then go about the buying process.
Ensure that the dealer from whom you are buying the bullion is providing you with a consistently better price than the rest of the dealers. Since the prices for precious metals are transparently displayed in online gold selling sites you can safely compare the rates from different gold buying and gold selling sites about the price you can pay to buy for your gold or the price you can get for your gold, in case you are selling your gold.
When you set out to buy precious metal bullions you will find a mix of them in different weights, shapes and sizes:
• Gold coins, gold wafers, gold coins of different weights, gold bars, gold kilo bars
• Silver coins, silver wafers, silver coins of different weights, silver bars, silver kilo bars
• Platinum coins, platinum wafers, platinum coins of different weights, platinum bars, platinum kilo bars
• Palladium coins, palladium wafers, palladium coins of different weights, palladium bars, palladium kilo bars
• Rhodium coins, rhodium wafers, rhodium coins of different weights, rhodium bars, rhodium kilo bars
From the assortment of available choices you have to decide the form of bullion you would like to posses and you should make your purchase accordingly. If you want to buy precious metals in Canada whether you are looking to buy gold in Canada, buy silver in Canada, buy platinum in Canada, buy palladium in Canada, or buy palladium in Canada deal with a company who has a stable customer service in case you might want to deal with them after sale. A good dealer will answer your concerns even long after you have completed the purchase.
There are online gold buying websites that allow you to continue with the gold buying and gold selling round the clock. You can take your time and shop at your convenience to reach the best price possible for your purchase.
Wednesday, July 13, 2011
Tailings and Waste Rock from Mining
Tailings and waste rock is a direct product of modern large scale commercial mining activities. Today, mining is responsible for significant environmental damage. Tailings and waste rock make up the bulk of mining waste.
By definition, tailings refer to whatever is left after the ore has been crushed and the metal obtained. Tailings will typically be slurry that contains hazardous chemicals. On the other hand, waste rock refers to the displaced earth when searching for the metal ore. Modern commercial mining is typically done on a large scale and requires vast areas of land.
Mining Types
Tailings and waste rock will typically result from either of the following mining methods;
1. Hard Rock Mining
2. Placer Mining
Placer Mining
Placer mining refers to the extraction of gold or silver from surface placer deposits. Placer mining is mostly carried out on small scale and produces insignificant tailings or waste rock. Place mining is today confined to small scale prospectors, with modern miners employing complex techniques to excavate the rare metals. Therefore, placer mining does not produce tailings or slurry containing hazardous chemicals. Placer mining uses techniques such as the sluice box or the gold pan.
Hard Rock Mining
Hard rock mining is perhaps responsible for vast tailings and waste rock. Waste rock is produced by giant earth movers and powerful drills that bore through earth in search of metal ore. Waste rock has no use for a miner; it is simply ground that is displaced to obtain the ore. On the other hand, the extraction of the underlying precious metal uses various dangerous chemicals such as arsenic, mercury, acids etc. These chemicals finally make up the composition of the slurry that is kept in holding pools as tailings. Therefore, tailings will typically consist of whatever chemicals are used during the extraction process for gold, silver, platinum and palladium.
Environmental Impacts Posed by Tailings and Waste Rock
Mining poses considerable negative environmental impacts. Tailings contain hazardous chemicals that can cause serious environmental damage. To protect against leaks to the environmental, miners build holding pools that contain the slurry. However, leaks have been common, with wall breakages and enormous chemical leaks. Therefore, if not well contained, careless mining can cause serious environmental impact. Leakage to water pipes or rivers and streams can be disastrous. The chemicals can also cause considerable water and air pollution.
Commercial miners also bring to the surface underground sulfur rocks that can cause acidic run-off, killing crops. The acidic run-off can leak to human water pipes, with disastrous impacts. For these reasons, countries have put in place effective mining legislation to prevent against pollution or disasters. However, there are countries, such as in the third world that still have ineffective mining legislation and experience considerable mining pollution.
By definition, tailings refer to whatever is left after the ore has been crushed and the metal obtained. Tailings will typically be slurry that contains hazardous chemicals. On the other hand, waste rock refers to the displaced earth when searching for the metal ore. Modern commercial mining is typically done on a large scale and requires vast areas of land.
Mining Types
Tailings and waste rock will typically result from either of the following mining methods;
1. Hard Rock Mining
2. Placer Mining
Placer Mining
Placer mining refers to the extraction of gold or silver from surface placer deposits. Placer mining is mostly carried out on small scale and produces insignificant tailings or waste rock. Place mining is today confined to small scale prospectors, with modern miners employing complex techniques to excavate the rare metals. Therefore, placer mining does not produce tailings or slurry containing hazardous chemicals. Placer mining uses techniques such as the sluice box or the gold pan.
Hard Rock Mining
Hard rock mining is perhaps responsible for vast tailings and waste rock. Waste rock is produced by giant earth movers and powerful drills that bore through earth in search of metal ore. Waste rock has no use for a miner; it is simply ground that is displaced to obtain the ore. On the other hand, the extraction of the underlying precious metal uses various dangerous chemicals such as arsenic, mercury, acids etc. These chemicals finally make up the composition of the slurry that is kept in holding pools as tailings. Therefore, tailings will typically consist of whatever chemicals are used during the extraction process for gold, silver, platinum and palladium.
Environmental Impacts Posed by Tailings and Waste Rock
Mining poses considerable negative environmental impacts. Tailings contain hazardous chemicals that can cause serious environmental damage. To protect against leaks to the environmental, miners build holding pools that contain the slurry. However, leaks have been common, with wall breakages and enormous chemical leaks. Therefore, if not well contained, careless mining can cause serious environmental impact. Leakage to water pipes or rivers and streams can be disastrous. The chemicals can also cause considerable water and air pollution.
Commercial miners also bring to the surface underground sulfur rocks that can cause acidic run-off, killing crops. The acidic run-off can leak to human water pipes, with disastrous impacts. For these reasons, countries have put in place effective mining legislation to prevent against pollution or disasters. However, there are countries, such as in the third world that still have ineffective mining legislation and experience considerable mining pollution.
Monday, July 04, 2011
Dutch Guilders
The Dutch Guilder was used as currency in the Netherlands for centuries. It was however discontinued in 2002 and replaced by the Euro. The Netherlands used the guilder as the official national subunit of the Euro between 1999 and 2002. The Dutch guilder, as the name indicates, was typically made of gold. ‘Gulden’ is a Dutch name for ‘golden.’
The Netherlands has minted and issued a long line of numerous gold coins throughout its history. The Dutch guilders were issued in different weights and sizes, each carrying varying levels of pure gold. Some Dutch guilders have over one name, a potential cause for confusion.
Some of the Dutch coins produced include 1875 Willem III 10, 1876 to 1889 Willem III 10 Guilders, 1911 to 1917 Wilhelmina 10 Guilders, 1925 to 1933 Wilhelmina 10 Guilders and Ducats.
The various gold coins would have gold content as follows; For the 1 Guilder coin, it would have a gold content of .2652; the 5 Guilder had .0973 gold content; 10 Guilder had .1947 gold content; 20 Guilder had .3894 gold content and the 1 Ducat had .1106 gold content.
The first guilder ever minted was the 10.61 gram silver coin with a silver purity of .910. It was minted and issued by the states of Holland and West Friesland in 1680, all parts of Netherlands Kingdom. This original guilder was further split into 20 stuivers, with each stuiver having 8 duiten or 16 penningen.
The advent of the gold coins effectively replaced the other existing silver coins in the Netherlands Kingdom. Such silver coins included the florijn made up of 28 stuivers, daalder made up of 1½ guilders or 30 stuivers, rijksdaalder made up of 2½ guilders or 50 stuivers, silver ducat made up of 2½ guilders or 50 stuivers and the silver rider ducaton made of 3 guilders or 60 stuivers.
However, the mintage and issue of the guilder was interrupted between 1810 and 1814 when France conquered and annexed the United Netherlands Kingdom. During this period, French Francs were widely circulated in the Netherlands. When the Napoleonic wars ended, the Netherlands reverted back to the use of the guilder. In 1817, the Kingdom decimalized the guilder, making it equivalent to 100 cents. These coins were however later withdrawn from circulation.
The last pre-decimal coins were removed from circulation in the 1840s. Most of these coins dated back to the 17th Century. Originally, the Netherlands operated on a bimetallic standard and a guilder was equivalent to 605.61 milligrams of fine gold, or 9.615 grams of fine silver. However, the silver standard was adjusted to 9.45 grams in 1840, while the gold standard was removed in 1848. In 1875, the Netherlands adopted a gold standard with 1 guilder being equated to 604.8 milligrams of fine gold.
Wednesday, June 29, 2011
Casting Grain
Casting grain is done by jewelers when creating unique gold grains. Typically, high quality pre-casting grain comes in different karats and colors. The colors are created depending on tastes and color preference. Typically, the strength and color of the grain being cast will largely depend on the chemical composition of the metal being used, whether it is silver, gold, copper etc. Generally, the ratios of silver and copper in an alloy have a bearing on the overall color of the alloy. The ratios of the same will also determine the strength and hardness of the alloy. When casting grain, the chemical composition of the alloys mainly determines the overall characteristics of the outcomes.
As such, alloy chemistries are very important in determining color. But in cases where the chemistries create a challenge, jewelers will typically compromise. When using high zinc content, jewelers run the risk of creating bigger, unusual shrink voids. Other than this, grain such as red karat gold can be difficult to cast, as it forms copper oxide slag. In addition, red karat gold is highly susceptible to porosity.
Certain silver and copper variations may also force jewelers to compromise. Silver and copper content in certain variations can create very hard castings that are hard to work with. To mitigate this, jewelers prefer casting grain with tried and tested compositions of the various metals.
Generally though, workable casting grains feature a fine detail that is demonstrated by proper flow and fill characteristics. In addition, workable grain also has a clean as-cast surface and no impurities at all, such as oxides. Other than these, jewelers will also give preference to workable grain that has very minimal shrink characteristics, but with excellent physical attributes such as ductility and malleability. Workable casting grain has to be nearly as fine as-cast grain size and should be able to harden with age.
When casting grains, a jeweler chooses the best color for a cast after deciding on the Karatage of the gold being cast. However, the color of the gold being cast will solely depend on the relative amounts of silver, gold, copper, zinc and nickel being used. For instance, when casting colored karat gold, whether red, green or yellow; silver, zinc and copper will mostly be used.
White karat gold uses alloys of gold, copper, nickel and zinc. On the other hand, palladium white gold is also used sometimes and contains alloys of gold, palladium and silver. In addition to color requirements, the mechanical characteristics of an alloy are also important. Such mechanical properties include malleability and ductility, and depend on what the alloy is being used for. Therefore, casting grain depends on a number of factors that jewelers must consider when looking for quality outcomes.
As such, alloy chemistries are very important in determining color. But in cases where the chemistries create a challenge, jewelers will typically compromise. When using high zinc content, jewelers run the risk of creating bigger, unusual shrink voids. Other than this, grain such as red karat gold can be difficult to cast, as it forms copper oxide slag. In addition, red karat gold is highly susceptible to porosity.
Certain silver and copper variations may also force jewelers to compromise. Silver and copper content in certain variations can create very hard castings that are hard to work with. To mitigate this, jewelers prefer casting grain with tried and tested compositions of the various metals.
Generally though, workable casting grains feature a fine detail that is demonstrated by proper flow and fill characteristics. In addition, workable grain also has a clean as-cast surface and no impurities at all, such as oxides. Other than these, jewelers will also give preference to workable grain that has very minimal shrink characteristics, but with excellent physical attributes such as ductility and malleability. Workable casting grain has to be nearly as fine as-cast grain size and should be able to harden with age.
