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Gold Price:

Gold Prices Shake Off European Debt Woes

By Alix Steel 11/25/11 – 11:56 AM ES

NEW YORK (TheStreet ) - Gold prices were reversing earlier losses Friday as the stock market shook off two European debt downgrades and a stronger U.S. dollar.

Gold for December delivery was losing $4.80 at $1,691.10 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,702.70 and as low as $1,672.60 an ounce while the spot price was down $6, according to Kitco’s gold index.

Silver prices were shedding 54 cents at $31.34 an ounce while the U.S. dollar index was up 0.53% at $79.55.

Gold prices were following stocks higher as short covering buoyed the market, leaving traders with less need to liquidate their gold positions. Gold prices had been almost $20 lower in early trading after Moody’s slashed Hungary’s credit rating to junk status following a similar move by Fitch on Portugal, which weighed on the euro and boosted the dollar. Continue reading Gold Prices Shake Off European Debt Woes

Gold: Store of Value (Old News, But Still Worth A Reading)

Low returns on other investments and fears about the world economy have caused the price of gold to soar. Don’t count on its continued rise

Jul 8th 2010 | DELHI AND LONDON

ON THE kind of hot, sultry day in which the brutal Delhi summer specialises, the attractions of lingering languidly over gold jewellery in air-conditioned comfort are easily understood. Yet customers are thin on the ground in the jewellery section of the Central Market, an unruly hive of commerce in the middle-class district of Lajpat Nagar. “Business has never been this slow in the 14 years that I’ve run this place,” complains Mrs Anand, owner of Hans Jewellers. Lajpat Nagar’s jewellers estimate that sales are down by 40% or more on a year ago.

In a typical year India soaks up perhaps a quarter of all the gold mined in the world. Now, however, not only are people not buying; more and more of them want to swap their gold jewellery for cash. Jyoti Pal, a shop assistant, reckons that these days about as many people come in to sell as to buy. Suresh Hundia, president of the Bombay Bullion Association, goes further: “There are only sellers in the market at these prices and most jewellers are buying back only old jewellery.” Continue reading Gold: Store of Value (Old News, But Still Worth A Reading)

God, Gold, Groceries, and Guns

By: Gary North, Mises on Money

I wrote an article with this title on June 6, 1980 in my newsletter, Remnant Review. It is time for a follow-up.

The four G’s seemed prudent in 1980. In early 1980, the American economy was suffering from the worst peacetime price inflation in its history. That was about to reverse due to the Federal Reserve’s decision under Paul Volcker the previous August to reduce the rate of growth in money and let interest rates soar. This would lead to a recession.

By the end of summer in 1980, the United States was in a recession. The Carter Administration was running a deficit in fiscal 1980 of a then-shocking $74 billion. (Table 467.) Prices were then 40% of what they are today. A deficit that large would be the equivalent of $203 billion today. A $203 billion deficit would be hailed today as a political triumph by the Tea Party and cursed as a job-destroying catastrophe by Paul Krugman.

Had you known generally what was coming in 1980, you would have put all of your money into 30-year T-bonds. You would have sold them in mid-August 1982 and bought a no-load mutual fund in the S&P 500. You would have sold that in March 2000 and put all of your money in silver. That was because silver had collapsed from $50 to under $5. Or you just bought Wal-Mart shares in 1980 and nothing thereafter. (I moved to Texas in 1980 and recall seeing a Wal-Mart store in some small town. I did not follow through. Too bad.) Continue reading God, Gold, Groceries, and Guns

Why It’s Not Irrational to Buy Gold

A gold store in Beijing. Bullion is headed for its 11th straight annual gain, the longest winning streak since at least 1920, as investors diversify away from other investment vehicles.

Adrian Ash
Published 9/19/2011

Amid this miserable financial crisis, choosing to buy gold doesn’t mean you’re going mad.

Owing to late-2011′s utterly miserable economic outlook, there are now more bullish gold-price forecasts to choose from than Heinz varieties.

UBS, for examples, sees a 2012 average of $2,075 per ounce. Nearer $4,000 an ounce would be “fair value” today reckons BullionVault’s Paul Tustain. Dylan Grice at Société Générale says $10,000 isn’t impossible.

