Investors concerned about the economy and inflation have helped push the price of gold to a record high in 2009, but silver has been on a streak too. The price of silver is up 71% since January compared to a 32% gain in gold. While gold is now trading at an all time d high silver is nowhere near a record. The record high for silver was set in 1980, when Nelson and William Hunt unsuccessfully tried to corner the market. In inflation adjusted dollars that is $132 an ounce!
At $18.36 an ounce, silver is more affordable than gold. Sales of 1 oz American silver eagles have soared past 25 million coins already this year, breaking the old record of 20 million coins set in 2008. Demand is so heavy that the U.S. mint will be unable to make Proof versions of the American silver eagle for the first time since 1986. Dealers also report record high sales for silver bullion rounds and bars that often sell for lower premiums above the price of spot silver than silver coins.
Historically it takes about 16 ounces of silver to buy one ounce of gold. Now it takes 62 ounces of silver to buy one ounce of gold. Many experts expect the gold silver ratio to move toward its historical mean as silver outperforms gold in percentage terms in 2010 and beyond.
Friday, November 20, 2009
Thursday, November 12, 2009
GOLD BUYERS WHO DIVERSIFIED WITH SILVER SHOWED DOUBLE GAINS
On our blog posted Monday April 13, 2009 we asked how investors would do if they bought 1 oz and gold and diversified by also buying 72 oz of silver.
Gold was then $1,039 an ounce silver was $14.33 and the gold silver ratio was 72.1
The gold investment was 2,078 and is now worth $2,226.80 + 7%
The gold and silver investment was $2,070.76 and is now $2,379.88 + 15%
Investors who only buy gold and silver bullion might want to consider that they could have turbo charged these returns by further diversification into numismatic quality, certified collector coins. The 2008 $25 American Gold Buffalo Certified First Strike PR70 DCAM rose from $1,200 to $1,700 for a 41.7% gain according to the PCGS price guide. This is a 24kt gold coin weighing half an ounce that was certified perfect 70.
Gold was then $1,039 an ounce silver was $14.33 and the gold silver ratio was 72.1
The gold investment was 2,078 and is now worth $2,226.80 + 7%
The gold and silver investment was $2,070.76 and is now $2,379.88 + 15%
Investors who only buy gold and silver bullion might want to consider that they could have turbo charged these returns by further diversification into numismatic quality, certified collector coins. The 2008 $25 American Gold Buffalo Certified First Strike PR70 DCAM rose from $1,200 to $1,700 for a 41.7% gain according to the PCGS price guide. This is a 24kt gold coin weighing half an ounce that was certified perfect 70.
Tuesday, November 3, 2009
IMF sells India 200 tonnes of Gold
IMF sells India 200 tonnes of Gold for $6,7bn
Reuters
Published: 2009/11/03 01:08:49 PM
The International Monetary Fund has sold 200 tonnes of gold to the Reserve Bank of India for $6,7 billion, quietly executing half of a long-planned bullion sale that has threatened to slow gold’s ascent.
The deal, which surprised traders who expected China to be the most likely buyer, will relieve the gold market of some uncertainty over how and when the IMF would sell 403,3 tonnes of gold, about one-eighth of its total stock. The deal will increase India’s gold holdings to the tenth largest among central banks.
It also fuelled speculation that other governments — including Beijing — may be ready to diversify their reserves even at near-record gold prices, helping soak up IMF supply that the fund may otherwise be forced to sell on the open market.
“Central banks in India and China will be happy to accumulate gold at these levels. I will not be surprised to see even some Southeast Asian banks buying gold,” Aaron Smith, Asia head of the $1,65 billion technical trading fund Superfund, told Reuters.
Spot gold prices earlier rose by nearly one%, but later reversed those gains to trade little changed at around $1058 an ounce on Tuesday, within striking distance of last month’s $1070,40 record despite a rallying dollar. Traders said the IMF news could add to the market’s upward momentum.
“Its potentially bullish from several points of view,” said Commerzbank analyst Eugen Weinberg. “Gold was kept off the market and sold directly to cental banks so potential sales on market are limited by this.”
“Secondly, it showed large buyers are ready to accept the current price levels. Thirdly, the central banks are increasing their gold reserves. Last but not least the central bank gold agreement sales of 400 tonnes ... is half empty already.”
The Reserve Bank of India said the purchase was an official sector off-market transaction and was executed during Oct. 19-30 at market-based prices.
An IMF official said the sale was concluded at an average price of about $1045 an ounce and that the transaction would be paid in hard currency and not in IMF Special Drawing Rights.
