KMG Gold Recycling USA, Ltd is a BBB Accredited Gold Buyer in Grand Forks, ND
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Thursday, February 24, 2011

The Currency Exchange Rate Background

The exchange rate is the price of one national currency, such as the Canadian dollar, expressed in terms of another currency, for example, the U.S. dollar, or a basket of currencies.

For a very open, trade-dependent economy like Canada's, the external value of the currency is particularly relevant as it affects, among other things, the prices and the volume of goods and services we export and import. Specifically, a rise or fall in the external value of the Canadian dollar will make Canadian goods and services less or more expensive for foreign buyers, and this will tend to boost or hold back their demand for our products. Movements up or down in the Canadian dollar relative to other currencies will also make imported goods more or less affordable, thus increasing or reducing the volume of our imports.
What determines the exchange rate?

Canada has a flexible exchange rate system. Because we have a target for inflation that aims to preserve the domestic value of the Canadian dollar, we cannot also have a target for its external value. So, there is no set (fixed) value for our currency in terms of any other currency. The exchange rate for the Canadian dollar against the U.S. dollar, and indeed against any other currency, floats and is determined by the demand for and supply of Canadian dollars in the foreign exchange market.

Because the bulk of our foreign trade (exports and imports) is still with the United States, the focus of attention is naturally the Canada-U.S. exchange rate. But when it comes to exports, it should be noted that Canada competes with many other countries for a share of the U.S. market. So the exchange rate of those currencies relative to ours also matters a great deal.

Movements in the Canadian dollar reflect the interaction of various domestic and external factors, any one of which may play a dominant role at different points in time. Among these are:

The world prices for commodities and Canada’s status as a net exporter of raw materials compared with other countries, notably the United States which, although a commodity producer, is a net importer of commodities. This being the case, rising commodity prices will cause our dollar to appreciate against the U.S. dollar.

Relative economic performance: stronger demand for Canadian products (from domestic and external sources) will tend to underpin our currency.

Relative inflation rates: if Canada’s inflation rate is persistently higher than that of the United States, the expectation will be that our currency will tend to depreciate, everything else being equal, in order to maintain the competitiveness of our exports in U.S. markets.

Relative interest rates: higher interest rates in Canada would attract investors in Canadian-dollar assets, boosting the value of our currency. But if inflation here is higher than elsewhere, investors might be less keen about such assets, fearing that inflation would erode their value.

Canada’s productivity record relative to other countries, particularly the United States. Rising productivity supports steady, non-inflationary economic growth and higher living standards, while also preserving a country’s competitiveness. Thus, a good relative productivity record would underpin the currency; a poor one would take away from its value.

Trade and current account balances: a surplus in Canada’s balance of international payments means that foreigners are buying more goods and services from us than we are buying from them. To settle their purchases, they will have to buy Canadian dollars, thus boosting the value of our currency.

The size of Canada’s public debt relative to that of the United States, as well as Canadian tax policies and incentives to work, save, and invest compared to those of other countries can work in favour of, or against, our dollar. For example, a smaller public debt (as a share of GDP) in Canada compared with the United States, would work in favour of our currency.

Short-term capital flows: international money flowing into Canada raises the value of the Canadian dollar; domestic money flowing out has the opposite effect. At times of global turbulence, international capital seeks safe haven, usually in the United States, leading to an appreciation of the U.S. dollar against major currencies, including ours.

Domestic political turmoil can have a dampening effect on the external value of our currency.

Interest rates, short-term capital flows, and political developments tend to have more of a short-term effect on the exchange rate.

Longer-term currency movements reflect more fundamental forces at work. Thus, the Bank’s research shows that the evolution of commodity prices is the main driver of the Canadian dollar over time. Commodity prices, however, are essentially shaped by global forces that are beyond Canada’s control. (In this context, a floating Canadian dollar that rises and falls with sharp movements in commodity prices acts as a “shock absorber,” helping our economy adjust with less overall loss in output and employment than if the exchange rate did not move.)

Other factors that influence the exchange rate over the longer term include Canada’s relative performance in terms of economic growth, inflation, productivity, and fiscal position. Unlike commodity prices, these economic fundamentals are very much within our control; and so it is important to ensure that they are as favourable as possible.
The role of the exchange rate in monetary policy

Although there is no target for the Canadian dollar and the Bank no longer intervenes in foreign exchange markets except in very exceptional circumstances, the Bank is not indifferent to persistent currency movements, up or down, and takes into account their effect, together with that of other domestic and external factors, on total demand and inflation in Canada.

In reassessing the outlook for the economy and inflation before each of eight interest rate decisions a year, the Bank carefully examines the economic evidence accumulated since the last decision, including any currency movements. The lens through which this information is scrutinized is always the achievement of the inflation target.

By keeping domestic inflation low, stable, and predictable, the Bank contributes to the long-term soundness of the Canadian dollar. While, by itself, this may not be sufficient to guarantee a strong currency, it does provide an anchor for its external value and is thus the best contribution that monetary policy can make in this regard.
Posted by Mike Gupton at 4:01 PM 0 Comments

Saturday, February 12, 2011

Precious metal buyer's business is good as gold

Winnipeg Free Press - PRINT EDITION
By: Martin Cash
Posted: 02/9/2011 1:00 AM

KMG sees dramatic growth

MICHAEL Gupton wants to buy your gold, but he does not want to be associated with the TV hucksters who are all over cable television these days.

Gupton has just moved his three-year-old home business, KMG Gold Recycling, into commercial space near Winnipeg's Confusion Corner because of the phenomenal growth he's had over the last three years.

