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All Posts Tagged With: "precious metals"

Gold’s Holding Pattern is a Golden Opportunity

Billionaire George Soros declares: “Conditions for gold are pretty perfect”

Gold’s holding pattern is a gift to bargain hunters

Gold prices stood near the $1,350 range today on news that China’s central bank acted to slow inflation but fell short of raising interest rates outright. Gold’s holding pattern is a gift to bargain hunters because gold “should continue to remain well supported too, both by the growing debt crisis in the euro-zone peripherals, which could spill over to other countries at any time, and the expansion of liquidity on the back of renewed quantitative easing of U.S. monetary policy,” Commerzbank analysts said. Richcomm Global Services’ Pradeep Unni agreed, saying a weak dollar and a firmer euro “will continue to provide a bullish bias to the metal.”

The trend is “back up again”

Gold prices surged back Thursday as the euro rose against the dollar on optimism of a bailout for Ireland. “Having held $1,330, and with the dollar a bit weaker … we are just following the trend back up again,” the Bank of Nova Scotia’s Simon Weeks said. VTB Capital’s Andrey Kryuchenkov noted: “Should fear in the eurozone escalate, gold would draw fresh support from risk-averse buyers similar to what happened earlier this summer when investors scrambled for the safe-haven asset on fears of sovereign default.” Investors also are watching China for potential news of an interest-rate rise, which would only create a buying opportunity for bargain hunters.

Billionaire George Soros tips his hat to gold

With quantitative easing going full-steam ahead and U.S. interest rates low for the foreseeable future, billionaire investor George Soros said the precious metal still has plenty of kick to it. “The conditions for gold are pretty perfect,” he said Monday. Soros also said the present world order is on the brink of breaking down. “There is now a rapid decline of the United States and a rapid rise of China,” he said. “It is happening very quickly. … If they persist in their present course, it will lead to conflict,” he said, adding that China’s neighbors are already getting nervous about its rising global influence. Read more

Inflation surfaces at Walmart, not in feds’ data

Offering up its statistics Wednesday, the Labor Department said the core consumer price index, an inflation indicator that excludes food and energy prices, was unchanged in October. However, a new pricing survey of 86 products sold there – mostly everyday items like food and detergent – showed a “meaningful” 0.6 percent price increase in just the past two months, according to MKM Partners. At that rate, prices would be close to 4 percent higher a year from now, double the Federal Reserve’s mandate. “I suspect that when [Fed Chairman Ben Bernanke] thinks about reflation, he has a difficult time seeing any other asset besides real estate,” said Jim Iuorio of TJM Institutional Services. “Somehow the Fed thinks that if it’s not ‘wage-driven’ inflation then it is somehow unimportant. It’s not unimportant to people who see everything they own (homes) going down in value and everything they need (food and energy) going up in price.” Read more

The Fed sticks to its quantitative-easing guns

Ben Bernanke had to defend the Fed’s actions on Capitol Hill, where he briefed skeptical lawmakers on the QE plan’s merits on Wednesday, and some of his colleagues said the bank is likely to follow through on its entire $600 billion bond-buying program, citing weak economic data. “It looks like we’ll be purchasing at this pace through the end of the second quarter to add up to $600 billion,” St. Louis Federal Reserve Bank President James Bullard said. (more…)

Multi-year Gold Bull Market Is Firmly Intact

Adam Crum – Monaco Rare Coins

Critics Believe Second Round of Quantitative Easing By the Fed Will Further Devalue the Dollar and Create Inflation

Federal Reserve Chairman Ben Bernanke has been quoted as saying he would fly over the United States and drop dollars from a helicopter should it be necessary.

Sans helicopter, for the time being at any rate, the Federal Reserve has announced that it plans to breathe new life into the economy with additional quantitative easing, a series of Treasury purchases starting with $600,000,000 that may ultimately total $1 trillion or more according to some sources. With the U.S. economy expanding at just 2 percent annually in the third quarter of this year and the jobless rate apparently stalled at about 9.6 percent, the Fed was pressured to do something to stimulate the economy.

