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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
 Posted - 10/08/2008 : 19:06:26
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Gold news found on the web for your reading enjoyment.
As always, take all news with a grain of salt (or No Salt if you are on a sodium restricted diet.)
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UK: Rush For Gold
10-07-2008
London Telegraph
London's two leading bullion dealers, ATS Bullion and Baird & Co, have reported a rush of interest from savers, many of whom have hundreds of thousands of pounds worth of savings they want to convert into the precious metal.
At least two customers have invested the entire proceeds from selling their houses into gold, each buying up more than £500,000-worth of gold bars, according to one dealer.
Savers have been queuing in the street at ATS Bullion, whose offices are just off the Strand in London's west end.
Sandra Conway, the company's managing director, said: "We've had to turn people away. The queues have been right out of the door and it's been really hectic at times.
"Ever since Lehman Brothers went bankrupt, the phones have been going off the hook."
Traditionally, gold has been one of the safest investments during times of financial turmoil. In 1973 gold cost just $60 an ounce and hit $650 in 1981.
However, since the summer the price of gold has fallen as the dollar has strengthened – the two are linked quite closely.
But the fact that gold has not performed well in recent months has not deterred thousands of investors.
"They don't think of gold as a way of making money. They think of it as a safeguard in these turbulent times. You can move gold quickly, in a way that you can not with shares or cash in a bank account," Ms Conway said.
The average investor is buying up between £10,000 and £50,000 in bars on each visit, but it is possible to buy as little as a half sovereign coin, which costs about £70.
Some analysts say that while it may be romantic to buy bars of gold, there is a far more practical way to investing in gold. Investors can buy Exchange Traded Funds, which are like shares – they trade on the stock market – and they are directly linked to the price of gold.
Mick Gilligan, at stockbrokers Killik & Co, said that his clients had been asking about investing in gold in far greater numbers in recent weeks.
"It's lot easier to sell than the gold you keep in your sock drawer," he said.
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"At least two customers have invested the entire proceeds from selling their houses into gold, each buying up more than £500,000"
Eggs, meet basket-
One basket at that.
It would nake more sense to keep some cash on hand than to have it all tied up in gold in case any unexpected bills pop up. It is less of a hassle to pay cash for expenses than to sell gold for cash.
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U.S. Mint Halts Gold Eagle Production
10-07-2008
Reuters
Unprecedented demand for precious metals and volatile markets forced the U.S. Mint to cease production for the half-ounce and quarter-ounce popular American Eagle gold coins for the rest of this year and to supply other bullion coins on an allocation basis.
"Due to the extreme fluctuating market conditions for 2008, as well as current market conditions, gold and silver demand is unprecedented and the demand for platinum is unusually high," the U.S. Mint said in a Monday memorandum to its authorized coin dealers.
"The U.S. Mint has worked diligently to attempt to meet demand, however, blank supplies are very limited and it is necessary for the U.S. Mint to focus remaining bullion production primarily on American Eagle Gold One Ounce and Silver One Ounce Coins," the Mint said.
The Mint said it would continue to supply one-ounce American Eagle gold coins and one-ounce American Eagle silver coins on an allocation basis to coin dealers.
For half-ounce and quarter-ounce American Eagles, the Mint said that inventory was depleted last week and no more coins would be produced for 2008.
……..Coin dealers from the United States to Canada have recently reported a surge in buying of bullion coins and other gold products as a worsening crisis in the financial markets prompted people to seek a safe haven in precious metals. (Reporting by Frank Tang; Editing by John Picinich)
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 10/08/2008 : 19:52:55
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"Some analysts say that while it may be romantic to buy bars of gold, there is a far more practical way to investing in gold. Investors can buy Exchange Traded Funds, which are like shares – they trade on the stock market – and they are directly linked to the price of gold."
Yes, far more practical until you wake-up one day to hear on the news that your Exchange Traded Gold Fund really didn't have the gold it was reported to have and the goverment isn't going to bail out the stupid gold bugs. |
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 10/21/2008 : 18:49:36
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(More opinion than news but worth a read)
India vs. Gold?
