Monthly Archives: August 2008

29
Aug
2008

Largest Gold Refinery in the World Runs out of Krugerrands

Shortages of certain bullion products is possibly the most important issue facing the gold and silver markets today.

The sole maker of South African Krugerrands, Rand Refinery Ltd., largest gold refinery in the world, today ran out of the iconic bullion coin after an ‘unusually large’ order from an unnamed buyer in Switzerland.

Rand Refinery has delivered more than 46m blank coins over the years since it opened in 1967.

[caption id="" align="alignleft" width="360" caption="South African Krugerrand"]Continue Reading

29
Aug
2008

Gold Investments Market Update – Bullion Coins and Bars – Availability, Delivery and Premiums

Gold

Gold has flatlined and is marginally higher this morning with the dollar marginally lower and oil marginally higher on continuing concerns about the possible impact of tropical storm Gustav.

Gold has been gradually edging higher for the last two weeks and appears to be ready to rally in the seasonally strong autumn months due to the strong fundamentals.

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28
Aug
2008

Gold Investments Market Update – UBS: “Unprecedented” Physical Demand in Past Three Weeks in Europe, India and Asia

Gold

Dollar weakness, firm oil and continuing tension in the Caucasus are leading to gold remaining well bid this morning. Warnings from NATO to Russia to stay out of Ukraine and calls for the European Union to be ready for “hard headed engagement” with Moscow are not doing much to help confidence in already nervous markets.

Besides increasing geopolitical risk – the risk that mother nature and weather can pose is being felt again.

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27
Aug
2008

Gold Investments Market Update – Hurricane Gustav – Potentially Category 5 Hurricane Like Rita and Katrina

Gold

Gold finished trading in New York yesterday at $822.40, up $3.10 and silver was up 22 cents to $13.58. Gold and silver rallied in Asian and in early European trading this morning.

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26
Aug
2008

Gold Investments Market Update – “End of the Current International Financial System”

Gold

Gold finished trading in New York on Friday at $819.30, down $7.60 and silver was down 14 cents to $13.36. Gold and silver traded sideways in Asian trading prior to a sell off in early European trading this morning. Gold is trading at $811.30/811.70 per ounce (1030 GMT).

Gold has fallen this morning on a sharply stronger dollar on weak European data (rose from above EUR/USD 1.47 to as high as 1.4595 in a matter of minutes) and lower oil prices. The dollar remains near six month highs against the euro.

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25
Aug
2008

Gold Investments Market Update – U.S. and Russian Warships in Black Sea as Tensions Escalate

Gold

Gold finished trading in New York on Friday at $827.00, down $6.30 and silver was down 26 cents to $13.50 after a very strong week. Gold and silver fell in Asian and in early European trading this morning. Gold is trading at $821.30/821.70 per ounce (1030 GMT).

Gold has fallen this morning on flat oil prices, a stronger dollar (EUR/USD 1.4743) and profit taking after last week’s more than 5% gain.

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22
Aug
2008

Gold Investments Market Update – Bundesbank Favours Gold while U.S. Government Mint Sells Out of Gold Coins and Suspends Sales

Gold

Gold finished trading in New York yesterday at $833.30, up $23 and silver was up 73 cents to $13.76. Gold and silver remained firm in Asian trading and have given up some of the gains in early European trading. Gold is trading at $831.30/831.70 per ounce (1100 GMT).

Gold surged yesterday on concerns regarding Russia – NATO tensions, surging oil and commodity prices and confirmation that the US Mint is suspending sales of American Eagle gold bullion coins (1 ozt) due to an inability to meet surging demand (see News and Commentary).

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21
Aug
2008

Gold Investments Market Update – Geopolitical Risk Rising Sharply

Gold

Gold finished trading in New York yesterday at $810.30, down 50 cents and silver was down 10 cents to $13.03. Gold and silver then rallied in Asian trading and early European trading. Gold is trading at $821.30/821.70 per ounce (1045 GMT).

