Amid concerns over the global financial crisis, investors are seeking a safe haven and plow billions into gold. In Australia, according to Nick Gardner for the Daily Telegraph, “demand has now reached such unprecedented levels that the Perth Mint, Australia’s biggest wholesaler of gold coins and bars, has been forced to ration its sales.”
Perth Mint’s bullion sales rose 194 per cent in the December quarter compared with the corresponding period in 2007, while silver bullion sales were up 140 per cent.
The mint has suspended sales of all gold bars and all bullion coins - except its 1oz “Kangaroo” gold bullion coin.
“We are working three shifts a day, six days a week, and still can’t keep up with demand,” Perth Mint CEO Ed Harbuz said in a statement to the Telegraph. “I’ve never known anything like this in the precious metals market.”
“Orders of $10 million or more are not unusual. Often the orders are much larger if we are dealing with pension funds or institutional investors.”
January 9th, 2009
According to the China Mining Association, “China’s futures transactions in 2008 hit a record high of 71 trillion yuan, including 1.49 trillion yuan for the newly listed gold futures contracts.” Based on recent exchange rate that’s $217.9 billion U.S.
According to the statistics, 2008 saw “1.36 billion lots traded with an accumulated value of 71.9 trillion yuan [$10.5 trillion] on China’s three futures exchanges, up 87 percent and 76 percent on year respectively.”
The association notes, “in December alone, 160 million futures contracts changed hands, with a total transaction value of 6.2 trillion yuan [$907.09 billion U.S.], up 82 percent and 19 percent on year respectively, and up 15 percent and 13 percent on month respectively.”
January 9th, 2009
Vancouver, British Columbia — Goldcorp Inc. (GG: $40.02) — Today announced record fourth quarter gold production of 692,000 ounces. Gold production for the 2008 year exceeded 2.3 million ounces, meeting previously issued guidance.
Goldcorp’s year-end unaudited financial statements are expected to be released on February 19, 2009. The calculation of operating costs for 2008 has not yet been completed, but total cash costs are “expected to meet previous 2008 guidance of approximately $300 per ounce of gold on a by-product basis,” as mentioned in the statements made by the company.
“Goldcorp completed 2008 with production momentum, financial strength and a strong, well-funded growth pipeline in safe jurisdictions,” said Chuck Jeannes, President and Chief Executive Officer. “Our top priorities in the year ahead are meeting or exceeding operational targets … continuing the development of an asset portfolio that is expected to deliver 50% growth in gold production over the next five years.”
Goldcorp also provided production and cash cost guidance for the 2009 year. The Company expects to produce approximately 2.3 million ounces of gold at a total cash cost of approximately $365 per ounce on a by-product basis and $400 per ounce on a co-product basis. Goldcorp’s forecast production increases at most of Goldcorp’s mines but are expected to be offset by significant planned declines at Alumbrera and El Sauzal.
According to Goldcorp, “the strong cash flows, debt-free balance sheet and an undrawn $1.5 billion credit facility will fund key near-term growth projects … Spending at certain longer-term growth projects will be temporarily deferred while these key projects are developed.”
The Company is currently evaluating opportunities to contain input costs and minimize foreign exchange risk through the hedging of both oil and currencies.
January 8th, 2009
Vancouver, British Columbia – Goldcorp, Inc. (GG: $40.02) is pleased to declare its first monthly dividend payment for 2009 of $0.015 per share. Shareholders of record at the close of business on Thursday, January 15, 2009 will be entitled to receive payment of this dividend on Friday, January 23, 2009.
“Goldcorp has paid a monthly dividend to its shareholders since 2003. Canadian resident individuals who receive dividends from Goldcorp after 2005 are entitled to an enhanced gross-up and dividend tax credit on such dividends,” said the released statement from the company.
January 7th, 2009
1. Rich Dad’s Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future
by Michael Maloney
“Throughout the ages, many things have been used as currency: livestock, grains, spices, shells, beads, and now paper. But only two things have ever been money: gold and silver. When paper money becomes too abundant, and thus loses its value, man always turns back to precious metals. During these times there is always an enormous wealth transfer, and it is within your power to transfer that wealth away from you or toward you.” — Michael Maloney.
2. The ABCs of Gold Investing: How to Protect and Build Your Wealth with Gold
by
Michael J. Kosares
Beginning investors will find thorough guidelines for making good decisions in this guide to private gold ownership. Emphasis is placed on the asset-preservation qualities of gold at a time when investor uncertainty about the economy and recent investment scandals have led many to seek asset diversification. The economic and political trends driving gold marketing are detailed, as are the reasons why gold plays an important role in millions of investment portfolios worldwide—as both a hedge and an investment for capital gain. Topics examined include understanding gold’s role in combating inflation and deflation, how to select a gold firm, the history of gold since 1971, storing gold, and government debt.