When casting grains, a jeweler chooses the best color for a cast after deciding on the Karatage of the gold being cast. However, the color of the gold being cast will solely depend on the relative amounts of silver, gold, copper, zinc and nickel being used. For instance, when casting colored karat gold, whether red, green or yellow; silver, zinc and copper will mostly be used.
White karat gold uses alloys of gold, copper, nickel and zinc. On the other hand, palladium white gold is also used sometimes and contains alloys of gold, palladium and silver. In addition to color requirements, the mechanical characteristics of an alloy are also important. Such mechanical properties include malleability and ductility, and depend on what the alloy is being used for. Therefore, casting grain depends on a number of factors that jewelers must consider when looking for quality outcomes.
Tuesday, May 31, 2011
Gold at three-week high on Greek woes
KMG Gold: Gold legal currency in Utah, with other states considering the move
NEW YORK (MarketWatch) — Gold futures on Monday rose to a three-week high as ongoing concern about Greek sovereign debt heightened the safe-haven appeal of the metal.
Gold for August delivery GCQ11 -0.05% , the most-active contract, rose $2.50, or 0.2%, to $1,539.8 an ounce in electronic trade on the Comex division of the New York Mercantile Exchange.
Silver also moved higher, with the July contract SIN11 +0.38% rising 23 cents, or 0.6%, to $38.09.
In Athens, Greece’s government on Monday readied to unveil billions of euros worth of new spending cuts and tax hikes, to be unveiled in coming days, as public demonstrations against the new measures continued.
Late Sunday, the Financial Times reported European leaders are trying to negotiate a new bailout for Greece that would bring wider outside intervention in the country’s financials.
Last week, gold prices gained 1.8%, with buying supported by concerns about euro-zone debt levels and a weaker dollar, which can encourage investment in dollar-priced commodities such as metals.
U.S. floor trading was closed Monday for the Memorial Day holiday.
The dollar index DXY -0.22% , which measures the greenback against a basket of six other major currencies, stood at 74.954 versus 74.911 late Friday.
And, in a move viewed largely as symbolic, Utah recently passed a first-of-its-kind law intended to encourage the use of gold and silver coins as cash.
The legislation, which legalizes gold and silver coins as currency, also eliminates state capital gains taxes on the sale of gold and silver, although federal capital gains taxes would still apply.
KMG Gold
NEW YORK (MarketWatch) — Gold futures on Monday rose to a three-week high as ongoing concern about Greek sovereign debt heightened the safe-haven appeal of the metal.
Gold for August delivery GCQ11 -0.05% , the most-active contract, rose $2.50, or 0.2%, to $1,539.8 an ounce in electronic trade on the Comex division of the New York Mercantile Exchange.
Silver also moved higher, with the July contract SIN11 +0.38% rising 23 cents, or 0.6%, to $38.09.
In Athens, Greece’s government on Monday readied to unveil billions of euros worth of new spending cuts and tax hikes, to be unveiled in coming days, as public demonstrations against the new measures continued.
Late Sunday, the Financial Times reported European leaders are trying to negotiate a new bailout for Greece that would bring wider outside intervention in the country’s financials.
Last week, gold prices gained 1.8%, with buying supported by concerns about euro-zone debt levels and a weaker dollar, which can encourage investment in dollar-priced commodities such as metals.
U.S. floor trading was closed Monday for the Memorial Day holiday.
The dollar index DXY -0.22% , which measures the greenback against a basket of six other major currencies, stood at 74.954 versus 74.911 late Friday.
And, in a move viewed largely as symbolic, Utah recently passed a first-of-its-kind law intended to encourage the use of gold and silver coins as cash.
The legislation, which legalizes gold and silver coins as currency, also eliminates state capital gains taxes on the sale of gold and silver, although federal capital gains taxes would still apply.
KMG Gold
Friday, May 20, 2011
Bullion Shortage Hits Gold and Silver Coin Market - 20 May 2011
Gold coin premiums shoot up...
WHILE precious metals are currently in correction mode, the long-term concerns with supply won't disappear anytime soon, reckons Jeff Clark, editor of Casey Research's Big Gold newsletter.
In attempt to get a handle on the Bullion market, I spoke to Andy Schectman of Miles Franklin, who has contacts that run deep in the industry. What he sees everyday – especially the shortages in gold and silver coins – might just compel you to count how many ounces you own…
Jeff Clark: Andy, tell us about your industry contacts and how you get the information you're privy to.
Andy Schectman: We source our product from three of the largest six primary US mint distributors. Having 20 years of experience with these sources, as well as the dealers in the secondary market, we're as tied into the industry as anyone.
Jeff: You made some interesting comments to me about supply and premiums. Tell us what you're hearing and seeing in the Bullion market right now.
Andy Schectman: I feel as though I'm the boy who cries wolf or that I've been beating the same drum for too long. But in reality, it has been my feeling since late 2007 that ultimately this market will be defined less by the price going parabolic – which I think ultimately will happen – and more by a lack of supply. You see occasional reports that state it's just a lack of refined silver or lack of silver in investable form. But as far as I'm concerned, there is a major supply deficit issue, and it's getting worse.
Take the US Mint, for example. Right now, as we talk, you can barely get silver Eagles. We're seeing delivery delays of three to four weeks, and premium hikes of a Dollar or more in the last three weeks. Most of the suppliers in the country are reluctant to take large orders on silver Eagles because they don't know (a) when they'll get them, and (b) what the premiums will be when they arrive.
I was talking to the head of Prudential Bache and asked him about silver Eagles. He said, "You know, as soon as the allocations come in, they're sold out. We can't keep them in." This is coming from one of the largest distributors of US Mint products in the country.
And this is all occurring in an environment that has only minimal participation by the masses. Few people in this country have ever even held a Gold Coin or a silver coin. So, if it's this difficult to get Bullion now, what's it going to be like when it becomes evident to the masses they need to buy? This is what keeps me up at night.
Jeff: Some analysts say it's a bottleneck issue, that the mints have enough stock but just need more time or more workers to fabricate the metal into the bars and coins customers want.
Andy Schectman: No, I don't believe that. What business do you know that if they had that much profit potential wouldn't increase production and hire more workers to meet demand? To me, the "inefficient model" argument is an excuse.
Look at what the US Mint alone has done: they haven't made the platinum Eagle since 2008. They make maybe one-tenth as many gold Buffalos as they do gold Eagles. They've made hardly any fractional-ounce gold Eagles. Heck, they can't even keep up with the demand for the products they do offer. Does that sound like a bottleneck to you? Or is it because there is far more demand than there is available supply? It's pretty clear to me it's the latter.
Jeff: What are you seeing in the secondary market; are investors selling Bullion?
Andy Schectman: There is no secondary market. Absolutely none. Nobody is selling back anything, at least not to us. Think about that: if this was a traditional investment and your portfolio went up 100% in the last year, like silver has, you'd think some investors would take some profits and ride the rest out – but nobody's selling anything.
This is why I think the lack of supply is the single biggest issue in this market. And in time, I think it will become much more obvious.
There are only five major mints – US, Canada, South Africa, Austria and Australia. Yes, there is a Chinese Mint and a couple Swiss Mints and some private refiners, but they amount to very little in the overall scheme of things. We're in a situation where the mints are limiting the selection and raising the premiums, and this is occurring at a time when most people own no Bullion. As it becomes more apparent that people want Bullion instead of paper Dollars, I think you'll see premiums go parabolic and supply get even tighter.
Jeff: Are you getting a lot of new buyers to the Bullion market?
Andy Schectman: More than ever. One of the interesting things we're seeing is a lot of younger people dipping a toe in the water, buying little bits of silver here and there. We're also seeing bigger orders, as well as more frequent phone calls from financial advisers asking us if we can help their clients. So yes, the base is broadening.
Jeff: That's very interesting. So are you seeing more demand for gold or Silver Bullion right now?
Andy Schectman: 90% of the new business is in silver. And I think that's indicative of the state of the economy. People are trying to get into precious metals, but they think gold is too high. I think they're Buying Silver because they realize the fundamentals for owning gold also apply to silver. They think the profit potential is better in silver, too. This has actually made the supply for gold better than it is for silver right now, and a lot of that has to do with price.
Jeff: Why are premiums fluctuating so frequently?
Andy Schectman: Premiums are almost impossible to gauge right now. Because the availability of product is getting smaller and smaller and the demand is getting stronger and stronger, premiums are changing literally overnight. And it doesn't take many large investors around the country to force premiums higher.
The net of this is that it's really hard for us to be able to say what the premium for a specific product will be two weeks out.
Jeff: You mentioned increased interest from fund managers. Tell us the kind of comments you're hearing and why they're buying Bullion.
Andy Schectman: I think it's coming from their clients. It's my impression that people are taking it upon themselves to study a little bit more, to be more accountable for their assets, and I think they're telling their financial advisors to Buy Gold. And in some cases it's because they don't want a paper derivative.
It's no secret that financial advisors don't like gold and silver. Once money goes to a Bullion dealer, it's not coming back to a stock portfolio anytime soon, so they discredit it. But now it's my impression they're being asked by their clients to buy it. So it's not necessarily because the financial advisor wants gold as much as it is the client requesting it.
Here's a good example. There's a firm here in Minneapolis that represents the Pillsbury fortune, and they asked me to talk to their partners about precious metals a few months ago. At the end of the conversation they said, "Okay, we're going to place an order for one of our clients." Upon hearing it was for one client, I thought it would be in the range of $50,000 to $100,000. Well, the order was for $5 million.
There are two astonishing things about this. First, that's twice as big as the largest order I've ever had. It was one order, for one client, who's brand new to the market. How many more potential buyers are out there like that?
Second, they made it abundantly clear to me that it was out of pressure from one of their clients that they sought me out. So clients are increasingly demanding Bullion, regardless of what their financial advisers say.
Jeff: Hearing about all this new buying might make some think we're near a top in the market. Could that be the case?
Andy Schectman: No, no. I think Richard Russell says it best: "Bull markets die of exhaustion and overparticipation." Well, we're nowhere near that point when so few people in this country own gold and silver. Heck, I'm a Bullion dealer, and most of my peers don't own any gold and silver! Yes, you're seeing more commercials, but there are just as many commercials to Buy Gold as there are to sell it. I think that's an indication this market is not exhausted.
Remember that in the year 2000 everyone and his brother had some NASDAQ shares. That's an example of an exhausted or overparticipated market. We're nowhere near that.
Jeff: Where are the best premiums for silver?
Andy Schectman: The very best buy in silver right now is junk silver. And by the way, I think the term "junk" is unfair. It isn't junk anymore. It used to be junk in the ‘90s when silver was 3 or 4 bucks an ounce and it was sold basically at melt value and carried no premium. So I'd call it "90% dimes and quarters." Anyway, junk silver has the lowest premium right now and, in my opinion, offers the best upside potential.
Next would be 10- and 100-ounce Silver Bars. And then one-ounce silver coins – but the Eagles are very expensive at the moment, if you can get them. The Austrian Philharmonic has the best value in a one-ounce silver coin right now, and they're available. But again, premiums for all silver coins are escalating.
Jeff: What about gold?
Andy Schectman: Gold is not as bad. In fact, I would say that gold availability is decent right now for one-ounce coins and bars. There isn't much available in fractionals. And Buffalos are still kind of hard to get. Other than that, the one-ounce coins with decent availability are Canadian Maple Leafs, Australian Kangaroos, and Krugerrands. And they all have decent premiums.
Jeff: So the take-away message is what?
Andy Schectman: First, I think you said it best with your recommendation to "accumulate." Not only will it smooth out the volatility in price and premiums you pay, it will also give you a bird in the hand. If I'm right about this market, and I really believe I am, it will be defined by lack of availability of refined product. To combat that, just accumulate month in and month out, and be thankful when you're able to get what you want.
