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Thursday, January 02, 2014

Our New Year's Resolutions

We're so happy to be able to wish you a wonderful new year and to thank you for helping support KMG Gold and allowing us to grow into the thriving business that we've become known for.

We couldn't have done any of this without our loyal customers so we want to share how we plan on giving back to our community this year. We have a few things in the works for 2014 but as the year begins, we're lending our support to the Easter Seals and Society for Manitobans with Disabilities (SMD).

The SMD programs that are funded through Easter Seals Manitoba give people with disabilities the opportunity to further their education, build successful careers, develop their life skills, explore recreational activities and create connections with professionals and equipment that can improve their overall quality of life. The SMD also helps strengthen the abilities people already have, enabling them to develop new strengths so that they can truly live their lives to the fullest. KMG Gold proudly supports these mandates and is excited to partner up with such an important organization.

KMG Gold will be supporting the Attire to Inspire Fashion Show for 2014, becoming a sponsor for the second year in a row. We're so excited because this year we'll actually be attending the show too and we can't wait to see firsthand what they have in store.

But the thing we're most excited about participating in is the Easter Seals Drop Zone! If you aren't familiar with the Drop Zone event, you're in for a treat. An event that happens in several cities across Canada, individuals are invited to raise money for the Easter Seals and then rappel down the side of a large building. And since 2005, nearly 6,000 superheroes have raised more than $10 million for Canadians with disabilities.

Of course, we'll be sending our own Michael Gupton down the side of the building and we're still trying to decide which superhero he should dress up as. But as excited as we are to see him in action, we're even more excited about how many lives will be changed as a result of this event.

If you'd like to donate to this awesome cause, you can do so online here and you'll even receive a tax receipt for your donation. Or you can give us a call at 1-877-468-2220 if you'd rather donate that way!

Don't forget to stay tuned for fundraising news, events and updates from us!


Posted by Mike Gupton at 11:00 AM 0 Comments

Wednesday, December 04, 2013

Mike's Movember Wrap Up

KMG Gold's MIchael Gupton supports MovemberAs November came to a close, so did this year's Movember campaign. If you've been following our blog posts or seeing our recent Facebook updates, you'll recall that KMG Gold President and CEO Michael Gupton participated for the first time this year. Motivated by a KMG Gold Mike Gupton's moustache, last daydesire to help raise money for men's health, he decided to do a twist on the typical moustache and grow his into a handlebar!

We think he did pretty well, and so did his moustache! Mike raised over $185 to support Movember which came from donations from his family, friends and even a few KMG Gold customers. He said he had a lot of fun doing it so we're looking forward to round two in November 2014!

Although Movember is officially over, you can still donate to support the cause. You can donate via Mike's Movember page or through the Movember homepage. Donating to such a great cause is fashionable any time of year, whether or not a cool moustache is involved!

Posted by Mike Gupton at 2:07 PM 0 Comments

Thursday, November 10, 2011

Gold Moves Higher on Uncertainty

The price of gold edged up this morning but worries about the restructuring in Greece and a deepening debt crisis in Italy weighed on commodities. The dollar extended losses against the euro after better than expected job data from the United States,
Supporting gold, the euro briefly extended gains versus the dollar after U.S. data showed new claims for unemployment benefits declined for a second straight week.
A weaker U.S. currency makes dollar-priced commodities such as precious metals more affordable for holders of other units.
Gains however were capped by worries about the deepening Euro debt crisis, which pushed investors to sell commodities, including precious metals, reducing the bullion safe haven allure.
Italy moved closer to a national unity government on Thursday, with outgoing Prime Minister Silvio Berlusconi reversing a call for early elections, as EU policymakers dithered over an accelerating debt crisis. Some fear that a deepening euro zone crisis will continue to weigh on gold.
Italy, now firmly at the heart of the euro zone crisis, paid a 6.087 percent yield, the most in 14 years, at a one-year debt auction on Thursday but placed the full planned amount of 5 billion euros.
Greek political leaders resumed their search for a deal on a new prime minister after one agreement collapsed.
Emphasising worries, the European Commission said the euro zone economic growth will slow sharply next year as weak confidence undermines investment and consumption and tighter fiscal policies reduce domestic demand.
Gold fundamentals however, remained supportive.
New York's SPDR Gold Trust, the biggest gold-backed ETF, said its holdings rose 0.24 percent on Wednesday from Tuesday, while that of the largest silver-backed ETF, New York's iShares Silver Trust gained 0.26 percent.
Silver rose 0.29 percent to $34.14 an ounce while platinum rose 0.25 percent to $1,627 an ounce and palladium rose 0.15 percent to $645.47 per ounce.
Posted by Caitlyn Diamond at 8:48 AM 0 Comments

Monday, November 07, 2011

Gold Climbs To Six Week High

Gold climbed to a six-week high in New York as concerns about Europe’s debt crisis spurred demand for the metal as a protection of wealth.

Italian Prime Minister Silvio Berlusconi’s allies pressured him to step aside after contagion from the region’s sovereign debt crisis pushed Italy’s borrowing costs to euro-era records. That overshadowed Greek Prime Minister George Papandreou’s agreement to step down, sending European equities lower.

Gold for December delivery gained as much as $25.20, or 1.4 percent, to $1,781.30 an ounce, the highest price since Sept. 22, and was at $1,777.70 by 8 a.m. on the Comex in New York. Immediate-delivery gold was 1.2 percent higher at $1,776.10 in London.

Bullion is in the 11th year of a bull market and futures reached a record $1,923.70 an ounce on Sept. 6 as investors sought to diversify away from equities and some currencies. The metal is up 25 percent this year.

Holdings in exchange-traded products backed by gold gained 3.1 metric tons to 2,284.6 tons on Nov. 4, the highest level since Aug. 23, data compiled by Bloomberg.

Silver for December delivery gained 1.5 percent to $34.605 an ounce in New York. Palladium for December delivery was 1.1 percent higher at $662.55 an ounce. Platinum for January delivery rose 0.8 percent to $1,642.90 an ounce.
Posted by Caitlyn Diamond at 9:13 AM 0 Comments

Saturday, November 05, 2011

Gold Posts Weekly Gain

Gold eased at the end of the week with a surge in the US dollar, but the precious metal still managed to post weekly gains. After Thursday’s rally on the announcement of the cancellation of the proposed referendum in Greece, the markets seem to calm.

Greek Prime Minister George Papandreou drew criticism during the week after announcing plans to hold a referendum to approve the latest bailout package for the debt-laden country.

The announcement pushed the euro lower as traders feared that the bailout would be rejected by Greek voters, forcing a default and potentially triggering a financial meltdown in Europe. Meanwhile, demand for the safe haven US dollar was high, while gold, which is seen as an alternative asset to the American currency, was in decline.

The markets breathed a sigh of relief on Thursday when Papandreou agreed to cancel plans to hold a referendum following emergency talks with German Chancellor Angela Merkel and her French counterpart Nicolas Sarkozy.

As a result the euro and gold surged, while demand for the US dollar faltered.
Posted by Caitlyn Diamond at 8:45 AM 0 Comments

Friday, November 04, 2011

Massive Gold Coin Returns To Canada

 A large gold coin which had displaced an Australian coin as the world's biggest, but recently lost the title, was on display this week in Canada's largest city.

The coin, measuring 50 centimeters across, took over two years to make from design to final product. When it was introduced in 2007 by the Royal Canadian Mint, it set a Guinness World Record.

But the Perth Mint reclaimed the record for the world's biggest bullion coin last week when it unveiled a 1,000-kilogram coin. It previously held the title with a 10kg coin until 2007, when the Canadian mint launched its 100kg coin.

Although it is now only the second biggest gold coin in the world, the Royal Canadian Mint's huge gold coin is still the purest, according to the mint, and it has traveled the world.

"It's been to the Middle East, it's been to China, it's been to Europe," said Royal Canadian Mint spokesperson Alex Reeves, noting that the coin has a face value of $1 million and the gold is 99.999% pure.

One side of the coin features a maple leaf design, while the head of Queen Elizabeth II is on the other side.
Posted by Caitlyn Diamond at 8:28 AM 0 Comments

Thursday, November 03, 2011

Gold Rises On European Fears

The price of gold rose again this morning, helped by a resurgent euro. The turmoil overseas has been hitting the financial markets due to political chaos in Greece as European leaders contemplated the country's exit from the euro zone.

Gold has been easing higher in the past week. With the threat of a potentially disastrous Greek financial collapse, gold’s safe-haven appeals to those who fear a liquidity crunch in case of a default.

Gold's rise off the earlier losses was echoed in other financial markets. Early losses in stocks and the euro turned to gains on hopes that Greece might ditch a plan to hold a referendum which will test its resolve to stay in the currency bloc.

France and Germany, angered at Greece's shock move to call for a referendum on its latest bailout plan, have issued statements to Prime Minister George Papandreou that Athens would not receive EU aid until it decides whether it wants to stay in the euro zone.

Spot gold was up 0.8 percent at $1,752.29 at 1222 GMT, off an intraday high of $1,758.63, from $1,737.70 on Wednesday. U.S. gold was up 1.3 percent at $1,752.70.

The prospect of a hard Greek default and euro exit hung over a meeting of G20 leaders beginning in Cannes on Thursday. Eyes are also on the European Central Bank, which will meet on Thursday and is expected to hold interest rates steady.

Posted by Caitlyn Diamond at 8:13 AM 0 Comments

Wednesday, November 02, 2011

New Gold Investment Product From The Mint

The Royal Canadian Mint is pleased to announce its initial public offering of Exchange Traded Receipts (ETRs) under the Mint's new Canadian Gold Reserves program. Each ETR provides evidence of ownership in physical gold bullion held in the custody of the Mint at its facilities in Ottawa, Ontario. The Canadian Gold Reserves program marks the expansion of the Mint's successful core bullion and refinery business.

"We believe that this new program will build on our reputation and continued success as a world-class custodian of precious metals," said Ian E. Bennett, President and CEO of the Royal Canadian Mint. "With the introduction of the Canadian Gold Reserves ETR program we hope that investors will see this as a convenient, efficient and secure method for investing in and owning physical gold."

Unlike other gold investment products, the purchaser of an ETR owns the actual gold rather than a unit or share in an entity that owns the gold. The net proceeds of the offering will be used to purchase gold on behalf of the initial purchasers of ETRs at the London pm fix price on the closing date of the offering (Closing Date).  Subject to certain restrictions, ETR holders will be entitled to redeem their ETRs for physical gold products in the form of 99.99 per cent pure gold bars or coins, or for cash based on the future gold price or market price of the ETRs.

Subject to market conditions, the initial offering of ETRs is targeting an issue size of approximately CAD$250 million. The issue price per ETR will be CAD$20.00 or the USD equivalent and the Per ETR Entitlement to Gold will be determined on the Closing Date and will be reduced daily by an annual service fee of 0.35 per cent.

Subject to the satisfaction of certain conditions, the ETRs will be listed on the Toronto Stock Exchange and commence trading on the Closing Date. ETRs will be listed in both Canadian and U.S. dollars and may be traded in either currency.

Through a competitive process, the Mint has selected a syndicate of investment dealers led by TD Securities Inc. and National Bank Financial Inc., and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., Canaccord Genuity Corp., Cormark Securities Inc., MGI Securities Inc. and Raymond James Ltd. to distribute the ETRs on a best efforts agency basis.

Closing is expected to occur in late November 2011. The offering is being made on a prospectus-exempt basis pursuant to the terms of an order of the Ontario Securities Commission dated August 30, 2011.