3. The Goldwatcher: Demystifying Gold Investing
by John Katz and Frank Holmes
Goldwatcher explains the pros and cons of gold as a twenty first century investment – when investing makes sense, when prices make sense and when they don’t. The book addresses everything the independent investor needs to know about investing in gold. It addresses gold’s history as a repository of value; what drives supply and demand, why and how the US dollar and global macroeconomic factors affect gold price, how experts in the filed of money management see its prospects and when prices are reasonable. Situations are explained in which gold will be invaluable to investors as stateless money that keeps its value even in the worst of times; a niche investment with value underpinned by scarcity; an investment to include in a portfolio to spread risks; and a suitable investment to include in pension provisions.
4. Buy Gold Now: How a Real Estate Bust, our Bulging National Debt, and the Languishing Dollar Will Push Gold to Record Highs
by S. McGuire
Masterfully researched, and written in a straightforward style, Buy Gold Now makes a case for buying gold as protection against the rising risks of an unprecedented global currency crisis and as a profitable investment vehicle. Divided into five comprehensive parts, this reliable resource examines our country’s current financial situation from a historical perspective and addresses some of the alarming issues that many economists are currently pointing to with concern.
5. The Collapse of the Dollar and How to Profit from It: Make a Fortune by Investing in Gold and Other Hard Assets
by James Turk and John Rubino
“Turk and Rubino are right: There is a crisis coming, and it will cause a collapse in the mountain of credit fostered by the monopoly central banks of the world. Read this book and find out how you can protect yourself while there’s still time.” —Robert R. Prechter, author of the bestseller Conquer the Crash
”Should be read by everyone who is interested in both their own investments and this nation’s future. I recommend this book highly.” —Richard L. Russell, Editor, Dow Theory Letters
6. Ruff’s Little Book of Big Fortunes in Gold & Silver: A Middle Class License to Print Money
by Howard Ruff
It is a detailed guide to a once-in-a-lifetime chance for middle-class Americans to get rich investing in one of history’s greatest bull markets. Ruff makes a usually arcane subject easy to understand, and even humorous. This bull market will dwarf even the 500% to 1700% profits his readers made in the metals in the 70s, and as usual, Ruff is out in front.
7. Gold: The Once and Future Money
by Nathan Lewis, forward by Addison Wiggin
Nathan Lewis explains how the circulation of money is regulated by central banks and, in the process, demystifies the concepts of supply, demand, and the value of currency. And he illustrates how higher taxes diminish productivity, trade, and the stability of money. Lewis also provides an entertaining history of U.S. money and offers a sobering look at recent currency crises around the world, including the Asian monetary crisis of the late 1990s and the devastating currency devaluations in Russia, China, Mexico, and Yugoslavia.
Lewis’s ultimate conclusion is simple but powerful: gold has been adopted as money because it works. The gold standard produced decades and even centuries of stable money and economic abundance. If history is a guide, it will be done again.
8. Junior Mining Investor: 14 Natural Resource Experts Show You How to Invest Profitably in Emerging Gold, Silver, Platinum, Base Metals, and Uranium Mining and Exploration Stocks
by Kevin Corcoran
These analysts are newsletter writers, hedge fund managers, discovery geologists, and industry veterans who have one thing in common: a winning record and proven philosophy in the ever-changing gold and resource stock market. They understand the key fundamentals to investing in the resource sector and have created life-changing wealth for many of their clients.
Authors include: David Morgan, The Silver-Investor; Brian Fagan, Stocks and Speculations; Adrian Day, Adrian Day Asset Management; Jason Hommel, The Silver Stock Report; Dr. Russell McDougal, Investor’s Daily Edge; Scott Wright, Zeal Intelligence; Ken Gerbino, Kenneth J. Gerbino and Company; Neil Charnock, Gold Oz; Clif Droke, ClifDroke.com; Dr. Richard S. Appel, Financial Insights; James Finch and Julie Ickes, Stock Interview; Roland Watson, The Silver Analyst; and Dudley Baker of Precious Metals Warrants.