....One thing is certain: The latest drop of the derivative price-illusion we call ‘Comex-gold’ into the sub-$800 region has proven that gold at or near $700 is viewed as a tremendous bargain, especially in India. This, combined with the stock-rout induced reluctance to buy at prices above $850 may well keep Comex gold in that tight range between these numbers for the near future.
However, when viewed in comparison with the fifty-plus percent losses of other asset classes, gold – even its third-cousin derivative variety traded on the New York Commodities Exchange – is proving, once again, that it is indeed the most reliable and therefore superior wealth storage facility man has ever known. In times like these, who could ask for more?
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 10/26/2008 : 15:54:36
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It’s gold rush, even at premium
NAGPUR: The global slowdown brought a Dhanteras bonanza for Indian consumers. Gold prices crashed right amidst the festive season and consumers rushed to make Dhanteras purchases. So heavy has been the demand that in Nagpur gold was being quoted at a premium of Rs 400 against its basic market rate of Rs 12,000 per tola (10 grams) on Saturday. Traders say the situation will continue on Sunday too.
World Gold Council claimed that 50 tonnes of gold was sold in the last 20 days in the country.
Gold is weak in the international market for a host of factors. Firstly, financial institutions in the West are resorting to selling off their gold holdings to tide over the liquidity crisis. “This has proved a boon for Indian consumer as the yellow metal has become cheaper at home,” said Ashok Minawala president of All India Gems and Jewellery Federation. Many harried speculators in the US had squared off their trades, pulling down the rates too, add traders.
In fact, jewellers are now faced with a supply crunch and wholesalers are charging a premium over and above the base price, which is calculated by adding the local taxes to the dollar rates.
Nilesh Rathi of SMS Bhav, an online rate information agency, said that against the wholesale price of Rs 12,100 in Mumbai which is the centre, in Nagpur it is being quoted at Rs 12,400, while at some counters it is as high as Rs 12,600. There is a bank holiday on Sunday, so are bullion traders closed for Diwali, which has put tremendous pressure on the supply side leading to the premium. The rates in bigger centres like Mumbai, Delhi or Ahmedabad are between Rs 12,100 to 12,150 due to the proximity of supply points. Even many of the couriers who ferry gold to smaller centres are on a vacation which has added to the supply shortage.
It is the middle class buyer who is driving the market. The sixth pay commission arrears has brought a huge funds in the market. So did several employees in the private sector get bonus. “A windfall gain coupled with low rates has buoyed the buying,” said Ajay Shah of Shreeji Jewellers.
Kumudini Kadhao, a housewife had no plans to buy gold this year, had the rates not fallen. “I feel the rates are comfortable for me to purchase. It has been a tradition in our house to buy gold on Dhanteras and the low prices have surely helped.”
Sudhanshu Mishra, an executive in a private firm said, says he could buy one more ornament for his wife due to the low prices. Otherwise, he had plans to buy just for namesake this Dhanteras. So were Ravindra and Pratima Dewtale, happy over the fall in prices. “It has been a Dhanteras gift for us,” said the couple.
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Some useful information from an anti-goldbug-
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Even the Midas Touch Isn't a Sure Bet By Jane Bryant Quinn
…….So far this year, investors have purchased 611,000 newly minted, one-ounce U.S. gold coins, compared with 315,000 in all of 2007.
"We've seen a switch in appetite, with investors moving from futures to physical gold, either owning it directly or going through exchange-traded funds," says Suki Cooper, an analyst at London-based Barclays Capital.
Coins purchased strictly for their gold value, not their numismatic value, are known as bullion coins. Many countries mint them -- South Africa (Krugerrand), Canada (Maple Leaf), China (Panda), Austria (Philharmonic) and Australia (Kangaroo), among others. The U.S. Mint makes Buffalos and American Eagles. For investment purposes, you want the one-ounce size.
That is, if you can find them. The yearlong run on bullion has dried up the supply of coins for immediate delivery. Everything was out of stock last week at the online dealer OnlyGold.com. Kitco.com had Maples at 7 percent more than the spot gold price.
"The premium will likely come down 1 or 2 percent when all coin supplies improve a bit," says Jon Nadler, senior analyst for Kitco Metals & Minerals in Montreal.
