Gold Price: Monthly Finish Confirms 10-Year Bull Pattern as Chinese IMF Rumor Debunked But Low Rates "Support Long-Term Rise" - Friday 26th February 2010
The Gold Price in Dollars pushed higher early in London on Friday, nearing the last weekend of February some 2.8% above January's finish, and confirming the last 10 year's pattern of never falling for more than two months running.
World stock markets also ticked higher after better-than-expected Japanese industrial data.
Crude oil and broad commodity prices, like government bonds, were little changed.
"A high Gold Price is a sign of high worldwide inflation fears," notes economist Chris Dillow in the UK's Investors Chronicle today.
"Although the outlook for inflation is stable according to the Federal Reserve," write Bradley George and Daniel Sacks at the Investec Global Gold fund in a new client report, "we believe the [Fed's] reaffirmation that rates are likely to remain low for an extended period should be supportive of Gold Prices in the long term."
Thursday's rumor that China's central bank had "confirmed" it would the remaining 191 tonnes of IMF gold now for sale were denied by their Russian author, who told Reuters she had only repeated existing comments and was unaware the price had jumped on her "news".
Rallying 1.8% however, Gold was then pushed higher again by what several London dealers today call "short covering" – where bearish players were forced to close their bets by rising prices.
"Since gold exports from China are banned, we can assume that some of the 310 tonnes of gold mined by the country in 2009 has already been added to the1054 tonnes of existing reserves," says the latest Commodities Weekly report from Patrick Artus' team at Natixis in Paris.
"[But] although China certainly remains interested in acquiring international gold mines, they may balk at buying 191 tonnes [of Gold Bullion] on the open market at prices above $1100 an ounce."
"I don't believe it makes sense for China to make such a big public purchase of the remaining gold," agrees David Barclay at Standard Chartered in Hong Kong, speaking to Reuters.
"You can see the impact when India bought [200 tonnes in Oct]. Prices went on to rally substantially after that. China has added sensitivity over the fact that it's got such large Dollar holdings."
Cutting this week's US$30-per-ounce loss by two-thirds for an AM Gold Fix of $1112.50 in London today, gold rose against all other major currencies too.
Heading into the close with a week-on-week gain for Australian, UK and Canadian owners, the Gold Price held for the tenth session running above €800 an ounce for Euro investors.
Only 87% as volatile as US Dollar-gold prices over the last 10 years on average, the Euro price has become less volatile still this month, displaying a 1-month volatility of 14.2%.
Gold priced in Dollars now shows an 18.5% volatility.
"Investors reacted quite sharply to the China rumors," notes MKS Finance in Geneva, "and the [Dollar] volatility implies the market is still quite thin."
"From a daily close basis, it seems Gold is unable to move below 1098," says London market-maker Scotia Mocatta. "We see resistance at 1111 and then at the Monday high of 1131."
In the wholesale Gold Bullion market, "Physical buying interest has slowed substantially only a few days after the Chinese New Year," reports Walter de Wet at Standard Bank in London.
"The fact that gold is holding up well in other currencies (such as Euro, Indian Rupee, etc) makes physical buying less attractive at the moment. However, we also note that there large volumes of scrap selling are not as prevalent as in [early] 2009.
"Given the lack of scrap coming to the market, once the Dollar starts to depreciate, a sizable increase in the Gold Price may follow."
Here in London, meantime, UK house prices fell unexpectedly this month, the Nationwide lender said, while new GDP data said the economy grew at 0.3% rather than 0.1% between Oct. and Dec.
Data revisions worsened the year-on-year slump to 3.3%, however.
Sterling fell through $1.52 on the forex market for the time since May 2009. Gilt and other government bond prices were little changed ahead of fourth-quarter GDP revisions from the US Bureau of Economic Analysis.
How best to Buy Gold today? "If there's an easier way, I've yet to find it," says one BullionVault user...