Michael Gupton holds remains of rings and coins brought in by sellers.

Michael Gupton holds remains of rings and coins brought in by sellers. (PHIL.HOSSACK@FREEPRESS.MB.CA)

Tips to sell your precious metals

$1 worth of old U.S or Canadian silver nickels, dimes, 50-cent pieces or silver dollars is worth about $13.

Try to determine how much precious metal is contained in the objects you're selling.

Most jewelry would be either 10- or 14-karat gold. Pure gold is 24 karats, so 10-karat gold is about 41.7 per cent gold.

You can get a fair approximation of the weight by using a kitchen countertop scale accurate to the hundredths of an ounce.

But there has also been dramatic growth in business in general, dominated, it seems, by garish sales pitches from operators that may give some of us pause.

Gupton, a former gold prospector, claims to pay the highest prices in Canada -- no less than 81 per cent of market prices for precious metals.

As well as honesty and integrity -- KMG won a marketplace excellence award in 2010 from the Better Business Bureau -- Gupton says he offers higher prices partly because he has access to his own refinery.

"We try to educate the consumer," Gupton said.

"It they want the most money, they have to deliver their metal to a refinery."

KMG pays a minimum of 81 per cent (there was another operator offering 80 per cent in the fiercely competitive Vancouver market) if Gupton does his own speculation as to the quantity of precious metal contained in a piece of jewelry or metal object.

But he'll pay 97 or 98 per cent if he sends it off to his own refinery on the West Coast (the customer does have to pay a refinery fee).

His business regularly accesses enough material to produce between 100 and 200 ounces of fine gold every two weeks. At $1,350 an ounce, that's worth as much as $270,000.

Gupton says he stands by his claim of paying more than anyone else in the business because he has sent metal off to some of the others. On lots that he has paid $100, he said others have offered him between $20 and $50.

He said he was surprised one company that paid him only $50 was one of the country's oldest and most prestigious jewelry retailers.

Gupton said the fact his company runs its own refinery adds a level of integration others can't provide and a level of certainty that lets KMG pay a higher price.

"We are a primary refinery," he said.

"When we melt the metal down, the zinc, tin, lead, manganese and other metals are boiled off and we are left with ingots that are predominantly gold, silver and copper."

That is then sold to a secondary refinery that produces pure gold and silver and then it is sold back into the market to jewellers and the mint.

Christine Aquino, director of marketing for the Royal Canadian Mint, said the Crown corporation does buy precious metals from the secondary market.

"The amount we buy depends on our own capacity and also the quality of the metal," she said. "We have certain programs on the go, but when we have the capacity we will buy on the secondary market."

martin.cash@freepress.mb.ca

 

Posted by Mike Gupton at 9:33 AM 0 Comments

Sunday, February 06, 2011

BBB Award Winner KMG Gold Is Industry's Most Trusted Gold Buyer

KMG Gold Recycling recently won the 2010 BBB Torch Award for marketplace excellence, truth in advertising, honesty and ethics.

KMG Gold Recycling - a international buyer and refiner of precious metals based in Winnipeg, Manitoba – credits its focus on transparent pricing and top-notch customer service with cementing its reputation as the industry's most “trusted” gold buyer. KMG Gold purchases gold, silver, platinum and diamonds from consumers throughout Canada and the United States through their website business (www.kmggold.com and www.kmggold.ca), at gold parties run by company trained certified gold buyers, and at their company-owned store in Winnipeg MB.

BBB Torch Award Winner-KMG GoldKMG has direct to the refinery shipping outlets in Sacramento California, Edmonton Alberta Canada and also at participating The UPS Stores® locations in Vancouver, Burnaby, Surrey, Kamloops, Winnipeg, and Calgary, Canada. Shipping direct to the refinery will always net the customer the most money for their gold, platinum and silver.

The gold buying industry, spurred by skyrocketing gold prices, has come under the media microscope. But, by conducting its business with a high level of honesty and integrity, KMG Gold has distinguished itself from the pack.

“Our transparent business practices and superior customer service wins us a loyal following,” says Michael Gupton, founder of KMG Gold. “We pay more money than all of our competitors and post our prices every day on our website. We lead the industry by providing Canada's only precious metal shipping insurance, a written evaluation and offer to purchase.” And, adds Gupton, “Our new website lets consumers browse and see the prices we pay and what we buy. It helps consumers have a better idea of the value of their own items before they send their gold to us.”

Gupton, a 25+ year gold industry veteran and published author is often tapped by consumers advocacy groups and charitable organizations  to speak about gold and gold value.

“At KMG Gold, we believe strongly in educating consumers about the value of their gold. The more information the consumer has, the less likely they will be misled by dishonest dealers,” says Gupton. “We provide a extensive range of information on our website and have an excellent customer service team to quickly respond to emails and phone calls.”




Posted by Mike Gupton at 3:42 PM 0 Comments

Sunday, February 06, 2011

Better Business Bureau Award Winner-KMG Gold Recycling

KMG Gold Recycling has earned the trust of many thousands of gold investors globally.

Winner of the prestigious BBB Torch Award for 2010, for demonstrating honesty, ethics, truth in advertizing, and marketplace excellence.

With over three years of operation, KMG Gold Recycling is one of the most respected names in the gold industry. We are one of the few established gold dealers with an unblemished Better Business Bureau rating and a record of zero complaints.