The ETRs have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States. This media release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Posted by Caitlyn Diamond at 8:23 AM 0 Comments

Tuesday, November 01, 2011

Bars Over Bling In India

The demand for gold fell in India during the peak festival season over the past one month as high inflation and tight household budgets dented consumer spending according to the World Gold Council. The council also said that sales of bars and coins maintained the same volume both in the organized sector--sold through banks and post office outlets--and the unorganized sector, such as jewelers.

The shift towards the purchase of more coins and bars, traditionally smaller in quantity than jewelry could be an indication that more consumers wanted to buy at least some of the precious metal as a long term investment.

Traditionally, gold sales in the world's largest consuming nation are strongest during this period as it is considered auspicious for purchases. This year, the festival season began in the first week of October and culminated with Diwali, the festival of lights, on Oct. 26. The largest purchases during this period usually happen on Guru Pushya Nakshatra, or the day of auspicious ventures, which fell on Oct. 20, and on Dhanteras, celebrated on Oct. 24.

"Overall, the market reported a reduction in demand compared to last year," the World Gold Council said in an issued statement.
The council didn't specify gold sales volume for the period, but is likely to give the detailed statistics in late November as well as its outlook for the year ahead.

"Large jewelers who we spoke to reported similar or slightly lower levels of sales than the previous year. The overall market though reported a fall in jewelry in volume terms," the council said.

The council said that buying sentiment was muted because of tighter household budgets, high inflation as well as expectation that gold prices could fall post the festival season if the Indian rupee strengthens against the U.S. dollar.
India imports nearly all its annual gold requirement and, therefore, local prices are heavily influenced by the currency exchange rate. The rupee has depreciated about 11% against the dollar since April and was quoting at 48.87 to the dollar Monday.
Posted by Caitlyn Diamond at 8:25 AM 0 Comments

Sunday, October 30, 2011

Acid Testing For Authenticity

Gold is one of the most popularly traded metals on an international basis and now more than ever, eyes are focused on the precious metal. While other investments have incurred losses due to the uncertainty and upheavals in the market, gold has remained fairly stable. Gold has become one of the most reliable investments available today. It has become the top choice of investors because of its ability to make money. People opt to invest in gold when they come to know and understand the unique facts about gold. But there are times when one finds that they have bought a fake metal when it is tested for authenticity.  This is a risk associated with gold as an investment and can lead to huge losses.

A gold buyer can check gold purity at home without much trouble. The acid test is the most popular of the several methods used for gold testing. A number of acids are used in this test but the most common are nitric acid and hydrochloric acid. When acid methodology is used, the sample will change colour to green if it contains copper and will not react at all if it’s pure gold.

A local chemical lab or a chemical supplier can be used to procure the ingredients to perform this test. In addition, people can also buy a dropper along with the acids to make their handling easier. The dropper is very useful during the testing because the acids are corrosive and hazardous in nature. For safety reasons, people should utilize protective clothing. In order to perform the test, people need to make a scratch on the gold sample which has to be tested.

Ten seconds should be given to allow the sample to react to the acids after they have been applied. The sample should be cleaned properly to remove the chemicals remains of the acids. When people have to do a retest, this should be done immediately. Otherwise, the leftover residue might create confusion and not give discernible results. The sample can be washed with water for proper cleaning.

Professionals who offer gold assay services to the public make use of this particular method for gold testing. Both, a gold buyer and refiner can use this acid testing method for checking their gold purchases. When people wish to test authenticity of gold which they are purchasing, it is better to use the services of a well reputed refiner or tester. Premixed acid kits are also available for people who wish to avoid handling acids. These kits are available on the internet and can be used by amateurs. When you apply it on your gold, you will discover how accurate the gold acid test can be.
Posted by Caitlyn Diamond at 11:10 PM 0 Comments

Friday, October 28, 2011

Gold Stocks Push TSX

Gold stocks pushed the Toronto stock market slightly higher Friday while commodity prices stepped back as relief over an agreement to deal with the European debt crisis faded.

The S&P/TSX composite index was 25.87 points higher to 12,491.31 while the TSX Venture Exchange was off 2.27 points to 1,612.53.

The Canadian dollar was down 0.52 of a cent to 100.36 cents US after closing above parity with the American currency Thursday for the first time since Sept. 20.

U.S. markets were also weak as the Dow Jones industrial index stepped back 18.61 points to 12,189.94. The Nasdaq composite index was down 8.8 points to 2,729.83 and the S&P 500 index lost 4.41 points to 1,280.18.

Global stock markets racked up solid advances Thursday after eurozone leaders unveiled a plan to cut Greece’s debt, increase the firepower of the continent’s bailout fund to €1 trillion euros and strengthen the region’s banks, partially so they can sustain deeper losses on Greek bonds.

The TSX jumped 279 points while the Dow industrials surged 339 points.

However, investors stepped back Friday after analysts raised questions about the lack of detail in the plan.

Confidence was further undermined after Italy saw its borrowing costs rise in a sale of €7.9 billion in sovereign debt. The interest rate demanded by investors to lend the Italian government 10-year money topped six per cent, surpassing the 5.86 per cent rates paid a month ago.

Italy has seen its borrowing costs rise under pressure from Europe’s sovereign debt crisis. The European Central bank for weeks has been buying Italian bonds to keep rates at manageable levels.

The gold sector was ahead 0.74 per cent while December gold was $5.70 lower to US$1,742 an ounce. Goldcorp Inc. improved by 95 cents to C$48.80 while Barrick Gold Corp. fell 99 cents to $49.60.
Posted by Caitlyn Diamond at 12:02 PM 0 Comments

Tuesday, October 25, 2011

Gold Set For A Nice Ride

The growing optimism over the ability of European to step in and address the overseas debt crisis has gold poised for a third consecutive daily rise.

European leaders are set to meet on Wednesday with plans in place for Greece's debt to be reduced, bail-out packages for the European banks, and the euro zone's EFSF rescue fund to be increased to provide partial insurance for the sovereign bond markets.

Uncertainty about just how close European Union leaders will come to solving the debt crisis kept many markets trading quietly and gold was no exception.

Spot gold was last up 0.4 percent on the day at $1,658.40 an ounce, having risen by 2.5 percent over the last three trading days, its best three-day performance in a month, although this month, it has underperformed most major markets.

Silver rose by 0.3 percent to $31.75 an ounce, on course for its third straight daily rise.

Options on U.S. silver futures expire on COMEX on Wednesday. Most open interest centers on put options -- which give the holder the right, but not the obligation to sell metal at a pre-determined price by that date -- at $32.00 an ounce and on call options -- which give the holder the right but not the obligation to buy metal -- at $31.00.

Platinum was up by 0.8 percent at $1,550.49 an ounce, also having risen for three days in a row, marking its largest three-day gain since mid-August.

Platinum has fallen by more than 12 percent this year, as concern has grown about the impact to car demand, particularly in Europe, from the euro zone debt crisis. Europe is home to the world's largest market for diesel-fueled vehicles, which require a higher loading of platinum in their catalytic converters.
Posted by Caitlyn Diamond at 8:25 AM 0 Comments

Monday, October 24, 2011

Gold Is Still The Bright Spot

Gold rose for a second day on concerns about the European debt crisis and monetary policy in the U.S. has increased the demand for the metal as a protection of wealth and safe haven investment.

European leaders have ruled out tapping the European Central Bank’s balance sheet to boost the region’s rescue fund and outlined plans to aid banks. Federal Reserve Vice Chairman Janet Yellen said on Oct. 21 that a third round of large-scale securities purchases may become warranted to boost the U.S. economy.

Gold for December delivery gained $21.60, or 1.3 percent, to $1,657.70 an ounce by 8 a.m. on the Comex in New York. Prices slipped 2.8 percent last week. Immediate-delivery gold was 0.9 percent higher at $1,657.13 in London.

Bullion is in the 11th year of a bull market and futures reached a record $1,923.70 an ounce on Sept. 6 as investors sought to diversify away from equities and some currencies. The metal is up 17 percent this year.

Crisis Summit
Europe’s 13th crisis-management summit in 21 months also explored how to strengthen the International Monetary Fund’s role. The leaders excluded a forced restructuring of Greek debt, sticking with the tactic of enticing bondholders to accept losses to help restore the country’s finances. Another summit will be held in two days.

Gold imports by India, the world’s largest bullion consumer, may decline by as much as 30 percent this month as higher prices weaken demand, Prithviraj Kothari, president of the Bombay Bullion Association, said in a recent interview from Mumbai. Imports may be 70 metric tons to 80 tons in October, compared with 100 tons a year earlier, he said.

Silver for December delivery rose 1.2 percent to $31.555 an ounce. Palladium for December delivery was up 1.9 percent at $629.95 an ounce. Platinum for January delivery gained 1.9 percent to $1,538.60 an ounce.
Posted by Caitlyn Diamond at 7:31 AM 0 Comments

Saturday, October 22, 2011

Weaker Dollar Pushes Gold Higher

A weaker dollar and the growing optimism over the debt crisis in Europe drew some investors into the market, the price of gold and the precious metals focus climbed. On Friday, gold rose for the first day this week.

Some investors buy gold on the philosophy that the metal holds its value better than most other assets during economic turmoil including the dollar. For years gold has been considered the safe haven currency. But some market participants are still wary of gold after a sell off last month but the overall history of gold has always been positive. They forecast a price of $1,800 per ounce by the year's end.

Gold futures for December delivery gained 1.4 per cent to settle at $1,636.10 an ounce at 1:46 p.m. on the Comex in New York, the biggest advance since Oct. 10. Still, the metal dropped 2.8 per cent this week, the first weekly loss in three.

Bullion slipped to $1,604.70 yesterday, the lowest since Oct. 5.

Bullion is in the 11th year of a bull market and futures reached a record $1,923.70 on Sept. 6 as investors sought to diversify away from equities and some currencies.
The metal has advanced 15 per cent this year.

Silver futures for December delivery rose 3 per cent to $31.193 an ounce, the biggest gain since Oct. 10. The metal has gained 3.7 per cent this month.

On the New York Mercantile Exchange, platinum futures for January delivery advanced 1.3 per cent to $1,509.20 an ounce, rising for the first time this week. Palladium futures for December delivery jumped 5.8 per cent to $618.25 an ounce, the biggest gain since Nov. 18.
Posted by Caitlyn Diamond at 7:26 AM 0 Comments

Friday, October 21, 2011

Decade Long Hot Streak

Most people in the industry know that gold has been on a decade-long hot streak, but it’s interesting to understand how great and sustained the increase has been.
The price of gold itself quintupled in value against the dollar from April 2001 to its all-time high in August of $1,913 per ounce. Even though prices have cooled to around $1,600 per ounce, gold is still priced much higher than 10 years ago, when gold prices stood at just $280 an ounce.

Unlike other precious metals like platinum, silver and copper, which have industrial uses, gold is used only for accumulation and investment. Gold has been criticized by billionaire investor Warren Buffett in the past: "You can fondle [gold], you can polish it, you can stare at it. But it isn't going to do anything... I'd bet on a good producing business to outperform something that doesn't do anything."

So why is gold considered so valuable?

The main reason: It's been recognized for centuries as a limited form of currency, able to withstand economic pressures that paper currency cannot.

Gold is typically used as a safe haven during times of inflation, weak currency, economic instability and uncertainty or war. While we don’t have high levels of inflation right now, it is a looming threat that many fear is unavoidable.
With that said, let's look at some of the main reasons why gold prices have been so high lately:

When the dollar is weak (as it has been for almost a decade), many investors trade their dollars for gold as it better preserves its intrinsic value. That's because it's a limited resource and a medium of exchange that can't be replicated or reprinted like paper money..