Bernanke explained to students at Jacksonville University that a second round of easing will enable the Fed to accomplish its two Congressional mandates, ensuring full employment and stable prices while preventing deflation and generating some “good” inflation.

Critics say the dollar will weaken and create inflation

Critics believe that the dollar will weaken as these purchases (accomplished by printing money) increase the Fed’s balance sheet. Inflation is fueled by a weaker dollar as the real price of goods and services becomes more expensive. Using past research and her own models, Goldman Sachs strategist Robin Brooks suggests the dollar will need to drop a great deal more than the Federal Reserve thinks in order to meet the central bank’s inflation target.

“Substantial additional monetary stimulus is needed for the Fed to meet its dual mandate on inflation and employment,” wrote Brooks after the Fed’s announcement. She has raised her estimate for the total size of this second round of quantitative easing from $1 trillion to $2 trillion. “If indeed the Fed sees the dollar as one of its key policy levers for preventing inflation from staying below its mandate for a prolonged period, the dollar needs to fall a lot further from here,” says Brooks.

The big question is when Bernanke discovers that the plan isn’t working, how much farther could the dollar fall? This controversial plan of additional quantitative easing takes the Fed into essentially uncharted waters and puts the dollar at risk of crashing. Frankly, these additional bond purchases could be more destructive than critics even think if inflation is ignited when the economy finally comes around. (more…)

J.P. Morgan and HSBC accused of silver manipulation in two lawsuits

Two separate lawsuits filed in federal court in Manhattan Wednesday allege that the two banks [J.P. Morgan and HSBC] manipulated silver futures by “amassing enormous short positions,” according to a report from Dow Jones Newswires.

The Commodity Futures Trading Commission has been investigating allegations of price manipulation in the silver market since 2008.

A Bloomberg report today stated “The investor, Peter Laskaris, alleges that starting in March 2008, the banks colluded to suppress silver futures so that call options, or the right to buy, would decline, and put options for the right to sell would increase, according to the complaint filed today in federal court in Manhattan. The collusion was also intended to maintain prices at levels at which some options would expire as worthless, Laskaris claims.

The banks placed so-called spoof trading orders, or the “submission of a large order ” according to the complaint.”

It is alledged the banks used their large positions to effect the market by “flooding” it with a disproportionate number of orders which are not executed but influences prices, and is then withdrawn before it reasonably can be executed. They “reaped hundreds of millions of dollars, if not billions of dollars in profits from their unlawful and manipulative suppression of the prices”.

The Commodity Futures Trading Commission began probing allegations of price manipulation in the silver futures market in September 2008.

Commissioner on the Commodity Futures Trading Commission Bart Chilton. Photographer: Brendan Hoffman/Bloomberg

At a hearing in Washington yesterday, CFTC Commissioner Bart Chilton said there have been “fraudulent efforts to persuade and deviously control” silver prices and that violators should be prosecuted. [His full statement can be read at http://www.cftc.gov/PressRoom/SpeechesTestimony/CommissionerBartChilton/chiltonstatement102610.html.]

A seperate suit was also filed today “on behalf of investor Brian Beatty, and naming the same banks as defendants, claims a whistleblower contacted the CFTC last year and reported the banks’ conspiracy to suppress prices of silver futures to profit from “enormous” short positions in silver futures.”

The respective plaintiffs, Brian Beatty and Peter Laskaris, each said they traded COMEX silver futures and options and contracts, and lost money because of the alleged manipulation.

The cases are Beatty v. JPMorgan Chase & Co et al, U.S. District Court, Southern District of New York, No. 10-08146, and Laskaris v. JPMorgan Chase & Co et al in the same court, No. 10-08157.

The lawsuits were filed one day after the Commodity Futures Trading Commission proposed regulations to give it greater power to thwart traders who try to manipulate prices.