January 5th, 2009
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
| Mine production |
2,618 |
2,621 |
2,493 |
2,548 |
2,486 |
2,476 |
| Official sector sales |
547 |
620 |
479 |
663 |
370 |
481 |
| Old gold scrap |
872 |
985 |
878 |
897 |
1,126 |
956 |
| Net producer hedging |
-412 |
-289 |
-438 |
-92 |
-410 |
-446 |
| Total reported supply |
3,625 |
3,937 |
3,412 |
4,016 |
3,572 |
3,467 |
|
|
|
|
|
|
|
| Gold fabrication in carat jewellery |
2,660 |
2,482 |
2,613 |
2,708 |
2,284 |
2,401 |
| Gold fabrication in electronics |
206 |
233 |
262 |
281 |
308 |
311 |
| Gold fabrication in other industrial |
83 |
81 |
84 |
88 |
91 |
92 |
|
|
|
|
|
|
|
| Gold fabrication in dentistry |
69 |
67 |
68 |
62 |
61 |
58 |
| Retail investment |
339 |
292 |
339 |
386 |
401 |
402 |
| Investment in Exchange Traded Funds |
3 |
39 |
133 |
208 |
260 |
251 |
|
|
|
|
|
|
|
| Total identifiable demand |
3,359 |
3,194 |
3,498 |
3,733 |
3,405 |
3,515 |
| Supply less demand |
265 |
743 |
-86 |
283 |
167 |
-48 |
Pie Charts for Gold Supply
Total Gold Supply for 2007
Pie Charts for Gold Demand
Global Gold Demand
January 5th, 2009
by, Ian Dennis
As other precious metals, gold is measured by troy weight and by grams. And when it is alloyed with supplementary metals the term carat or karat is used to specify the amount of gold present, with 24 carats being pure gold and lower ratings being proportionally less. The purity of a gold bar can also be written as a decimal figure ranging from 0 to 1, known as the millesimal fineness, such as 0.995.
Carat and gold price
Carat is a measure of the purity of gold and platinum alloys. One carat is one twenty-fourth purity by its weight. Thus 24-carat gold is pure gold (99.99%); 12-carat gold is 50% purity, et cetera. In the United States and Canada, the word karat is typically used for the measure of purity, while carat is referring to the measure of mass.
The carat system is gradually more being complemented or superseded by the millesimal fineness system where the purity of precious metals is denoted by parts per thousand of pure metal in the alloy.
The most frequent carats used for gold in bullion, jewelery making and goldsmith are:
24 carat (millesimal fineness 999), 22 carat (millesimal fineness 916), 20 carat (millesimal fineness 833), 18 carat (millesimal fineness 750), 16 carat (millesimal fineness 625), 14 carat (millesimal fineness 585), 10 carat (millesimal fineness 417) and 9 carat (millesimal fineness 375).
The open market gold price
The gold prices is determined on the open market, but a procedure recognized as the Gold Fixing in London, originating in 1919; provide a twice-daily benchmark figure to the industry.
The historically gold price
Historically gold was used to back currency in an economic system recognized as the gold standard a certain weight of gold was given the name of a unit of currency. For a long period, the United States government set the value of the US dollar so that one troy ounce was equivalent to $20.67 ($664.56/kg), but in 1934 the dollar was revalued to $35.00 per troy ounce ($1125.27/kg). And by 1961 it was becoming harder to uphold this price, and a pool of US and European banks agreed on manipulating the market to stop further currency devaluation against increased gold demand.
On 17 March 1968, economic conditions caused the collapse of the gold pool, and a two-tiered pricing scheme was established and gold was still used to settle international accounts at the old $35.00 per troy ounce ($1.13/g) but the price of gold on the private market was allowed to rise and fall; this two-tiered pricing system was discarded in 1975 when the price of gold was left to find its free-market level. Central banks still hold historical gold reserves as a store of value even though the level has generally been declining. The biggest gold depository in the world is that of the U.S. Federal Reserve Bank in New York.
Ever since 1968 the price of gold on the open market has ranged widely, with a record high $850/oz ($27,300/kg) on 21 January 1980, to a low $252.90/oz ($8,131/kg) on 21 June 1999 (London Fixing). On 26 April 2006 the London gold fixing was $635.50/oz.
January 5th, 2009
Unlike silver, there are a few Gold ETFs available for investors. There’s streetTRACKS Gold Shares (GLD: $108.60), or Market Vectors Gold Miners ETF (GDX: $45.32). The main difference for both of these funds is the difference between what the fund focuses on holding. For streetTRACKS Gold Shares (GLD) the focus is physical gold, while the Gold Miners ETF (GDX) fund focuses on gold mining company stock. It’s the difference between holding paper and holding the real thing.
First for those new to ETFs, an Exchange Traded Fund (ETF) is a pretty nifty investment vehicle. Much like a mutual fund, an ETF allows many investors to pool investment funds and buy shares in a professionally managed investment fund. What makes an ETF even more attractive is that shares of an ETF trade exactly like a stock: they can be bought, sold and shorted almost instantaneously. In addition to trading exactly like stock, some ETFs even have options available.
Moreover taxation on ETFs are more favorable than with traditional mutual funds. Most ETFs specialize in particular groupings of companies and industries that have certain common characteristics. Moreover, expenses for ETFs are low and range between .1% to 2%. The low expenses coupled with the specialization makes ETFs an incredible opportunity for investors.