Because gold is valued in dollars, a declining dollar value actually means the price of gold goes up. For example, let's say for illustration purposes gold is worth $1 per ounce. If the dollar falls 10% in value, you'll need $1.10 to buy the same ounce of gold because your dollar has less purchasing power; thus gold would then be worth $1.10 per ounce.
Posted by Caitlyn Diamond at 10:12 AM 0 Comments

Thursday, October 20, 2011

Gold Scams

If you’re like us, you’re surprised these Cash-For-Gold and travelling roadshow scams and predators are still around considering the options available today. At KMG Gold, we're determined to educate the consumer so they can make the wisest decision possible.

Walking around the corner or even outside the city limits to sell gold coins and used jewelry for cash seems may seem appealing to some, it is definitely not the best idea. Businesses that provide cash for gold pay pennies for the true value of gold.

If individuals absolutely must sell their gold items for cash, they should be aware that the price of gold is only a small factor in the offer price provided by these operations. A person may make a profit on a piece of jewelry or a coin purchased ten years ago just because the item is worth more than what was paid for it. The buyer in turn makes their money by reselling the item to a refinery. You have the option of dealing directly with the refiner hence cutting out the middleman.

Jewelry stores significantly mark up the price of gold items so they can make a profit. When a piece of gold jewelry is traded for cash, the offer received is not based on what the item is worth in metal value, it is based on how the store will use the item. If the gold piece is sent off somewhere to be melted, the store will receive the value is based on the melt weight.

With the high price of gold, it pays to be informed about the industry and the different transactions available. The more you know, the money may end up in your pocket and not theirs.
Posted by Caitlyn Diamond at 7:34 AM 0 Comments

Thursday, October 20, 2011

Gold Down But Still A High

The spot gold price was down slightly in Europe as uncertainty over the euro-zone continues to weigh on investor sentiment ahead of an eagerly awaited summit in the region at the weekend. The spot price of gold was $1,651.40 a troy ounce, down 0.2% on the day.

"The price of gold has not really profited from the growing uncertainty," instead moving lower with assets seen as relatively risky and trading inversely to the dollar, seen as a refuge in times of uncertainty, Commerzbank said in a press release. 

The bank's analysts argued, though, that there "would certainly be grounds for a rise in price; it is becoming increasingly clear that a fast and comprehensive solution to the euro zone debt crisis will not be found at the EU summit this weekend."

They forecast a price of $1,800 per ounce by the year's end.

Dennis Gartman, an independent market consultant pointed to the metal's slow recovery from the late September lows as a sign that prices may continue to struggle. Since toppling 20% from an all-time high at $1,920.94 on Sept. 6 to a two-and-a-half month low at $1,533.23 on Sept. 26, the metal has only risen around 8%.

"Given the severity of the break in mid-September, if the gold market was still technically healthy it should have bounced sharply back, regaining that which it had lost rather swiftly," said Mr. Gartman.

"Taking twice or three times as long to regain only a third or so of what had been lost seemed at least awkward and at worst bearish," he added.

In other metals, spot silver was down 1.0% at $31.702 per ounce, spot platinum was flat at $1,527.20 and spot palladium fell 0.3% to $616.75 per ounce.
Posted by Caitlyn Diamond at 7:30 AM 0 Comments

Wednesday, October 19, 2011

Doing The Right Thing With The Wrong Motives Only Turns Out Bad

Fortunately, we live in a world where many people like to give with an open heart to help others in need. But unfortunately, that also means we've created a climate that's ripe for fake charity scams and scam artists to step in and take advantage of good intentions. They know they can tug at our heartstrings and walk away with the cash. But doing the right thing with the wrong motives will only turn out bad.

In the aftermath of a natural disaster or as we draw close to the holiday season, donating to a charity can sometimes bring much needed relief to victims in need. But not every charitable opportunity is on the up and up. Scammers preying on people's emotions and desire to help are so plentiful that its difficult to determine what is real and what isn't. And, this is the big one, what will benefit the one’s in need the most.

Too often, especially during this time of the year, we see businesses and organizations offering a portion or proceeds of their business if you use their service or buy their product. In some cases the “charitable” portion has been quietly hidden in the price.

We have to ask ourselves, would the organization give to the charity even if we didn’t participate? Is my business support really going to go towards making a difference? The whole concept of charitable giving is to, well give without some type of limitations placed.

Some businesses will raise their price to cover their so called gift, while others will lower their service level to make up the difference.
Sometimes you have to ask yourself if dealing with a particular organization that claims to give is really going to follow through with their promise or is it a just a way to grab more business. Don’t get drawn in by letting these operations pull on your heartstrings.

When it comes to selling precious metals, one has to take good hard look at the offer they receive from an organization. Is the amount being offered fair? Is that amount with a charitable donation the best use of the item you are considering?

As an example, if a gold ring is worth $100 in metal value and the organization is offering to purchase it for $30 plus expecting a $10 donation that leaves you with a total of $40 less the donation amount. You still walking away with only $30.

If another organization offers $70 for the same ring, you can make still more substantial donation and have more money in your pocket. 
In precious metals like gold, silver and platinum, If possible, get several quotes to ensure you are getting the best deal possible and the organization is true to their word.

There's always going to be unscrupulous people that try to get in the middle of the flow of money to charities.  Making sure it's an actual charity still doesn't always mean they are going to do great things, but at least make sure it's not an individual walking away with your money and your good intentions.
Posted by Caitlyn Diamond at 7:47 AM 0 Comments

Tuesday, October 18, 2011

Mint Unveils Five New Commemorative Coins

by Rachel Man

The Royal Canadian Mint has capped off the celebration of Parks Canada's centennial year by unveiling five new commemorative circulation coins which immortalize Canadians' pride in their legendary natural heritage and capture their trademark passion for the great outdoors. The commemorative circulation coins unveiled by

Canadian government officials and representatives of Parks Canada and the Mint, at a public ceremony hosted at the Canadian Museum of Civilization in Gatineau, Quebec. The collection includes: the 2011 Parks Canada Centennial one-dollar circulation coin; the 2011 Boreal Forest two-dollar circulation coin; and three new 25-cent circulation coins (half of which will be coloured) featuring the Orca, Peregrine Falcon and Wood Bison. The 2011 Parks Canada Centennial one-dollar coin will begin circulating in the coming weeks, followed by the remaining 2011 commemorative circulation coins later this year, and in early 2012.

"The Royal Canadian Mint is proud to help Canadians celebrate their country's legendary natural heritage with five new commemorative circulation coins honouring our great outdoors and a century of nature conservation by Parks Canada," said Ian E. Bennett, President and CEO of the Royal Canadian Mint. "I am very pleased that Canadians of all ages will be able to collect these coins as keepsakes of their fondest memories of our national parks, our forests, and our precious wildlife."

"This new series of commemorative circulation coins from the Royal Canadian Mint captures the essence of Canada's natural, historical and cultural treasures," said the Honourable Peter Kent, Canada's Environment Minister and Minister responsible for Parks Canada. "By creating the world's first national parks service, Canada has made nature conservation a prized Canadian value and inspired countries around the world to protect their unique wilderness regions."

The Mint will invite the public to trade their loose change to obtain the one-dollar Parks Canada centennial circulation coin at its boutiques in Ottawa, Winnipeg and Vancouver. Parks Canada will also offer it in a face value coin exchange at many national park and historic site locations across Canada. For more details, visit www.pc.gc.ca.
Posted by Caitlyn Diamond at 8:10 AM 0 Comments

Monday, October 17, 2011

Gold Steady In Early Trading

Gold was steady on overseas early Monday, after posting its biggest weekly gain since early September, as investors await concrete steps to tackle the euro zone debt crisis that could come out of a European Union summit this weekend.

Finance ministers and central bank governors of the Group of 20 major economies said they expected the Oct. 23 summit to "decisively address the current challenges through a comprehensive plan".

Many investors have stayed away from gold given market turbulence in the past few months caused by the deepening euro zone debt crisis, the fight over raising the US debt ceiling and fears that the global economy would plunge into another recession.

Spot gold edged up 0.2 per cent to $1,682.39 an ounce by 0320 GMT, after rising around 2.5 per cent in the previous week.

US gold inched up 0.1 per cent to $1,684.70. "Gold has not been showing its safe haven property in the past few weeks," said Ong Yi Ling, an analyst at Phillip Futures in Singapore.

"If we see risk assets continue to rally with concrete steps in Europe in place, gold will have the potential to break the $1,700 resistance."

Managed money in US gold futures and options raised their net long positions for the second time in the past 10 weeks in the week ended on Oct. 11, data from the US Commodity Futures Trading Commission showed.

Gold bar premiums in Hong Kong eased slightly from last week, as shipments ordered over the past week or so started to arrive.

The buying interest softened as prices have rebounded from the end of September when prices dipped well below $1,600.

"People are waiting for more information from Europe by the end of the month," said a Hong Kong-based dealer, "The shipments have released the pressure on supply, and the premium has fallen to about $2."

A second dealer reported premiums between $2.50 to $3.50 above spot prices, from $3 to $4 last week.

"On the Asian side, $1,650 is an attractive level for physical buyers," he said.
Posted by Caitlyn Diamond at 12:37 AM 0 Comments

Monday, October 17, 2011

Triple Demand In Hong Kong Opens New Market

Today, Hong Kong’s Chinese Gold & Silver Exchange Society, a century-old bullion house, started trading gold quoted in yuan, boosting the city’s status as an offshore hub for the currency.

The contract may generate as much as HK$6 billion ($770 million) in trades a day, exchange President Haywood Cheung said in an Oct. 14 interview. Daily bullion trading volume at the society, which has 171 active members, has jumped to HK$136 billion this year from last year’s HK$31 billion on appetite for gold as a haven from stock declines, he said.

“There’s triple demand for this yuan product,” said Cheung on Oct. 14. “Investors can enjoy the bull market in gold, the yuan’s appreciation and hedge gold denominated in other currencies against the yuan.”

Chinese Vice Premier Li Keqiang pledged the nation’s support for yuan business in Hong Kong two months ago. The city’s richest man, Li Ka-shing, sold Hong Kong’s first renminbi shares in April and the city’s bond sales in the currency have more than tripled this year. Yuan deposits in the former British colony rose 93 percent this year to a record 609 billion yuan ($96 billion) in August.

“It’s part of a larger trend in Hong Kong to increase investments priced in renminbi,” said Zhang Qiang, an analyst in Shanghai at Haitong Futures Co., China’s largest futures brokerage by registered capital. “It’s a good proposition for investors who want exposure to both gold and renminbi, however, this would depend largely on the two moving in tandem.”
Posted by Caitlyn Diamond at 12:25 AM 0 Comments

Saturday, October 15, 2011

Another Positive Outlook

A weekly gold survey by Bloomberg revealed that traders have turned the most positive on the yellow metal in three months. The latest results showed that 88% of respondents expect the price of gold to rise next week – the highest level since mid-July.

The positive sentiment was attributed to ongoing concerns over “Europe’s debt crisis, slowing growth and a bear market in equities,” according to Bloomberg.

Twenty-two of 25 people surveyed by Bloomberg expect the metal to rise next week, the highest proportion since mid-July. Prices rebounded 9.2 percent since reaching a two-month low at the end of September and investors are adding to their holdings in gold-backed exchange-traded products for the first time in a month, according to data compiled by Bloomberg. Traders also expect gains in copper, sugar, corn and soybeans, surveys show.

Gold slumped as much as 20 percent since reaching a record $1,923.70 an ounce on Sept. 6 as investors sold the metal to cover losses in other markets. As much as $4.2 trillion was erased from the value of global equities in the past month on mounting concern that economies will tip back into recession and European lawmakers will fail to prevent sovereign defaults. The last time traders and analysts were this bullish, bullion surged 21 percent to an all-time high within eight weeks.