Our tradition of exceptional customer service and professional excellence sets us apart from our competition. We take pride in our commitment to educating first-time gold and silver owners, while strictly adhering to a no-pressure sales approach. Discover for yourself why thousands before you already consider KMG Gold to be an industry leader for market research and commentary, product pricing and availability, and reliable and competent portfolio guidance.

Posted by Mike Gupton at 2:58 PM 0 Comments

Sunday, February 06, 2011

Cash For Gold Reviews – How to Avoid The Cash For Gold Scam

The cash for gold scam has made many consumers weary of the gold buying industry. However, with my cash for gold reviews, consumers can learn how not to fall victim to a cash for gold scam.

After collecting all of the gold that you would like to sell, you will want to find out what the current market price is for gold. These rates vary day to day and week to week, so it is important to keep track of it. You will want to be offered a fair price for your gold when you go to sell it.

You should also be aware of the types of gold jewelry that you have in your possession. Each karat of gold should be offered a different value. For example, a 24 karat gold piece of jewelry will be given the most amount of money, while a 10 karat piece will bring in a lower amount. This is due to the fact that 24k gold is the purest form, while 10k is a lower form of purity.

A cash for gold scam, can be avoided by doing a little research on the company that you would like to use. You can start by visiting cash for gold reviews, consumer reporting sites, blogs and forums. All of these types of websites can provide you with the necessary information that you need in order to make a well-informed decision.

You can also visit the Better Business Bureau website for a more extensive background search. At this site, you can find out about complaints that a company may have. You will need to be careful of companies that have unresolved complaints and a bad history. You should focus your search on companies that are accredited by the BBB, because that signifies a high level of honesty.

Another way you can decide on a company is by its satisfaction guarantee. These are very important, as they afford you the opportunity to request a refund in the event that you are not satisfied.

Selling your gold jewelry is a great way to get extra cash. By following all of the tips in my cash for gold reviews, you will not fall victim to a cash for gold scam.

Posted by Mike Gupton at 2:49 PM 0 Comments

Sunday, February 06, 2011

How to Sell Unwanted Gold

You can learn how to sell unwanted gold in no time at KMG Gold Recycling. When you acquire the right tips in how to sell unwanted gold, you stand to earn a lot of money.

Unwanted gold can come in the form of a necklace, ring, earring, bracelet, brooch or coin. If you want to get top dollar for your items, it is imperative that you discover how to sell unwanted gold.
You will need to find a trustworthy gold buyer in order to be given a fair quote for your gold. Selecting the appropriate buyer takes a bit of research and time, but you will thank yourself in the long run.

You can find a gold buyer through a major search engine or online yellow pages. Once you have made a choice, you can find additional information on various blogs, forums and review sites. These websites have information on customer experiences, feedback, comments and ratings.

Another important place to go is the Better Business Bureau (BBB). This agency has been around since the early 1900?s and has been keeping tabs on thousands of businesses. You can find out if a gold buyer has unresolved complaints and if they have a positive track record. An accredited business such as BBB award winning KMG Gold Recycling holds a prestigious status with the BBB, as they have passed their stringent tests of honesty and integrity.

Although there are many different kinds of buyers, you will want to choose an online gold buyer. This type of buyer can provide high-priced quotes and a quick turnaround time. Physical stores such as a pawn shop or jewelry store only offer low prices and take too much of your time. With an online buyer, you simply mail in their prepaid envelope.

Unwanted gold can give you the extra cash that you need. Learning how to sell unwanted gold will help you achieve your goals.

Posted by Mike Gupton at 2:46 PM 0 Comments

Sunday, February 06, 2011

Money for Gold Jewelry

There are many ways to get money for gold jewelry. However, in order to get the most money for gold jewelry, you should learn about the gold industry and the selling process. An excellent resource is KMG Gold Recycling's website.

The price of gold has risen to record highs, which has prompted many gold buyers and sellers to get money for gold jewelry. The best price for your items can be achieved with industry information that includes the current price of gold, which the best gold buyers are, and where to find these buyers.

The market price of gold is important because you want to make sure that you are receiving, not only the most money from the buyer, but also the correct gold price. You can find the price of gold by visiting the websites of companies that buy and sell commodities, such as gold, as they will display and update the price as it changes every minute or so.

It is important to note that you should only deal with a reputable gold buyer. A gold buyer is considered reputable if they offer a satisfaction guarantee, are members of the Better Business Bureau (BBB), and have a good reputation with previous customers. A guarantee is important because it means the company will do whatever it takes to make you happy.

Gold buyers that are part of the BBB have met strict guidelines and are constantly reviewed by the group to make sure they are operating in an ethical and honest manner such as KMG Gold who won a BBB Torch Award for marketplace excellence, honesty, truth in advertizing, and ethics. Individuals can also review the company.

Posted by Mike Gupton at 2:44 PM 0 Comments

Sunday, February 06, 2011

Selling a Gold Necklace

Selling a necklace can let you gain access to the money that you need to pay an unexpected bill, save for a rainy day or to have extra pocket money. The record high prices of gold that has been experienced in recent times makes selling a gold necklace a great choice.

The most important thing a person should do when selling a necklace is to use a reputable gold buyer such as KMG Gold Recycling. When you use a buyer that is trustworthy and honest, you are more likely to be treated fairly and to get the quote that you deserve. A buyer that has a satisfaction guarantee is ideal because they are willing to resolve a situation that has resulted in an unhappy customer. This is a very important feature that allows you to have a smooth selling experience.