Second, it's about the number of ounces you own. You want to get as many ounces as you can without being penny wise and pound foolish. Stick with the most recognized products – don't buy 1,000-ounce bars, for example, because they're illiquid. You want to maximize your liquidity, and you do that by buying the most common forms of Bullion – one-ounce coins, bars, and rounds; 10- and 100-ounce products; and junk silver.
Last, keep in mind that premium and commission are two different animals. Commission is what the dealers make on top of the premium. Premium is what the industry bears. So if the US Mint is selling silver Eagles for $3 over spot to the distributors, that's before they're marked up to the public. So even though the "premium" is high, you're actually going to get most of that back when you sell.
So, Buy Gold and silver while it's available, even if you don't buy it from me, because if I'm right, getting it at all could soon be your biggest challenge.
Jeff: Thanks for your insights, Andy.
Ready to buy gold or Silver Bullion, but worried about high coin premiums? Try KMG Gold...
Tuesday, May 17, 2011
Commodities running on empty?
by Goldmoney
Published : May 17th, 2011
A growing number of market participants think that the commodities bull market is running out of steam. These estimates are based partially on the recent developments in futures and options markets, where many hedge funds have recently been liquidating their long positions. But Chuck Jeannes, CEO of the world’s fifth-largest gold producer, Goldcorp, argued at the weekend that the upward trend in the precious metals sector still has a long way to go.
Data from the Commodity Futures Trading Commission (CFTC) show that major investors trimmed their net-long commodities positions in the week ending May 10, with hedge funds and speculators among the largest sellers. According to Reuters, professional money management funds dumped about 222,000 long contracts in 22 US Futures markets within only five trading days. Net long positions declined by 13% compared with the previous week. Many investors were caught on the hop by sudden and unexpected margin hikes on futures contracts, something that hit the silver sector especially hard.
The number of outstanding Comex long contracts in the gold sector has declined by almost 20,000 in comparison with the previous reporting period. This corresponds to a setback of 10%, or a nominal decline amounting to $3 billion. The situation is even worse in the silver sector, where investors cut their net-long positions by about 25%, which led to a nominal decline of $1.1billion. The total number of positions held by global funds decreased to $116.8 billion. However, the total number of outstanding long contracts is still at very high levels, and precious metals did manage to stage a partial recovery last week.
Famous investor Jim Rogers for one remains unconcerned by the correction, and stated in an interview last week that commodities will continue to appreciate over the coming years. In his view volatility will remain high, but the fundamentals underpinning this bull market remain intact. Continuing dovish policies by the world’s central banks – and in particular, the US Federal Reserve – are a particularly important fundamental factor. As the renowned fund manager Eric Sprott pointed out at a conference in Las Vegas last week, the markets have once again chosen gold as the world’s reserve currency.
Goldcorp’s Chuck Jeannes argues that the supply and demand dynamic remains bullish as far as precious metals are concerned. He notes that while mining production in the gold sector has steadily declined over the last ten years, demand for the metal has dramatically risen. In contrast to the recent announcement from Goldman Sachs, which called on gold producers to start hedging against potential price set backs, Jeannes said that Goldcorp was not planning on following Goldman´s advice.
Published : May 17th, 2011
A growing number of market participants think that the commodities bull market is running out of steam. These estimates are based partially on the recent developments in futures and options markets, where many hedge funds have recently been liquidating their long positions. But Chuck Jeannes, CEO of the world’s fifth-largest gold producer, Goldcorp, argued at the weekend that the upward trend in the precious metals sector still has a long way to go.
Data from the Commodity Futures Trading Commission (CFTC) show that major investors trimmed their net-long commodities positions in the week ending May 10, with hedge funds and speculators among the largest sellers. According to Reuters, professional money management funds dumped about 222,000 long contracts in 22 US Futures markets within only five trading days. Net long positions declined by 13% compared with the previous week. Many investors were caught on the hop by sudden and unexpected margin hikes on futures contracts, something that hit the silver sector especially hard.
The number of outstanding Comex long contracts in the gold sector has declined by almost 20,000 in comparison with the previous reporting period. This corresponds to a setback of 10%, or a nominal decline amounting to $3 billion. The situation is even worse in the silver sector, where investors cut their net-long positions by about 25%, which led to a nominal decline of $1.1billion. The total number of positions held by global funds decreased to $116.8 billion. However, the total number of outstanding long contracts is still at very high levels, and precious metals did manage to stage a partial recovery last week.
Famous investor Jim Rogers for one remains unconcerned by the correction, and stated in an interview last week that commodities will continue to appreciate over the coming years. In his view volatility will remain high, but the fundamentals underpinning this bull market remain intact. Continuing dovish policies by the world’s central banks – and in particular, the US Federal Reserve – are a particularly important fundamental factor. As the renowned fund manager Eric Sprott pointed out at a conference in Las Vegas last week, the markets have once again chosen gold as the world’s reserve currency.
Goldcorp’s Chuck Jeannes argues that the supply and demand dynamic remains bullish as far as precious metals are concerned. He notes that while mining production in the gold sector has steadily declined over the last ten years, demand for the metal has dramatically risen. In contrast to the recent announcement from Goldman Sachs, which called on gold producers to start hedging against potential price set backs, Jeannes said that Goldcorp was not planning on following Goldman´s advice.
Wednesday, May 11, 2011
Gold, Silver Futures Slump in New York as Dollar Strengthens Against Euro
Bloomberg: May 11, 2011. Gold fell in New York, halting a three-session rally, as a stronger dollar eroded the appeal of the precious metal as an alternative asset. Silver also declined.
The dollar rose against the euro on speculation that European leaders may not grant Greece additional aid, forcing the nation to restructure its debt. Gold touched a record $1,577.40 an ounce on May 2 before dropping 4.2 percent last week as the greenback climbed.
“The correction in the dollar will have more room on the upside, and that’s going to pressure precious metals,” said Matt Zeman, a strategist at Kingsview Financial in Chicago. “Too many people were short the dollar and long gold. There will be additional unwinding of that trade.”
Gold futures for June delivery fell $15.50, or 1 percent, to settle at $1,501.40 at 1:49 p.m. on the Comex in New York. The metal has gained 23 percent in the past year.
The euro has dropped 2.5 percent in a measure of 10 developed-nation currencies since May 4, the day before European Central Bank President Jean-Claude Trichet signaled the bank may wait until after June to raise borrowing costs again, according to Bloomberg Correlation-Weighted Currency Indexes. The bank raised the main interest rate 25 basis points to 1.25 percent in April.
“The falling euro is going to drag gold down with it,” said Zeman of Kingsview.
Gold Trust Holdings
Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged yesterday at 1,201.95 metric tons, after declining 2 percent last week. The last gain in holdings was April 15.
“We would’ve expected that they’d have risen a bit in the last day or two, given the sharp bounce” in gold prices, said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter. “That suggests to us that the worst of the liquidation is not yet over.”
Gartman has recommended holding gold in other currencies to hedge against the relative strength of the dollar.
Silver, which has wider industrial applications than gold, also fell on speculation that China will raise interest rates to stem inflation. The Asian nation’s consumer prices rose 5.3 percent in April, the statistics bureau said today in Beijing. The country’s target inflation rate is 4 percent for this year.
“There’s chatter about China raising rates to curb growth, and that’s made copper and silver vulnerable,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago.
Silver futures for July delivery fell $2.971, or 7.7 percent, to $35.515 an ounce on the Comex. The metal gained 9.1 percent in the previous two days after shedding 27 percent last week.
Palladium futures for June delivery declined $17.25, or 2.4 percent, to $715.40 an ounce on the New York Mercantile Exchange. Platinum futures for July delivery dropped $23.10, or 1.3 percent, to $1,777.80 an ounce on the Nymex.
The dollar rose against the euro on speculation that European leaders may not grant Greece additional aid, forcing the nation to restructure its debt. Gold touched a record $1,577.40 an ounce on May 2 before dropping 4.2 percent last week as the greenback climbed.
“The correction in the dollar will have more room on the upside, and that’s going to pressure precious metals,” said Matt Zeman, a strategist at Kingsview Financial in Chicago. “Too many people were short the dollar and long gold. There will be additional unwinding of that trade.”
Gold futures for June delivery fell $15.50, or 1 percent, to settle at $1,501.40 at 1:49 p.m. on the Comex in New York. The metal has gained 23 percent in the past year.
The euro has dropped 2.5 percent in a measure of 10 developed-nation currencies since May 4, the day before European Central Bank President Jean-Claude Trichet signaled the bank may wait until after June to raise borrowing costs again, according to Bloomberg Correlation-Weighted Currency Indexes. The bank raised the main interest rate 25 basis points to 1.25 percent in April.
“The falling euro is going to drag gold down with it,” said Zeman of Kingsview.
Gold Trust Holdings
Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged yesterday at 1,201.95 metric tons, after declining 2 percent last week. The last gain in holdings was April 15.
“We would’ve expected that they’d have risen a bit in the last day or two, given the sharp bounce” in gold prices, said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter. “That suggests to us that the worst of the liquidation is not yet over.”
Gartman has recommended holding gold in other currencies to hedge against the relative strength of the dollar.
Silver, which has wider industrial applications than gold, also fell on speculation that China will raise interest rates to stem inflation. The Asian nation’s consumer prices rose 5.3 percent in April, the statistics bureau said today in Beijing. The country’s target inflation rate is 4 percent for this year.
“There’s chatter about China raising rates to curb growth, and that’s made copper and silver vulnerable,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago.
Silver futures for July delivery fell $2.971, or 7.7 percent, to $35.515 an ounce on the Comex. The metal gained 9.1 percent in the previous two days after shedding 27 percent last week.
Palladium futures for June delivery declined $17.25, or 2.4 percent, to $715.40 an ounce on the New York Mercantile Exchange. Platinum futures for July delivery dropped $23.10, or 1.3 percent, to $1,777.80 an ounce on the Nymex.
Wednesday, May 11, 2011
Silver down nearly 8% as dollar strengthens
Concerns about Greece’s debt load drag euro
SAN FRANCISCO (MarketWatch) — Silver futures on Wednesday led yet another commodities selloff , down 8% as traders judged a default for Greece unavoidable, a sentiment that weighed down the euro and sent the dollar higher.
Gold for June delivery GCM11 -1.08% declined $15.50, or 1%, to settle at $1,501.40 an ounce on the Comex division of the New York Mercantile Exchange.
July silver SIN11 -8.84% retreated $2.97, or 7.7%, to settle at $35.52 an ounce.
Greece’s debt restructuring seems “inevitable,” said Bill O’Neill, a principal at Logic Advisors in New Jersey. “That’s a real threat to the banking system.”
In a restructuring, investors holding Greek debt will likely be offered less than face value for the bonds they hold. The stark possibility was enough to drag down the euro and prop the dollar up against most major currencies.
A stronger dollar is negative for commodities as it makes them more expensive to holders of other currencies.
For gold, and to a lesser extent for silver, dollar movements add another layer of complexity as dollar weakness and its twin fear of currency devaluation often spark precious metals buying.
Gold held up better than silver because it got some flight-to-quality support, said Adam Klopfenstein, a senior market strategist at Lind Waldock in Chicago.
“At the first sign of weakness, people dump” silver, he added.
In the first two days of this week, metals and other commodities had recouped some of last week’s steep losses. It all came undone as the dollar rose steadily throughout the day.
The dollar index DXY +0.96% , which measures the greenback’s performance against a basket of six rival currencies, lately traded at 75.308, compared with 74.700 in North American trade late Tuesday.
It had struggled for direction in early trading, as the British pound soared on word of a potential future rate hike in England. Read more about currencies.
Earlier, investors digested inflation data from China. The country’s consumer-price index climbed 5.3% in April from a year earlier, while analysts expected a 5.2% rise. Read more about latest data from China.
Inflation concerns tend to spark investor demand for precious metals, as gold is often bought as protection from price increases and currency devaluation.