Thanks also to the 21st century’s bull market in gold, there are now more ways to buy gold than flavors at Baskin Robbins, too. Market-development group the World Gold Council counts 10 separate product categories. There are 45 specialist coin dealers in London alone. The growing mob of ETFs, vaulted bullion, spread betting, CFD and warrant providers only adds to the confusion of costs, pricing and risk.

Yet today’s gold buyer, typically, has one simple aim – one which remains unchanged throughout history. Continue reading Why It’s Not Irrational to Buy Gold

Investments: Why Buy Gold?

The FINANCIAL -- The Euro and the Dollar are changing their rates against GEL (Georgian Lari).

Written by Mariam Papidze

29/08/2011

It impacts on the population’s budget significantly as most Georgian citizen’s deposits are kept either in USD or EUR accounts in Georgia.

The Euro and U.S dollar rates have been continuously varying since 2010. Therefore, the people with Georgian accounts are in a precarious situation. They cannot confidently decide which currency is reliable, which currency is beneficial for saving money and which currency will not reduce its value.

In such a situation economic experts’ advice is to invest in shares of gold. “The price of gold is increasing in relation to the dollar, the Euro and Gel (Georgian Lari). Therefore, investing in gold is the only way to ensure the safety of your money and to potentially increase it,” saidPaata Sheshelidze, the economic expert.

Gold is a natural metal and its availability is limited and the production of certain currencies depends on political decisions. Therefore, gold is much more stable and reliable than the US dollar, Euro or Gel,” he added.

Each article on financial news states that gold stocks are raising, all the way to 1,800 USD per ounce in August, 2010. Major banks are predicting gold shares will rise to 2,500 USD per ounce this year, while experts are suggesting it might reach even higher values.

Gold shares are already climbing by 50 USD per day. In fact, a 100 USD increase in one day isn’t unheard of. Gold prices have soared from 1,500 USD to 1,800 USD per ounce.

The price of gold depends on the purity of it. Pure gold is defined as 24 karat. Gold with less karats means gold which is less pure. The following are the prices of gold after the recent price increase: the 24k gold sells for about 1,422 USD per troy ounce, or about 45.72 USD per gram. However, 14k gold sells for about 830 USD per ounce or about 26.65 USD per gram. Continue reading Investments: Why Buy Gold?

Why Wells Fargo is Dead Wrong about a Gold Bubble

17 August 2011 – By Dan Denning

Wells Fargo Private Bank has warned its clients to beware a gold bubble. Their analysis is utterly misguided…

SOME AWFUL gold analysis – courtesy of Wells Fargo Bank. The bank’s analysts have told clients, “Interest in gold investing has reached the level of a speculative bubble.”

Having thus be-clowned themselves, they went on to elaborate: Gold Prices are volatile, gold doesn’t pay a yield, it depends on a “greater fool” for capital gains, central banks are net sellers, it doesn’t beat inflation, Warren Buffett hates (and does not understand) it, and you can’t eat it, writes Dan Denning, editor of the Daily Reckoning Australia.

Oh dear. The Gold Price in Dollars is volatile because the US Dollar is volatile. An ounce of gold has almost always bought you a nice suit at any time in history. The volatility in the gold/Dollar exchange rate is all on the Dollar’s end.

And that’s because the supply of Dollars is always increasing. Also, the futures exchanges have been pretty active boosting margin requirements on gold contracts. That’s made for some larger-than-normal Gold Price moves. But the value? Rock steady over time, baby.

And that’s the point. Gold isn’t really an investment. It’s money. And it’s money that holds value well over time. You only worry about capital gains if you’re investing in gold. If you’re buying money, you’re more focused on preserving purchasing power. Continue reading Why Wells Fargo is Dead Wrong about a Gold Bubble

All That Glitters Is Gold: Price of Precious Metal Reaches All-Time High

"We’ve done the most business that we’ve done in any single week. It was about the four times the normal volume.” — Isaac Kahan, president of Bullion Trading LLC

Tuesday, August 16, 2011 – 12:00 AM

By Mirela Iverac

Gold was flying off the shelf in midtown Manhattan as the price of the precious metal reached an all-time high amid a wild week on Wall Street.

