Tag Archive: gold as an investment

Nov 09

Gold Rises as Dow Jones Falls 300 Points, US Silver Coins Up

Gold rose slightly Wednesday as a stronger U.S. dollar trimmed demand for the yellow metal.

In other precious metals, silver, platinum and palladium each fell by more than 1% as U.S. stocks dived on anxiety over the looming “fiscal cliff” of scheduled tax increases and federal spending cuts.

Gold for December delivery slipped a dollar or less than one percent to  $1,714.00 an ounce on the Comex in New York. Gold traded in a $30 range, from $1,703.00 to $1,733.00.


 Gold Rises as Dow Jones Falls 300 Points, US Silver Coins Up

The seesaw effect in gold prices is “very much related to gold’s positive reaction to U.S. debt worries, with weakness from Europe sitting on the other side of the seesaw holding a very, very heavy key to the U.S. dollar,” MarketWatch quoted Richard Hastings, a macro strategist at Global Hunter Securities.

“As Europe gets worse, the dollar gets stronger and heavier,” so the seesaw tilts lower on the European crisis side, “waiting for a bigger load of troubles to load up the U.S. debt side — and don’t worry, it’s coming,” Hastings said.

The U.S. dollar settled to a two-month high Wednesday. At the same time, stocks tumbled with the Dow down more than 300 points for its worst day of the year and the S&P and Nasdaq both off nearly 2.5%.

“We are seeing a risk-off day today,” Donald Selkin, the New York-based chief market strategist at National Securities Corp., said in a telephone interview cited on Bloomberg. “There is a sell-off across the board.”

Silver for December delivery settled at $31.661 an ounce, falling 37.3 cents or 1.2%. The white metal ranged from an intraday low of $31.215 to a high of $32.420.

Platinum for January delivery lost $18.80, or 1.2%, to $1,539.50 an ounce, trading between $1,534.50 and $1,569.90.

Palladium for December delivery dropped $9.80, or 1.6%, to $610.35 an ounce, ranging from $602.60 to $625.15.

728x90 Lang en Prod 7015 Gold Rises as Dow Jones Falls 300 Points, US Silver Coins Up

London Precious Metals

Bullion prices in London were unchanged to higher. In contrasting the most recent London PM fixings:

  • Gold gained $24.25, or 1.4%, to $1,715.25 an ounce,
  • Silver added 74.0 cents, or 2.4%, to $32.14 an ounce,
  • Platinum advanced $13.00, or 0.8%, to $1,556.00 an ounce, and
  • Palladium was unchanged at $617.00 an ounce

U.S. Mint Bullion Coin Sales in November

Sales levels were nearly unchanged Wednesday for U.S. Mint bullion products. The single gainer was American Eagle silver coins with a pick-up of 50,000. On Monday the bullion coins advanced 800,000, or more than each of the past four weekly totals.

The grid below lists the latest daily, November and year-to-date bullion sales figures as provided by the U.S. Mint.

US Mint American Eagle and Buffalo Bullion Coin Sales
Daily Sales November Sales YTD 2012
$50 American Gold Eagle Coin 0 18,500 483,000
$25 American Gold Eagle Coin 0 0 63,000
$10 American Gold Eagle Coin 0 0 66,000
$5 American Gold Eagle Coin 0 0 280,000
$50 American Buffalo Gold Coins 0 0 107,500
American Eagle Silver Coins 50,000 1,050,000 29,998,000

 

America the Beautiful 5 Oz. Silver Bullion Coin Sales
Daily Sales November Sales All-Time Total
2012 El Yunque National Forest 5 oz. Bullion Silver Coins 0 1,250 19,350
2012 Chaco Culture National Historical Park 5 oz. Bullion Silver Coins 0 1,250 19,450
2012 Acadia National Park 5 oz. Bullion Silver Coins 0 0 21,800
2012 Hawai’i Volcanoes 5 oz. Bullion Silver Coins 0 0 15,000
2012 Denali National Park 5 oz. Bullion Silver Coins 0 2,500 15,000
2011 Olympic National Park 5 oz. Bullion Silver Coins 0 0 85,900
2011 Vicksburg National Military Park 5 oz. Bullion Silver Coins 0 0 39,500
2011 Chickasaw Park 5 oz. Bullion Silver Coins 0 0 29,700
TOTAL 0 5,000 245,700

 

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In U.S. coin news, collectors on Thursday can pick-up the latest circulating coin set of 2012 America the Beautiful Quarters. The U.S. Mint will begin selling the 10-coin 2012 America the Beautiful Quarters Circulating Coin Set at noon ET for $5.95.

 

Original Article by CoinNews.net

Sep 09

World Gold Council Data Shows Gold to See $2500 in 2012 Or Sooner!

“In the third quarter, we are going to see strong investment numbers, because of the European crisis, the debt downgrade in the United States and poor economic figures coming from the United States which have created a concern in investors’ mind that we may be heading back to another recession,” World Gold Council Managing Director for Investment Marcus Grubb said.

“It sends liquidity into gold,” Grubb said in a telephone interview.

David Lamb, WGC managing director for jewelry, said economic gloom will hit gold jewelry appetites in western markets, but jewelry buying in India and China – which together account for 55 percent of global jewelry demand – remains very strong.

“If you add that up, because of the biggest and most dynamic move (in gold jewelry demand) eastwards, we think this year will show an overall positive trend,” Lamb said.

Given the market volatility, a falling USD and increasing demand HCM expect to see Gold trading at $2500 in 2012, Shayne Heffernan said today.