"Like always, the big picture remains positive,” said Michael Gupton, founder and president of KMG Gold. “The supply-demand fundamentals are in place and everything still looks good.”

COMEX gold futures, per the December 2011 contract, pared their gains as morning trading progressed on Friday. The yellow metal hit an intra-day high of $1,685.50 earlier, but was up just $3.00 at $1,671.50 per ounce as of 10:55am ET
Posted by Caitlyn Diamond at 7:48 AM 0 Comments

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.
Posted by Caitlyn Diamond at 7:34 AM 0 Comments

Thursday, October 13, 2011

Demand Strong In Asia and India

Physical purchases in China and India, ahead of the key gold-buying wedding and festival season, have been in decent volumes, and are expected to continue to escalate, traders and analysts said.

As of this morning, spot gold fell slightly in Europe as the dollar came back in a rebound. According to the London Price Fix, the spot price of gold was $1,672.20 a troy ounce, down from bid levels of $1,674.50 late in New York on Wednesday.

Some insiders in the market feel the precious metal has found its comfort level around the key $1,700 per ounce region in recent days. The current price has been helped by renewed physical interest from Asia ahead of the festival season in India. 

Still, bullion also continues to trade with riskier assets, while it moves against the U.S. dollar. Gold is priced in dollars, so it tends to fall when the dollar gains, making it more expensive to purchase in other currencies.

The dollar gained against the euro Thursday as concerns lingered about Europe's debt problems and slowing global growth, despite recent signs of progress on tackling the European crisis.

Analysts said minutes of the Sept. 20-21 U.S. Federal Reserve Open Market Committee meeting, which revealed a long discussion of what steps could be taken to give the economy further support, should help to provide some support to prices.

In other metals, spot silver had fallen to $32.110 per ounce from about 432.60 late in New York. The market, which is thinly traded and therefore tends to record wider intraday moves than its sister metals, has been range-trading between $31.130 per ounce and $33.050 since Monday.

Meanwhile, spot platinum was at $1,534.25 per ounce, from $1,550 and spot palladium was at $601.25 per ounce, from $613.00.

One London-based trader said the platinum-group metals, which tend to trade in tandem with base metals because of their industrial applications, have held up well given a sharp slide across markets on the London Metal Exchange. In mid morning, LME three-month copper traded down 1.7% at $7,397 a metric ton.
Posted by Caitlyn Diamond at 7:25 AM 0 Comments

Wednesday, October 12, 2011

Gold Gains Again

Gold gained to a two-week high in New York as concern over Europe’s debt woes spurred demand for the metal as a protection of wealth.

Slovakia, the only country in the 17-nation euro area that hasn’t approved a planned reinforcement of the European Financial Stability Facility rescue fund, is headed for a second vote after failing to approve the package. Physical gold demand was “decent” yesterday, UBS AG said today in a report.

Gold for December delivery gained as much as $28.90, or 1.7 percent, to $1,689.90 an ounce, the highest price since Sept. 23, and was at $1,685 by 8:02 a.m. on the Comex in New York. Immediate-delivery gold was 1.3 percent higher at $1,684.03 in London.

The Diwali religious festival later this month in India, the biggest bullion buyer, and then the traditional wedding season, may increase demand.

Gold is in the 11th year of a bull market, the longest winning streak since at least 1920 in London. Futures reached a record $1,923.70 on Sept. 6 as investors sought to diversify away from equities and some currencies. The metal is up 19 percent this year.

No-Confidence Motion
The Slovakian rejection also triggered the fall of Prime Minister Iveta Radicova’s government, as the vote yesterday was tied with a no-confidence motion. European Union and International Monetary Fund officials indicated Greece will get an 8 billion-euro ($11 billion) loan next month, saying the nation has made “important progress.”

Silver for December delivery rose 2.6 percent to $32.83 an ounce. Palladium for December delivery was up 0.4 percent at $607 an ounce. Platinum for January delivery gained 2 percent to $1,549.90 an ounce.
Posted by Caitlyn Diamond at 7:51 AM 0 Comments

Tuesday, October 11, 2011

Investors Wait For Vote

Gold declined from a two-week high as investors awaited a vote in Slovakia to approve the European bailout fund.

Bullion for immediate delivery shed as much as 0.6 percent to $1,666.65 an ounce, after climbing to $1,684.63 an ounce, the highest level since Sept. 23. It traded at $1,668.25 at 4:10 p.m. in Singapore. The metal jumped 2.4 percent yesterday, the most since Sept. 8. Futures for December were little changed at $1,669.90 an ounce.

Slovakia is the only country in the 17-nation euro area that hasn’t ratified a planned reinforcement of the European Financial Stability Facility. The nation’s four-part coalition yesterday failed to resolve a dispute with rebel lawmakers, threatening to delay measures to stem Europe’s debt crisis.

U.S. stock futures declined and the euro was little changed after reaching a three-week high against the dollar yesterday as Slovakia’s parliament prepared to vote. German Chancellor Angela Merkel and French President Nicolas Sarkozy pledged at the weekend to deliver a plan by Nov. 3 to stem the debt crisis.

“We’re in the peak seasonal demand period now and that should also help buoy gold prices,” said Wang, who was ranked fifth in a Futures Daily and Securities Times poll of China gold analysts.

In India, the world’s largest consumer, the peak-demand period began in August with Eid, continues in October with Diwali, and is followed by the traditional wedding season. In China, the second-biggest buyer, demand typically picks up during the National Day holidays at the start of October through till the Lunar New Year in January.

Cash silver lost 0.9 percent to $31.8237 an ounce after climbing 1.5 percent to $32.565 an ounce. Spot platinum was little changed at $1,521.75 an ounce, while palladium dropped 0.9 percent to $610.13 an ounce.
Posted by Caitlyn Diamond at 8:36 AM 0 Comments

Saturday, October 08, 2011

Still A Golden Opportunity

Gold prices rose over $100 an ounce for the third-quarter settling the other day at $1,622.30. I’ll be honest, the 6.5% gain was by no means a cakewalk for anyone interested in the precious metals market and investors. Remember last month? Some of us still have the taste of that $1900 price from just last month.

The uncertainty in the markets has once again refueled the age long debate over the precious metal's position as a safe haven investment. I sometimes laugh when people bring up the doom and gloom of September 10% sell-off, claiming that as the sign the bubble burst. But I couldn’t disagree more.

Gold has been coveted since Biblical times and a few days of down prices will not affect its real value. Even the last quarter’s price increase was better than most equities out on the open market.

To be honest, I don’t believe there will be a huge rally either in the early days of this next quarter but I’m still hearing talk from some market insiders that we’ll see gold rebounding by year-end up to levels between $1,800 - $2,000 an ounce.

The demand driving the precious metal higher is not Western centric. We see gold activity influenced more by technical levels, whereby a consolidation move could be easily fueled into a major correction or crash. But what's easily forgotten is the strength in Asian demand. And of course there's China, a key demand player that has gone from net neutral to a positive demand effect of 300 tons per years according the World Gold Council. China accounted for 6% of total global demand in 2000 and rose to 18% in 2010.

According to the World Gold Council, central banks imported 198.4 tons of gold in the first half of 2011 versus two years ago, they were selling 450 tons a year.

Of course, any gold outlook that doesn't address currency would be remiss. As Europe continues to sort through it's debt crisis, we'll likely see more currency fluctuations. The more instability in the EU, the faster the flight to safety into the US dollar becomes.

The only real advice we can give is to watch the market price, educate yourself and check around at the prices different operations are offering. Right now there is a huge gap in what businesses are paying for used gold and it pays to do your homework.
Posted by Caitlyn Diamond at 4:33 PM 0 Comments

Friday, October 07, 2011

Shortage In Vietnam

On several days recently gold shops in Hanoi and Ho Chi Minh City have sold out their supplies of the precious metal, according to state media reports, as anxious consumers have rushed to protect themselves against Asia’s highest inflation rate.

Vietnam’s Communist government is keen to tackle inflation, restore confidence to the currency and stabilize the shaky banking sector. But it is also concerned that too much tightening may hit economic growth in this export-dependent country.

Officials must find a delicate balance between growth and inflation at a time when their room for maneuver has been severely limited by the global slowdown and their own policy mis-steps and about-turns, which have seriously undermined investor confidence.

Part of the problem is communication, or the lack thereof. Thursday’s move by the central bank to increase a key inter-bank lending rate from 14 per cent to 15 per cent should have been a reassuring signal of the government’s commitment to the stay the course when it comes to tight monetary policy.

But, as usual, the decision was published with minimal explanation to either bankers or the wider public, leaving many scratching their heads again as they tried to divine the motive behind the latest decree from Vietnam’s less-than-transparent rulers.
Posted by Caitlyn Diamond at 8:13 AM 0 Comments

Friday, October 07, 2011

Gold - Strong Alternative

Gold will probably stay strong due to a lack of alternative “safe havens” for investors operating in a slowing global economy, top performing commodity fund managers said in a recent interview.

"We consider the current weakness in gold as temporary and also the slump in commodity prices should come to an end soon," said Kurt Hug, an investment adviser for the Antares Precious Metals Fund.

The gold price has risen by nearly 17 percent so far this year, having hit a record $1,920.20 an ounce in early September before correcting sharply downwards. It was around $1,655 an ounce on Friday.

The fund came third in the Lipper Global commodity sector rankings in the third quarter of 2011 by keeping a high percentage of "strategic liquidity" in Swiss francs in anticipation of "a severe, but short-lived commodity shock."

Fund research and analysis organization Lipper, a Thomson Reuters company, covers more than 108,000 funds. The commodity segment covers funds investing in both commodities futures and natural resources-related equities.

Also staying defensive was Paula Bujia, manager of the $330 million Schroders Gold and Precious Metals Fund, which came fourth. Steering clear of precious metals other than gold, and investing in mid-cap gold miners rather than seniors and juniors, helped her outperform, she said.

Those who are not worried about this type of inflation are petrified of deflation. But even in such a scenario, gold is still a better bet than any currency, according to the gold bugs.

If consumer prices were to fall by some 4 or 5 per cent, stock markets could plummet and the global banking system would be placed under great stain.
The price of gold could also fall, but probably not nearly as much, thereby preserving wealth and purchasing power.

Yet, others argue that a better strategy in a deflationary scenario is to invest in fast-growing industries. “People are very persuaded by crash and doom scenarios, and gold offers a cure for it. But there are other, more positive solutions. Invest in electric cars, recycling, renewable energy – these sectors are growing, and they hold massive potential,” says Chris Eibl, co-founder and head of trading of Tiberius Asset Management.
Posted by Caitlyn Diamond at 8:11 AM 0 Comments

Thursday, October 06, 2011

Gold Price Firm

Gold firmed in Europe on Thursday as a strong recovery in equity markets cut selling of the precious metal to cover losses elsewhere, and as physical buyers took advantage of lower prices to stock up. Keep checking the KMG Gold websites for updates on the price.

Spot gold was up 0.7 percent at $1,651.49 an ounce at 0910 GMT, extending the previous session's 1 percent gains. Trade is expected to be choppy ahead of a policy meeting and press conference from the European Central Bank later.

Concerns over the outlook for the euro zone, as the bloc wrestles with its stubborn debt crisis, were a key factor pushing gold to a record $1,920.30 an ounce last month.

"It is extremely hard to see where the solution will come from," said VM Group analyst Carl Firman. "I think (the euro zone authorities) will be forced into a solution, but the volatility is based around whether it will be sufficient, or another stop-gap."

"We need to see some more definitive news, and in the meantime, we will have a hell of a lot of volatility across the markets," he said.

Gold saw its biggest decline in nearly three years last month as pressurized selling to cover heavy stock market losses pulled prices more than 20 percent from record highs and prompted a period of intense volatility.