However, the boost from China’s data was short-lived.
In other metals trading, copper for July delivery HGN11 -0.22% dropped 13 cents, or 3.2%, to $3.91 a pound.
Platinum and palladium were also not immune, with July platinum PLN11 -1.18% down $23.10, or 1.3%, to $1,777.80 an ounce. June palladium PAM11 -2.13% declined $17.25, or 2.4%, to $715.40 an ounce.
The commodities downdraft also caught up with oil, which recently retreated 5.7%. Oil also added to its losses after a government inventories report showed a higher-than-expected increase for oil supplies.
SAN FRANCISCO (MarketWatch) — Silver futures on Wednesday led yet another commodities selloff , down 8% as traders judged a default for Greece unavoidable, a sentiment that weighed down the euro and sent the dollar higher.
Gold for June delivery GCM11 -1.08% declined $15.50, or 1%, to settle at $1,501.40 an ounce on the Comex division of the New York Mercantile Exchange.
July silver SIN11 -8.84% retreated $2.97, or 7.7%, to settle at $35.52 an ounce.
Greece’s debt restructuring seems “inevitable,” said Bill O’Neill, a principal at Logic Advisors in New Jersey. “That’s a real threat to the banking system.”
In a restructuring, investors holding Greek debt will likely be offered less than face value for the bonds they hold. The stark possibility was enough to drag down the euro and prop the dollar up against most major currencies.
A stronger dollar is negative for commodities as it makes them more expensive to holders of other currencies.
For gold, and to a lesser extent for silver, dollar movements add another layer of complexity as dollar weakness and its twin fear of currency devaluation often spark precious metals buying.
Gold held up better than silver because it got some flight-to-quality support, said Adam Klopfenstein, a senior market strategist at Lind Waldock in Chicago.
“At the first sign of weakness, people dump” silver, he added.
In the first two days of this week, metals and other commodities had recouped some of last week’s steep losses. It all came undone as the dollar rose steadily throughout the day.
The dollar index DXY +0.96% , which measures the greenback’s performance against a basket of six rival currencies, lately traded at 75.308, compared with 74.700 in North American trade late Tuesday.
It had struggled for direction in early trading, as the British pound soared on word of a potential future rate hike in England. Read more about currencies.
Earlier, investors digested inflation data from China. The country’s consumer-price index climbed 5.3% in April from a year earlier, while analysts expected a 5.2% rise. Read more about latest data from China.
Inflation concerns tend to spark investor demand for precious metals, as gold is often bought as protection from price increases and currency devaluation.
However, the boost from China’s data was short-lived.
In other metals trading, copper for July delivery HGN11 -0.22% dropped 13 cents, or 3.2%, to $3.91 a pound.
Platinum and palladium were also not immune, with July platinum PLN11 -1.18% down $23.10, or 1.3%, to $1,777.80 an ounce. June palladium PAM11 -2.13% declined $17.25, or 2.4%, to $715.40 an ounce.
The commodities downdraft also caught up with oil, which recently retreated 5.7%. Oil also added to its losses after a government inventories report showed a higher-than-expected increase for oil supplies.
Tuesday, May 10, 2011
Digging for value in gold, silver, commodities
SAN FRANCISCO (MarketWatch) — Gold and silver have lost some luster with investors; the price of oil and other natural resources is lower, and speculation in many agriculture sectors has dried up. So why are three veteran money managers who can put money anywhere still holding on to commodities?
Because they believe that emerging markets will live up to their promise. They’re convinced that the growth of the world’s nascent economies will create a bold new consumer class, whose desire for more and better will feed demand for raw materials, industrial and precious metals, and — perhaps most critically — food and water.
“The world is growing and using more commodities,” said Marshall Berol, co-manager with Malcolm Gissen of Encompass Fund ENCPX +0.62% , which has been heavily invested in various resource stocks for several years.
“China, the Far East, the Middle East, India, Latin America, South America, Brazil, Argentina, Chile — these economies are growing,” Berol noted. “There are setbacks from time to time, but they’re growing, and as they grow, more people are employed, at better jobs; they have money and they want what we’re accustomed to in this country — houses and cars and cell phones and refrigerators.”
Berol is also a confirmed gold bug. “It’s going higher,” he predicted for gold. “It’s not at a top yet.”
Values and trades
Berol addressed his comments to MarketWatch’s Investing Insights live event held in San Francisco last month. The theme of the event was “Global Investing in a Post-Crisis World.” In addition to Berol, attendees heard views about precious metals and commodities from Michael Cuggino, manager of Permanent Portfolio PRPFX +0.58% , a mutual fund focused on capital preservation, and Cody Willard, principal of CL Willard Capital, who writes the Revolution Investing newsletter and an online blog called The Cody Word for MarketWatch.
Willard, the panel’s lone trader, differed with Berol and Cuggino on the bullish prospects for gold, silver and precious metals, but he shared their optimism about commodities.
“There’s a good trade — a good opportunity — where you can short gold and silver, and buy against that a basket of oil, cotton, corn, soybeans, anything you actually have to consume,” Willard said. “Because it’s the poor people who are driving commodities, and I don’t think they’re going to buy gold when they’ve having to figure out how to feed the kids.”
The event was held several weeks before both precious metals and commodities suffered a sharp blow. The wave of selling in early May could have been the result of speculators exiting with their profits after a mammoth rally. Or, more ominously, the downturn could reflect traders’ fundamental concerns that global economic health is weakening, which would curb demand for materials brought out of the ground, scarce or not.
Weathering storms
Yet big swings are to be expected with these investments. The panelists were well aware in April that prices for precious metals and commodities might have come too far, too fast. Indeed, over the following weeks investors in these alternative assets grappled with indications that U.S. economic growth is weaker than expected, and that soaring food and gasoline prices would quash demand — fears that ultimately did torpedo some of the momentum, especially for silver.
Berol and Cuggino acknowledged the potential for a correction in these markets at the April meeting, but noted that day-to-day or even quarter-to-quarter gyrations don’t concern them much. Instead, a long-term focus steers their portfolios through a sector’s booms and busts.
“We’re not looking to get in and out,” Berol said. “We’re looking for what is going to be worth more down the road.”
“I don’t get wrapped up in quarters,” Cuggino added. “You don’t have to worry about what the stock market is going to do every day, what’s the Fed’s going to do, what’s going to happen in the world.”
Cuggino’s mutual fund is unusual in that its constructed with an eye toward downside protection. Most of its assets are spread across gold, silver, natural resources stocks, Swiss francs and U.S. Treasurys.
“The way we go about the basic flaw in human nature of not being able to predict the future is by putting together a broad array of different asset classes in one portfolio that work at cross purposes,” Cuggino said.
The fund’s holdings individually might be highly risky, but together they work as a team to cover the bases and reduce overall portfolio volatility.
Gold, in particular, is Cuggino’s insurance policy against what he views as the ill-effects of the Federal Reserve’s policy of low interest rates and easy money — a stance, he said, that is stoking inflation, debasing the value of the U.S. dollar and putting a high floor under gold.
GLD 147.96, +0.06, +0.04%
SLV 37.69, +0.17, +0.45%
“Where [the price of gold and commodities] goes from here, I think, given that scenario where interest rates continue to be very low to negative after inflation, potentially that’s traditionally a very bullish sign,” Cuggino said.
“You have demand picking up not only with emerging markets and more disposable income, but you have demand picking up on the investment side — whether that’s mutual funds, hedge funds, institutional investors, sovereign wealth funds or governments potentially,” he said.
“Last time I checked,” Cuggino added, “there wasn’t a huge increase in supply coming out of the ground. And with less confidence in paper money around the world, gold will take on a lot more importance as a store of value.”
Because they believe that emerging markets will live up to their promise. They’re convinced that the growth of the world’s nascent economies will create a bold new consumer class, whose desire for more and better will feed demand for raw materials, industrial and precious metals, and — perhaps most critically — food and water.
“The world is growing and using more commodities,” said Marshall Berol, co-manager with Malcolm Gissen of Encompass Fund ENCPX +0.62% , which has been heavily invested in various resource stocks for several years.
“China, the Far East, the Middle East, India, Latin America, South America, Brazil, Argentina, Chile — these economies are growing,” Berol noted. “There are setbacks from time to time, but they’re growing, and as they grow, more people are employed, at better jobs; they have money and they want what we’re accustomed to in this country — houses and cars and cell phones and refrigerators.”
Berol is also a confirmed gold bug. “It’s going higher,” he predicted for gold. “It’s not at a top yet.”
Values and trades
Berol addressed his comments to MarketWatch’s Investing Insights live event held in San Francisco last month. The theme of the event was “Global Investing in a Post-Crisis World.” In addition to Berol, attendees heard views about precious metals and commodities from Michael Cuggino, manager of Permanent Portfolio PRPFX +0.58% , a mutual fund focused on capital preservation, and Cody Willard, principal of CL Willard Capital, who writes the Revolution Investing newsletter and an online blog called The Cody Word for MarketWatch.
Willard, the panel’s lone trader, differed with Berol and Cuggino on the bullish prospects for gold, silver and precious metals, but he shared their optimism about commodities.
“There’s a good trade — a good opportunity — where you can short gold and silver, and buy against that a basket of oil, cotton, corn, soybeans, anything you actually have to consume,” Willard said. “Because it’s the poor people who are driving commodities, and I don’t think they’re going to buy gold when they’ve having to figure out how to feed the kids.”
The event was held several weeks before both precious metals and commodities suffered a sharp blow. The wave of selling in early May could have been the result of speculators exiting with their profits after a mammoth rally. Or, more ominously, the downturn could reflect traders’ fundamental concerns that global economic health is weakening, which would curb demand for materials brought out of the ground, scarce or not.
Weathering storms
Yet big swings are to be expected with these investments. The panelists were well aware in April that prices for precious metals and commodities might have come too far, too fast. Indeed, over the following weeks investors in these alternative assets grappled with indications that U.S. economic growth is weaker than expected, and that soaring food and gasoline prices would quash demand — fears that ultimately did torpedo some of the momentum, especially for silver.
Berol and Cuggino acknowledged the potential for a correction in these markets at the April meeting, but noted that day-to-day or even quarter-to-quarter gyrations don’t concern them much. Instead, a long-term focus steers their portfolios through a sector’s booms and busts.
“We’re not looking to get in and out,” Berol said. “We’re looking for what is going to be worth more down the road.”
“I don’t get wrapped up in quarters,” Cuggino added. “You don’t have to worry about what the stock market is going to do every day, what’s the Fed’s going to do, what’s going to happen in the world.”
Cuggino’s mutual fund is unusual in that its constructed with an eye toward downside protection. Most of its assets are spread across gold, silver, natural resources stocks, Swiss francs and U.S. Treasurys.
“The way we go about the basic flaw in human nature of not being able to predict the future is by putting together a broad array of different asset classes in one portfolio that work at cross purposes,” Cuggino said.
The fund’s holdings individually might be highly risky, but together they work as a team to cover the bases and reduce overall portfolio volatility.
Gold, in particular, is Cuggino’s insurance policy against what he views as the ill-effects of the Federal Reserve’s policy of low interest rates and easy money — a stance, he said, that is stoking inflation, debasing the value of the U.S. dollar and putting a high floor under gold.
GLD 147.96, +0.06, +0.04%
SLV 37.69, +0.17, +0.45%
“Where [the price of gold and commodities] goes from here, I think, given that scenario where interest rates continue to be very low to negative after inflation, potentially that’s traditionally a very bullish sign,” Cuggino said.
“You have demand picking up not only with emerging markets and more disposable income, but you have demand picking up on the investment side — whether that’s mutual funds, hedge funds, institutional investors, sovereign wealth funds or governments potentially,” he said.