Adrian Ash, 26 Feb '10
Adrian Ash runs the research desk at BullionVault, the world's No.1 private investor gold service online. Formerly head of editorial at Fleet Street Publications – London's top publisher of financial advice for private investors – he was City correspondent for The Daily Reckoning from 2003 to 2008, and is now a regular contributor to 321gold, FinancialSense, GoldSeek, Prudent Bear, SafeHaven and Whiskey & Gunpowder among many other leading investment websites. Adrian's views on the Gold Market have been sought by leading news organizations including the Financial Times, the Economist, Bloomberg and Der Stern in Germany.
Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.
Sunday, February 28, 2010
Monday, February 22, 2010
Gem Item
Padparadscha Sapphire from Sri Lanka
Sri Lanka is known for its Ceylon Blue, and padparadscha (aka padmaraga, pathmaraga) sapphire, named after the island's lotus flower, and its unique soft pastel orange-pink color. The name "Padparadscha" or "Pathmaraga" comes from the Sanskrit or Singhalese "padma raga" meaning "lotus blossom." The traditional mining areas of Ceylon were located in the vicinity of Ratnapura, about 100 kilometers south-east of the capital of Colombo.
Although padparadscha sapphire is synonymous with Sri Lanka, the use of the name is no longer limited to gems found in this single geographic region. The seven members of the Laboratory Manual Harmonization Committee (LMHC) now define padparadscha as a "variety of corundum from any geographical origin whose color is a subtle mixture of pinkish-orange to orangey-pink, with pastel tones and low to medium saturations" [9].
Pushparaga Sapphire from Sri Lanka
Yellow sapphire from Sri Lanka is called "pushparaga" in Singhalese ("pukhraj" in Hindi), and can be comparable in value to the finest Mogok sapphire. Pushparaga, also known as "Oriental topaz" or "hyacinth" has a golden or honey yellow color with brownish secondary hues.
The 'Logan Sapphire' (422.99 carat) from Sri Lanka
Yellow Ceylon 'Pushparaga' Sapphire (115.72 carat)
Heat Treated Gem Material from Sri Lanka
Sri Lanka has a two thousand year history of heating their rubies to enhance the reddish-pink color, and remove any bluish or purplish hues. Sri Lanka's "burners" traditionally apply heat treatment using a blow-pipe and charcoal burner, to super-heat the stone
Sri Lanka is known for its Ceylon Blue, and padparadscha (aka padmaraga, pathmaraga) sapphire, named after the island's lotus flower, and its unique soft pastel orange-pink color. The name "Padparadscha" or "Pathmaraga" comes from the Sanskrit or Singhalese "padma raga" meaning "lotus blossom." The traditional mining areas of Ceylon were located in the vicinity of Ratnapura, about 100 kilometers south-east of the capital of Colombo.
Although padparadscha sapphire is synonymous with Sri Lanka, the use of the name is no longer limited to gems found in this single geographic region. The seven members of the Laboratory Manual Harmonization Committee (LMHC) now define padparadscha as a "variety of corundum from any geographical origin whose color is a subtle mixture of pinkish-orange to orangey-pink, with pastel tones and low to medium saturations" [9].
Pushparaga Sapphire from Sri Lanka
Yellow sapphire from Sri Lanka is called "pushparaga" in Singhalese ("pukhraj" in Hindi), and can be comparable in value to the finest Mogok sapphire. Pushparaga, also known as "Oriental topaz" or "hyacinth" has a golden or honey yellow color with brownish secondary hues.
The 'Logan Sapphire' (422.99 carat) from Sri Lanka
Yellow Ceylon 'Pushparaga' Sapphire (115.72 carat)
Heat Treated Gem Material from Sri Lanka
Sri Lanka has a two thousand year history of heating their rubies to enhance the reddish-pink color, and remove any bluish or purplish hues. Sri Lanka's "burners" traditionally apply heat treatment using a blow-pipe and charcoal burner, to super-heat the stone
Friday, February 19, 2010
About Gold
Facts About Gold:
It has been estimated that all the gold in the world that has ever been refined would form a single cube 20 m (66 ft) a side.
75% of all gold ever produced has been extracted since 1910.
A cubic foot (30 cm.) block of gold =500 kilos or half a ton.
