GLD USD    Last:430.89   -

Gold going up this year?

 

This really surprise me.

With today's rally, I would expect Gold Price to fall. But instead it rises.

For people who owns Gold ETFs, be very alert from now on.

This could be a sign that a major fall in Gold Price is coming.

I'm not suggesting that you sell now because it may continue to rise further.

I don't know when the fall is going to come, just be prepared for sudden changes.

Good luck to all.

ozone2002      ( Date: 21-Jun-2010 16:49) Posted: Gold up, eyes record high as dollar slips   June 21, 2010 Gold prices rose on Monday, hovering within reach of the record high hit last week, as the dollar fell after China said it would allow its yuan currency greater flexibility. Spot gold hit a session high of $1 261.30 a troy ounce, not far from the record $1 261.90 hit on Friday. China has vowed to resume currency reform by increasing the yuan's flexibility, indicating that it will end a 23-month-old peg to the dollar. "Gold looks strong, the weaker dollar is helping and investor purchases are unlikely to tail off any time soon," a Europe-based trader said. He added that worries about euro zone zone government debt and the still high risks of sovereign default would probably push gold to higher levels. China's vow to make its currency flexible is positive for commodities, but traders say the world's second-largest gold consumer was likely to turn to domestic output to boost its bullion reserves -- the world's sixth largest. China, which has been the world's top gold producer for the past three years, has raised output every year since 2004, producing a total of 313.980 tonnes last year, an average of 26.165 tonnes per month. "Markets have opened positively in Asia this morning as China relaxed its yuan peg against the dollar," said James Moore, analyst at TheBulionDesk.com. "Commodities have also rallied amidst speculation China's currency decision will increase demand for raw material." Platinum, palladium and silver were at their strongest in a month, tracking industrial metals higher on hopes China's move would boost demand for raw materials. Spot platinum touched a session high of $1 606.50 an ounce, palladium $497.75 and silver $19.38. PRICES * Spot gold was bid at $1 260.40 at 08:53 Sa time from $1 255.35 late in New York on Friday. * Silver was at $19.36 from $19.10. * Platinum at $1 600 from $1 585.50. * Palladium at $493.50 from $487.50. DATA/EVENTS * Introductory Statement by ECB President Jean-Claude Trichet at the Quarterly Hearing before the Committee on Economic and Monetary Affairs of the European Parliament (16:30 SA time) * ECB Executive Board member Juergen Stark takes part in debate on the euro. MARKET NEWS * Stocks and commodities jumped and US Treasuries fell as investors bet China will allow the yuan to rise after promising more currency flexibility, easing political tensions with the West. * The Australian dollar and the euro jumped to their highest levels in about a month against the dollar after China allowed the yuan to rise to a post-revaluation high, boosting confidence in the global economy. * Crude prices rose to their highest since early May after China vowed to allow a flexible yuan exchange rate, raising expectations of higher petroleum imports by the world's second-largest oil user. FUNDAMENTALS * Vatukoula Gold on track for 100 000 oz production target in 2011. TECHNICALS * Gold support at $1 252 an ounce, resistance at $1 263 and 14-day RSI at 73. * Platinum support at $1 572 an ounce, resistance at $1 608 and 14-day RSI at 76. * Silver support at $18.68 an ounce, resistance at $19.50 and 14-day RSI at 72. - Reuters

 

Gold up, eyes record high as dollar slips  
June 21, 2010


Gold prices rose on Monday, hovering within reach of the record high hit last week, as the dollar fell after China said it would allow its yuan currency greater flexibility.

Spot gold hit a session high of $1 261.30 a troy ounce, not far from the record $1 261.90 hit on Friday.

China has vowed to resume currency reform by increasing the yuan's flexibility, indicating that it will end a 23-month-old peg to the dollar.

"Gold looks strong, the weaker dollar is helping and investor purchases are unlikely to tail off any time soon," a Europe-based trader said.

He added that worries about euro zone zone government debt and the still high risks of sovereign default would probably push gold to higher levels.

China's vow to make its currency flexible is positive for commodities, but traders say the world's second-largest gold consumer was likely to turn to domestic output to boost its bullion reserves -- the world's sixth largest.

China, which has been the world's top gold producer for the past three years, has raised output every year since 2004, producing a total of 313.980 tonnes last year, an average of 26.165 tonnes per month.

"Markets have opened positively in Asia this morning as China relaxed its yuan peg against the dollar," said James Moore, analyst at TheBulionDesk.com.

"Commodities have also rallied amidst speculation China's currency decision will increase demand for raw material."