But what was surprising back then was that gold shares barely ticked upwards even at the height of the gold frenzy. Looking at the main gold equity index of that time – the Johannesburg Stock Exchange’s – that share price take-off happened several months later when companies began publishing their profit results and the (gold) penny dropped. Investors suddenly saw the effect of the high gold price on bottom lines.

Even though the gold price faded in the following three years, sinking below $US400/oz, the South African stocks maintained a lot of their gains.

 

Gold Demand and Supply – Second quarter 2011

  • Gold demand totalled 919.8 tonnes in the second quarter of 2011, down 17% year-on-year. Improved levels of demand in the jewellery and technology sectors were more than offset by weaker investment demand, which was due primarily to a decline in ETF demand from the very strong levels seen in Q2 2010.
  • The gold price reached a series of new record highs during the second quarter and the average price for the period was up 26% year-on-year and up 9% on the prior quarter. After reaching a high of US$1,541 in early May, aided by soaring commodity prices and continued concerns over the outlook for western economies, gold corrected back to US$1,500/oz. However, gold was relatively protected from the sharp sell-off that affected many commodities and the dip provided jewellery consumers and investors alike with an opportune entry point.
  • Jewellery demand of 442.5 tonnes was 6% higher year-on-year as a number of key markets posted solid growth. India, China and Turkey (which together account for over 50% of global jewellery demand) generated combined growth of 16% although this was countered by weakness in other markets, most notably those in the west. The US$ value measure of global gold jewellery demand grew by 34% year-on-year to reach US$21.4bn.
  • A 37% year-on-year decline in investment demand was almost entirely driven by ETFs and similar products. Although ETFs witnessed solid net inflows of almost 52 tonnes during the quarter (almost entirely reversing the 62.1 tonnes of net outflow from Q1), the 82% fall in demand reflects the comparison with Q2 1010, when very sizeable levels of demand were generated by the escalation of the European debt crisis, resulting in the second highest quarter on record for
    ETFs.
  • Looking at physical demand for bars and coins, the second quarter witnessed growth of 9%. The geographical distribution of this demand was widespread, with a number of countries from all regions generating decent growth. Turkey and India were the two strongest markets, chalking up growth rates of 90% and 78% respectively. China also accounted for a significant portion of the growth in global demand.
  • Second quarter demand for gold used in the technology sector was up by a modest 2% at 117.9 tonnes. This growth was wholly generated by an increase in demand from the electronics segment, which generated a record demand value of US$4.1bn. Gold used in dentistry continued to decline.
  • The second quarter supply of gold was little changed year-on-year. Mine production, the only component of supply to make a positive contribution, rose by 7% to 708.8 tonnes. Producer de-hedging exerted a modest negative influence on supply, as did the official sector. Central banks generated another quarter of net purchases, more than quadrupling the levels of Q2 2010. Recycling activity, the final component of supply, was 3% down year-on-year, as consumers in many markets held off on selling their existing ‘loose’ holdings of gold in anticipation of higher prices.

Aug 25

India is World’s Biggest Consumers of Gold Say Imports of Gold May Reach Record 1,000 Tons

Gold imports by India, the world’s biggest consumer, may reach a record this year as investors seek a haven against inflation and volatility in stock markets, a traders’ group said.

Imports may be between 950 metric tons and 1,000 tons this year, Prithviraj Kothari, president of the Bombay Bullion Association, told reporters at a gold conference in Kovalam in south India. Consumption in India rose to a record 963.1 tons last year, driving bullion imports to the highest ever at 958 tons, according to the World Gold Council.

Rising Indian imports may help extend a 30 percent rally in gold prices to a record that’s made the precious metal the second-best performer on the Thomson Reuters/Jefferies CRB Index of 19 raw materials this year. Bullion is heading for its 11th annual gain as Europe’s sovereign-debt crisis and concern that the U.S. economy may be slowing spur demand for a haven.

“The equity market is volatile and property prices are too high, driving people toward gold as an investment,” Kothari said. “The rains have been good so far, so we can expect good demand for festival season this year.”

Purchases by India, the world’s biggest user, surged 60 percent to 267 tons in the three months ended June 30, from 167 tons a year earlier, the producer-funded council said on Aug. 18. Investment demand jumped 78 percent to 108.5 tons, the second-highest quarter on record, it said.

Central Banks

Gold may top $2,000 an ounce by the end of this year as central banks’ purchases and a stalling economy boosts the appeal of the precious metal as a haven, Kothari said.

“Gold may rise to $2,000 or more by 2011 end if the global economy remains the same,” he said. “Central banks are also buying gold, which is positive.”

Holdings in exchange-traded products touched a record on Aug. 8, and central banks are adding to their reserves for the first time in a generation. George Soros, the billionaire investor, cut his holdings in the SPDR Gold Trust in the second quarter as prices rallied, while billionaire John Paulson maintained the largest stake, according to regulatory filings this week.

Global holdings of gold by governments and official institutions such as the International Monetary Fund stood at 30,684 tons last month, according to the World Gold Council. Central banks added 155 tons valued at about $8.18 billion to reserves in the first five months of the year and will be net buyers next year, according to the council.

The precious metal prices may be headed for a drop to $1,725 an ounce as early as next month, according to Jeffrey Rhodes, chief executive officer at INTL Commodities LLC.

beprepared 600x150 India is World’s Biggest Consumers of Gold Say Imports of Gold May Reach Record 1,000 Tons