Carats are a purity grade mostly used by gold diggers and jewellers. It is a rough guide as to how pure the gold is. There are 24 carats in pure gold or as pure as you can get because there is no such thing as pure gold. Therefore 12 carat gold refers to a metal that is composed of half gold. You can make any purity you want. The most popular is 18 carat meaning three quarters gold composition. A mixture of silver and copper in the gold will highlight its colour. Too much silver will give a green tinge. Green is the opposite colour to gold on the colour spectrum and collectively large amounts of gold will give off a green aura. Too much copper will give a red tinge (rose gold) and the addition of even a little Nickel will overpower the colour of gold to silver, hence white gold is made.
Fineness is a purity scale used by bullion dealers some diggers and international traders. Fineness equals parts per thousand and different countries have different standards. England is 995 fine and Australia is 999 fine. In other words we guarantee our gold bullion to have been refined to 999 parts gold per thousand.
e.g. 999 fine = 24 carat = all gold, 750 fine = 18 carat = three quarters gold and 500 fine = 12 carat = half gold. Unfortunately the word carat also equals the weight of a gemstone, e.g. a one carat diamond stone equals a gemstone that weighs 200 milligrams.
Gold is the oldest precious metal known to man. Therefore, it is a timely
subject for several reasons. It is the opinion of the more objective market
experts that the traditional investment vehicles of stocks and bonds are in
the areas of their all-time highs and may be due for a severe correction.
To fully appreciate why 8,000 years of experience say " gold is forever", we
should review why the world reveres what England's most famous economist,
John Maynard Keynes, cynically called the "barbarous relic."
Why gold is "good as gold" is an intriguing question. However, we think that
the more pragmatic ancient Egyptians were perhaps more accurate in observing
that gold's value was a function of its pleasing physical characteristics
and its scarcity.
Gold is primarily a monetary asset and partly a commodity.
More than two thirds of gold's total accumulated holdings account as
'value for investment' with central bank reserves, private players and
high-carat Jewellery.
Less than one third of gold's total accumulated holdings is as a
'commodity' for Jewellery in Western markets and usage in industry.
The Gold market is highly liquid and gold held by central banks, other
major institutions and retail Jewellery keep coming back to the market.
Due to large stocks of Gold as against its demand, it is argued that
the core driver of the real price of gold is stock equilibrium rather than
flow equilibrium.
Economic forces that determine the price of gold are different from,
and in many cases opposed to the forces that influence most financial
assets.
South Africa is the world's largest gold producer with 394 tons in
2001, followed by US and Australia.
India is the world's largest gold consumer with an annual demand of 800
tons.
World Gold Markets
London as the great clearing house
New York as the home of futures trading
Zurich as a physical turntable
Istanbul, Dubai, Singapore and Hong Kong as doorways to important
consuming regions
Tokyo where TOCOM sets the mood of Japan
Mumbai under India's liberalized gold regime
(Rounded Figures) India (In Tons) World (In Tons) % Share
Total Stocks 13000 145000 9
Central Bank holding 400 28000 1.4
Annual Production 2 2600 0.08
Annual Recycling 100-300 1100-1200 13
Annual Demand 800 3700 22
Annual Imports 600 --- ---
Annual Exports 60
It has been estimated that all the gold in the world that has ever been refined would form a single cube 20 m (66 ft) a side.
75% of all gold ever produced has been extracted since 1910.
A cubic foot (30 cm.) block of gold =500 kilos or half a ton.
Carats are a purity grade mostly used by gold diggers and jewellers. It is a rough guide as to how pure the gold is. There are 24 carats in pure gold or as pure as you can get because there is no such thing as pure gold. Therefore 12 carat gold refers to a metal that is composed of half gold. You can make any purity you want. The most popular is 18 carat meaning three quarters gold composition. A mixture of silver and copper in the gold will highlight its colour. Too much silver will give a green tinge. Green is the opposite colour to gold on the colour spectrum and collectively large amounts of gold will give off a green aura. Too much copper will give a red tinge (rose gold) and the addition of even a little Nickel will overpower the colour of gold to silver, hence white gold is made.