Platinum, palladium and silver were at their strongest in a month, tracking industrial metals higher on hopes China's move would boost demand for raw materials.

Spot platinum touched a session high of $1 606.50 an ounce, palladium $497.75 and silver $19.38.

PRICES

* Spot gold was bid at $1 260.40 at 08:53 Sa time from $1 255.35 late in New York on Friday.

* Silver was at $19.36 from $19.10.

* Platinum at $1 600 from $1 585.50.

* Palladium at $493.50 from $487.50.

DATA/EVENTS

* Introductory Statement by ECB President Jean-Claude Trichet at the Quarterly Hearing before the Committee on Economic and Monetary Affairs of the European Parliament (16:30 SA time)

* ECB Executive Board member Juergen Stark takes part in debate on the euro.

MARKET NEWS

* Stocks and commodities jumped and US Treasuries fell as investors bet China will allow the yuan to rise after promising more currency flexibility, easing political tensions with the West.

* The Australian dollar and the euro jumped to their highest levels in about a month against the dollar after China allowed the yuan to rise to a post-revaluation high, boosting confidence in the global economy.

* Crude prices rose to their highest since early May after China vowed to allow a flexible yuan exchange rate, raising expectations of higher petroleum imports by the world's second-largest oil user.

FUNDAMENTALS

* Vatukoula Gold on track for 100 000 oz production target in 2011.

TECHNICALS

* Gold support at $1 252 an ounce, resistance at $1 263 and 14-day RSI at 73.

* Platinum support at $1 572 an ounce, resistance at $1 608 and 14-day RSI at 76.

* Silver support at $18.68 an ounce, resistance at $19.50 and 14-day RSI at 72. - Reuters

 

I checked out a gold jewellery shop.

100g Credit Suisse bar selling over $4k (was told the bar would be more valuable with time as it was last produced 5 yrs back and no longer in production). Supposed to be $68 per gram but the heavier the bar, the cheaper. However, buyback price is unattractive with around 26% below sell price.

Seems like that's hardly a market for silver? The shop doesn't sell or buy silver and the staff told me most don't.

With the exchange rate for Aussie and Sg currencies, I supposed it's about the same to get gold at either country but if I were to get silver, it'll be better for me to get in Aussie. From what I read online, there seems to be a market for silver.

 

I have highlighted many times that gold will go parabolic! It is a matter of when not whether. The time is getting closer and closer. Although, the gold cartel wield immense pricing power, their time is almost up. The fact of the matter is: there is overwhelming demand for physical gold. More and more smart money are coming to their senses and are flocking to gold. You should take every opportunity to accumulate physical gold. Don’t be too concerned with the gold cartel. Their machinations to depress gold price give us even more opportunities to buy at a ridiculously low price! CNN reports:
  
Foreign governments have been getting in on the recent gold rush, driven by continued fears about Europe’s debt crisis and the pace of the global economic recovery. Those concerns have been propelling the precious metal to record highs over the past 18 months. In fact, gold posted a new intra-day high Friday, when it reached $1,260.90 an ounce. A day earlier, it reached a fresh record high closing price of $1,248.70 an ounce.
  
Last year, foreign central banks were net buyers of gold for the first time since 1997. India, China and Russia have been the biggest buyers. And more recently, the Philippines and Kazakhstan jumped into the fray with big purchases of the precious metal during the first quarter, according to data released by the World Gold Council Thursday. What’s behind the buying binge?
 
Each country has its own unique reasons, but there are a few broad trends that unite them all, said Natalie Dempster, director of government affairs for the World Gold Council.
  …..
Unlike paper currencies, gold has a tangible value and that value is not dependent on any one country’s economic policies. When the financial crisis drove down the dollar’s value in 2009, and Europe’s debt woes pushed the euro to fresh four-year lows earlier this month, investors and foreign central banks flocked to safe-haven assets like gold.
 
Add rising deficits in both Europe and the United States to the mix, and currencies have become increasingly questionable assets, said Jeffrey Nichols, managing director of American Precious Metals Advisors and senior economic advisor to Rosland Capital. That’s why it’s no surprise that foreign central banks overall have turned from sellers into buyers of gold in the last year, he said. Who’s buying gold?
 
Russia and Kazakhstan: As far as public records show, Russia appears to be the largest buyer of gold among central banks so far this year. In the first quarter of 2010, Russia’s central bank increased its gold reserves by 26.6 metric tonnes, or about $1.2 billion at today’s price, according to World Gold Council data. That’s in addition to the 117.63 tonnes that Russia added in 2009. Russia has been adding to its gold reserves steadily for more than three years, partly through buying its own domestic mine production. It considers gold both a symbol of prestige as well as a way to bolster the country’s credit worthiness, Nichols said.
 