European equities extended the previous day's strong gains on Thursday on hopes officials will succeed in their efforts to support Europe's financial sector, while data raised optimism the U.S. economy might avoid slipping into recession.

ECB President Jean-Claude Trichet is expected to prepare the ground for a pre-Christmas interest rate cut at his final policy meeting and offer banks further protection against the euro zone's worsening debt storm.

The euro rose against the dollar and German government bonds fell on optimism over Europe's efforts to aid the financial sector, ahead of the ECB meeting.

ECB President Jean-Claude Trichet is expected to prepare the ground for a pre-Christmas interest rate cut at his final policy meeting and offer banks further protection against the euro zone's worsening debt storm.
Posted by Caitlyn Diamond at 4:54 AM 0 Comments

Wednesday, October 05, 2011

Our New Addition - Rachel Man

We are pleased to announce a new addition to the KMG Gold family. Rachel Man joins KMG Gold as our new account manager based in the Winnipeg branch.

“I was amazed at the depth of knowledge she has, her attention to detail and her commitment to client service,” Michael Gupton, President of KMG Gold stated.  “Rachel is a perfect fit for us.”

Rachel brings over half a decade of experience in the precious metals industry as well as an in depth knowledge of the gold and silver coin community. She has a keen interest in gemology, coins and military artifacts.

Rachel’s greatest strength is the way she puts the customer first. She is devoted to educate and inform each and every client she comes in contact with.  
When it comes to precious metals recycling, KMG Gold Recycling is Canada’s trusted authority, providing a tradition of excellence, high quality and unparalleled service and Rachel is a welcome addition.

In October of 2010, the Manitoba Chapter of the BBB presented KMG Gold with their inaugural Torch Award for Marketplace Excellence demonstrating ethics and integrity in the marketplace.  BBB Torch Award winners build trust, advertise honestly, tell the truth, remain transparent, honour their promises, and display integrity in all of their marketplace activities.  This prestigious award affirms KMG Gold as a trusted partner for Canadians wanting to get trusted estimates and best value when recycling their precious metals.

KMG Gold leads the gold and precious metals buying industry by making detailed information about precious metals, the current gold buying market environment, and other helpful tips for gold buyers and sellers available online at their website – www.kmggold.ca. 
With numerous drop off locations across western Canada, Ontario, and the western United States, KMG Gold is able to accept shipments from anywhere in either country. Precious metals can be dropped off or sent directly to any of these convenient locations in securely packed boxes, or using one of KMG Gold’s exclusive SecureShip™ Envelopes.

KMG Gold is also the first company in the highly publicized gold & metals buying industry to have partnered with the world’s largest insurance underwriter to offer shipping insurance for precious metal shipments from the consumer to their office, reducing any sense of risk.  Any metals shipped to KMG Gold using a SecureShip™ Envelope can be fully insured at half the cost of the competition’s shipping insurance – and KMG’s customers can be assured the value of contents contained in their packages is safe, even if the package is lost. No other metals buyer uses shipping insurance that offers this guarantee.

Contact us at 204.452.GOLD
Posted by Caitlyn Diamond at 9:07 AM 0 Comments

Tuesday, October 04, 2011

Gold Price Rises

Gold prices rose in Europe on Tuesday as fears that Greece could be heading for a default, potentially sparking a banking crisis in Europe, hurt stock markets and prompted investors to seek out assets seen as lower risk.

European shares fell 2.7 percent in early afternoon trade, while the STOXX Europe 600 Banking Index tumbled as much as 4 percent. World stocks hit a fresh 15-month low.

Spot gold was up 0.3 percent at $1,660.70 an ounce at 1117 GMT. German bunds, which are also seen as a relatively safe store of value, climbed along with gold.

Investors are still wary towards gold after it was caught up in a broad-based financial market rout in late September, which saw heavy selling of the metal to cover losses on other markets. Prices fell 20 percent from the record $1,920.30 an ounce hit early in the month.

"There is still potential for further slides should profit taking again set in. I'm not really convinced gold weakness is over," said Commerzbank analyst Eugen Weinberg.

"But gold is definitely living up to its status as a safe haven at the moment. That is very reassuring for investors."

Despite putting in its weakest performance in nearly three years in September, gold still managed to deliver its biggest quarterly gain of 2011 in the third quarter, and is up more than 15 percent so far this year.

This is even after some gains in the dollar, which has inched up 1.4 percent this year versus the euro. Gold is usually pressured by a stronger dollar, which makes it more expensive for other currency holders.

That traditional relationship has broken down since the credit crunch of 2008 as both the dollar and gold were targeted as stores of value. The dollar rose 0.2 percent against a currency basket on Tuesday, in line with gold.
Posted by Caitlyn Diamond at 7:04 AM 0 Comments

Monday, October 03, 2011

Honesty Is The Best Policy

The old Chinese proverb ‘Honesty is the best policy’ is often ridiculed in today’s business environment, but it’s crucial in ours. In some fields of business, it’s a worthless and extinct virtue. At KMG Gold, we know there is a close relationship between sincerity and truth and people can expect higher revenues in the business world if we combine them in reality.
A business that follows ethical practices is aware of the advantages that honesty can bring to the bottom line. After years of experience in the gold business, we know that customers want to know they have found an honest gold buyer.
You’ll find that people you conduct business with will show you far more respect if you employ the virtue of honesty. Any  business must develop a healthy reputation and a strong foundation. With the aid of ethical and honest practices, a business can prosper and succeed in any competitive environment. In this particular field, having a good reputation is valuable and can only be developed if people trust the the entire organization. This provides confidence and a boost to the business which can lead to building strong personal and business relationships.
A business can expect prosperity and success if it complies with honesty, sincerity and truth. If, instead of duping people,current gold dealers chose to carry out open and honest transactions, they could expect success in the long run, but few do.
Honesty holds a lot of benefits. If personnel practice honesty, we will all see a sense of pride. This sense of pride can lead to earning greater revenues because it offers a mental boost to the organization.
Furthermore, a vibrant, strong goodwill can be developed by any honest business. This is especially true in the case of precious metals. Word travels fast in this industry and it doesn’t take long for the public to see who is on the right side of their transaction.
This is and always will be the backbone of KMG Gold.
Posted by Caitlyn Diamond at 11:00 AM 0 Comments

Sunday, October 02, 2011

Gold Can Still Outshine Cash

Watching the price of gold dive in recent weeks as the eurozone crisis worsened and economic indicators turned particularly gloomy has led some to question the yellow metal’s status as a haven asset.
Investors may disagree on what its price should be or what portion, if any, of a balanced portfolio it should make up, but on one issue there is consensus – gold is all about fear.
With central bankers making good use of their printing presses over the past three years, many investors are increasingly concerned about uncontrollable inflation eating into their cash piles. “Governments do not really understand the long-term effects of printing so much money,” says Dylan Grice, a global strategist at Société Générale Cross Research Alternative View.
“Inflation will be OK if central banks can remove the excess emergency money at just the right time and in the right quantities. I just worry that they are massively overconfident in their ability to do this.” Gold, on the other hand, was created billions of years ago when stars collided in outer space. There is no more where it came from. “Gold may be a mere lump of dense, useless shiny metal, but it’s one which crackpot central bankers can’t print,” Mr Grice notes.
“Fiat currency is a store of value to the extent that people have faith in politicians and central banks. The problem is that trust has been eroded. Central banks are under tremendous pressure to print,” says Tim Price, director of investment at PFP Wealth Management.
This was evident recently when the Swiss National Bank announced it was prepared to buy unlimited amounts of foreign exchange to stop the Swiss franc appreciating further or, in other words, to print unlimited amounts of the franc and debase its currency. With the Swiss having resisted printing money during the crisis, while competitors expanded their monetary bases with abandon, investors have been selling their own currency for the stronger franc.
But Switzerland ended up with an overvalued currency, which was harming its economy and action had to be taken. The bank’s move will boost gold, argues Mr Grice, as it “merely narrow[s] the universe of honest destinations for flight capital with which gold has historically competed.”
Those who are not worried about this type of inflation are petrified of deflation. But even in such a scenario, gold is still a better bet than any currency, according to the gold bugs.
If consumer prices were to fall by some 4 or 5 per cent, stock markets could plummet and the global banking system would be placed under great stain.
The price of gold could also fall, but probably not nearly as much, thereby preserving wealth and purchasing power.
Yet, others argue that a better strategy in a deflationary scenario is to invest in fast-growing industries. “People are very persuaded by crash and doom scenarios, and gold offers a cure for it. But there are other, more positive solutions. Invest in electric cars, recycling, renewable energy – these sectors are growing, and they hold massive potential,” says Chris Eibl, co-founder and head of trading of Tiberius Asset Management.
The recent sharp fall in the price of gold – prompted by declining fears of a surge in inflation in the US and of a collapse in the US dollar – took many analysts by surprise, yet it has done little to alter the fundamentals behind gold’s appeal versus cash today.
Gold may be disliked by some for paying no income, but with the Federal Reserve promising interest rates of close to zero per cent for the foreseeable future, cash deposits are earning no interest either.
“With bank deposits, you’re also fully exposed to the creditworthiness of the bank. It seems unfair especially as in real terms you’re actually losing some 5 per cent per year due to inflation,” says Mr Price.
His portfolio is almost 30 per cent in “real assets”, mostly gold and silver bullion vehicles. But it is not enough, he says, and he is building up the positions. “Fiat money is being printed faster than we can try to protect its value. We’re trapped in an Alice of Wonderland situation, where we’re running just to stay still.”
While no one knows exactly how a Greek default would affect the euro and the other currencies, or quite what would have happened if the US Congress had failed to agree on a debt ceiling deal, the price of the yellow metal works in a different way. “Above all, its value does not depend on the creditworthiness of any government or financial institution, and that may yet prove very significant in the weeks and months ahead,” notes Julian Jessop, chief global economist at Capital Economics, a research group.
Unlike the value of sterling or the dollar, the gold price is not limited by economic and policy considerations. Should Greece default or the eurozone break up, the dollar is expected to be the currency that benefits most given its status as the world’s reserve currency, but even it would be seriously undermined by fears that the US economy would suffer from the fall-out. The ensuing scramble for gold would be likely to boost its price significantly.
An example from the 1930s is often cited by gold bugs as an illustration of gold’s superiority to fiat money. In the midst of the Great Depression, an increasingly desperate president Franklin D. Roosevelt took advantage of a wartime statute that had not been repealed to outlaw “the hoarding of gold coin, gold bullion, and gold certificates within the continental United States”. The possession of monetary gold by individuals or companies became illegal, with some minor exceptions. Those who owned gold had the choice of exchanging it for $20.67 per troy ounce at the Federal Reserve or face a fine of up to $10,000 or up to 10 years in prison.
The order had limited effect as most people could simply hide or take their gold abroad. But to some investors it is a telling example of the arbitrary measures governments can take in a crisis. And it is clear, they argue, that an investor would want to hold gold over cash in such a situation. Gold will retain value even if the entire monetary system collapses. Who knows which currencies will still be around?
Posted by Caitlyn Diamond at 9:43 AM 0 Comments

Saturday, October 01, 2011

Gold Ends Quarter On A High

Gold rose Friday on worries of a global economic slowdown, and the price of bullion notched its biggest quarterly gain of this year even after a sharp pullback from a record hit this month.

Gold posted a quarterly gain of 8 per cent – its biggest this year, despite a drop of 11 per cent for September – its largest monthly decline in three years.

For the day, gold finished higher as safe-haven buying resumed despite a rising dollar. Equities and industrial commodities fell after data showed manufacturing in China contracted for a third consecutive month in September.

“I think the correction has run its course. For the first time in quite some time, we actually bought some gold and platinum exchange-traded funds today,” said James Dailey, portfolio manager of the TEAM Financial Asset Management.