Now for details on the difference between these Gold ETFs. Prudent investors balance the returns and risks by owning both ETFs. Yes, prudent investors would own both gold ETFs to balance the gains from the inflationary hedge, Gold Shares (GLD), and use the leverage available by owning gold miners using the Gold Miners ETF (GDX).
January 5th, 2009
Toronto, Ontario –Peter Munk, Founder and Chairman of Barrick Gold Corporation (ABX: $39.18), announced today that Aaron Regent has been appointed President and Chief Executive Officer of the Company, effective January 16th, 2009.
“Aaron’s outstanding strategic capabilities and highly-focused results orientation will fit in well with Barrick’s unique corporate culture,” said Munk. “Our Board’s thorough and professional search for a new leader has resulted in someone whom we believe will work most effectively and collaboratively with Barrick’s proven management team. Aaron is uniquely qualified to both preserve Barrick’s leadership position and to take us forward.”
Mr. Regent, 43, is a chartered accountant and an experienced executive with combined expertise in the mining and finance sectors. He is currently Senior Managing Partner of Brookfield Asset Management Inc. and Co-CEO of its Infrastructure Group. Brookfield is a global asset management company with over $90 billion under management.
Mr. Regent was previously the President of Falconbridge Limited, a Canadian-based global mining company, with over 14,000 employees and operations in 18 countries following its merger with Noranda Inc., in 2005. The combined company was sold to Xstrata PLC in 2006. The Cdn$27 billion transaction was then the largest in the mining industry’s history.
From early in his career Mr. Regent progressed swiftly through increasingly senior executive roles. His leadership and strategic experience also includes, President & Chief Executive Officer, Falconbridge Limited from 2002 to 2005; Executive Vice President & Chief Financial Officer, Noranda Inc. from 2000 to 2002, among others.
“Barrick is a dynamic mining enterprise and an iconic Canadian company,” said Mr. Regent. “In these times in particular, gold is a unique property as a store of value that is emerging as an asset class of increasing importance. I am really pleased to join the Company at a time that is both exciting and challenging for the gold industry.”
Mr. Regent assumes his new role from Barrick Founder and Chairman Peter Munk, who has been Acting CEO since earlier this year.
December 23rd, 2008
There’s never been a better time to buy American Eagle Gold Coins. An economic recession is almost assured. Along with the varied fluctuations in the stock market and the downward trend in the real estate sector, more investors are compelled to put their money in items that will hold value, such as gold bullion coins. A recent trend analysis puts the gold market as one of the most flourishing areas of investment, offering the maximum returns.
Most investors select American Eagle Gold Coins as their option for gold coin investments, as these are of assured quality. Likewise, the gold coin collectors, as a hobby or antique collection, prefer American Eagle Gold Coins, which are 91.67% purity or 22 karat. Generally pure gold is actually a mixture of the soft yellow metal and other metals like silver and copper, to make it more wear-resistant.
American Eagle Gold Coins are made out of gold mined in United States. These bullion coins were first released from the US Mint in 1986 and are of assured 22 karats.
There are two varieties of American Eagle Gold Coins - the bullion and the proof.
The American Eagle Gold bullion coins can be considered the best raw gold and is highly suitable for solid investment. These are readily available in the bullion markets. They are a very worthy and safe investment. These coins have been recognized, appreciated and sold the world over. Many American Eagle Gold Coin buyers consider the bullion coins as the best option for a long-term investment.
The American Eagle Gold Proof Coins are actually gold coins that have been specifically struck for collectors and to highlight or mark special occasions. Proof gold coins are not designed for general public circulation. Most of the coin collectors hunt for these types of gold coins. They are very impressive, attractive, glossy and worth the amount that is spent. Different processing techniques are used to make these American Eagle Gold Proof Coins, which gives it an imposing look and beauty.
American Eagle Gold Coins are available in different weights. There are four options of 1 ounce, 1/2 ounce, 1/4 ounce and 1/10 ounce. Generally smaller weights might appear to cost less, but in reality it can be more cost-effective to buy the 1 ounce gold coins.
You should be always be very selective from whom you choose to purchase the gold coins. It is advisable to buy from reputable authorized merchants and clearly check for the purity and weight. There are many establishments approved by the US Mint. The online auction site, eBay, is very convenient and can be very cost effective method of obtaining American Eagle Gold Coins. A proper online search on eBay will turn up many varieties of American Eagle Gold Coins to add to your collection.
At the moment, the gold market is very customer friendly. The handsome collections available gives ample opportunities for the customer to get the best price and selection, making American Eagle Gold Coins a very worthy investment!
December 15th, 2008
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