Doubling of gold price predicted

May 31st, 2010. Published under News. No Comments.

GOLD might have been hitting all-time highs in terms of dollars and rands, but it is still at only half the peak set in 1980 after adjusting for inflation, the SA Gold Coin Exchange said yesterday. “Then, prices rose to 850 an ounce, equal to 2266 today,” said its executive chairperson, Alan Demby. This phenomenon alone justified a doubling of the gold price from current levels in the next couple of years, he said. He cited a recent Bloomberg analysis which suggested that speculators were buying gold faster than the world’s biggest producers could mine the metal. “Against this background, analysts had been predicting a rally that might extend the longest run of annual gains since at least 1920,” Demby said. Analysts’ predictions for gold included that the yellow metal could go up 5000 to 10000 an ounce in the next five to 10 years. According to Demby, investors should hold a minimum of 15percent of their assets in gold, with two-thirds of that 15% comprising Krugerrands.

A Reuters poll released yesterday confirmed the trend, citing concerns over eurozone sovereign debt and wider instability in the financial markets as the spark behind the demand for a refuge from risk. — Reuters- Sapa

Hotel Boasts ATM With a Golden Touch

May 25th, 2010. Published under News, Videos. No Comments.

Almost exactly 1 year ago a golden vending machine was launched in Germany. Now you can buy your bullion from a vending machine in Abu Dhabi

Gold is money

May 13th, 2010. Published under News. No Comments.

The Western financial world is officially in full panic mode. A nearly $1 trillion bailout of Greece confirms that fact. Our very own Federal Reserve is providing billions to the effort, but this is much more than a bailout for Greece. It is a bailout for banks holding Greek debt and the debt of other European nations teetering on default.

This bailout is not a fix or a cure for too much debt. People on both sides of the pond are simply spending more than they earn. The “fix” is a long painful road of consuming less and saving more, but that is not what this bailout represents. What the leaders of the Western World chose was the short painless path of money printing. You have to ask yourself where did they come up with nearly a trillion dollars in such a short amount of time?

If real assets were used for this bailout, it would not be done. Think about this for a minute. Let’s say for the American part of this rescue we had to put up half of New York State for collateral. Does the thought of that much prime land frittered away make you squeamish?  How about putting up 500 million barrels of oil out of the Strategic Petroleum Reserve? Too valuable you say? Then maybe a couple thousand tons of gold out of Fort Knox would be okay to use, after all, it’s just sitting there (I hope).  Doesn’t this sound absurd?  It sure does because these are real assets and printed money is not. This is why the U.S. Fed is using dollars created out of thin air to help bail out its banking buddies in Europe. It is the easy way out, at least at the beginning.

In the end, this kind of reckless desperation will cause every dollar you spend and save to be worth less. If the Fed prints too many dollars, then they’ll be just plain worthless. What do you suppose will happen when California, Illinois, Florida or any one of more than a couple of dozen U.S. states all gets into the same trouble as Greece? Do you think the Fed will let them fail or print more money and bail them out too? I’m going with a giant money printing bonanza right here in America. I covered some of this in a February post called “America Has Its Own PIGS.”

Gold buyers see what’s coming, and prices are being bid up.  Gold set a new all time high this week. Why? Money, or the buying power of money, is systematically being destroyed by current and coming bailouts. The new money is gold and Congressman Ron Paul agrees. He said earlier this week, “Gold, all of a sudden, started acting differently.  It started acting as a currency rather than just reacting to the value of the dollar or other commodities . . . Gold has been money for 6 thousand years and it’s going to remain that way, and it will rule the roost . . . It’s telling us that the dollar is actually very weak . . . when you measure it against gold.” Silver is also rising in price. When gold rockets high enough in price, then silver will also be considered money.

This so called bailout will just extend the game. The question is for how long? To be frank, I do not know how this will finally shake out. The two things you can count on for sure:  there will be some very big inflation–and gold is money. (more…)

New dollar high point for gold on more risk aversion

May 13th, 2010. Published under News. No Comments.

Continued uncertainty over the Euro and any short term recovery in the West, pushed gold to a new high with upwards momentum continuing.

Author: Ross Norman
Posted:  Tuesday , 11 May 2010 

LONDON (THEBULLIONDESK.COM) - 

Late this afternoon gold prices hit an all time high at $1234 – surpassing the previous high of $1227, a level not seen since December 2009 as investors moved into risk aversion mode following the mounting concerns over the sovereign debt crisis.

The measures introduced to support Greece with an aid package saw an initial relief rally in both the currency and equity markets on Monday but the euphoria quickly faded, with a corresponding rise in gold prices.   The gold price strength reflects concerns that despite the financial aid package, some Eurozone countries may nevertheless have difficulty in reducing their budget deficits.

Traditionally gold prices have moved inversely with the US dollar but the current move higher in gold is in tandem with dollar strength because of the overwhelming desire amongst investors for safe haven assets. (more…)

A theoretical opinion of what could be ahead for gold should economic turmoil and quantitative easing persist.

May 12th, 2010. Published under News. No Comments.

A theoretical opinion of what could be ahead for gold should economic turmoil and quantitative easing persist.