Spot gold was up 0.4 per cent at $1,620.60 (U.S.) an ounce by 2:55 PM ET.

U.S. gold futures for December delivery settled up 30 cents at $1,622.30 an ounce, with trading volume sharply below this week’s average as some bullion traders were away for the Jewish New Year holiday.

Gold, which fell this month during a broad selloff of riskier assets as investors worried about euro zone debt and a sluggish U.S. economy, remained 15 per cent below its record of $1,920.30 an ounce set Sept. 6.

Trade has been extremely volatile this month. The wide $400 trading range after the record on Sept. 6 has kept investors wary even as the correction from that high has lifted physical demand.

“In markets that have been shaken as badly as gold market has been shaken, it will take days, perhaps even weeks, before the bullish trend clearly reasserts itself, but we do believe that the margin clerk liquidation has probably run its course,” said independent investor Dennis Gartman.
Posted by Caitlyn Diamond at 6:41 AM 0 Comments

Friday, September 30, 2011

The Karat

Everyone has heard the term karat but few know the meaning or the original of the word. In the gold industry, karats is used to describe the purity of the gold used to make the piece. The word dates back to ancient Mediterranean and Middle Eastern civilizations that used carob seeds to measure the weight of gold.

The word carat is derived from the Greek word kerátion , which means “fruit of the carob.” Carob seeds were used as weights on precision scales because of their reputation for having a uniform weight. The other reason for the seeds use was that it was in order to keep regional buyers and sellers of gold honest, potential customers could retrieve their own carob seeds on their way to the market, to check the tolerances of the seeds used by the merchant. If this precaution was not taken, the potential customers would be at the mercy of "2 sets of carob seeds". One set of "heavier" carob seeds would be used when buying from a customer (making the seller's gold appear to be less). Another, lighter set of carob seeds would be used when the merchant wanted to sell to a customer.

As the softest metal in existence, pure gold is not the best for creating jewelry. Because of its softnesss. gold is often strengthened with zinc, copper, or silver. Rarely is pure gold used in the manufacturing of jewelry and the karat system is used to determine the concentration of its content.  

Most gold jewelry in the U.S. is 10, 14, or 18k. A piece that is 18k is 75 percent pure gold, making it the most valuable of the three. Even when pieces have equal weight, the item with the higher number of karats will be more valuable. An 18k gold item will contain more yellow in the colored tint. Though 14k is more popular in the U.S., 18k gold is purchased by most European consumers.

Just because jewelry is stamped 18K does not mean it is. Laws vary between countries in terms of ensuring that these stamps are accurate. The U.S. is just one country that may not pursue a manufacturer for using a misleading stamp. Some countries mandate that gold purity be verified by a third party before a piece of jewelry may be stamped.

Those who buy gold coins are familiar with 24k gold because it is often used to make modern bullion coins. However, since it is often too soft for jewelry-making purposes, 18k is usually the highest number found on jewelry, though 22k is also available.
Posted by Caitlyn Diamond at 8:18 AM 0 Comments

Thursday, September 29, 2011

Scams & Predators

If you’re like us, you’re surprised these Cash-For-Gold scams and predators are still around considering the options available today. At KMG Gold, we're determined to educate the consumer so they can make the wisest decision possible.

Walking around the corner to sell gold coins and used jewelry for cash seems may seem appealing to some, it is definitely not the best idea. Businesses that provide cash for gold pay pennies on the true value of gold.

If individuals absolutely must sell their gold items for cash, they should be aware that the price of gold is only a small factor in the offer price provided by the Cash-For-Gold groups. A person may make a profit on a piece of jewelry or a coin purchased ten years ago just because the item is worth more than what was paid for it. The buyer in turn makes their money by reselling the item to a refinery. You have the option of dealing directly with the refiner hence cutting out the middleman.

Jewelry stores significantly mark up the price of gold items so they can make a profit. When a piece of gold jewelry is traded for cash, the offer received is not based on what the item is worth in metal value, it is based on how the store will use the item. If the gold piece is sent off somewhere to be melted, the store will receive the value is based on the melt weight.

With the high price of gold, it pays to be informed about the industry and the different transactions available. The more you know, the money may end up in your pocket and not theirs.
Posted by Caitlyn Diamond at 11:45 AM 0 Comments

Wednesday, September 28, 2011

Gold Futures Gain

Gold futures gained the most in seven weeks as commodities and equities rallied amid optimism that European leaders will take steps to resolve the region's debt crisis.

The Standard & Poor's GSCI index of 24 raw materials surged as much as 3.6 percent, while the MSCI All-Country World Index jumped as much as 4 percent. In the previous three sessions, gold tumbled 12 percent, the most since 1983, on sales by investors to cover losses in other markets amid mounting concern that the global economy would slump.

"Gold is behaving like a classic commodity and is moving in tandem with the equity market," Adam Klopfenstein, a senior market strategist at MF Global Holdings Inc. in Chicago, said in a recently published interview. "The selloff was overdone."

Gold futures for December delivery gained $57.70, or 3.6 percent, to settle at $1,652.50 an ounce at 1:33 p.m. on the Comex in New York, rising the most since Aug. 8. Yesterday, the metal tumbled as much as $104.80 to $1,535, the lowest since July 8.

The precious metal has gained 16 percent this year, surging to a record $1,923.70 on Sept. 6.

"There is a small but growing group who believe this pullback will prove to be a good buying opportunity," Edel Tully, a London-based analyst at UBS AG, said in a report. "Gold needs to stabilize after suffering a good deal of reputational damage with recent wild moves."

Silver futures for December delivery advanced $1.56, or 5.2 percent, to $31.536 an ounce, the biggest gain since July 13. In the previous three sessions, the price tumbled 26 percent, touching a 10-month low of $26.15.
Posted by Caitlyn Diamond at 5:26 AM 0 Comments

Tuesday, September 27, 2011

Why The Drop?

There has been a lot of turmoil in the financial markets in the markets these days, but if there’s one investment that should be going up according to the experts, it’s gold. 

Gold has always been charged as the ultimate investment because it has been a "store of value." But the majority of the experts agree that gold is bound to keep going up as volatility rises, the gold bugs pronounce.

But the question floating around the investment atmosphere is, “Now that markets are struggling, why is gold on a slide?”

Several economists and market watchers seem to the answer. The word on the street is that people prefer to be holding cash as panic spreads across Europe. To get cash, they need to sell their investments including their gold holdings. If we go back to simple supply and demand concepts that explains the temporary price drop on gold.

“It shows you that at times of extreme stress, there is not a suitable substitute to liquidity and although gold is liquid by metal standards, in comparison to Treasurys, when you get this kind of flight to cash, then it really is cash that counts and that means U.S. dollars,” Credit Suisse analyst Tom Kendall said in a recent interview..

His point is quite valid, but he fails to mention any profit-making these investors may have cashed in on. It has been well documented that in recent years gold has been traded as an investment opportunity, rather than a store of value. So while investors were buying into the long-term strategy, big hedge funds and commodity traders were simply waiting for gold to hit a breaking point, just as they waited for metals such as silver to hit a breaking point back in April. As soon as one fund starts to sell, many more do.

It’s situations like this that prove, yet again, that gold is a safe bet. The current market situation demonstrates why some people keep buying and selling the precious metal over the long term. To make the most of any investment strategy you have to understand how or why the value moves.
Posted by Caitlyn Diamond at 8:57 AM 0 Comments

Monday, September 26, 2011

Gold Is A Victim Of Its Own Success

The price of gold was down again on Monday as investors traded the metal for the perceived safety of cash. "Essentially gold is a victim of its own success," said Edel Tully, a precious-metals strategist at UBS in London.

The price of spot gold fell to its lowest in two and a half months, and is now down 9% from the record high of $1,920.94 a troy ounce that it notched on Sept. 6. The price of spot gold was recently at $1,615.0/oz, down 2.4% from its close in New York on Friday.

“It’s a good time to sell,” said Michael Gupton of KMG Gold in Winnipeg. “It always is if you apply my Dollar Averaging concept,” Gupton explained referring to his upcoming publication, As Good As Gold.

Analysts said gold is suffering at the hands of investors who are cashing in on gold's recent bull run to shore up their books and cover losses elsewhere. Gold was one of the main beneficiaries during the turbulence in financial markets this summer and the growing aversion among investors toward risky investments.

Mr. Gupton added that the extent of the selloff was not surprising, and reflected the strong demand for cash amid a strengthening dollar. “Gold is a safe alternative and this action just proves my point.”

The price of silver was recently down 7.7% at $28.56/oz. It had earlier traded as low as $26.100/oz.

The price of spot platinum was 3.8% lower at $1,543.70/oz, while the price of spot palladium was down 1% at $625.50/oz.

Posted by Caitlyn Diamond at 8:01 AM 0 Comments

Sunday, September 25, 2011

Gold Vending Machines?

China has installed the country’s first gold vending machine in a busy shopping district in Beijing. Largest Gold producer and second largest to India in consuming, China becomes the sixth nation to open a gold vending machine for its people.

Gold vending machines are now operating in the US, UAE, Germany, Spain and Italy. According to reports, China is set to open vending machines, made by the same German company TG Gold Super Market that supplied machines to other countries.

Shoppers in the popular Wangfujing Street can insert cash or use a bank card to withdraw gold bars or coins of various weights based on market prices. The machine was launched Saturday by the Beijing Agricultural Commercial Bank and a gold trading company, the report said.

The machines will dispense gold bars weighing up to 2.5 kilograms and work just like the normal automatic teller machines (ATMs), cnr.cn reported, and citing sources close to the matter.

The machines can accept both cash and credit cards. The cash-for-gold machines will be on trial at Beijing’s upscale clubs and private banks during the initial period for security reasons. They plan to install an unspecified number of machines in secure locations such as gold shops and up market private clubs.

Gold is often used as a hedge against inflation and the machines could prove popular among Chinese consumers looking for a convenient way to safeguard their cash amid rising prices.

Chinese consumer demand for gold soared 27% year-on-year to 579.5 tonnes in 2010, according to the World Gold Council. India, the world’s top consumer, saw a 66% increase to 963.1 tonnes.
Posted by Caitlyn Diamond at 4:23 PM 0 Comments

Saturday, September 24, 2011

Ethics In The Gold Industry

One of the most important traits which is argued about and discussed in the gold industry is ethics. What’s more is that it’s on the pillars and basis of ethics that the gold industry is dependent. It has been witnessed that most gold dealings are conducted dishonestly. It is a very common activity of people to amalgamate gold with other substances. Therefore, a particular set of ethics have to be followed by gold dealers for avoiding different problems.

It is vital that the individuals which are being served should be offered complete dedication by all members of the gold industry. From the client’s point of view, it becomes a very constructive and faith building activity. There are several dealers in the industry which are dishonest so people do not know how to find an honest gold buyer. Even if a single member of the industry is dishonest, the reputation of the entire industry goes down the drain. In fact, if this happens, people will never revert to the same dealer if he is dishonest.

When dealing with the shareholders of the gold mining company, ethics again play a very important role. If there is even a small inkling that the company is conducting fraudulent activities, the government will have to interfere. The credibility and the reputation of the company will be destroyed in the occurrence of a scam. It is vital to lay importance of ethics in the event of a company wishing to carry out expansion.
In case of inter business dealings, ethics are also crucial. This is because if any competitor gets even a minor hint of any fraudulent activities, they will destroy the reputation of the company by disclosing the matter to higher authorities. In this case, legal action can also be taken by a company. In this manner, both the shareholders and the public will lose their trust in the company. Hence, business ethics should be followed in order to avoid such a situation.