Kazakhstan, the third largest buyer so far in 2010, has a similar strategy, although at a much lesser level. The former Soviet-controlled country bought 3.1 tonnes, or $137 million, of the precious metal in the first quarter.
 
Philippines: After Russia, the Philippines falls a distant second as a buyer, after purchasing 9.6 tonnes, or about $424 million, of gold earlier this year. The Philippines also buys its domestic production as a way of supporting local industry and as an inflation hedge, but its reserves usually fluctuate more than Russia’s because the country often sells it at a later date on the open market.
 
India: While India has yet to publicly announce any major gold buys this year, the country bought a massive 200 tonnes, or what amounts to about $8.8 billion at current prices, from the International Monetary Fund in November. The move, which multiplied India’s reserves by 55%, was seen as a way for the country to diversify its reserves and reinforce the perception among Indian consumers that the metal is a reliable and safe asset, the World Gold Council said.
 
China: China is considered a stealth buyer of gold, said Boris Schlossberg, director of currency research at Global Forex Trading. As the world’s largest producer of the metal, China often buys gold from its own mines and doesn’t report those sales publicly. But in April 2009, China did admit to having added 454 tonnes, or a 76% increase, to its reserves since 2003. Analysts suspect the country is continuing to buy gold and could in fact, be the world’s largest buyer consistently. It simply doesn’t reveal it’s pro-gold stance proudly, however, because China is also the world’s largest holder of U.S. Treasurys.
 
Announcing an aggressive gold buying spree is not in China’s best interest because, for one, it might push gold prices higher. Secondly, it could devalue the U.S. dollar, which would subsequently lessen the worth of the country’s portfolio of U.S. government bonds, Schlossberg said

 

Update: Gold hits record above US$1,260 on safe haven demand LONDON - Spot gold hit a record high above US$1,260 an ounce on Friday as demand for bullion as a haven from sovereign and financial risk pushed the metal through technical resistance. Spot goldhit a high of US$1,260.20 an ounce and was bid at US$1,258.85 an ounce at 1447 GMT, against US$1,243.40 late on Thursday. US gold futures for August delivery also hit a record US$1,262.00, and were later up US$12.00 at $1,260.60. -- REUTERS

 

Now is not the time to Buy Gold.

I would Buy Physical Gold when Gold Price has fallen to a low. Right now, it's too high.

I go to that shop to find some unique Gold Bars or Gold Coins that cannot be found in UOB.

They are not the cheapest place to Buy Gold, but they will give you a better rate than UOB if you want to sell Gold.

UOB is the cheapest place to Buy Gold, like PAMP Sussie Gold, but they are not the best place to Sell your Gold to.

fruitty      ( Date: 15-Jun-2010 23:28) Posted: Hi Alex, thanks for sharing your knowledge and the warning on a potential drop in gold price. I did a search on Australian gold manufacturer just now and the official one is the Perth Mint. The coins designs are unique and they even have the Great Warriors Series, so cute :) However, prices are quite steep. I walked into a pawn shop today and asked about gold. The shop sells a gold bar (picture of a dragon) of 100g and lots of gold coins (animal signs). Their purity level is 0.999. They are selling the gold at $62 per gram + GST 7%. I compared it with the UOB website and the gold at the shop is more expensive. In terms of credibility, I'm not sure of pawn shops. I'll slowly find out more on physical gold.

 

Hi fruitty,

I think the Great Warriors Gold Coins you mentioned are collection coin series produced yearly by Perth Mint.

They are a lot like the Coin Series produced by Singapore Mint every year.

These kind of coins are more expensive because the Mints are also charging you the design of the coins.

They are great to keep, but don't worth as much when you sell them because they are not recognized worldwide and the Buyers only Buy them based on Gold content only.

What you want are Gold Coins that are associated to the country. Like British Sovereigns, American Eagles, Canadian Maple Leafs, Singapore Lions, Australian Kangaroos.

These are internationally recognized coins and you'll have no problem selling them anywhere, especially the British Sovereigns and American Eagles.

You should know that Gold Coins always sell at a higher price than the Spot Gold price.

Alternatively, you can Buy Gold Bars.

They are usually sold closer to the spot gold price and if you buy them in huge quantity, you can even get them below spot gold price.