You should also visit the website of the Better Business Bureau, as they have pertinent information on millions of companies. You will be able to ascertain if a company has a bad history, poor rating with the agency and unresolved complaints. You should select a buyer that has an accredited status because it reflects their adherence to strict guidelines involving honest advertising, good faith effort to resolve complaints, trustworthiness and integrity. KMG Gold buyers won a BBB Torch Award for marketplace excellence, ethics, truth in advertizing and honesty.

There are different types of buyers that include online purchasers, jewelry stores and pawn shops. The most convenient and effective buyer is an online company. They are able to provide you with a complimentary mailing kit that allows you to send in your necklace in no time at all. This means that you will get a fast quote and fast money.

Many people are finding themselves battling a large pile of bills. Millions of people are taking advantage of the high price of gold. Selling a necklace provides you with the extra cash that you need.

Posted by Mike Gupton at 2:41 PM 0 Comments

Sunday, February 06, 2011

Where to Sell Gold Coins


Many people are unsure about where to sell gold coins. Those that know where to sell gold coins, recognize that a reputable business provides the most cash.

Selling your gold coins can actually be a pleasant experience at www.kmggold.ca. The most important thing to do, is to find legitimate companies to do business with. You can accomplish this by asking family and friends and visiting websites with reviews on gold buying businesses. All of these methods will help you narrow your list of possibilities to those that will provide you with respectable quotes.

You can either go to physical stores or you can mail your coins to online businesses. Mailing your coins to an online business will provide you with a quick turnaround time and top dollar quotes. Physical stores, such as a pawn shop, require a lot of your time given that you have to drive around from location to location. They also provide less money for your gold.

When you sell your gold, you will find that there is a market rate that buyers use for the valuation process. The price of gold fluctuates daily. You can find the current price at various website on the Internet. Knowing the accurate price of gold will give you a ballpark figure of what you should be offered.

You will want to visit the Better Business Bureau (BBB) website to check the history of the gold buyer that you plan to go with. The agency keeps detailed records on complaints and other pertinent information on various types of businesses. You can also find out if a company is accredited by the BBB, which means that they have high standards of honesty, integrity and trustworthiness. KMG Gold Recycling is listed with the BBB and has received zero complaints.

Knowing where to sell gold coins will help you get the maximum profit for your unwanted and unused gold coins.

Tags BBB  gold coins 
Posted by Mike Gupton at 2:37 PM 0 Comments

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
Posted by Mike Gupton at 12:00 AM 0 Comments

Saturday, February 05, 2011

Useful Information for a First Time Gold Buyer

Even with the huge increase in price over the last few years and some media attention gold is definitely not a mainstream investment vehicle. It still remains somewhat elusive and for the would- be buyer there is always the question of how does one go about gold safely and cheaply. Here are some tips to help you on your way.

There are many different forms of gold that you can buy, it all depends on how much you want to invest. You have to remember that what you are investing in is the metal itself. So, in many ways it does not matter what kind of form it comes in, you just have to find the form that is convenient for you and fits your budget.

Buying Gold and Arranging Storage
For someone who wants to invest tens or hundreds of thousands or even millions of dollars in gold then taking physical possession of the gold can be problematic unless you have a good large safe, but even then you have the problem of it being stolen or broken into. The next best option is to buy it and arrange physical storage. There are a number of companies out there that will do this for you. You can arrange the purchases on line and they will do everything else for you. Using this method you are usually charged between 2% and 5% for your transactions and your gold is stored for you relatively inexpensively.

Buying Coins and Bullion
Gold often comes as semi numismatic coins. These are coins with a collectors value often hundreds and thousands of dollars above the value of the gold in the coin. Unless you specifically want to go into this market, know a lot about these types of coins, and are able to sell these coins to someone else, I would advise not buying these types of coins as a beginner. Other coins such as old Canadian Gold Coins and coins produced by national mints can be bought at coins shops and online for a relatively low premium. You can also buy small gold bars that are 1- 10 ounces.There really is no difference as long as the gold is pure.

Violent Price Swings
The gold market can undergo very violent price swings, dropping or rising as much as 10% in one day. This is because the gold market is relatively small so any significant purchases will be bound to have a dramatic impact on price. So do not be alarmed if you see these types of swings happening. By the same token do not try and trade this market, the best approach is to see gold for what it is - insurance and to hold it for the long term with this in mind.

For more information on becoming a gold buyer visit:
kmggold.ca
kmggold.com
Tags gold buyer  gold 
Posted by Mike Gupton at 12:00 AM 0 Comments

Saturday, February 05, 2011

Investing in Gold

As you well know the price of gold has skyrocketed in the last several months. At the time of this article gold prices are well over $1000.00 for one gold bullion. Gold coins are also going up in price matching the rate of the gold bullion. Not only has gold skyrocketed but the price of silver and copper have increased as well. Local media has covered many news stores featuring copper being stolen off of work sites.

Why has gold investment increased?

This element is resistant to other chemicals. Although it an be shaped easily it never looses its shiny luster. One of the draws to gold investing rather than stock investing is that gold lasts forever! It will always retain its value. Historically gold values have gone up when the economy gets worse. Gold is sort of insurance in case of a currency crisis.

People are always looking for something tangible to hold rather than intangible stocks. And now, with the economy in a crunch, gold is demand more that ever.
I know you have seen the commercials that entice you to trade in your gold for cash. The show Gold Rush on Discovery is also reaching popularity.
Now you know why the gold investment is even more popular. Here are some tips on how you can invest in gold. When buying gold there are several different ways you can do it. You can buy gold coins to bring home. You can do this by purchasing form collectors or dealer or auction houses. You can also buy gold over the stock exchange.