The backbone of a company is its employees. Without the contribution of the employees, the company will cease to exist. Business ethics play a very vital role in the benefit of not only the company as a whole but also the employees because it leads to more productivity. In addition, the employees will work harder and with more dedication for achieving their aims in target as their confidence will be boosted.

KMG Gold Recycling which is a precious metal refinery in Canada is a perfect example of business ethics. It complies with all rules and regulations and work to maintain the faith and trust which people have placed in them. All business ethics are followed by it.
Posted by Caitlyn Diamond at 8:09 AM 0 Comments

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. 
Posted by Caitlyn Diamond at 7:56 AM 0 Comments

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."

Posted by Caitlyn Diamond at 1:06 AM 0 Comments

Wednesday, September 21, 2011

Gold's Storage Wars

Gold climbed to a record $1,921.15 an ounce on Sept. 6. Prices more than doubled since the end of 2007 as stock markets slumped, economies contracted and central banks and governments pumped more than $2 trillion into the global financial system. It all sounds perfect but there are issues involved.

Deep in the 7.4-acre Singapore Freeport next to Changi International Airport’s runways is the bullion vault of Swiss Precious Metals, behind seven-metric-ton steel doors built to survive a plane crash or earthquake.

The rooms are almost full after demand rose fivefold in the year since the Geneva-based company opened the facility. The firm is planning on an expansion to cope with the surge of investors willing to pay as much as 1 percent of the value of their holdings each year to keep them secure.

“The European debt crisis and its impact on the solvency of European financial players are driving European customers to find safe investment opportunities like physical gold and other precious metals,” a representative said. 

Barclays Capital is building a new vault, The Brink’s Co.and Deutsche Bank may add more space to there facilities, and the Perth Mint may expand for the first time since 2003. It’s a sign they expect demand to keep increasing after the 11-year rally during which prices increased sevenfold. Investors in exchange-traded products backed by gold bought 2,198 tons of bullion since 2003, exceeding all except four countries’ official stockpiles.

Gold rose 28 percent to $1,813.15 this year. The metal will exceed $2,000 this year, according to the average estimate of 16 respondents in a Bloomberg survey at the London Bullion Market Association’s conference in Montreal. The metal will peak at $2,268 next year, the survey showed.

Storage companies are responding. The 112-year-old Perth Mint, which refines more than 8 percent of all supply and is owned by the Western Australian state government, may add a new vault within the next year, according to Treasurer Nigel Moffatt. The mint sells everything from gold coins to 400-ounce (12.4-kilogram) bars.

Brink’s, the largest bullion carrier in the U.K., is considering adding more storage after opening a new London vault earlier this year. Barclays, based in London, is building a vault in the city that will open next year, the bank said in a statement last week.
.
“With gold prices where they are, we encourage people to keep it in safety-deposit boxes at banks or vaults, which gives that sense of security,” said Scott Carter, chief executive officer of Goldline International Inc., a Santa Monica, California-based precious-metals retailer established a half-century ago.

“Many vaults are hitting the insurance limit as prices of gold have surged and even if space is available, the full replacement insurance may not be available,” said Savneet Singh, the CEO of New-York based Gold Bullion International, which offers precious-metals storage to wealthy individuals, hedge funds and financial institutions. “The smaller customers are already getting squeezed.”


Posted by Caitlyn Diamond at 7:25 AM 0 Comments

Tuesday, September 20, 2011

Jeweller's Scale

Jewellers scale are a must have for people who deal in precious metal items. Such items include diamonds, semi-precious stones, silver and gold.

What Is A Jewellers Scale?
This is a weighing machine that can measure very minute objects. The scales are digital and are available in stores that stock jewellery and precious metals. Resellers are also popular users of these scales. They weigh carats either for gold or diamond, and help in determining the value of the underlying precious metal.

How Gold Is Weighed
Currently, gold is weighed as:
1 ounce           -     31.1 grams
1 kilogram      -     32.2  ounces

One buying a scale must be careful so as to get the best scale. Reputable makers of these scales have evenly distributed their products in the market. There are some guidelines that can help a buyer know exactly what to look for in a scale. These are mainly requirements that have been set by the industry in regard to the ideal scales. These are:
a)Digital display
A jewellers’ scale must have a digital display that gives accurate measurements. The scales are convenient because they give quick results, in seconds! Whether a person is  seeking to buy or to sell precious metal items, a jewellers scale offers more efficiency than other weighing methods. Accurate measurements lead to accurate transactions which are necessary for business efficiency.
b)Source of power
Jewellers scale are very convenient for use. For people who are always on the move, battery run scales are available. They are also portable hence ideal  for field studies.

Uses Of Jewellers Scales
Though the word  jewellery is used in its name, jewellers scale can be used by just about anyone. Insurance firms use them use them to ascertain the inherent values of items such as rings, bracelets, gold items and other precious metal items. They do these tests so as to determine the amount of insurance cover that is payable for the precious metal items.

Auction houses also have these scales for establishing the values of items from diamonds, silver, gold or semi-precious metals.

Individuals are also users of these scales. They use them to determine the value of the jewellery they buy. It is important to know that the item one is buying is genuine and that the value stated is indeed the true value.

Modern systems weigh gold in grams though the price of gold is quoted in ounces. Knowing the ounce equivalents of these grams helps an individual get the correct price for gold items.

Therefore, one should invest in a jewellers scale that is properly calibrated as this is the first step to determinig the true value of a precious metal item. Consider your options carefully!


Posted by Caitlyn Diamond at 8:21 AM 0 Comments

Monday, September 19, 2011

Most Money for Gold at the Refinery

Earning top dollar for a stash of scrap gold begins by selling directly to the refinery. The biggest mistake you can ever make is selling gold, silver, platinum or palladium to local middlemen. Middlemen will rip you off by paying peanuts for scrap gold items. There are as many reputable gold buyers as there are fly-by-night firms run by middlemen.

How to identify reputable refineries

A number of factors can come in handy when looking for reputable refineries. Look out for the following;

Honesty and Integrity

Honesty and integrity will be embodied in accreditations such as Better Business Bureau (BBB), McAfee, VeriSign and TRUSTe. Honesty and integrity are two important cornerstones of any successful business. The Better Business Bureau is a consumer watchdog that fosters trust between customers and companies. A company that lacks accreditations cannot be trusted. It’s too great a risk and chances are you will be paid peanuts for your stash of scrap gold.

High Payout Rates

Refineries pay more money than local middlemen gold buyers, pawn shops or pawn brokers. Refineries will pay an average six times more money than local middlemen. Rather than sell gold, silver, platinum or palladium items to middlemen, deal directly with refineries for the most money. Local middlemen simply collect gold, silver, platinum and palladium items and sell to refineries for top dollar. Middlemen or pawn shops and pawn brokers can never offer top dollar. They are also looking to make top dollar from refineries and will thus pay peanuts for your gold.

Fast Turnaround

Refineries offer faster turnaround, with faster services and payments. Beware of gold buyers who hire summer students or minimum wage workers to test and analyze your gold. All gold, silver, platinum, palladium and rhodium at KMG Gold is professionally tested and analyzed by a KMG Gold Certified Engineering Technologist, Certified Engineering Technician, or Applied Science Technologist. This in turn, results in faster turnaround and payments.

Shipping Insurance

Only the best gold buyers and gold refineries offer real, claimable insurance for your precious metal. UPS, FedEx, Purolator, Canada Post, the US Postal service etc will all sell you insurance, but it is not claimable for precious metals, gems, jewelery, gold bars, silver bars coins wafers etc.
Only KMG Gold Recycling offers genuine, claimable shipping insurance for your gold at one half the costs of the other carriers insurance.

Additionally, watch out for gold buyers who don’t have a privacy policy or who aren’t certified by TRUSTe. They might sell your e-mail address and your personal information. Beware of gold buyers who don’t have a terms and conditions of service page on their web site. They are hiding things from you. Or perhaps they just might be fly-by-night firms looking to buy gold cheaply.
Posted by Caitlyn Diamond at 10:32 AM 0 Comments

Monday, September 19, 2011

Safe Keeping

Owning gold is starting to become the “in” thing in the investment industry because it’s perceived as a hedge in troubled economic times. With the current value of gold seemly edging higher almost on a daily basis, there are more and more people who are keeping gold investments at home.

“For many people owning gold jewelry means they are now in possession of a significant value of gold,” stated Cpl. Richard De Jong, spokesperson of the North Vancouver RCMP. “The RCMP is cautioning people to be very mindful of where and how they are storing their gold; thieves have been very specific in residential break and enters by stealing just gold jewelry.”

Several agencies and organizations, including KMG Gold are offering some safety tips to consider for safekeeping your gold:

Bank safety deposit boxes are secure and may offer one of the best protection options from theft or loss.
An in-house, fire-rated securely fastened safe may also provide security.

To mitigate the risk of theft, diversify where you choose to store your gold. Do not store all your gold in one specific hiding place in your residence. If thieves find one storage location they may quickly move on.

Be cautious when telling your friends or neighbours about the value of your gold. Keep quiet about the gold you have and you will not have to worry about being targeted for a break and enter or home invasion.

Assume any potential thief may have a metal detector to locate your gold. Therefore, keep your gold stored in a location that contains other metals that could act as a “camouflage” by naturally setting off a metal detector

Think about ‘providing a facade as bait’ for any potential thief. By having a jewelry box with inexpensive items inside, it may be enough perceived riches for the robber to then leave.

Stay away from hiding your gold in predictable places such as a freezer, a cookie jar or under a mattress. Think outside the box and utilize obscure locations.

Seriously consider placing your gold “on account” with a local refinery or recycler like KMG Gold in Winnipeg. By using this service, you keep the investment without risking the chance of theft or loss.

All locations whether in your home or outside, have advantages and disadvantages. Think smart and be proactive in protecting your gold,” suggests Michael Gupton of KMG Gold. “Your gold is worth it!”
Posted by Caitlyn Diamond at 7:49 AM 0 Comments

Saturday, September 17, 2011

Silver Used In Photography

Silver is a soft, white, lustrous transition metal. The metal occurs naturally as an alloy with gold and other metals. It is also available in minerals such as argentite and chlorargyrite. However, most of the silver is a byproduct of copper, gold, lead and zinc refining.

Silver is a valued precious metal used to make ornaments, jewellery, high-value tableware and currency coins. Today, silver has found an array of use as conductors, catalysts, disinfectants as well as in photography.

Silver In Photography
Photography has been around since the early 1800’s. Silver was used in photography for making silver based films. Its popularity grew steadily over the years. However, the recent introduction of digital cameras has reduced the use of silver in photography.

Silver halide crystals were used to cover a film. The crystals, once exposed to light would set. Due to their stability, they produced high definition photos and was therefore the best photographic method.

In the medical and industrial fields, X-rays use silver based films. Industrial inspections involve routine tests of cast metals. Scanning of machinery parts to display hidden flaws is done using these silver based X-ray films.

However, the use of digital cameras has greatly reduced the demand of silver in photography. In 2007, the demand for silver in photography was about 12 – 15% of the years’ total production. This was approximately half the silver that was demanded ten years before. With this large decline, silver is still significant in the industry.

Crime Scene Cameras
Silver based films are widely used and are the recommended technology for evidentiary photography and other field applications. These cameras are preferred because they offer high resolution and the highest dynamic range. Of the available camera technology options, these cameras possess the best colour range.
Compared to digital storage media, silver based films have a more lasting storage medium which is readily available.

Advantages Of Silver Based Films
1.They have a high resolution quality that gives a sharp image. The small sized silver crystals are the ones that give the cameras this high resolution.
2.The films are readily available and are manufactured by many reputable companies.