Fineness is a purity scale used by bullion dealers some diggers and international traders. Fineness equals parts per thousand and different countries have different standards. England is 995 fine and Australia is 999 fine. In other words we guarantee our gold bullion to have been refined to 999 parts gold per thousand.
e.g. 999 fine = 24 carat = all gold, 750 fine = 18 carat = three quarters gold and 500 fine = 12 carat = half gold. Unfortunately the word carat also equals the weight of a gemstone, e.g. a one carat diamond stone equals a gemstone that weighs 200 milligrams.
Gold is the oldest precious metal known to man. Therefore, it is a timely
subject for several reasons. It is the opinion of the more objective market
experts that the traditional investment vehicles of stocks and bonds are in
the areas of their all-time highs and may be due for a severe correction.
To fully appreciate why 8,000 years of experience say " gold is forever", we
should review why the world reveres what England's most famous economist,
John Maynard Keynes, cynically called the "barbarous relic."
Why gold is "good as gold" is an intriguing question. However, we think that
the more pragmatic ancient Egyptians were perhaps more accurate in observing
that gold's value was a function of its pleasing physical characteristics
and its scarcity.
Gold is primarily a monetary asset and partly a commodity.
More than two thirds of gold's total accumulated holdings account as
'value for investment' with central bank reserves, private players and
high-carat Jewellery.
Less than one third of gold's total accumulated holdings is as a
'commodity' for Jewellery in Western markets and usage in industry.
The Gold market is highly liquid and gold held by central banks, other
major institutions and retail Jewellery keep coming back to the market.
Due to large stocks of Gold as against its demand, it is argued that
the core driver of the real price of gold is stock equilibrium rather than
flow equilibrium.
Economic forces that determine the price of gold are different from,
and in many cases opposed to the forces that influence most financial
assets.
South Africa is the world's largest gold producer with 394 tons in
2001, followed by US and Australia.
India is the world's largest gold consumer with an annual demand of 800
tons.
World Gold Markets
London as the great clearing house
New York as the home of futures trading
Zurich as a physical turntable
Istanbul, Dubai, Singapore and Hong Kong as doorways to important
consuming regions
Tokyo where TOCOM sets the mood of Japan
Mumbai under India's liberalized gold regime
(Rounded Figures) India (In Tons) World (In Tons) % Share
Total Stocks 13000 145000 9
Central Bank holding 400 28000 1.4
Annual Production 2 2600 0.08
Annual Recycling 100-300 1100-1200 13
Annual Demand 800 3700 22
Annual Imports 600 --- ---
Annual Exports 60
Thursday, February 18, 2010
Gold Price
SEOUL (Commodity Online) : South Korea aims to set up a global grain purchasing and distribution company that can better insulate the country from fallout from global price hikes.
According to state-run agriculture trading corporation, Korea Agro-Fisheries Trade Corp, the plan calls for the new grain handling company to set up an international distribution network in the next 10 years.
Start trading in commodities from as low as $50. Join now
This would allow it to purchase products directly from farmers in foreign countries and distribute the wheat, corn and beans around the world, the Corporation said.
The company can also invest directly in foreign farms or control stakes in agricultural operations, it said.
At present, South Korea is overly dependent on companies such as Cargill, ADM, Louis Dreyfus LCD and Bunge that control the global grain market.
A recent report by the Korea Rural Economic Institute (KREI) claimed the country often paid more for grain purchased through such companies than it would have if they bought products on the open market.
The officials said the new company can be set up initially with 200 billion won (US$172 million) in capital, that should allow it to purchase grain elevators or silos near areas of production and at harbors, and allow it to engage in trading activities at the Chicago Board Of Trade (CBOT).
The CBOT is the world’s leading grain futures market handling on average 21 percent of all the 2.2 billion tons of grain produced in the world every year.
The grain purchased can be shipped to South Korea, that has to imports most of its food from abroad, sold to overseas buyers and food processing companies, or traded on the futures market that can generate additional profits, according to the officials.
According to state-run agriculture trading corporation, Korea Agro-Fisheries Trade Corp, the plan calls for the new grain handling company to set up an international distribution network in the next 10 years.