What to look or when buying gold coins

First look to see what type of gold coin it is. Also take in consideration size or weight of the coin. You want to be aware of the finesss of the gold. Not all gold coins are pure gold. Sometimes other metals are mixed in to make the coin more durable. Gold coins are typically 917 parts gold per 1000. Of course you would want to consider price. Most gold is bought at spot price, the price you pay at time of purchase. Usually this price is a little higher due to it including taxes and other fees.

When looking at purchasing bullion bars most individuals purchase 10 mg to 110mg bars. Bullion bars can be bought in larger sizes depending upon how big your wallet is!

You can hold gold through escrow meaning you can hold the rights to it without holding it in your possession. There are some sites online that allow you to purchase gold like this. Exchange traded funds is along the same lines as escrow. When you purchase gold this way you get a certificate stating you have hold over gold stored in a bank.

Advice on Buying Gold

When looking around for advice on how to buy gold, I came across an obvious piece of information. Buy in the cheapest form. What does this mean? Usually this means buying gold bars. Gold bars come in 12.5 kilo bars. This option is mostly for the larger investor. The biggest downfall of purchasing gold bars it that the bars cannot be split!

You can also purchase gold in two types of coins, Krugergands and Gold Sovereigns. Gold Sovereign coins are more historically oriented therefore costing more and Krugergands are a cheaper way to purchase gold. Other advice includes buying within your means and buy when gold is at it's cheapest. Also take into consideration percentage premium. That is consider the percentage of gold in the content and the selling price.
Where can you buy gold on line

Be sure to not be taken in by phony claims. A while back there was a company advertising in a clever way to purchase their gold. They put out an article about how thousands of people were getting a free safe with their purchase of 300 dollars worth of gold coins. The article complete with picture was really an advertisement. Many people mistook it for a sincere article and fell for it. They did receive their gold coins, but they were gold plated coins! The company had the name Federal Reserve in it, however it was misleading too.
The Gold Standard

On CNN Money.com Congressman Ron Paul was interviewed concerning the Gold Standard. Ron Paul, a Congressman from Texas is slated to oversee the Federal Reserve. He believes paper money is going to be a thing of the past. He states "People will start using gold as money, shift some of their paper assets into gold. Purchasing power of gold goes up and it will go up in all currencies, even though there may be minor fluctuations where the yen may do better than the euro – that sort of thing." He believes people have lost their confidence in the paper dollar and they want something of real value. Gold has been used as currency for over 6000 years, why not now?

Now you have some idea about how gold is bought and why it has become so popular. If you believe gold is an investment for you check out the links below to check on gold prices or to sell your gold with KMG.

kmggold.ca
kmggold.com
Posted by Mike Gupton at 12:00 AM 0 Comments

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?
Posted by Mike Gupton at 3:23 PM 0 Comments

Friday, February 04, 2011

Two Huge No-No’s for Gold Investors


www.kmggold.com

The recent Resource Investment Conference in Vancouver may have set a new attendance record. So many company booths filled the display area that they overflowed onto the confines of the massive Vancouver Convention Centre West. I was asked to speak in place of Kitco’s Jon Nadler, who was absent from the conference. My topic was entitled The Precious Metal’s BIG Money Train is Leaving the Station…Are You Ready? The thrust of my talk was not whether a major new leg up is imminent, or even a mania phase like the dot-com bubble of the late 1990s. The more immediate concern is that anyone who intends to ride what many of us have long believed will become the Mother of All Bull Markets had better establish and hold onto a core, non-trading position, and sooner rather than later. These holdings should be kept in the portfolio until the owner makes a subjective decision that the precious metals bull is either over or on its last legs.

Trying to play top-caller, going 100% into cash before a “reaction,” then attempting to get “all-in” again before prices blast off, is a sure-fire way to get knocked off the precious metals bull, landing on one’s back, and most likely staying there for the duration. Granted, there is nothing wrong with trading some holdings into market strength and then looking to buy back on a reaction. Doing so is part art and part science – and, yes, it’s not always possible to get back in at a lower price. However, the greatest traders out there – the iconic Jesse Livermore, the late great Sir John Templeton, legendary goldmeister Jim Sinclair and his father, Bert Seligman – all sought to lower their cost basis by carefully selling certain rallies and buying certain declines. In Edwin Lefevre’s classic book, Reminiscences of a Stock Operator, Jesse Livermore noted that “Men who can both be right and sit tight are uncommon…” And later, "Don’t try to sell and buy back (core positions) on reactions in a bull market."

What Losers Do…

There are two things no one can afford to experience in a bull market: the complete loss of one’s capital, or the loss of one’s core position; for to do so is the financial kiss of death. Stewart Thomson eloquently states the rationale thus: “Only losers try to trade their way through a bull market with core positions. They end up at the end of the bull with nothing. Winners grip core positions tighter in corrections and add to positions.”

Lose your capital and you won’t have the monetary means to play the game. Lose your position while you watch prices rocket up and away from where you “called the top,” and you will almost certainly have lost the psychological capital necessary to get back into the game – probably for the rest of the bull market. There’s a saying in mining company circles about being present in order to take part in a business decision: “If you’re out of the room, you’re out of the deal.” So, if you want to stay “in the room” you had better be diligent about holding onto your core positions as long as you can.