“Going back to the early 1980s, silver has been an extremely volatile market,” said Bill O’Neill, managing partner at Logic Advisors, an Upper Saddle River, New Jersey investment firm specializing in commodities. “I often describe it as a speculative playground. You have to be a big boy to play.”

According to a Reuters article “Only once in its 36-year history has the CFTC successfully concluded a manipulation prosecution, in a 1998 proceeding concerning prices for electricity futures.”

New Collector Coins from The Royal Canadian Mint

The Royal Canadian Mint is proud to demonstrate its skill and craftsmanship with a new selection of precious metal collector coins celebrating symbols of Canadian heritage ranging from prehistory to heraldry. These new collector products include a $300 platinum coin featuring the giant prehistoric ground sloth, a $300 gold New Brunswick Coat of Arms coin and extra-thick “Piedfort” pure gold and silver Maple Leaf coins.

“The Royal Canadian Mint values the role its collector coins play in showcasing Canada’s vast heritage through precious and unforgettable works of art and craftsmanship,” said Ian E. Bennett, President and CEO of the Royal Canadian Mint.

“Collectors from Canada and around the world will find that the Mint’s newest collector coins honour the tradition of celebrating Canada’s defining features through keepsakes of uncompromising quality”.

The following are descriptions of the products now available to collectors and gift givers worldwide.

2010 $10 1/5-OZ PURE GOLD AND 2010 $5 1-OZ PURE SILVER PIEDFORT COINS – MAPLE LEAF

The Royal Canadian Mint is proud to celebrate its expertise and artistry in the field of precious metal refining and manufacturing with a pair of pure gold and silver “Piedfort” coins whose exceptional thickness distinguishes them from ordinary coins and makes them spectacular gifts or collectibles for those with an eye for the exclusive.

Both the $10 1/5 oz. 99.999% pure gold coin -the Mint’s first gold Piedfort, and the 1 oz. 99.99% pure silver coin -only the second of these coins the Mint has produced in silver, feature the iconic maple leaf, long symbolic of the Mint’s leadership of the world bullion industry. Only 3,000 1/5 oz. coins of 99.999% pure gold and 9,000 silver one-ounce coins of 99.99% purity are being made available in this exciting release.

The entire mintage of 99.999% pure gold coins Piedfort coin is offered as part of a set including the 99.99% pure silver Piedfort coin, retailing at $679.95 CAD. Another 6,000 individual silver Piedfort coins are being offered at $79.95 CAD each.

2010 $300 PLATINUM COIN — GROUND SLOTH

The fourth issue in the Mint’s exclusive Prehistoric Animals Collection of 9995 fine platinum coins features the gigantic Jefferson’s Ground Sloth, so called after the third President of the United States of America donated, in 1797, the first fossil specimens found in North America to Philadelphia’s American Philosophical Society. The tradition of showcasing the fascinating animals which roamed ancient Canada continues on this precious Mint coin containing a full ounce of pure platinum. Like the rare bones of the creature it immortalizes, this platinum coin has been made in very low quantities, with a worldwide mintage of only 200 examples. Designed by Alberta artist Kerri Burnett, this coin retails for $2,999.95 CAD.

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Gainesville Coins Honored with “2010 Best Bullion Award” form National Inflation Association

The National Inflation Association is pleased to announce the release of its first ever update to its unbiased reviews of the major online sellers of gold and silver bullion. NIA’s ‘Gold and Silver Seller Reviews’ feature was originally launched on January 14th and has become widely recognized in the industry as the premiere spot for precious metals investors to become educated about how online gold and silver coin and bullion dealers are rated in the categories of pricing, selection, shipping/processing, customer experience, and overall.

The online gold and silver seller industry is one of the most rapidly growing in the world today. NIA is dedicated to ensuring that Americans get the most real money for their fiat money when making the most important investment decision of their lives. NIA believes it’s important for Americans to receive their precious metals in a timely manner, as hyperinflation in the U.S. can literally break out overnight due to an unforeseen event taking place in one of our creditor nations.