“Last time I checked,” Cuggino added, “there wasn’t a huge increase in supply coming out of the ground. And with less confidence in paper money around the world, gold will take on a lot more importance as a store of value.”
Monday, May 09, 2011
Canada market up on commodities rebound
Canadian Markets. May 9, 2011, 5:33 p.m. EDT
SAN FRANCISCO (MarketWatch) — The Canadian market rose with all sectors closing up Monday, boosted by a recovery in commodity prices following last week’s selloff.
The S&P/TSX Composite Index CA:$ISPTX +0.82% gained 111 points, or 0.8%, to close at 13,677.
The lightly weighted S&P/TSX Capped Health Care led the gains, rising 2.1% with shares of Valeant Pharmaceuticals International Inc. CA:VRX +2.82% and SXC Health Solutions Corp. CA:SXC +2.38% leading the charge.
The driver behind the rally, however, was the more heavily weighted indexes of commodities- and energy-based stocks. The S&P/TSX Capped Materials Index CA:TTMT +1.54% rose 1.5%, the S&P/TSX Capped Diversified Metals and Mining Index CA:TTMN +1.44% increased by 1.4% and the S&P/TSX Capped Energy Index /quotes/comstock/11t!i:itten CA:TTEN +0.93% closed up 0.9%.
Gold for June delivery GCM11 +1.43% advanced 0.8% to $1,503.20 an ounce, and silver for July delivery SIN11 +6.92% rallied 5.2% to $37.12 an ounce on the New York Mercantile Exchange. Copper for July delivery HGN11 +2.04% rose 4 cents to close at $4.02 a pound.
Shares of First Quantum Minerals Ltd. CA:FM +3.06% added 3.1%, and shares of Barrick Gold Corp. CA:ABX +1.19% , Potash Corp. of Saskatchewan CA:POT +1.51% , Goldcorp Inc. CA:G +2.15% and Ivanhoe Mines Ltd. CA:IVN +5.74% all showed gains.
Crude oil for June delivery CLM11 +5.59% settled up $5.37, or 5.5%, to $102.55 a barrel on the Nymex.
The S&P/TSX Capped Consumer Discretionary Index CA:TTCD +0.66% rose 0.7%, with shares of Forzani Group CA:FGL +49.06% jumping 49% after the company got a C$26.50-a-share buyout offer from Canadian Tire Corp. CA:CTC.A +2.73% .
Shares of Gildan Activewear Inc. CA:GIL +1.97% rose 2%, and Tim Hortons Inc. CA:THI +1.11% added 1.1%.
The S&P/TSX Consumer Staples Index also tacked on 0.7%, with shares of Viterra Inc. CA:VT +3.79% rising 3.8% and Jean Coutu Group Inc. CA:PJC.A +1.29% gaining 1.3%
In currency trading, the Canadian dollar rose against its U.S. counterpart USDCAD -0.2589% , with the greenback buying 96.17 Canadian cents, compared with 96.36 cents late Friday.
SAN FRANCISCO (MarketWatch) — The Canadian market rose with all sectors closing up Monday, boosted by a recovery in commodity prices following last week’s selloff.
The S&P/TSX Composite Index CA:$ISPTX +0.82% gained 111 points, or 0.8%, to close at 13,677.
The lightly weighted S&P/TSX Capped Health Care led the gains, rising 2.1% with shares of Valeant Pharmaceuticals International Inc. CA:VRX +2.82% and SXC Health Solutions Corp. CA:SXC +2.38% leading the charge.
The driver behind the rally, however, was the more heavily weighted indexes of commodities- and energy-based stocks. The S&P/TSX Capped Materials Index CA:TTMT +1.54% rose 1.5%, the S&P/TSX Capped Diversified Metals and Mining Index CA:TTMN +1.44% increased by 1.4% and the S&P/TSX Capped Energy Index /quotes/comstock/11t!i:itten CA:TTEN +0.93% closed up 0.9%.
Gold for June delivery GCM11 +1.43% advanced 0.8% to $1,503.20 an ounce, and silver for July delivery SIN11 +6.92% rallied 5.2% to $37.12 an ounce on the New York Mercantile Exchange. Copper for July delivery HGN11 +2.04% rose 4 cents to close at $4.02 a pound.
Shares of First Quantum Minerals Ltd. CA:FM +3.06% added 3.1%, and shares of Barrick Gold Corp. CA:ABX +1.19% , Potash Corp. of Saskatchewan CA:POT +1.51% , Goldcorp Inc. CA:G +2.15% and Ivanhoe Mines Ltd. CA:IVN +5.74% all showed gains.
Crude oil for June delivery CLM11 +5.59% settled up $5.37, or 5.5%, to $102.55 a barrel on the Nymex.
The S&P/TSX Capped Consumer Discretionary Index CA:TTCD +0.66% rose 0.7%, with shares of Forzani Group CA:FGL +49.06% jumping 49% after the company got a C$26.50-a-share buyout offer from Canadian Tire Corp. CA:CTC.A +2.73% .
Shares of Gildan Activewear Inc. CA:GIL +1.97% rose 2%, and Tim Hortons Inc. CA:THI +1.11% added 1.1%.
The S&P/TSX Consumer Staples Index also tacked on 0.7%, with shares of Viterra Inc. CA:VT +3.79% rising 3.8% and Jean Coutu Group Inc. CA:PJC.A +1.29% gaining 1.3%
In currency trading, the Canadian dollar rose against its U.S. counterpart USDCAD -0.2589% , with the greenback buying 96.17 Canadian cents, compared with 96.36 cents late Friday.
Monday, April 18, 2011
Can You Pass The 2011 Gold Quiz?
"Regardless of your score, I'm sure you'll agree with the ramifications each point makes for the gold market."
? CPM Group recently released its 2011 Gold Yearbook, an invaluable resource for us gold analysts. As mostly a reference book, even a gold enthusiast might find it dry reading—but I loved it and, as I studied it on a plane, I kept finding data that made me perk up.
To have a little fun with it, I thought I'd summarize what I read in the form of a quiz. See how many you can get correct. Regardless of your score, I'm sure you'll agree with the ramifications each point makes for the gold market.
I'll start off easy. . .
1. The main driver behind rising gold prices over the past decade:
Increased jewelry demand in India;
greater industrial uses of the metal; and
investment demand.
Worldwide investment demand for gold totaled 44 million ounces (Moz.) in 2010. Because of the growing demand by investors, prices have been forced upward.
Five exchanges began trading gold contracts for the first time in 2010 and three more introduced mini contracts, collectively the largest number launched since the early '80s. There are now 24 gold vending machines in seven countries, with three more countries adding machines this year. Households in developing countries are now moving away from gold jewelry and buying coins and bars for their savings. I could go on, but suffice it to say that investment demand will continue to be very strong.
2. True or false: Recovery from gold scrap was lower in 2010 than 2009? Scrap rose three consecutive years in a row—until last year. Gold supply from scrap fell 2.1%, to 42.2 Moz.
This is significant because gold prices were higher, which would normally increase the amount of scrap coming to market. One of the primary reasons scrap dropped is because investors are holding on to their metal, reportedly because they believe prices are headed higher. Isn't that one reason you're holding on to your bullion?
3. There are many reasons investors have been buying gold over the past 10 years, but what's the #1 reason?
Safe-haven asset;
gold coins and bars have become more intricate, widespread and beautiful; and
supply and demand imbalance.
Global fears increasingly led investors to purchase large volumes of gold in 2010 for safe-haven purposes, despite record price levels. High levels of investment buying are expected to continue in 2011 because virtually none of the economic, political and monetary concerns have been resolved.
If you got all three answers correct, you're an investor who understands the basic reasons for owning gold and that those reasons are still in play.
Now let's step it up a little. . .
4. Gold represented what percent of global financial assets at the end of 2010?
3.1%;
0.7%;
1.6%; and
2.4%.
The estimated value of investor gold holdings stood at $1.5 trillion at the end of last year, about 0.7% of global financial assets. While up nine years in a row and triple what it represented in 2001, gold is still a miniscule portion of the world's private wealth. It represented 2.8% of global assets in 1980, four times what it does today.
5. How many central banks increased their gold holdings in 2010?
9;
12;
15; and
19.
Russia, Thailand, Belarus, Bangladesh, Venezuela, Tajikistan, Ukraine, Jordan, Philippines, South Africa, Sri Lanka, Germany, Kazakhstan, Mexico, Greece, Pakistan, Belgium, Czech Republic and Malta = 19. Central banks, as a group, are expected to continue to be net buyers of gold for the foreseeable future. It's interesting that most purchases were from developing countries, unsurprising when you consider they've accumulated over $5 trillion in foreign exchange reserves just since 2002.
6. Compared to 2009, U.S. Mint gold coin sales in 2010 were:
Down 12%;
Up 8%
Up 5%; and
Up 3%.
The U.S. Mint sold 1.43 Moz. last year, down 12% from the 1.62 Moz. sold in 2009. You might think this is negative until you realize that global coin sales rose 21% last year, reaching 6.3 Moz. Makes you wonder what other countries know that many North Americans don't. Supply problems continue to plague the U.S. Mint, evidenced by the fact that Buffalo sales were suspended for half the year. What happens when the greater population begins to clamor to buy gold? Bottleneck—meet desperation:
7. CPM estimates that the fiscal and monetary imbalances, especially in developed countries, could take how long to resolve?
1 year;
Decades;
5 years; or
2 years?
Rigid social contracts are so deeply ingrained, especially in the developed world, that it will take decades to resolve the monetary imbalances. This sobering fact means gold will likely be in a bull market for many years to come. There are very few options to deal with the overwhelming debt burden in most of these countries: Raise taxes, cut spending, increase growth or print money. Guess which one is most likely? Inflation from currency dilution is baked in the cake and will spur further gold demand and light a fire under the price.
If you got these four questions correct, I think it means you're an astute investor who doesn't worry about day-to-day price fluctuations and instead focuses on owning enough ounces to protect your assets from the huge and intractable fiscal problems that still have to be faced.
Now, here are some questions for those of you who love gold stocks:
8. What was the industry-average cash cost to produce 1 ounce of gold last year?
$509;
$498;
$544; or
$474?
Cash costs have tripled since 2002 and rang in at $544 last year. They will certainly be higher again this year. In spite of higher costs for the producers, margins actually rose due to higher gold prices. Margins in 2010 averaged $680 and were only $114 as recently as 2002.
We've got some of the most profitable companies in BIG GOLD, along with a number of producers that have big growth coming online over the next one and two years. Buy these stocks before that growth happens; if you shell out the bargain basement price of $79 now, I think your portfolio will be very happy when it comes time to renew.
9. The average grade of gold mined on a worldwide basis last year was how much?
5.11 grams/ton;
3.54 g/t;
2.96 g/t; or
1.83 g/t?
The second lowest level on record—1.83 g/t—occurred in 2010. While not entirely negative because higher gold prices allow producers to go after lower-grade deposits, this leads to higher costs for both discovery and production. It is, undoubtedly, true, though, that one of the main reasons grades are lower is because the easy fruit has been picked in many regions around the world. This is bullish for those explorers that can find and develop higher-grade deposits and is where much of our speculative dollars should be focused. Our mining exploration advisory International Speculator tells you which companies are the best of the best, outperforming the S&P by 8.4 times last year. So, if you're not reading the International Speculator yet, you're missing out on some spectacular profits.
10. The most popular region for exploration spending is where?
Latin America;
Canada;
Nevada; or
China?
Roughly 25% of all global exploration money is devoted to Latin America. The biggest beneficiaries are Peru, Mexico, Brazil, Chile and Argentina. If you're investing in gold and silver explorers, make sure you have exposure to this region, as odds are high there will be a number of major discoveries made here.
Friday, April 08, 2011
Will Silver Become Money Again like Gold?
"In the private and institutional domain, silver already is a wealth protector."