Posted by Mike Gupton at 3:17 PM 0 Comments

Friday, February 04, 2011

A Look Back - Bad Advice About Gold


This article was first published in 2007. KMG Gold Recycling

 
by Adrian Ash - Bullion Vault
Published : February 24th, 2007
 

 

 

 

 

"...It's clear Bernanke's been dealt a bad hand by the Maestro. But will the gold market fold, raise, or call his bluff...?"

GOLD'S bull market continues, the noisy setbacks of "hot money" aside.

And as the price keeps on rising, so more and more private investors - looking to put their money to work after 6 years watching gold outperform stocks and bonds - are joining the search for information and advice on the metal.

But plain facts about gold are just as hard to come by as they are when you're trading equities or bonds. Falling for the No.1 gold myth, for instance, would have cost you 14 cents in the Dollar at today's prices.

It signaled "sell" back in October last year - and it signaled "sell" again on Tuesday this week, just before gold shot 3.5% higher in one session to reach levels last seen at the quarter-century peaks of May 2006.

"Gold's bull market is all about oil"

Listen to any pundit or metals analyst talking about the price of gold today, and chances are they'll tell you to watch oil. The price of crude, in fact, has become crucial to the bull market in gold - or so you might think.

"We need oil to break and hold above $60 for gold to rise further," agree the traders and dealers interviewed by Reuters and Bloomberg each day. Yet by mid-February, oil had failed to hold above $60 per barrel. Gold, on the other hand, stood nearly 10% higher from when oil's bull market broke down last fall.

 


 

What link there is failed to hold firm even during the "commodity bull" that saw hedge funds pile into both oil and gold over the last half-decade or so. Crude oil first turned higher in 1999; gold didn't get started until 2001. Oil's major leg up began in 2002 and peaked in mid-2006; gold's uptrend remains rock-solid today.

More importantly for active gold traders, short-term fluctuations in the gold price have next-to-nothing to do with movements in oil. From 1983 to 2006, the average correlation between their weekly price changes was a mere 0.10. Yes, the connexion improves if you look at the three years ending Dec. '06. It rises to 0.33. But the correlation would be nearer to 1.00 if gold really was "all about oil".

Gold doesn't rely on base metals, either

Compare gold with base metals, and it's the same story. Even though the correlation of gold with copper, zinc, nickel, aluminum and the rest has been nearly twice as great since the early '80s as gold's link with oil, it remains low - below 0.2 on average. What's more, both the oil and base-metal correlations have varied massively over time. Going from 2006 into '07 they ranged well above the historic norm. But the correlation still says other factors are more important than oil.

With oil struggling this month as gold moves higher, the long-run correlation of just 0.10 - suggesting a causal link of only 1% according to the principles of statistical analysis - could be making a comeback. Pundits who tell you otherwise, claiming that gold's all about oil, make the classic mistake of confusing recent events for a law of nature.

It's not just recent history that creates misinformation in the gold market, however. The major newswires and leading newspapers cite gold as an "inflation hedge" every time they mention the metal.

"Gold's allure as a hedge against inflation grew after [the] big rise in January consumer prices in the United States," reported Reuters earlier this week. And it's easy to see why. For along with bad German wine and the Bay City Rollers, the 1970s cursed the industrialized world with soaring inflation in the cost of living.

Gold's stellar run up to $850 per ounce came that same decade, ending with the all-time high hit in January 1980. Therefore gold must deliver its strongest returns when the cost of living is shooting higher. Right?

Wrong. "Those that think gold always acts as an inflation hedge are simply mistaken," as Mike Shedlock of Global Economic Trend Analysis puts it. Just look at the last quarter century.

How gold dropped 15% of its value over 25 years

Consumer prices in the United States, even on the US government's own data, have doubled since 1982. Gold simply failed to keep pace. In fact, it's dropped 15% of its purchasing power over that time. At its lowest point, back in 2001, the loss of purchasing power for US investors reached over 75%.

How to square this fact with gold's huge returns in the '70s? Perhaps gold only responds to rapid inflation, you might think - the nasty kind we got three decades ago, rather than the "mild" case our money has suffered since then.

But you'd be wrong again. Between 1980 and '81, US inflation ate 17 cents of the Dollar's purchasing power. The gold price dropped 40% over the same period. And look further back - even to when physical gold stored in government vaults helped support the Dollar, just as it did all other major currencies - and you'll find that gold has always made a poor hedge against rising prices.

In the mid-70s, Professor Roy Jastram of the University of California at Berkeley found that gold had failed to keep pace with the cost of living during seven inflationary periods in Britain. His data ran across more than three centuries!

In the United States, Jastram identified six inflationary periods between 1808 and 1976. They saw the purchasing power of gold fall by more than one fifth on average. Only the final period in Jastram's study - beginning in 1951 - saw the metal gain value. It continued to gain purchasing power right up to that infamous top of $850. But from then on, it was downhill all the way until spring 2001.

What changed at the start of the 1980s? In two words, Paul Volcker. The key thing to watch isn't the rate of inflation, not by itself. You need to watch the gap between Fed interest rates and inflation instead.

 


 

Real interest rates paid on US Dollar accounts averaged just 0.01% between Jan.1970 and Dec.1979. That lack of decent returns made gold attractive on a relative basis. In truth, it only made gold less burdensome.

Gold pays no interest, remember. Indeed, gold costs you to hold it, either by rolling forward futures contracts to maintain a paper position, or through storage and insurance fees on physical bullion. Yes, these costs can be vanishingly small today, thanks to ground-breaking gold investment services such as BullionVault.com for instance. But gold still fails to pay investors any kind of dividend. And the gap between inflation and interest rates has to reach absurd levels to make gold worth holding.