NIA decided to award Gainesville Coins with our “NIA 2010 Best Bullion Award“.

Gainesville Coins is the highest rated company in our review with prices for precious metals that are the lowest out of all the companies in our review. Gainesville Coins had already earned a perfect 5 stars in all categories in our original review, but they have somehow managed to improve their site by adding precious metal spot prices as well as new “Deals of the Week”, “Featured”, “New Arrivals”, and “Top Sellers” features. NIA members who make a purchase on Gainesville Coins can now receive an automatic $5 discount on their order by applying the following coupon code in their shopping cart: ‘NIAUS’ (NIA does NOT earn any kind of a referral fee).

NIA has added three new companies to its review: Austin Rare Coins, Monarch Precious Metals, and Northwest Territorial Mint. NIA has also updated the reviews of previously reviewed companies. NIA’s next update to its review will be released later this summer. NIA plans to soon implement a new feature that will allow its members to submit new companies for NIA to review. NIA members will also be able to submit complaints about companies that should be avoided.

A “Green Alternative”, Recycled Gold and Silver Bars

Today, April 22nd, marks the 40th anniversary of the birth of the modern environmental movement Earth Day. The movements founder Gaylord Nelson, then a U.S. Senator from Wisconsin, proposed the first nationwide environmental protest “to shake up the political establishment and force this issue onto the national agenda.

In the 40 years since the first Earth Day, the environmental movement  continues to generate fierce debate  as to the effects, motivations and possible outcomes of existing / proposed environmental laws and theories. Hot button issues such as Global Warming, Sustainability, Biodiversity, Recycling, Resource Allocation and Environmental Justice seem to pull us farther apart rather then bringing us closer together.

But whatever side of the current debate you find yourself on, I think the vast majority of people would agree that given a choice, it is preferable to have clean water to drink, clean air to breath and safe food to eat. So what does this have to do with Numismatics?

All that raw materials used to make our gold and silver coins and bullion products has to be mined, refined and manufactured. Unfortunately, the mining process in many parts of the world is a dirty business. Toxic chemicals and substances like cyanide and mercury are often used to extract the precious metals during the refining process, and much of this is done in less than ideal and controlled environments (no pun intended)

We can across a Precious Metals refiner that has taken a different path, Ohio Precious Metals (OPM).  Founded over 35 years ago OPM operates a state of the art 178,000 square foot facility is located in Appalachian Ohio. As a leading recycled precious metals refiner, OPM extracts the metals from jewelry, photographic equipment, electronics, secondary refining and collecting sources in North America.

Once the precious metals are recovered, OPM uses the metals to produce the highest quality gold and silver products including 1, 10 AND 100 oz Silver .9995 fine Bars and 1 oz, 1 Kilo (32.18 oz) and 400 oz Gold .9999 fine bars.

These “recycled” Green bullion products generate a significantly lower environmental impact than similar products manufactured from “virgin ore” and may offer the environmentally conscious investor an alternative product to purchase.

Bob Higgins from Certified Assets recently stated that his company has added the OPM Gold and Silver Bars to their inventory as a “green” alternative and that “….interest has been very high” in these precious metals bars. OPM has a stellar reputation with a superior product that fills a critical role in the industrial and investor marketplace. We are happy to be doing business with them.” (more…)

Another Gold Rush for Wilmington Depository

Business already is good for a Wilmington, Delaware bullion and rare coin depository that opened three years ago, but it’s expected to be even better in the weeks ahead now that a major New York City bank depository has told many of its customers to remove their valuables.

fsd_112709“As soon as the news broke that HSBC was kicking out individual investors and even some commercial accounts to accommodate storage for large institutional accounts at its facility in Manhattan, I started getting phone calls from worried investors and even executives of some commercial firms who suddenly need a safe place for their gold and silver coins and ingots,” said Robert L. Higgins, CEO of First State Depository Company LLC that opened in Wilmington in June 2004.