We have always referred to silver as the 'long shadow' of gold because its price moves with gold's. When the gold price rises, silver rises more. When the gold price falls, silver falls further but they move in sync. Why?
Silver saw a huge drop in demand as the photographic industry moved to digital. But then, new uses for silver in the medical field and in electronics developed and look as though they will eventually dwarf the peak photographic demand. But by moving as though riveted to the gold price, the silver price is not reflecting the movements one associates with a simple industrial commodity.
The Move Away from Money
"Official" silver selling by Russia, India and China appears to have (or is about to) come to a halt after many decades of selling the metal stockpiled as coinage that had ceased to be used as such. In this it has a common denominator with gold, in that central bankers are no longer selling these assets. But silver is not in demand by central banks, whereas their demand for gold is heavy and persistent. Will silver be treated as an important reserve asset again?
Since the full use of precious metals as coinage fell away in the first half of the last century, the disparity between the face value of money and its silver value parted ways dramatically. Governments and their central banks wanted an insignificant, inherent value for the coins, so that the face value, determined through government actions on the monetary front, would be the only value they had. Practical considerations require that there is a coinage element to money. Governments have used this 'fiat' system of money because of the advantage of being able to control the monetary system alone. It was accompanied by the breaking away from the real international values that precious metals will always have. Nowhere has the split between 'measure of value' and 'means of exchange' been more significant than in coinage. The central banks also gained full control the money supply, without fear of a judgment via a soaring gold price.
When gold and silver were money (in 1933, for instance) governments believed that an expansion of the money supply was sorely needed for the world to climb out of the depression. At that time, the only way to accomplish that was to increase the value of gold (silver followed) allowing for more dollars to be issued. To clarify, the dollar was devalued in terms of gold not the other way around. Gold was a cumbersome item at that time, because of the vast amounts of gold not held by the central bank. Hence the confiscation! Once the U.S. central bank had acquired sufficient volumes of gold and then devalued the dollar, the banking system was awash with dollars. Mr. Ben Bernanke has used a similar tactic to expand the U.S. (and global) money supply to fend off deflation. Because gold and silver cannot be released and captured at will, central banks found that their use as a 'means of exchange' was just too cumbersome.
Of course, the change to paper notes and to alloy coins destroyed the ability of money to be a measure of value. The value of money is now solely dependent on the citizens' trust in their government and central bankers.
We are not referring to inflationary aspects or to exchange rates here, but the extent of trust and faith in that money. Yes, exchange rates hopefully (provided there is no manipulation of exchange rates—which there is) will reflect falling values.
Real inflation (lower buying power of money not a number measured by government tools) will always be allowed by governments, despite central bank commitments to price stability.
The key to a healthy economy is that the man at ground level be able to sustain his way of life with the income he receives. If oil prices and food prices rise, he needs more income to sustain his way of life.
Real inflation or deflation not only relate to growth but the change in the money supply Any attempts to disguise inflation or money supply changes will work only temporarily until the economic realities of the economy shine through (such as now with low housing prices, high unemployment and seeming 'stagflation'). The governments of the world like to imply 'price stability' through the management of money supply but tools such as quantitative easing distort that in the attempt to use money supply to invigorate the economy. Simply put, they use inflating money supply to defeat deflation.
The disadvantage of gold and silver coinage is that their worth will always rise above their face value. If governments increase the money supply beyond growth, they would thus be giving citizens a protection against the debauching of money. This undermines central bank control of the economy and financial systems.
So not surprisingly, we see no sign of silver being treated as money by central banks anywhere. But at a retail level, silver is being bought increasingly as a 'measure of value', protecting the individual's wealth as paper currencies are unable to do at the moment.
The History and Present of Silver as Money
In the past, silver has been used as coinage. Until the middle of the last century, most countries used silver in coins. Well before the U.S.A. and the I.M.F. cut the link between money and gold, silver was replaced with alloys in coinage. Take a look at the small change in your pocket and you will see a silver lookalikes. The human view of money is still that coins should look valuable, even if we are fooled by the alloy lookalikes. And that's the point. Will we as gullible humans believe that the money in our pocket has value?
We have to qualify the answer to that question by saying subject to economic conditions, yes. When you have nothing, bartering with anything for something is the simplest of monetary systems. When you are in the mainstream economically and economic growth is good, we are inclined to accept mainstream money in any form governments want us to. It makes trading easy. Take a look back at the years from 1985 until 2007 and you see a developed world growing steadily, happily and confidently. Money was trusted in any form it took because the system benefitted everybody. It's only when the person you are dealing with refuses to accept it as money that it then fails. Far from being global, like gold and silver have been throughout history, national money is valuable only locally, where it is legislated as the only acceptable means of exchange.
Imagine if I turned up at a shop and handed over a few hundred dongs (from Vietnam) or a few trillion Zimbabwean dollars, (Aah, that's no longer money even in Zimbabwe), what would your shopkeeper say? It is this parochial nature of fiat money that will be its eventual downfall. Once the Yuan is a global reserve currency from a growing country with a massive presence, we will be able to choose between the Yuan and the U.S. dollar. Then what?
Take a silver eagle and offer it to a Chinese person—he will accept it readily. Even while the South African rand is only useable in South Africa, the South African gold 1 ounce Krugerrand is exchangeable anywhere (at a price of $1,420 not its face value of 14.70 U.S. cents (1/10,000 times face value).
Silver, throughout history has been accepted as money anywhere in the world. While central banks and governments refuse to allow its use as money inside their economies, they have not taken away from its value as a currency. Silver remains a form of unrecognized money even in the hands of people who have not used is as money for many generations.
Even today, when the fiat money systems are decaying, a trickle of people is protecting their wealth by selling their paper money for solid silver and gold. We are at the start of a trend that is inexorable. Even central banks have started buying gold and have ceased selling it. The trickle will become a flow. But silver is not yet in the same category as gold, as money (yet) in 'official circles'. It will have to follow the path blazed by gold, but not until gold is seen to be visibly used in the global money systems, will silver stage a comeback. Even then, it will always be a junior partner to gold. After all, its price is so low and the quantities available for this role so small, that it is too far away from being as practical a measure of value as gold is now. But imagine if it was priced at $200 an ounce, then its credibility as money would be legitimate. If one could have a ration of one ounce of gold to 50 ounces of silver, then investors would be comfortable treating silver as money.
But in the private and institutional domain, silver is already a protector of wealth. This should be the focal point of its use. The investing world, regarding both silver and gold as a protector of wealth, can no longer be ignored. It is a fact through its performance all over the world. So, can governments harness this present reality? Will they? We are of the opinion that they won't until they have to!
We have always referred to silver as the 'long shadow' of gold because its price moves with gold's. When the gold price rises, silver rises more. When the gold price falls, silver falls further but they move in sync. Why?
Silver saw a huge drop in demand as the photographic industry moved to digital. But then, new uses for silver in the medical field and in electronics developed and look as though they will eventually dwarf the peak photographic demand. But by moving as though riveted to the gold price, the silver price is not reflecting the movements one associates with a simple industrial commodity.
The Move Away from Money
"Official" silver selling by Russia, India and China appears to have (or is about to) come to a halt after many decades of selling the metal stockpiled as coinage that had ceased to be used as such. In this it has a common denominator with gold, in that central bankers are no longer selling these assets. But silver is not in demand by central banks, whereas their demand for gold is heavy and persistent. Will silver be treated as an important reserve asset again?
Since the full use of precious metals as coinage fell away in the first half of the last century, the disparity between the face value of money and its silver value parted ways dramatically. Governments and their central banks wanted an insignificant, inherent value for the coins, so that the face value, determined through government actions on the monetary front, would be the only value they had. Practical considerations require that there is a coinage element to money. Governments have used this 'fiat' system of money because of the advantage of being able to control the monetary system alone. It was accompanied by the breaking away from the real international values that precious metals will always have. Nowhere has the split between 'measure of value' and 'means of exchange' been more significant than in coinage. The central banks also gained full control the money supply, without fear of a judgment via a soaring gold price.
When gold and silver were money (in 1933, for instance) governments believed that an expansion of the money supply was sorely needed for the world to climb out of the depression. At that time, the only way to accomplish that was to increase the value of gold (silver followed) allowing for more dollars to be issued. To clarify, the dollar was devalued in terms of gold not the other way around. Gold was a cumbersome item at that time, because of the vast amounts of gold not held by the central bank. Hence the confiscation! Once the U.S. central bank had acquired sufficient volumes of gold and then devalued the dollar, the banking system was awash with dollars. Mr. Ben Bernanke has used a similar tactic to expand the U.S. (and global) money supply to fend off deflation. Because gold and silver cannot be released and captured at will, central banks found that their use as a 'means of exchange' was just too cumbersome.
Of course, the change to paper notes and to alloy coins destroyed the ability of money to be a measure of value. The value of money is now solely dependent on the citizens' trust in their government and central bankers.
We are not referring to inflationary aspects or to exchange rates here, but the extent of trust and faith in that money. Yes, exchange rates hopefully (provided there is no manipulation of exchange rates—which there is) will reflect falling values.
Real inflation (lower buying power of money not a number measured by government tools) will always be allowed by governments, despite central bank commitments to price stability.
The key to a healthy economy is that the man at ground level be able to sustain his way of life with the income he receives. If oil prices and food prices rise, he needs more income to sustain his way of life.
Real inflation or deflation not only relate to growth but the change in the money supply Any attempts to disguise inflation or money supply changes will work only temporarily until the economic realities of the economy shine through (such as now with low housing prices, high unemployment and seeming 'stagflation'). The governments of the world like to imply 'price stability' through the management of money supply but tools such as quantitative easing distort that in the attempt to use money supply to invigorate the economy. Simply put, they use inflating money supply to defeat deflation.
The disadvantage of gold and silver coinage is that their worth will always rise above their face value. If governments increase the money supply beyond growth, they would thus be giving citizens a protection against the debauching of money. This undermines central bank control of the economy and financial systems.
So not surprisingly, we see no sign of silver being treated as money by central banks anywhere. But at a retail level, silver is being bought increasingly as a 'measure of value', protecting the individual's wealth as paper currencies are unable to do at the moment.
The History and Present of Silver as Money
In the past, silver has been used as coinage. Until the middle of the last century, most countries used silver in coins. Well before the U.S.A. and the I.M.F. cut the link between money and gold, silver was replaced with alloys in coinage. Take a look at the small change in your pocket and you will see a silver lookalikes. The human view of money is still that coins should look valuable, even if we are fooled by the alloy lookalikes. And that's the point. Will we as gullible humans believe that the money in our pocket has value?
We have to qualify the answer to that question by saying subject to economic conditions, yes. When you have nothing, bartering with anything for something is the simplest of monetary systems. When you are in the mainstream economically and economic growth is good, we are inclined to accept mainstream money in any form governments want us to. It makes trading easy. Take a look back at the years from 1985 until 2007 and you see a developed world growing steadily, happily and confidently. Money was trusted in any form it took because the system benefitted everybody. It's only when the person you are dealing with refuses to accept it as money that it then fails. Far from being global, like gold and silver have been throughout history, national money is valuable only locally, where it is legislated as the only acceptable means of exchange.
Imagine if I turned up at a shop and handed over a few hundred dongs (from Vietnam) or a few trillion Zimbabwean dollars, (Aah, that's no longer money even in Zimbabwe), what would your shopkeeper say? It is this parochial nature of fiat money that will be its eventual downfall. Once the Yuan is a global reserve currency from a growing country with a massive presence, we will be able to choose between the Yuan and the U.S. dollar. Then what?
Take a silver eagle and offer it to a Chinese person—he will accept it readily. Even while the South African rand is only useable in South Africa, the South African gold 1 ounce Krugerrand is exchangeable anywhere (at a price of $1,420 not its face value of 14.70 U.S. cents (1/10,000 times face value).