I think if you Buy 1kg of Gold Bar, you can buy it below spot gold price.

fruitty      ( Date: 15-Jun-2010 23:28) Posted: Hi Alex, thanks for sharing your knowledge and the warning on a potential drop in gold price. I did a search on Australian gold manufacturer just now and the official one is the Perth Mint. The coins designs are unique and they even have the Great Warriors Series, so cute :) However, prices are quite steep. I walked into a pawn shop today and asked about gold. The shop sells a gold bar (picture of a dragon) of 100g and lots of gold coins (animal signs). Their purity level is 0.999. They are selling the gold at $62 per gram + GST 7%. I compared it with the UOB website and the gold at the shop is more expensive. In terms of credibility, I'm not sure of pawn shops. I'll slowly find out more on physical gold.

 

Hi Alex,

thanks for sharing your knowledge and the warning on a potential drop in gold price.

I did a search on Australian gold manufacturer just now and the official one is the Perth Mint. The coins designs are unique and they even have the Great Warriors Series, so cute :) However, prices are quite steep.

I walked into a pawn shop today and asked about gold. The shop sells a gold bar (picture of a dragon) of 100g and lots of gold coins (animal signs). Their purity level is 0.999. They are selling the gold at $62 per gram + GST 7%. I compared it with the UOB website and the gold at the shop is more expensive. In terms of credibility, I'm not sure of pawn shops. I'll slowly find out more on physical gold.

 

Thank you very much.

alexchia01      ( Date: 15-Jun-2010 11:22) Posted: No. ETF price does not match Gold Price, but they follow closely to Gold Price. GLD 10US$, means that the minimum you can buy is 10 unit and it's traded in USD. So 1 lot is 10 Unit x Current Price. If you are paying in SGD, you then need to factor in the Exchange Rate. alooloo      ( Date: 15-Jun-2010 10:44) Posted: Would like to ask, is this share price, totally match the gold price? if buy 1lot, is it current price x 10USD?? or 1000 x current price x 10USD?

 

No. ETF price does not match Gold Price, but they follow closely to Gold Price.

GLD 10US$, means that the minimum you can buy is 10 unit and it's traded in USD.

So 1 lot is 10 Unit x Current Price.

If you are paying in SGD, you then need to factor in the Exchange Rate.

alooloo      ( Date: 15-Jun-2010 10:44) Posted: Would like to ask, is this share price, totally match the gold price? if buy 1lot, is it current price x 10USD?? or 1000 x current price x 10USD?

 

Would like to ask, is this share price, totally match the gold price?

if buy 1lot, is it current price x 10USD?? or 1000 x current price x 10USD?

 

hahaha...

You are presuming..

You can also arrange to have all the hot chicks stroke your gold ingots

     at a public showroom for instance...

            hehehe...

 

u naughty boi...............

tell ur wife then u know........

iPunter      ( Date: 15-Jun-2010 09:32) Posted: But you wouldn't want just one lone hot chick to stroke your ingots     when there'll be dozens of them clamouring to do it too...          hehehe... ozone2002      ( Date: 15-Jun-2010 09:07) Posted: i won't mind a hot chick to STROKE my gold ingots... hah

 

But you wouldn't want just one lone hot chick to stroke your ingots

    when there'll be dozens of them clamouring to do it too...

         hehehe...

ozone2002      ( Date: 15-Jun-2010 09:07) Posted: i won't mind a hot chick to STROKE my gold ingots... haha iPunter      ( Date: 14-Jun-2010 11:18) Posted: I agree with that... Stocking and stroking physical gold ingots is the ultimate thing if the world is coming to its end... :)

 

 

i won't mind a hot chick to STROKE my gold ingots... haha

iPunter      ( Date: 14-Jun-2010 11:18) Posted: I agree with that... Stocking and stroking physical gold ingots is the ultimate thing if the world is coming to its end... :)

 

Based on what I see from the GLD 10US$ Chart, Gold is heading for a big drop soon.

The problem is I don't know when the fall would come, maybe next week, maybe next month or maybe couple of months later.

But the drop will most likely be Big.

If you are holding to this ETF now, better sell when you see the price starting to fall.

This is just my 2 cents worth of analysis. Invest at your own risk.

 

I agree with that... Stocking and stroking physical gold ingots is the ultimate thing if the world is coming to its end... :)

 

Ya, if you just want to trade Gold... Gold Futures, Gold ETFs, Gold Savings Account, Gold Certificates are good enough.

I just have a passion for Gold. I like to collect Gold Bars and Coins. I like to hold them on my hands and admire their shines.

I'm a sucker of Physical Gold...

iPunter      ( Date: 14-Jun-2010 10:32) Posted: I'd rather avoid all the hassle by simply trading spot gold with POEMS...