Start trading in commodities from as low as $50. Join now
This would allow it to purchase products directly from farmers in foreign countries and distribute the wheat, corn and beans around the world, the Corporation said.
The company can also invest directly in foreign farms or control stakes in agricultural operations, it said.
At present, South Korea is overly dependent on companies such as Cargill, ADM, Louis Dreyfus LCD and Bunge that control the global grain market.
A recent report by the Korea Rural Economic Institute (KREI) claimed the country often paid more for grain purchased through such companies than it would have if they bought products on the open market.
The officials said the new company can be set up initially with 200 billion won (US$172 million) in capital, that should allow it to purchase grain elevators or silos near areas of production and at harbors, and allow it to engage in trading activities at the Chicago Board Of Trade (CBOT).
The CBOT is the world’s leading grain futures market handling on average 21 percent of all the 2.2 billion tons of grain produced in the world every year.
The grain purchased can be shipped to South Korea, that has to imports most of its food from abroad, sold to overseas buyers and food processing companies, or traded on the futures market that can generate additional profits, according to the officials.
Monday, February 15, 2010
gold make
Where to Buy Gold
Deciding where to buy physical gold products is a very important decision. This article provides guidance to help you decide where to make gold purchases. The knowledge you need to find the best place for you to buy gold consists of general knowledge and knowledge specific to gold
Use the same common sense approach you use to make any major purchase. After determining exactly what you want to buy make a list of potential sellers. Write the seller’s details down. These details include the seller’s physical address, contact information, and web site address. Next, write a small set of criteria based on which you will select your top three sellers. Some criteria to consider are as follows. How long the company has been in business. Their terms and conditions related to payment procedures, return policy, and buying back. Recommendations from those you know and trust that have done business with the company. Find or make your own gold price comparisons for the items you want.
Use the Internet to search out any information you can find on others experience with the company. Don’t be afraid to call the company and tell them you are evaluating them and ask any questions you need answered. It is important to find a person at the company that will be your main contact. By this point you will be able to pick your top two or three companies.
One approach is to test your sellers buy making a small purchase from each of the selected sellers. Another approach is to make a purchase each month from a different seller. In any case, determine all the costs involved in each purchase including taxes, shipping and insurance before completing the transaction. Based on this experience you will have found some good companies to deal with. Ideally you will develop a long term relationship with a good company.
Here are some gold specific things to keep in mind when deciding where to buy gold. Look for coin shops near you that you can visit. Look at government and private Mints. eBay is an alternative suited to some. As gold becomes more popular you will see many more advertisements for gold products. Be very careful about these offerings and remember the process given above. If it seems too good to be true – it is!
Deciding where to buy physical gold products is a very important decision. This article provides guidance to help you decide where to make gold purchases. The knowledge you need to find the best place for you to buy gold consists of general knowledge and knowledge specific to gold
Use the same common sense approach you use to make any major purchase. After determining exactly what you want to buy make a list of potential sellers. Write the seller’s details down. These details include the seller’s physical address, contact information, and web site address. Next, write a small set of criteria based on which you will select your top three sellers. Some criteria to consider are as follows. How long the company has been in business. Their terms and conditions related to payment procedures, return policy, and buying back. Recommendations from those you know and trust that have done business with the company. Find or make your own gold price comparisons for the items you want.
Use the Internet to search out any information you can find on others experience with the company. Don’t be afraid to call the company and tell them you are evaluating them and ask any questions you need answered. It is important to find a person at the company that will be your main contact. By this point you will be able to pick your top two or three companies.
One approach is to test your sellers buy making a small purchase from each of the selected sellers. Another approach is to make a purchase each month from a different seller. In any case, determine all the costs involved in each purchase including taxes, shipping and insurance before completing the transaction. Based on this experience you will have found some good companies to deal with. Ideally you will develop a long term relationship with a good company.
Here are some gold specific things to keep in mind when deciding where to buy gold. Look for coin shops near you that you can visit. Look at government and private Mints. eBay is an alternative suited to some. As gold becomes more popular you will see many more advertisements for gold products. Be very careful about these offerings and remember the process given above. If it seems too good to be true – it is!
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