Author: Lawrence Williams
Posted:  Monday , 10 May 2010 

WASHINGTON, DC - 

I suppose it depends who you listen to whether you believe that gold is going to move on and on to new heights – and maybe test $1500 or higher this year, or whether the recent sharp rise back above $1200, like the even sharper fall in stock markets, is just a blip and it will return to lower levels. The latest European moves to stabilise the Euro and prop up the PIIG economies may temporarily impact the gold priceand bring it back a little.  Indeed there are some who believe the combined forces of the U.S and Eurozone will be mobilised against gold to bring it crashing down as they feel that an ever-stronger gold price brings home the global weakness in the major western currencies and the central bankers will be trying to disguise quite how weak these currencies really are. (more…)

Gold forecast to reach $3,000 per ounce as it ‘decouples’ on international debt crisis

May 12th, 2010. Published under News. No Comments.

As the international debt crisis seems to gain added momentum, gold has been surging in all currencies.

Posted:  Friday , 07 May 2010 

DUBLIN (GOLDCORE.COM) - 

The sharp sell off on Wall Street and with equities internationally saw gold decouple and surge in all currencies yesterday. Oil, commodities and bonds also fell sharply in incredibly volatile trading.

Gold was up by more than 2% in dollar terms and by more than 3.5% in euros and pounds as the euro and pound fell sharply on contagion fears, hung parliament and economic concerns respectively. Gold reached new record nominal highs in sterling, euros and Swiss francs and 27 year highs in Japanese yen, also reaching a five-month high in dollars (more…)

Gold hits record high

May 12th, 2010. Published under News. No Comments.

Hong Kong – Gold hit a record high of $1 235.50 ounce by midday in Hong Kong Wednesday, as investors sought a safe-haven over deepening concerns about the eurozone debt crisis. The precious metal closed in Asia on Tuesday at $1 209.00 but later climbed as high as $1 224.82 an ounce in European trade. Analysts said the commodity was likely to maintain its safe haven role while other markets remained vulnerable. It opened at $1 229.00, just up from a previous record of $1 226.56 for the metal set on December 3 last year. “The response of the central banks and the IMF to the southern European mess is almost guaranteed to ensure continued volatility in world markets,” said Capital Spreads analyst Simon Denham. Investors had on Monday welcomed the European Union and International Monetary Fund aid package worth €750 bn to resolve the debt and budget deficit crisis in Europe. However, the euphoria faded on Tuesday amid resurgent doubts over countries’ ability to reduce their deficits (more…)

After rallying toward record gold slips back below $1,200

May 7th, 2010. Published under News. 1 Comment.

After rallying toward record gold slips back below $1,200

The price of the yellow metal edged down in early trade on Friday after rising toward an all time high yesterday on escalating debt concerns and falling US stocks

Author: Lewa Pardomuan (Reuters)
Posted:  Friday , 07 May 2010 

SINGAPORE (REUTERS)  - 

Gold edged down on Friday after rising toward an all-time high the previous day on Europe’s escalating debt woes and tumbling U.S. stocks, but strong safe haven demand is likely to help the metal test new highs.

Gold has gained as much as 10 percent this year as investors spooked by potential contagion from the eurozone debt crisis rushed to buy to the precious metal, whose safe haven appeal tends to increase in times of economic and geopolitical crises.

Spot gold was at $1,199.50 an ounce at 0301 GMT, down $7.75 cents from New York’s notional close on Thursday, when it jumped 3 percent to its highest since December 2009 at $1,210.35 an ounce — marking its biggest one-day gain in more than a year. (more…)

Gold’s future bright as ‘anti-currency’ (FinancialPost.com)

May 4th, 2010. Published under News. 1 Comment.

Gold climbed to a fresh five-month high Monday as the European debt crisis continued to pressure the euro and drive investors to the U.S. dollar.

Nymex gold for June delivery closed up US$2.60 to US$1,183.30 per ounce as analysts forecast the metal would break psychological resistance at US$1,200 and test its record high of US$1,227 set in December 2009.

“Gold is not just viewed as an inflation hedge in the current market,” said George Davis, chief technical analyst at RBC Capital Markets. “Given the euro region sovereign risk emanating from Greece, gold is also being used as a hedge against a potential financial crisis.”

He told clients that any lingering uncertainty over the Greek bailout or a “contagion effect” in Europe would be positive for the metal.

While a 110-billion euro bailout package for Greece was approved over the weekend, investors remain skeptical about the prospects for the Eurozone. That lead to further gains for precious metals in May’s first trading session. (more…)

How do I buy Gold coins?

March 26th, 2010. Published under News. No Comments.

Johannesburg – “How do I buy gold coins?” a Fin24.com user asked Money Clinic recently.

The short answer: carefully.

Demand for gold coins boomed during the global financial crisis as investors fled collapsing share markets and sought an investment that could survive an apocalypse.

During the past year, however, markets have rebounded, stockpiled canned food is being consumed sheepishly and – while the gold price has remained relatively steady – the allure of gold coins has faded somewhat.

Some European gold coin producers report that demand for their products is down by as much as 80% this year.

While the gold price has rocketed 335% in the past nine years, the strong rand has hit local investors in gold coins.

A one ounce Krugerrand for R10 500 (commission included) bought in February last year now sells for about R8 750.

The gold price strengthened somewhat from $989 per ounce to $1 094/oz in the same time frame, but the conversion into rands eroded the gains – and then some.

Still, many investors do not believe rand strength is sustainable and expect further growth from gold.

They believe the global economy is not out of the woods yet and the US currency will come under pressure as central banks in Asia and the Middle East lose their dollar appetite. Gold is seen as an alternative currency.

There are a few different ways to invest in gold. Buying shares in gold companies is one option, as is investing in gold exchange-traded funds. (more…)