Gold is finding favour again with the dollar having weakened again (as low as 1.4829 to the euro) and oil prices rising (London Brent Spot has surged 3.45% to over $113).

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20
Aug
2008

Gold Investments Market Update – Investment Demand Surging Internationally as Stagflation Deepens

Gold

Gold finished trading in New York yesterday at $810.80, up $10.30 and silver was down 8 cents to $13.11. Both gold and silver remained firm in Asian trading but have given up some of the gains in early European trading. Gold is trading at $807.30/807.70 per ounce (1045 GMT).

Gold, rebounding from oversold levels, rose for the second time yesterday and there was an outside day reversal to the upside which is technically bullish (the market made a new low during the trading session, but closed higher than the previous day’s high).

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20
Aug
2008

British Gold Sovereigns – The Preserve of Collectors, Savers and Smart Investors

Gold as Essential Diversification and Financial Insurance

Gold bullion remains an essential diversification and essential financial insurance to have in all properly diversified portfolios. Besides the ever more important factors of inflation hedging and financial insurance, gold is likely to continue to outperform other asset classes and to provide significant returns to gold buyers. Many of the world’s major investment banks are in agreement that gold is again in a long term multiyear bull market. Many believe gold will surpass its inflation adjusted 1980 high of $2,400/oz in the coming years. Citigroup’s former head of technical research and managing director of Yamada Technical Research Advisors LLC., Louise Yamada sees gold on its way to $3,000 within a decade. "Gold is the purest play against the dollar,” said Louise Yamada, Yamada is highly respected and was voted Wall Street’s best technical analyst from 2001 to 2004. Credit Agricole’s (France’s largest bank and the fourth largest bank in the world) brokerage, Cheuvreux see the possibility of a rise to $2,000/oz or higher.

How to Invest in Gold in Preparation for 2,000/oz Gold?

Gold and Silver Investments Limited agree and believe gold will surpass its inflation adjusted high of $2,400 per ounce in the next 5 years. This is why we continue to advocate investors continue to diversify and increase their gold holdings. So, how should one invest in gold? There are many different ways to invest in gold and one’s motivation for buying gold should dictate how one buys gold. Are you a speculator, investor or saver? Are you buying to make a capital gain or as a hedge against systemic risk and using your gold as financial insurance? Is your motivation a little of each? ETFs, mining funds, digital gold, Perth Mint certificates, gold bullion coins and bars in one’s possession and or semi numismatic gold coins are good ways to buy gold. Given the extent of current macroeconomic and systemic risk a diversified precious metals holding makes sense and it should not be a question of “either or” rather a combination of these various ways. Having eggs in various gold baskets so to speak is the most sensible and prudent strategy. As part of this mix, older gold coins should be looked at. Classic European and world gold coinage is an often overlooked but extremely important sector in today’s gold market. Pre 1933 and 19th Century European and world gold coins are an intelligent alternative to modern gold bullion coins or bars as there is often more room for appreciation with these beautiful old coins due to their rarity and yet they can often be bought at bullion prices. [caption id="" align="alignleft" width="150" caption="2006 Gold Proof Half-Sovereign depicting Saint George"]2006 Gold Proof Half-Sovereign depicting Saint George[/caption] Importantly from an investment point of view is the fact that gold bullion and older gold coins are not subject to VAT due to the EU Gold Directive. Even more important is the fact that unlike the other forms of gold investment outlined above, British gold sovereigns are also not subject to capital gains tax (CGT). Thus all post-1837 British gold sovereigns due to them being legal tender and having a legal tender face value are capital gains tax free, which is obviously a massive benefit to investors vis-à-vis other gold investments. The prices of these beautiful coins are only slightly more expensive than modern gold bullion but offer many advantages. Besides not having to pay CGT, other advantages include increasing scarcity, aesthetic value and historical significance. European and British gold coins are recognised as one of the most advantageous ways to invest in “bulk” gold, by sophisticated investors. European, American and world gold coins are bought by both collectors and investors at a small premium to the price of bullion coins. Perhaps the most popular semi numismatic gold coins internationally are British Sovereigns.

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