The door to the 5,000 square foot vault weighs over 5,600 pounds. The depository has up to $400 million capacity insurance with Lloyd’s of London for the gold and other valuables shipped in from investors and companies nationwide, but Higgins says that insurance coverage may have to be increased with the anticipated additional requests for secure storage.

“It was surprising to see how many people who never owned gold before started buying it this past year. We’ve had many first-timers contact us to store their coins and precious metals purchases. Many people have put gold bullion coins in their IRAs.”

Higgins advises investors facing eviction from the HSBC depository to transfer their valuables prior to January first, whether to his depository or somewhere else, as long as it’s by year’s end.

“That way, you won’t have to pay HSBC’s annual storage fee that is payable in January,” he explained. “There’s another advantage for investors to move their valuables to Delaware. Unlike New York, there is no tax imposed on the payment of depository storage fees in Delaware.” (more…)

US Mint 2009 One-Ounce Platinum Proof Coin Available December 3

Coin features first new reverse design in multi-year series with mintage limited to 8000

The United States Mint announced that it will begin accepting orders for the 2009 American Eagle One-Ounce Platinum Proof Coin at noon Eastern Time (ET) December 3, 2009. Orders will be limited to five units per household.

2009_Proof_plat_revThe reverse (tails side) of the 2009 American Eagle One-Ounce Platinum Proof Coin features the first design in a new six-year program that commemorates the core concepts of American democracy by featuring the six principles of the Preamble of the United States Constitution. Themes for the reverse designs in the new series of American Eagle One-Ounce Platinum Proof Coins are inspired by narratives prepared by the Chief Justice of the United States, John G. Roberts, Jr., at the request of the United States Mint. Coin designs reflecting the remaining principles of the Preamble will be released as follows: To Establish Justice (2010); To Insure Domestic Tranquility (2011); To Provide for the Common Defense (2012); To Promote General Welfare (2013); and To Secure the Blessings of Liberty to Ourselves and our Posterity (2014).

The 2009 design depicts four faces representing the diversity of our Nation, with the clothing and hair weaving together symbolizing the principle, To Form a More Perfect Union. A new design element, an American Eagle “privy mark,” has been added to the reverse of the coin. The privy mark is from an original “coin punch” identified at the United States Mint at Philadelphia. The reverse was designed by United States Mint Artistic Infusion Program Master Designer Susan Gamble and sculpted by United States Mint Sculptor-Engraver Phebe Hemphill. (more…)

Gold Reaches New Heights at $1130 oz. Where Does It Go From Here?

This morning Gold has surged again to a record high of over $1130 per oz as safe haven buying and a continuing weak dollar fuel continued demand. But where is gold heading?

gold_bug_1In an interview with The Daily Telegraph during a London gold conference, Barrick President Aaron Regent said that one could argue that Earth has reached “peak gold,” as new supplies of the ore are increasingly difficult to find.

“The supply crunch has helped push gold to an all-time high, reaching $1,118 an ounce at one stage yesterday,” the paper noted. “The key driver over recent days has been the move by India’s central bank to soak up half of the gold being sold by the International Monetary Fund. It is the latest sign that the rising powers of Asia and the commodity bloc are growing wary of Western paper money and debt.”

Bloomberg reported that  “The metal seems set to extend higher as record low interest rates, inflation concerns, central-bank purchases and falling mine output draws a broad spectrum of investment demand,” said James Moore, analyst at TheBullionDesk.com, in a note to clients.

“We are looking to see if the dollar index breaks lower, which could push gold above $1,150 and on towards $1,180,” he said.

Another analyst stared that “This is a different type of gold rally, with support coming from both sides of the market — investment [and] fundamental,” said Darin Newsom, a senior analyst at Telvent DTN. “A certain portion of the buying interest has come from the continued weakness of the dollar, but there is more to it than that, there is some ‘safe haven’ buying as well, but with copper holding firm and the Baltic Dry Index rallying, the Chinese economy seems to be gaining strength,” boosting investor confidence, he said.