That's just what happened in the '70s. It's what's happened in the 21st century so far as well. The real rate of interest, the gap between CPI inflation and the Fed's official interest rate, has averaged just 0.47% since the start of 2000. Real rates during the '90s stood almost four times as high - and gold fell by one third. Measured against CPI inflation, in fact, its purchasing power dropped by one half.

So what to make of the upturn in real Dollar rates starting two years ago? By the end of 2006, US rates adjusted for inflation had shot up to 4%. We last saw that level just before the Federal Reserve first unleashed the flood of liquidity and cheap money still drowning the world's financial markets today. So the jump in CPI inflation reported this week really did drive that $23 jump in gold prices too - but not because gold offers protection against higher consumer prices. Rather, the Labor Department's data set a challenge to the Bernanke Fed:

"Will you keep raising interest rates to defend the Dollar, pay a decent return to US savers, and crush the gold speculators like Paul Volcker did at the start of the '80s? Or will you freeze - perhaps even cut real rates - to prop up the housing market, bond prices and the Dow like Alan Greenspan would urge?"

It's clear that Bernanke's been dealt a bad hand by the Maestro. But will the gold market now fold, raise, or call his bluff?

 

 

 

By : Adrian Ash

Posted by Mike Gupton at 2:39 PM 0 Comments

Wednesday, February 02, 2011

Rare Metals

Whats Rare Earth?

Rare Earth refer's to a series of metallic elements that while plentiful, are difficult to find in commercially viable quantities. Some of these elements include; Scandium, Yttrium, Samarium, Europium, Thulium, Ytterbium, Lutetium, ect

To give you an idea of how little of some of these metals are extracted, less than 22 pounds of Scandium as a metal is produced annually - globally. Compare that to gold at 2,260 tonnes in 2008 and even diamond production, which is around 26 tons a year.

The extraction of these metals not only requires a lot of ore, but also involves toxic acids that are particularly harsh on the environment. Additionally, some of these rare earth metals are commonly found along with radioactive materials such as uranium.

Rare earth metals are used in many electronic and electrical devices - even some products that have a relatively short life-span, such as plasma TV's.

There's also an unfortunate "green" connection as these metals are often used in electric motors, low energy light bulbs, solar panels and wind turbines. While very small quantities are used in these products and a quality solar panel has a life-span of 25 years or more, it all adds up; particularly with the renewable energy revolution starting to really kick in.

For more information please visit www.kmggold.com

Posted by Mike Gupton at 3:41 PM 0 Comments

Wednesday, February 02, 2011

Gold Testing Kits

What you should get in your Gold Test Kit

Gold acids to test 10K, 14K, 18K, and 22K 
Testing stone
Average Cost: $50

Please note: Acid testers come in sets of bottles. Each bottle contains a different mixture of acid and each mixture contains a chemical indicator that tells you the standard (purity) of the gold. They are designed to measure the purity of the gold to within 10% and with practice results to within 5% are attainable.


1. Start testing with a piece of solid gold jewelry that is already marked, and that is guaranteed to be the karat weight as marked. Rub an area from the back or edge of the test piece along the stone until it leaves a distinguishable line, but be careful. Real gold is soft and can easily be damaged, so just rub firmly enough to leave a visible mark on the stone.

2 .Put one drop of acid on the end of the mark. If the mark disappears immediately it indicates the jewelry is less than 10K gold. Selling gold jewelry that is less than 10K will not bring significant returns. Blot the acid testing stone with a paper towel carefully to check to see if the entire gold mark under the acid has completely disappeared.

3 .If some of the mark remains after testing with 10K acid, it indicates that the gold jewelry item being tested is at least 10K solid gold and possibly a higher karat.

4. Continue to test by placing one drop of 14K acid on another section of the original mark. If the 14K dissolves the gold mark leaving nothing, the piece is at least 10K real gold and less than 14K. If the 14K acid didn’t remove the gold mark on the testing stone, place a drop of 18K gold acid on the line in another location where it is clearly visible to the naked eye. Again, if the mark disappears the item is less than 18K real gold and at least 14K. If 22K acid is available, do the same test as above if the mark still remains after testing with the 18K acid.

5. Once the proper gold karat weight can be tested with acid and confirmed, the jewelry item can be weighed on a scale measuring grams and the actual gold value can be calculated for gold trading or buying gold jewelry. If the item being tested has precious stones it’s best to have a proper appraisal from a qualified jeweler to discern the value. After learning the value of any piece, selling gold jewelry to make money will be less of a mystery and something most anyone can do.

Tips

Gold is not magnetic so all jewellery should be skimmed with a strong magnet and discarded if magnetic.

Gold is also very soft and high carat is slightly softer than low carat. 

Fine gold will not lose their lustre, lower carat gold will become dark, with 9carat turning almost black - they can of course be returned to their original shine by polishing.

For more information please visit www.kmggold.com

Posted by Mike Gupton at 3:25 PM 0 Comments

Wednesday, February 02, 2011

History of the Gold Certificate

History

The gold certificate is actually a certificate of ownership that entitles a person to hold gold of that value without actually possessing the gold. It is very interesting and important from the point of view of investments as well as important historically.

In 1964, it was actually illegal to have a gold certificate in possession. Since 1933, the gold certificates have not been in circulation and stopped being issued by the government of the United States. One of the many reasons for this was that the U.S. was taken off the gold standard and thus an air of fear among the public that the certificates would be made obscure and would hence possess no value.

Gold Certificates are worth several hundred dollars today.