Disadvantages Of Silver Based Films
1.The films require separate processing and printing facilities.
2.They use up a lot of time in processing.
3.Processing this films produces environmentally hazardous byproducts.
4.The film needs a lot of care in handling before it is processed. This is because exposure to  humidity and temperature destroys the content.
5.The images taken can not be viewed immediately like in digital cameras, unless an instant film was used.
6.They do not have provisions for editing the images taken hence all faults are processed with the images.



Posted by Caitlyn Diamond at 7:54 AM 0 Comments

Friday, September 16, 2011

Seller Beware!

We’ve all heard the saying - ”Buyer beware,” but in today’s precious metals industry, the term “Seller beware,” is by far more appropriate.

“The predators are out in full force,” said KMG Gold founder and president, Michael Gupton.  “And unfortunately it’s because they can get away with it. They feed of the fact that today’s consumer is not aware of the options available.”

With the recent upswing in the price of gold and silver, more and more people are turning to gold buyers to sell their unwanted and scrap gold jewelery and coins. Jewelers, pawnshops and even “traveling roadshows” as Gupton calls them have all entered the market in an effort to grab a piece of the action.

“They are nothing short of predators,” Gupton claims when asked about these roadshows. “Don’t do it. They come to the outskirts of town because they are unlicensed and can’t do business in the city. They grab your stuff with an almost insulting offer and leave as fast as they can.”

Gupton has owned and operated KMG Gold, a local refiner and recycling operation in Winnipeg since 2007. He has been committed to educating the public on the precious metals industry and the tragic environment al effects of mining.

“All you have to do ask questions and check out their web sites, “said Gupton.  “ When they state they ‘probably’ pay out the highest rates that should be an immediate red flag. The other thing is ‘they arrange’ to refine and recycle used jewelery. What does that mean? It means they probably send it to us or another refinery. They are just middlemen.”

Michael Gupton founded KMG Gold in 2007 with his wife Karen, hence the name “KMG”, and has since proven himself a leading voice in the gold recycling industry by advocating for consumer interests, by publishing a wide variety of information and resources on the KMG Gold website.  KMG Gold was awarded the Manitoba Chapter of the 2010 Better Business Bureau TORCH AWARD for Torch Award for Marketplace Excellence demonstrating ethics and integrity in the marketplace.  BBB Torch Award winners build trust, advertise honestly, tell the truth, remain transparent, honour their promises, and display integrity in all of their marketplace activities. 
Posted by Caitlyn Diamond at 11:20 AM 0 Comments

Friday, September 16, 2011

Platinum Mining

Platinum has very few sources though its demand has been continously rising. Production of this metal is concentrated in two regions: South Africa and Russia. They produce 90% of the world’s platinum.
Globally, platinum mining companies are less than ten. Other countries like Canada, Zimbabwe and United States mine Platinum from smaller deposits. The increase in demand has been an incentive to the mining companies to develop plans for expansion.
Platinum mining companies require a lot of capital. This is used for production facilities and for ensuring survival by financing exploration and production. Platinum is both a precious metal as well as an industrial metal. Its use as an industrial metal is because of its resistance to chemicals and extreme temperatures as well as stable electric properties.
Processing operations
Mining of platinum is a very involving process. Extraction, concentration and refining may take up to six months. Statistics show that for an ounce of the metal to be obtained, 7 to 12 tonnes of its ore must be processed.
                     Extraction
Most platinum occurs underground. Extraction  is labour intensive and involves miners drilling holes which are then blasted by use of explosives. The ore is then harvested and taken to the surface. Here it is crushed and milled into smaller particles that expose the minerals  (PGM) which contain the platinum.
These particles are then mixed with water and other special reagents, a process known as ‘froth floation’.  Air is then blown through the mixture making the PGM particles float  on the surface. The floation concentrate is removed . To ensure that all the PGM material is obtained, the material that fails to float is taken through the milling and floation process again.
                   Concentration
The floatation concentrate is dried and smelted at temperatures of above 1500? C. This separates the valuable metal as a matte from the unwanted minerals. Periodical tapping of this material removes sulfur  and iron. This increases the PGM content to about 1400 grams per ton.
                    Refining
Refing of this PGM material is necessary as it removes nickel, copper and cobalt. This is done through standard electrolytic techniques. The final step of purifying the PGM concentrate is then done. Traces of gold or silver that may be present are removed by a combination of techniques such as, solvent extraction, distillation and ion-exchange. Dissolving the resultant material in hydrochloric acid and chlorine gas obtains soluble metals. These are first gold, then platinum and palladium.
Recycling
Platinum can also be obtained from scrap material. The autocatalyst sector provides the greatest proportion of recycled platinum. The catalyst substrate is smelted together with iron or copper. Leaching is then done to dissolve the copper or iron, obtaining a concentrare that undergoes the refining process.
Posted by Caitlyn Diamond at 7:34 AM 0 Comments

Thursday, September 15, 2011

Gold prices are likely to break through $2,000

Gold prices are likely to break through $2,000 an ounce by year-end to new record highs, metals consultancy GFMS said in a report on Thursday, as inflation pressures in Asia and debt concerns in the West lead to a recovery in investment demand.

While investment was soft in the early part of this year, jewellery purchasing held up remarkably strongly as prices climbed to records, the company said, while central banks added to holdings and scrap supply remained muted.
World investment in gold is forecast to jump by more than a quarter year-on-year to 1,069 tonnes in the second half, largely on the back of soaring bar demand, and could push the market significantly higher.

"Apparently low investment figures were very much a first-quarter story," said Neil Meader, research director at GFMS. "As soon as that Western disinvestment stops, you then have investment coming back at a time when the jewellery market is still strong and scrap is not doing a huge amount."

"Throw in a couple of hundred tonnes of official sector purchases, and you get some quite interesting price pressures going on," he said.

A forecast for a hefty 43.5 percent year-on-year fall in implied net investment -- chiefly reflecting activity in exchange-traded funds, on COMEX and in over-the-counter trading -- was a reflection of profit-taking early in the year, Meader said.

But the low interest rate environment, poor confidence in paper currencies and concerns over sovereign debt are all still strong factors underpinning interest in gold. In the full year, world investment is seen rising 1 percent to 1,693 tonnes.

Selling out of exchange-traded funds in the first quarter of the year, when the major gold funds recorded the largest quarterly outflow on record, has been partly reversed, suggesting appetite for the products has recovered.

Bullion bar buying, which has been consistently strong this year, rose 43 percent in the first half and is expected to stay strong in the remainder of the year, with GFMS forecasting a further 8 percent rise in the second half.

"We have seen periods where ETF demand wasn't great, and to an extent that was due to some people shifting out of ETFs into allocated metal accounts, because that is a lower-cost vehicle for holding gold," said Meader.

"That phenomenon happens when you have new entrants in the market. The ETFs are very visible and easily understandable, and that attracts new entrants, but once they are more familiar with gold ... and if their positions build to a certain size, they may be in a position to switch into allocated metal."
Posted by Caitlyn Diamond at 7:20 AM 0 Comments

Tuesday, September 13, 2011

Gold Crowns

A crown is a form of dental restoration which is used on a tooth or a dental implant. They are used when a cavity develops on a tooth and are applied on the tooth using dental cement. Their purpose is to improve the appearance and strength of a tooth. Different materials are used for making the crowns. Gold is the most common.

Full Gold Crowns
These are the most common gold crowns used by dentists. Though they are called gold crowns, they are made up of a number of elements: the noble metals (gold, platinum and palladium) and the base metals (silver, copper and tin). Gold crowns that have a high noble content are of better quality.

Technique For Making Gold Crowns
Gold crowns are made through a process known as the Lost-wax technique. A dentist takes the impression of the tooth to be replaced, those adjacent and those opposite. The dimensions of the cast crown are then done in three dimensions, that is, the height, width and depth.

The measurements are recorded on an impression material and send to a dental lab. Dental stone or plaster is used to make the models of the tooth. The models are then ditched, died and articulated so that their arches meet properly.

To this tooth analog, known as a die, is applied wax. The wax is carefully moulded to gain the shape and exact dimensions of the tooth being replaced. Before the wax is applied, a die spacer is applied. This helps provide a space between the actual tooth and the gold crown.

A lubricant is also applied to ease in removal  of the wax pattern once preparation is complete. The wax pattern is then invested in a plaster like material. It is then placed in a furnace which burns off all the wax and plastic that was in the wax pattern, hence the name Lost-wax technique. A hollow is left which is known as the investment pattern.

To this hollow is shot pennyweights of melted gold. Once it has cooled, the crown is polished to high shine. Touching up is done at the place of attachment as the dentist checks to see if fits in with the adjacent teeth.

Advantages Of Gold Crowns
•Gold is very strong and resistant to corrosion. It is mostly applied on the back teeth that have biting forces.
•It adapts and fits well as a crown.
•Preparing a tooth for a gold crown is easy as no healthy tooth structure is tampered with.
•It provides longevity in service.

Disadvantage Of  Gold Crowns
Full Gold Crowns have one major disadvantage. This is the fact that they are cosmetic and hence not suitable for front teeth.

Posted by Caitlyn Diamond at 7:56 AM 0 Comments

Monday, September 12, 2011

Important Steps Involved 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. 
Posted by Caitlyn Diamond at 6:20 AM 0 Comments

Saturday, September 10, 2011

KMG Gold Founder To Appear on CJOB Radio

KMG Gold founder and president, Michael Gupton will appear live on CJOB Radio. At 10:00pm on Saturday, Sept 10, Michael talks live on the Greg Glatz Show in an active discussion on the current market trends in the precious metals industry.

With the price of gold reaching near record highs, many people have been looking for the best, easiest and SAFEST way to sell their unused jewelry, coins and other precious metals. Gupton has become the leading authority on the gold buying industry and will be a perfect fit for Greg's program.

"I think a talk show is the crown jewel of broadcasting because it gives people a chance to say what they need to say. For that reason, my shows have always been built around the idea that the callers matter most. I say exactly what I need to say and I give listeners their chance to do the same."
Posted by Caitlyn Diamond at 7:08 PM 0 Comments

Thursday, September 08, 2011

Silver - The Perfect Alternative

The price of silver has been closely tracking that of gold during the precious metal’s bull run lately. Silver’s role as a precious metal has, at times has avoided any price negative news that has affected the other industrial commodities.

Silver benefits from gold’s rising prices largely because investors, whether in the paper or the physical markets, view it as an attractive leveraged play on gold. Silver offers exposure to the rising demand for safe haven assets at a cheaper price, sometimes earning it the title of “poor man’s gold.”

Of course, choosing silver as an alternative to gold has its risks, especially since the white metal isn’t entirely a precious metal. Silver’s price movements can be heavily impacted by favourable or unfavourable market sentiments regarding the health of the industrial sector, making the silver market highly volatile and prone to large swings in prices.

“Regardless of what happens, silver is still silver,” says Michael \Gupton of KMG Gold in Winnipeg. “It is considered both a precious metal with monetary overtones and also an industrial metal – two positive traits that affect its value.”

Worth the risk?

In spite of the risks, many people still find silver an attractive investment as it has the potential to bring far greater return on investment. The return on investment for silver can surpass gold as price movements over the last year have shown. From August 31, 2010, the price of silver year-over-year gained 115 percent compared to 47 percent for gold; meaning, that one hundred ounces of gold you bought last year for $124,770 made you $57,750 if you sold it one year later. However, you could have put that $124K all into silver and made nearly $143K for a total return of 147 percent more than your return on gold.

Over this next year, analysts expect gold prices to reach even higher and for silver to continue outperforming gold. “When we look at gold versus silver, we feel that silver prices could enjoy more of a gain over the next year or so." stated Gupton. 
Posted by Caitlyn Diamond at 10:36 AM 0 Comments