Silver, throughout history has been accepted as money anywhere in the world. While central banks and governments refuse to allow its use as money inside their economies, they have not taken away from its value as a currency. Silver remains a form of unrecognized money even in the hands of people who have not used is as money for many generations.
Even today, when the fiat money systems are decaying, a trickle of people is protecting their wealth by selling their paper money for solid silver and gold. We are at the start of a trend that is inexorable. Even central banks have started buying gold and have ceased selling it. The trickle will become a flow. But silver is not yet in the same category as gold, as money (yet) in 'official circles'. It will have to follow the path blazed by gold, but not until gold is seen to be visibly used in the global money systems, will silver stage a comeback. Even then, it will always be a junior partner to gold. After all, its price is so low and the quantities available for this role so small, that it is too far away from being as practical a measure of value as gold is now. But imagine if it was priced at $200 an ounce, then its credibility as money would be legitimate. If one could have a ration of one ounce of gold to 50 ounces of silver, then investors would be comfortable treating silver as money.
But in the private and institutional domain, silver is already a protector of wealth. This should be the focal point of its use. The investing world, regarding both silver and gold as a protector of wealth, can no longer be ignored. It is a fact through its performance all over the world. So, can governments harness this present reality? Will they? We are of the opinion that they won't until they have to!
Saturday, March 19, 2011
World-Renowned Bullion Products and an Accredited ISO 9001 Gold and Silver Refinery Facility
The Royal Canadian Mint's bullion products are universal symbols of innovation, ingenuity and excellence. At the heart of our distinctive line of bullion products is our collection of Maple Leaf bullion coins in gold, silver, platinum and palladium - all guaranteed by the Government of Canada for weight and purity.
The Royal Canadian Mint also operates one of the most technically advanced and respected gold and silver refineries in the world. Our accredited ISO 9001 facility offers a variety of client services.
World Firsts. World Records.
To reach new heights of achievement for expertise, craftsmanship and can-do spirit, the Mint crafted the world's first 100-kg, 99999 pure gold bullion coin with a face value of $1 million. This coin was later recognized by Guinness World Records to be the world's largest gold coin.
Purchasing Bullion | Bullion Products | Refinery Services
Wondering how to purchase bullion?
How to purchase bullion
Our bullion products can be purchased through banks, coin dealers, foreign currency exchange offices, and brokerage houses worldwide. Choosing your best purchasing avenue is a personal decision. Here are some points to consider prior to selling or buying bullion:
•Are you dealing with a reputable vendor/advisor that understands the bullion market?
•Is the vendor/advisor well established with a history of satisfied clients?
•Have you remembered the importance of looking at more than one vendor/advisor to get competitive quotes?
•What policies are in place to ensure your satisfaction for buying or selling bullion?
Pricing
Prices of gold and silver bullion products are based on international market rates which vary daily, as well as supply and demand. Be prepared for a reasonable premium to be charged over the daily spot quotations to cover manufacturing, transportation and distribution costs.
Purchasing Bullion | Bullion Products | Refinery Services
Universally recognized for quality and purity
Gold and other bullion products from the Royal Canadian Mint are universally recognized for their quality and purity. The Mint refines and produces Maple Leaf bullion coins, gold kilo bars, trade bars and gold wafers - all struck with their weight and purity. Our bullion coins are also recognized as legal tender in Canada.
Gold
Our Gold Maple Leaf coins are the world's most popular pure gold coin. Since their introduction in 1979, over 20 million troy ounces have been sold. As the first bullion coin to achieve the heightened standard of 9999 fine, the Gold Maple Leaf is available in five weights from one-twentieth of an ounce to one troy ounce. Also of special interest are the one ounce gold bullion coins celebrating the Vancouver 2010 Olympic Winter Games and our 99999 Gold Maple Leaf.
Silver
Encouraged by the success of the Gold Maple Leaf, the Mint introduced Silver Maple Leaf Coins in 1988. The Silver Maple Leaf is minted with one troy ounce of 9999 fine silver. The coin has a face value of $5, the highest face value of any comparable silver bullion coin. Also of special interest are the one ounce silver bullion coins celebrating the Vancouver 2010 Olympic Winter Games.
Platinum
Introduced by popular demand in 1988 are the Mint's one troy ounce Platinum Maple Leaf coins with a face value of $50.
Palladium
Introduced in 2005 the Palladium Maple Leaf coins with a face value of $50. This popular one troy ounce coin is made with 9995 pure palladium.
Purchasing Bullion | Bullion Products | Refinery Services
The Royal Canadian Mint also operates one of the most technically advanced and respected gold and silver refineries in the world. Our accredited ISO 9001 facility offers a variety of client services.
World Firsts. World Records.
To reach new heights of achievement for expertise, craftsmanship and can-do spirit, the Mint crafted the world's first 100-kg, 99999 pure gold bullion coin with a face value of $1 million. This coin was later recognized by Guinness World Records to be the world's largest gold coin.
Purchasing Bullion | Bullion Products | Refinery Services
Wondering how to purchase bullion?
How to purchase bullion
Our bullion products can be purchased through banks, coin dealers, foreign currency exchange offices, and brokerage houses worldwide. Choosing your best purchasing avenue is a personal decision. Here are some points to consider prior to selling or buying bullion:
•Are you dealing with a reputable vendor/advisor that understands the bullion market?
•Is the vendor/advisor well established with a history of satisfied clients?
•Have you remembered the importance of looking at more than one vendor/advisor to get competitive quotes?
•What policies are in place to ensure your satisfaction for buying or selling bullion?
Pricing
Prices of gold and silver bullion products are based on international market rates which vary daily, as well as supply and demand. Be prepared for a reasonable premium to be charged over the daily spot quotations to cover manufacturing, transportation and distribution costs.
Purchasing Bullion | Bullion Products | Refinery Services
Universally recognized for quality and purity
Gold and other bullion products from the Royal Canadian Mint are universally recognized for their quality and purity. The Mint refines and produces Maple Leaf bullion coins, gold kilo bars, trade bars and gold wafers - all struck with their weight and purity. Our bullion coins are also recognized as legal tender in Canada.
Gold
Our Gold Maple Leaf coins are the world's most popular pure gold coin. Since their introduction in 1979, over 20 million troy ounces have been sold. As the first bullion coin to achieve the heightened standard of 9999 fine, the Gold Maple Leaf is available in five weights from one-twentieth of an ounce to one troy ounce. Also of special interest are the one ounce gold bullion coins celebrating the Vancouver 2010 Olympic Winter Games and our 99999 Gold Maple Leaf.
Silver
Encouraged by the success of the Gold Maple Leaf, the Mint introduced Silver Maple Leaf Coins in 1988. The Silver Maple Leaf is minted with one troy ounce of 9999 fine silver. The coin has a face value of $5, the highest face value of any comparable silver bullion coin. Also of special interest are the one ounce silver bullion coins celebrating the Vancouver 2010 Olympic Winter Games.
Platinum
Introduced by popular demand in 1988 are the Mint's one troy ounce Platinum Maple Leaf coins with a face value of $50.
Palladium
Introduced in 2005 the Palladium Maple Leaf coins with a face value of $50. This popular one troy ounce coin is made with 9995 pure palladium.
Purchasing Bullion | Bullion Products | Refinery Services
Thursday, March 10, 2011
GoldCore Comments On Silver Shortages And A Possible Price "Tipping Point"
zerohedge.com
Submitted by Tyler Durden on 01/18/2011 15:22 -0500
Our friends at GoldCore have summarized recent shortages in the silver market and provide some observations on what this could mean for future silver prices. Curiously, the lack of inventory has happened even as the spot price of silver has consistently declined over the past week (if nominally the decline has been very modest). Just as curiously after the US Mint reported a massive surge in buying, the number of January sales has been fixed flat at 3,407,000, where it was a week ago, and indicates that either buying interest has ceased overnight (unlikely), that the mint is not updating its numbers (likely), or, worse, that the Mint has now stopped selling any form of silver for reasons unknown. Although at the end of the day the only question worth asking is whether JPM feels lucky (again): as we posted last week, the firm has received "grandfathering" protection from position limits, arguably the biggest reason for the recent drop in the precious metal price.
From GoldCore:
Silver Bar Shortages to Lead to Price “Tipping Point”?
Gold is mixed while silver is higher in all currencies today, especially in the weaker US dollar. European sovereign bond yields are higher and the UK 10-year has risen to 3.66% and is close to breaking out after inflation figures surprised the majority of analysts who remain complacent about inflation.
Gold is currently trading at $1,370.75/oz, €1,022.11/oz and £856.57/oz.
Equities in Asia were higher as are those in Europe so far today. US equity index futures are mixed with Apple leading to weakness in the Nasdaq; the S&P 500 is flat.
SILVER
Silver is currently trading $28.81/oz, €21.48/oz and £18.01/oz.
Reports of shortages of silver bullion continue to grow. While there are no widespread shortages in this area and dealers with extensive supplier networks (mints and large refiners) are not experiencing difficulties sourcing bullion inventory, it would be wise to keep an eye on this.
Silver in USD – 35 Years – (Weekly). Click for full size
Reuters reported shortages of 1 kilo gold bars in Asia last week. Sprott Asset Management reported that it was experiencing difficulty sourcing 1,000 oz silver bars. Sprott said they were concerned about the “illiquidity in the physical silver market" and said delays in being able to source physical silver highlights the “disconnect that exists between the paper and physical markets for silver."
Zero Hedge reported that Bullion Vault, the digital gold provider, had run out physical silver inventories in Germany (and possibly elsewhere) and was advising clients to buy silver from other sources.
Zero Hedge also reported yesterday that some smaller bullion dealers in the UK were having difficulty sourcing all silver bars and had delayed delivery of silver bars (including 1 kilo silver bars) until February.
This comes at a time when the US Mint has reported huge demand in the first two weeks of January for their very popular US Silver Eagle 1 oz bullion coins.
Click for full size
At about $33, €25 or £20 a coin, collectors and those seeking financial insurance have been buying silver in very significant quantities. The 2011 minted coins were first issued on January 3 and in just the first two weeks, 3.5 million coins were sold, according to numismatic web site Coin News.
In January 2009, the silver coins first topped the 3 million sales mark, with record sales totaling 3.59 million for the entire month.
If sales continue at these levels, that record should be surpassed this week. The all time monthly record of 4.26 million silver coins, which was set last November, is clearly in sight.
A recent report by analyst Adrian Douglas of GATA warns of forthcoming shortages of gold and silver bullion coins and bars, and that a “tipping point” will soon be reached that could lead to a COMEX default and a short squeeze which leads to much higher prices. Douglas himself has shown in Le Metropole Café how Comex silver inventories are shrinking and are not far from ten year lows.
The “bear raids” by the large concentrated shorts being investigated by the CFTC, are only leading to increased physical off-take. Indeed, the selling raids may be leading some participants on the COMEX (including large hedge funds) to take delivery or sell futures and buy bullion in allocated accounts.
None of the factors, in and of themselves, suggest that widespread shortages of silver (or gold) bullion are imminent in the immediate future. However, much circumstantial evidence suggests, especially the bona fide reports of difficulty in sourcing large silver bars, that the supply and demand balance in the silver market is very tight.
The more than 80% increase in the silver price seen in 2010 is not leading to an increased supply of silver but rather to a continuing and possibly increasing demand.
This is not surprising as silver is a byproduct of base metals and therefore its price increase will not have led to any material increase in silver mine production. This fact is known by most buyers of silver coins and bars and many of them continue to hold and add to their silver holdings in anticipation of much higher prices.
Silver at $50 per ounce and the 1980 adjusted for inflation price of $130 per ounce are conservative estimates for some silver enthusiasts. They have been proved right in recent years and the extremely delicate supply and demand equation in silver could see them proved right again in the coming months.