Interesting Facts

1865: The back had an abstract design and an eagle was on the front.

1870-75: A portrait on the front appeared, replacing the eagle. The back remained the same.

1888: Same as the 1875 certificates. Only the back went blank.
The above three were known as the depositor variants. The bearer certificate variants were even more interesting.

1882: offset portrait and the same abstract design on the back persisted.

1905 – 1913: Bore resemblance to the modern currency notes in circulation and for the first time, the great seal of the United States was printed on the back.

1922: Same as above but designer elements were similar to the 1882 variants.

1928: Green back was first used.

1934: the words "in gold coin" were replaced by "As authorized by the law".
And this certificate was largely used to settle gold balances.

For more information visit www.kmggold.com



Posted by Mike Gupton at 3:08 PM 0 Comments

Wednesday, February 02, 2011

Jewelers Loupe

What is a Loupe?

A Jeweler’s loupe is a magnifying glass used by jewelers to assess the quality of jewelry, watch gemstones and mechanisms. Loupes help find the impurities, imperfections and flaws of jewelry very easily. This needs to be done In order to establish the real value of gold, diamond or other expensive items and to determine that an item is original or fake.


Where did Loupe come from?



There are two different stories about the word “Loupe” that tell us that the word loupe is not certain.

Some people  believe that its actually a French word that originally means “flawed stone”. Others believe that Loupe is actually a Dutch word that is Lupen which actually means “to peer”. These stories make us clear some facts about history about the word Loupe but the most important thing is that no matter what meaning this word has the basic aim is to check the purity of jewelry.


How to use a Jeweller's Loupe?


1. You want to purchase a jeweler's loupe that has about a 20mm lenses (may vary between 18mm to 25mm) You also want one that has been corrected for aplanatic and achromatic aberrations to avoid seeing fuzzy or out of focus images.

2. Establish your seeing eye. Hold one finger up and place it about 2 feet before you. Notice what is behind the finger when you look beyond the finger with both eyes. Close one eye at a time while looking at your finger. The eye that places your finger in the same place in relation to the background is your seeing eye.

3. Find a place with as much light as possible. Sunlight is more preferable.

4. Place a clean towel on the surface you plan to use. If you are holding a gem such as a diamond and it drops, you want to give it a soft landing spot.

5. Open the loupe until the loupe is straight. This position is the most comfortable one for loupe use.

6. Pick up the loupe with the hand on the same side as your seeing eye.

7. Grasp the loupe between your thumb and middle finger. Place your index finger through the open slot at the bottom of the loupe if it fits there.

8. Place the loupe in front of your eye. Hold it about 1 or 2 inches away from your eye. If the object is too far away from your eye, the item will appear upside down so move the loupe closer to your eye.

9. Steady the loupe in your hand by resting one of your fingers on your cheek.

10. Position the item holding the object so you can steady it by placing it against the other hand.
Posted by Mike Gupton at 2:22 PM 0 Comments

Wednesday, February 02, 2011

Silver Certificates

A silver certificate is a bill formerly issued as legal tender by the U.S. government in representation of deposited silver bullion and were used for a form of paper currency backed by silver some time ago. Each certificate was matched to the same amount of value in silver. An example being; A fifty dollar bill therefore was backed by 50 dollar worth of silver.

In 1928 the US Treasury decided to reduce the size of the currency to speed up transactions and cut costs.

Silver certificates were continued in various forms and denominations until they were abolished by Congress on June 4, 1963 and all redemption in silver ceased some five years later on June 24, 1968.

There are many silver certificates around as collectors items and the value and price of these depends very much on the condition. As they were used notes it is rare to find a note or certificate in good or mint condition. Most have some creases, folds and even discolor and bits missing sometimes.

Even so it is possible to acquire a silver certificate in good condition for a fare price and as time wears on and the rarity increases the values will only increase.

Although collecting silver certificates is a interesting hobby, it is more likely that collecting the actual silver coins will prove a better investment for the future.

For more information please visit www.kmggold.com

Posted by Mike Gupton at 1:46 PM 0 Comments

Wednesday, February 02, 2011

Gold Certificates

What is a Gold Certificate?

Gold certificates are very much like the world's first-ever paper bank notes.

Starting in the 17th century, gold certificates were issued by goldsmiths in London and Amsterdam to customers depositing gold bullion into their safe-keeping. These gold certificates then acted as proof of gold ownership. In time, the certificates were passed from hand to hand just like cash payments, without the hassle of having to move the gold bullion itself.

In the mid-19th century, the US Treasury began to issue gold certificates that could be exchanged for gold from its vaults. These gold certificates circulated as money until 1933, when the US government banned private gold ownership inside the United States.

Today, gold certificates continue to be issued by several German and Swiss banks, as well as by gold pool programs in Australia and the US. These certificates represent ownership of a certain quantity of gold bullion or gold coins.


Track & Value of a Gold Certificate

To verify that a gold certificate is backed by physical bullion, some of that value can be negated.


1. Verify that your certificate represents an allocated holding, an auditing system is the only way to truly track a gold certificate and its underlying value.

2. Locate the serial number on your certificate. The certificate of ownership accompanying that gold bar has an identical serial number printed on it; this serial number will allow you to match the certificate with a specific piece of gold.

3. Track the gold using the vault's auditing system. If you own a certificate for what's called allocated gold, you should be able to, at any time, either verify with a bank official or through an online system that a particular gold piece is in a vault and that the certificate is being held only by you.

For more information, please visit www.kmggold.com

Posted by Mike Gupton at 1:31 PM 0 Comments