“We’ve done the most business that we’ve done in any single week,” said Isaac Kahan, president of Bullion Trading LLC, which specializes in selling and buying of gold and silver. “It was about the four times the normal volume.”

Gold reached a high of $1,813 an ounce last Thursday. But on Monday, as stock markets recovered, it was down to $1,766 on ounce. And although experts say fear was driving gold prices — not the markets — there were no signs that the demand for gold would abate, or that its price would significantly drop in the long term.

Kahan, who’s been in the business for 30 years, said his clients were forking over between $200 and 350,000 — his largest transaction — to buy gold last week. His most popular products have been 1-ounce bars and the Gold American Eagles coin. Continue reading All That Glitters Is Gold: Price of Precious Metal Reaches All-Time High

Buzz around gold is growing louder

8/1/2011 8:50:57 AM | Jeff Clark, Casey Research

Growing numbers of analysts have either joined the movement or have upped their bullish outlook

I outlined last week the increasingly bullish consensus among analysts about gold stocks. The same pattern exists with gold itself; growing numbers of analysts have either joined the movement or have upped their bullish outlook.

The following comments and developments have all been reported just this month. It presents quite a convincing case when one strings them together like this. Keep in mind that this is what these analysts and managers are telling their clients.

SICA Wealth Management’s Jeffrey Sica: “Right now, I think gold looks better than ever.” He sees a “painfully high probability” of troubling events occurring in the months ahead. There has been a general loss of confidence in the ability of central banks and governments to manage the economy. That will continue to give gold and other precious metals a boost.Continue reading Buzz around gold is growing louder

Demand for bullion at fever pitch

Illustration: Rocco Fazzari

July 30, 2011

Gold-dispensing vending machines? Laws to make it legal tender? John Collett looks at the rise and rise of bullion.

The gold price is hitting record nominal price highs of more than $US1600 ($1450) an ounce, up from about $US300 10 years ago. And most analysts are forecasting the price will rise even higher, and challenge the all-time high of 1980, when it reached $US2400 in today’s dollars.

Gold could easily reach $US2000 this year or next as investors in the US, the euro zone and Britain worry about their governments’ ability to manage huge sovereign debts and expect their currencies to face more downward pressure, says the editor of Sound Money Sound Investments, Greg Canavan.

”Gold is in a long-term bull market and it will not end until there is mass participation, where you have a lot of retail investors trying to get involved,” Canavan says.

Gold has been the favoured safe haven throughout history. It has also long been recognised as a good store of value and a hedge against inflation.

The state of Utah in the US recently passed a law that allows its residents to use gold (and silver) as recognised legal tender alongside the Greenback because it is so worried about the collapse in value of the US dollar against most other currencies over the past two years. Continue reading Demand for bullion at fever pitch

New Gold Price Surge?


New York stock exchange

By Patrick A. Heller

July 26, 2011

Watch closely.

The COMEX August 2011 gold options expire today, July 26. As of July 25, there were still open 20,000 call option contracts (for 100 ounces of gold per contract) at a strike price of $1,600 per ounce. If the price of gold at about 4 p.m. Eastern on July 26 is more than a few dollars above $1,600, (it is about $1,611 as I write this about 11 a.m. Eastern on July 26), these call options could be exercised to create an instant demand for the delivery of 2 million ounces of gold. Such a development would quickly push up gold prices.

The most likely tactic that will be used to try to push down gold prices on July 26 will be to first push down the price of silver. On July 18, there was a single sale of 50,000 COMEX silver contracts (representing 250 million ounces – about one third of annual global mine production) which was an obvious attempt to suppress prices.

That tactic failed. So, don’t be surprised if instead there was an increase in COMEX margin requirements announced on July 26. While the U.S. government may successfully manage this immediate crisis, it will only be a temporary stalling tactic. Look for silver prices to reach even higher levels by the end of the first week in August at the latest. Continue reading New Gold Price Surge?