Since 2003, GoldCore have written research articles pointing out that the very small size of the silver bullion market would likely see its inflation adjusted high of $130/oz reached in the long term.
Interestingly, were gold to reach its adjusted for inflation 1980 price of $2,300 per ounce, and silver revert to its long term gold/silver ratio of 15:1 (geologically there are 15 parts of silver to every one part of gold in the Earth’s crust) then silver would reach over $150 per ounce.
While this seems über bullish to those who know little about the silver market, some silver enthusiasts - and there are many - believe that in time, silver will be valued at the same price as gold as huge quantities of silver have been used up in industrial applications since the Industrial Revolution of the 19th Century and throughout the 20th Century and into this millenium.
In these unprecedented financial and economic times, it is important to have a long term perspective.
KMG Gold Recycling saw a glut in the silver market in Decmber 2010. "We couldn't sell our silver to the secondary refineries." Said KMG president Michael Gupton, "We had to shop it around. That doesn't seem like a shortage of silver to me, that sounds like media manipulation".
kmggold.com
Saturday, February 05, 2011
Ways to Make Money by Selling Scrap Metals Online to Metal Buyers
Selling unwanted jewellery and other objects made from precious metals has become a great way of making quick money. Online traders cut cost and trading is made easy.
KMG is willing to buy scrap gold, silver, platinum, broken jewellery and used silver for cash.. Recycling precious metals, such as cash for, gold, silver, platinum palladium and iridium are bountiful, as precious metals are in demand.
Where to Sell Unwanted Jewellery
The added advantage of selling precious metals to KMG is that the high street pawnbroker cannot compete since the middleman is cut out. This saves the customer money. Furthermore, the online trader can match or exceed any offer the high street pawnbroker or jeweller is willing to pay.
It doesn’t matter if the jewellery is broken or if the ornament has lost its lustre. Metal traders are interested only in the purity of the metal. Precious metals can be found in the most unexpected objects. Examples may be:
• Jewellery such as chains, bracelets, charms and rings
• Watches
• Coins
• Cufflinks, pins and broaches
• Dental crowns
• Cups, tankards and trophies
• Pens
• Cigarette lighters
• Cigarette cases
• Electronic products
• Picture frames
• Mustard pots
• Teapots
• Pens
• Candlesticks
• Cigarette lighters
• Salt and pepper pots
• Golf tees
• Letter openers
• Wire
• Precious metal foil
Watch out for fake or costume jewellery, which will yield no value.
Things to Consider Before Proceeding to Take Cash for Precious Metals
• Obtaining a second opinion from a pawnshop or other specialist on the object's value, prior to dispatching the items means the customer can make informed decisions and understand that they are recieving the best payout when recycling KMG.
• Check out the reputation of the precious metal trader before dispatching the items. Reading customers’ forums is a good indicator of a particular firm’s reputation.
• Items will be valued on the quality of the object, not its ornamental value. If the object is an antique, getting it valued by an auctioneer or antique specialist is the better option
• The precious metal will be valued on its trading price on a particular day, and prices will fluctuate.
For more information on how to get the most for your precious metals visit:
kmggold.ca
kmggold.com
KMG is willing to buy scrap gold, silver, platinum, broken jewellery and used silver for cash.. Recycling precious metals, such as cash for, gold, silver, platinum palladium and iridium are bountiful, as precious metals are in demand.
Where to Sell Unwanted Jewellery
The added advantage of selling precious metals to KMG is that the high street pawnbroker cannot compete since the middleman is cut out. This saves the customer money. Furthermore, the online trader can match or exceed any offer the high street pawnbroker or jeweller is willing to pay.
It doesn’t matter if the jewellery is broken or if the ornament has lost its lustre. Metal traders are interested only in the purity of the metal. Precious metals can be found in the most unexpected objects. Examples may be:
• Jewellery such as chains, bracelets, charms and rings
• Watches
• Coins
• Cufflinks, pins and broaches
• Dental crowns
• Cups, tankards and trophies
• Pens
• Cigarette lighters
• Cigarette cases
• Electronic products
• Picture frames
• Mustard pots
• Teapots
• Pens
• Candlesticks
• Cigarette lighters
• Salt and pepper pots
• Golf tees
• Letter openers
• Wire
• Precious metal foil
Watch out for fake or costume jewellery, which will yield no value.
Things to Consider Before Proceeding to Take Cash for Precious Metals
• Obtaining a second opinion from a pawnshop or other specialist on the object's value, prior to dispatching the items means the customer can make informed decisions and understand that they are recieving the best payout when recycling KMG.
• Check out the reputation of the precious metal trader before dispatching the items. Reading customers’ forums is a good indicator of a particular firm’s reputation.
• Items will be valued on the quality of the object, not its ornamental value. If the object is an antique, getting it valued by an auctioneer or antique specialist is the better option
• The precious metal will be valued on its trading price on a particular day, and prices will fluctuate.
For more information on how to get the most for your precious metals visit:
kmggold.ca
kmggold.com
Friday, February 04, 2011
Is it Time to Sell Gold and Silver ?
In the last days we have seen the gold price hit $1,324 and yesterday spring to $1,355, (KMG Gold London Fix Prices), leaving it in a neutral zone technically speaking. More than 10% of the gold ETF, SPDR in the States has been sold as well as around 10% of the ishares Silver Trust. Investors need to know, “is this the time they should be selling their gold and silver investments?” Traders will look solely at the short-term charts, medium-term investors at the medium –term fundamentals and long-term investors before this checked to see if this was a sufficient correction to disinvest and when will be the right time to re-enter the market. With so much emotion creeping into these decisions, investors need to sweep that away and coldly assess the individual investment situation within their own investment criteria. We will stand back further and look only at, “Is it time to sell Gold & Silver” and leave you to make up your own minds.
Technical picture
In the dollar the gold price has moved into ‘neutral’ territory having halted the downward movement as it hit support between $1,324 and $1,330 after which it bounced to $1,355. The Fix in London was at $1,347.50 up almost $20 from yesterday afternoon’s Fix of $1,328.
Many of you will feel that the dollar gold price is what defines gold’s movements, but we would caution investors who think this way. Gold has fallen back from its recent peak of $1,425 to $1,324. Take a look at the euro price of gold. It has pulled back from its peak of €1,065 and fell back to €962, almost the same amount of fall. And yet we have seen the euro jumping back from its recent low of $1.32 to stand over $1.38 a 4% move. This complicates matters because if you see the relationship of gold reflecting the strength or weakness of the dollar, you would have been wrong-footed. After all, a 4% move in the $ gold price is $65 move from the recent peak.
Recently, the euro weakened, because of the sovereign debt crisis, more rapidly than the dollar fell. Now the euro is recovering because the EU leaders are supposed to come out with a plan that will remove the fear of a euro collapse, in March. With politics playing games with the raising of the borrowing limits of the U.S. fear is growing that confidence in the dollar is going to press it lower against the euro. So you, the investor, have to decide which is the currency that most accurately reflects the demand and supply factors dictating the gold price or which is the one through which to invest to maximize profits? We have our own opinion for sure.
The Fundamental picture
- The gold market has changed its shape since the last century, when it was at the mercy of the developed world’s central banks. Since the beginning of this century, the world’s central banks have completed the gold sales they had planned to make and halted this policy and that of accelerating the production of gold.
- We have seen the jewelry market recover recently in the developed world.
- We are seeing the rise of persistent Asian demand.
- Investment demand in the developed world looks undecided as to whether to invest more or to divest believing gold has had its day. On the other side of investment demand for gold, there is a school that is selling from the gold ETF’ and buying physical gold, to hold overseas.
- We are seeing producers just manage to replace the ounces they have mined with new discoveries, but at such a slow pace that, at best, we expect little to no growth in newly mined supplies, despite the rising gold price.
- In the silver market there is a far greater scope for newly mined supplies, except for those that come as a by-product of base metal production.
- There is also a far greater scope to reclaim silver. However, most new uses of silver do consume the silver used and are not reclaimable.
- Investment demand for silver tends to be more institutional despite silver being the ‘poor man’s’ gold.
- Asian demand for silver is growing as it is the next best investment to gold, so they believe.
However, the silver price moves with the gold price, with more extreme swings either way.
It’s a matter of Perspective
This makes it even more complicated for the investor, for Asian investors buy silver and gold for very different reasons than investors watching the level of interest rates in the U.S.A. The difficult task ahead of investors is to give the correct weighting to the different parts of global gold and silver markets: -
- How far will the east dominate gold & silver prices?
- To what extent will the developed world’s events dictate the direction of the precious metal prices?
- Will an economic recovery in the West lead to more or less demand for the precious metals?
- What are the different characteristics of global investors when it comes to buying and selling?
- What is the future of currencies and their values against gold?
- What effect will the shift in power from West to East have on the precious metals going forward?
Technical picture
In the dollar the gold price has moved into ‘neutral’ territory having halted the downward movement as it hit support between $1,324 and $1,330 after which it bounced to $1,355. The Fix in London was at $1,347.50 up almost $20 from yesterday afternoon’s Fix of $1,328.
Many of you will feel that the dollar gold price is what defines gold’s movements, but we would caution investors who think this way. Gold has fallen back from its recent peak of $1,425 to $1,324. Take a look at the euro price of gold. It has pulled back from its peak of €1,065 and fell back to €962, almost the same amount of fall. And yet we have seen the euro jumping back from its recent low of $1.32 to stand over $1.38 a 4% move. This complicates matters because if you see the relationship of gold reflecting the strength or weakness of the dollar, you would have been wrong-footed. After all, a 4% move in the $ gold price is $65 move from the recent peak.
Recently, the euro weakened, because of the sovereign debt crisis, more rapidly than the dollar fell. Now the euro is recovering because the EU leaders are supposed to come out with a plan that will remove the fear of a euro collapse, in March. With politics playing games with the raising of the borrowing limits of the U.S. fear is growing that confidence in the dollar is going to press it lower against the euro. So you, the investor, have to decide which is the currency that most accurately reflects the demand and supply factors dictating the gold price or which is the one through which to invest to maximize profits? We have our own opinion for sure.
The Fundamental picture
- The gold market has changed its shape since the last century, when it was at the mercy of the developed world’s central banks. Since the beginning of this century, the world’s central banks have completed the gold sales they had planned to make and halted this policy and that of accelerating the production of gold.
- We have seen the jewelry market recover recently in the developed world.
- We are seeing the rise of persistent Asian demand.
- Investment demand in the developed world looks undecided as to whether to invest more or to divest believing gold has had its day. On the other side of investment demand for gold, there is a school that is selling from the gold ETF’ and buying physical gold, to hold overseas.
- We are seeing producers just manage to replace the ounces they have mined with new discoveries, but at such a slow pace that, at best, we expect little to no growth in newly mined supplies, despite the rising gold price.
- In the silver market there is a far greater scope for newly mined supplies, except for those that come as a by-product of base metal production.
- There is also a far greater scope to reclaim silver. However, most new uses of silver do consume the silver used and are not reclaimable.
- Investment demand for silver tends to be more institutional despite silver being the ‘poor man’s’ gold.
- Asian demand for silver is growing as it is the next best investment to gold, so they believe.
However, the silver price moves with the gold price, with more extreme swings either way.
It’s a matter of Perspective
This makes it even more complicated for the investor, for Asian investors buy silver and gold for very different reasons than investors watching the level of interest rates in the U.S.A. The difficult task ahead of investors is to give the correct weighting to the different parts of global gold and silver markets: -
- How far will the east dominate gold & silver prices?
- To what extent will the developed world’s events dictate the direction of the precious metal prices?
- Will an economic recovery in the West lead to more or less demand for the precious metals?
- What are the different characteristics of global investors when it comes to buying and selling?
- What is the future of currencies and their values against gold?
- What effect will the shift in power from West to East have on the precious metals going forward?
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