And further confirmation of the  retail demand for gold comes from Laura Sperber in her Baltimore Coin Show Market Report. Sperber observered that”if you had gold, you sold”. ALL gold, was selling briskly. The demand reminded us of 1980″.

Also, news from last week that India had purchased 200 tonnes of gold from the IMF was solid confirmation that demand may be here to stay. The view that central banks will continue to be net buyers of gold rather than net sellers (as has been the case for about the last twenty years) has many calling the Indian purchase at $1,045 an ounce the “new floor” for the gold price.

China has already doubled its gold reserves over the last six years, but the Indian move underscored how even the most traditional investors are shifting a portion of their assets into bullion.

So at this juncture, all indicators seem to point to the continued rise in gold prices, at least for the near term.

What People are saying about Gold. Is it the right time to buy?

Gold Hits Record High: Time to Sell or Time to Buy?
saints_10posted by Jeff Brown, Personal Finance Blogger
I’m standing at my office bookshelf rummaging in a small box of junk… I mean, treasures. There’s a transistor radio I carried on my paper route at 14, a broken watch, some old photos… Ah, here’s what I’m looking for — my high school ring, class of ’69. I don’t remember what I paid for it – around $100, I think. But this clunky heirloom that I wore for only a few months is worth its weight in gold. At half an ounce, according to the kitchen scale, that’s around $500.
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Five Reasons Why Gold is the New Black – But Could Be Bad For Your Health
By Dwayne Ramakrishnan, EconomyWatch.com

It seems impossible to talk to investors at the moment without discussing gold. When I talk about gold as the latest fashion, Indians in particular will snort, since it has never gone out of fashion in Mother India. Indeed for many in India and other parts of Asia where bank accounts may not be common, gold and jewellery are a form of currency that can be handed down and accessed in times of emergency. Which when you think about it, is exactly the same for western investors and even central bankers. Gold is a hedge against fear. It has no intrinsic value. Indeed, Warren Buffet famously said
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Gold at record highs and best time to sell
Commodity Online
EmpireGoldBuyers.com, an expert in the field of buying and selling gold, is advising consumers that now is the time to sell gold. While copper and soybeans have been past winners on the trading room floor, today’s investors are finding fiscal rewards in pure gold as it climbed to a record high above $1,040 per ounce on Tuesday, October 6th topping the previous record of $1,033.90 in March 2008. On Thursday, gold has climbed further to 1040 levels.
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The Coming Demise of the Dollar
By Politics Plus
I’ve mentioned this in Open Threads and discussed it in comments on other blogs, but I held off reporting it here until I found an article that explains the impact well. The big news this week on the financial front was the Independent’s claim that Gulf Arabs and France, Japan, Russia and Japan were planning to move from buying oil in dollars to buying it in a basket of currencies, including gold and a new universal currency shared by the Gulf nations. Buying oil in dollars is one of the foundations of the dollar’s role as the world’s primary reserve currency. Because the the dollar is the world’s primary reserve currency Americans have been able to borrow money for significantly less than other countries are able to. This has both made America more prosperous, and through the perverse incentives of cheap money, helped lead to the high indebtedness of American citizens and the financial crisis.
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New Gold Record Despite Extreme Manipulation Tactics
By Patrick A. Heller
After settling on the COMEX above $1,000 for nine consecutive trading days, the price of gold was knocked down below that level at the close on Thursday, Sept. 24. It was no accident that it happened exactly then. First, there was a meeting of G-20 officials in Pittsburgh that began that day. The weakening U.S. dollar was certainly one of the major subjects. Because of the US dollar-destroying fiscal and monetary policies adopted over the past two years by the current and preceding administrations, a weak dollar has become a huge concern to other nations
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