The various mints project the number of coins they expect to sell each year and produce on demand. Toward the end of each year, they let their inventories run down while gearing up for next year's run. The surge of buyers left them short of high-quality blanks.
Currently, the U.S. Mint is striking only a limited number of 2008 Eagles. The wholesalers are on allocation. No Buffalos are being shipped at all, although a small number might still be minted before the end of the year. By late December, dealers expect to start receiving 2009 coins.
For U.S. investors, American Eagles are the bullion coin of choice. You can put them into individual retirement accounts as long as they remain in their original U.S. Mint capsules. (It's not clear that Buffalos are allowed.)
Normally, one-ounce Eagles sell for 5.5 to 7.5 percent more than the gold price, Nadler says. Small dealers might mark up the price even more.
In this buying panic, I saw online dealers charging as much as 13 percent more than spot gold. Their Web sites warned that there might be a wait before your Eagles could be shipped.
On eBay and the Home Shopping Network, coins sell at fantasy prices. A set of Eagles in four weights was offered on HSN at $4,999.99. In gold, it's worth about $1,450. Prices like these take advantage of neophytes. A coin dealer might sell a four-coin set for $1,850, Travers says.
A cheaper way of buying gold is through an exchange-traded fund.
…..(Provided the ETF actually HAS gold in its fund.)
The most widely traded fund, SPDR Gold Shares, costs 0.4 percent a year in fees, plus your brokerage commission. You don't own the gold directly. A trust holds large gold bars (warehoused principally in London) and sells shares against them, which are traded on the open market. You can't redeem in gold itself.
It costs even less to buy bullion in a pool account, such
as the ones offered by Kitco. Like an ETF, a pool account sells shares in a large bar of warehoused gold. You pay just a hair over the spot gold price, and sell it back to Kitco for just a hair under. There are no annual expenses. For a fee, you can redeem in gold itself. As with ETFs, you depend on the pool's trustee to support its guarantee.
Gold, by the way, is taxed as a collectible -- whether you buy it in the form of coins, ETF shares or an interest in a pool account. Your tax rate on long-term capital gains would be 28 percent, compared with 15 percent on other assets.
....(And for those whose portfolios have fallen in value more than 15%, a 28% tax rate on profits from gold looks like a much, much, much better move.)
Only a significant price gain (or currency collapse) redeems your bet.
....(And for those who bought gold when it was $400 per ounce, they made a significant price gain, now didn‘t they?)
.....The anti-goldbug sentiment expressed by the writer of this piece-
Gold is for rich guys -- buying physical gold, that is. The metal's highest and best investment use is as an insurance policy against a currency collapse. For that purpose,
you need a lot of it, stored around the world. Owning 20 or 30 coins is nice but won't protect your standard of living in a world where dollars are dust.
....(Gold will protect your ability to buy food, medicine, the ability to move to another country if need be AND gold preserves one’s wealth, something fiat currencies
And paper investments can‘t do.)
Gold isn't even a reliable hedge against inflation. It reached $850 an ounce in January 1980, a price not seen again until January 2008. During those intervening 28 years, gold plunged and reared but lost more than half its purchasing power. For a 1980 investor to break even after inflation, gold would have to reach $2,200. It might, but how long did you plan to wait?
....(The writer didn’t mention the fact that interest rates had to spike to double digits in 1980 to get inflation under control, and the Regan administration had its own private war on gold to A) Support the Dollar B) Bring down Apartheid in South Africa, a major exporter of gold C) Bring down the Soviet Union, a major exporter of gold. Besides, gold was a good hedge against inflation from 1944-1980, a 36 year stretch. Besides, the US Dollar wasn’t exactly inflation proof from 1980-2008, now was it? And by the way, how has the Stock Market done recently as far as beating inflation?)
Jane Bryant Quinn, author of "Smart and Simple Financial Strategies for Busy People," is a Bloomberg News columnist.
....(Maybe simple, but not really all that smart.) |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 10/26/2008 : 16:16:53
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| Yes, you can take a 30 year block of history of your choice, and show just about any result you wish to show, with just about any investment you desire. |
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
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