SURPRISE BUYER
Although the IMF’s plan to sell a share of its gold holdings in order to increase low-cost lending to poor countries had been flagged for a year before it was formally approved in September, the speed, scale and identity of the buyer were a surprise.
“It was always thought that some of it would be sold off market but it was a bit of a surprise that as much as 200 tonnes had been sold off market,” said Simon Weeks, director of precious metal sales at Bank of Nova Scotia.
Although India is the world’s biggest consumer of gold, primarily in the form of jewellery and investment among its billion-plus people, its central bank had given few signs of seeking to diversify its reserves pool into bullion.
The proportion of gold as part of its total foreign reserves has fallen from over 20% in 1994 to just under 4%.
India’s foreign exchange reserves held at the central bank totalled $285,5 billion on Oct. 23, of which gold comprised just over $10 billion. The latest purchase will lift its share of gold holdings from near 4% to about 6%, much less than most of the developed world but four times China’s share.
The RBI does not officially talk about its diversification strategy. On Tuesday, the RBI said the purchase of IMF’s gold was done as part of its foreign exchange reserve management.
But there may also be a geopolitical motive behind the deal: India, like China, is also seeking closer ties with the IMF to assert its authority on the global economic stage.
“This transaction is an important step toward achieving the objectives of the IMF’s limited gold sales program, which are to help put the fund’s finances on a sound long-term footing and enable us to step up much-needed concessional lending to the poorest countries,” the IMF’s managing director, Dominique Strauss-Kahn, said in a statement on Monday.
NO MARKET DISRUPTION
A senior IMF official, speaking on condition of anonymity, declined to say whether other central banks have expressed interest in buying the remaining gold for sale.
He said if no other central banks came forward, the IMF would proceed as planned to sell the gold in the market, but reiterated that the fund would publicize its intentions before doing so to avoid disrupting the market.
Still, the threat of further open-market sales remains a source of concern for gold traders, mindful of the five-year pact among European central banks to sell down a maximum 400 tonnes a year of their holdings, an agreement that was renewed in August and includes the IMF volume.
The market’s focus has now shifted to China, which has reportedly been in talks with the IMF about buying some of the fund’s bullion as Beijing seeks to shift some of its more than
$2 trillion in foreign exchange reserves away from the US
dollar.
“Now people may think China will buy the other half,” said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.
Already the world’s top producer of gold and rivalling India as a consumer, China revealed this year that it had quietly lifted its own government holdings of gold stocks to 1054 tonnes from 600 tonnes when it last reported its holdings in 2003.
It is the first time since 2000 that the IMF has sold gold to a central bank. Between December 1999 and April 2000 in separate transactions, the IMF sold a total of 12,9 million ounces of gold to member countries Brazil and Mexico.
Reuters
Published: 2009/11/03 01:08:49 PM
The International Monetary Fund has sold 200 tonnes of gold to the Reserve Bank of India for $6,7 billion, quietly executing half of a long-planned bullion sale that has threatened to slow gold’s ascent.
The deal, which surprised traders who expected China to be the most likely buyer, will relieve the gold market of some uncertainty over how and when the IMF would sell 403,3 tonnes of gold, about one-eighth of its total stock. The deal will increase India’s gold holdings to the tenth largest among central banks.
It also fuelled speculation that other governments — including Beijing — may be ready to diversify their reserves even at near-record gold prices, helping soak up IMF supply that the fund may otherwise be forced to sell on the open market.
“Central banks in India and China will be happy to accumulate gold at these levels. I will not be surprised to see even some Southeast Asian banks buying gold,” Aaron Smith, Asia head of the $1,65 billion technical trading fund Superfund, told Reuters.
Spot gold prices earlier rose by nearly one%, but later reversed those gains to trade little changed at around $1058 an ounce on Tuesday, within striking distance of last month’s $1070,40 record despite a rallying dollar. Traders said the IMF news could add to the market’s upward momentum.
“Its potentially bullish from several points of view,” said Commerzbank analyst Eugen Weinberg. “Gold was kept off the market and sold directly to cental banks so potential sales on market are limited by this.”
“Secondly, it showed large buyers are ready to accept the current price levels. Thirdly, the central banks are increasing their gold reserves. Last but not least the central bank gold agreement sales of 400 tonnes ... is half empty already.”
The Reserve Bank of India said the purchase was an official sector off-market transaction and was executed during Oct. 19-30 at market-based prices.
An IMF official said the sale was concluded at an average price of about $1045 an ounce and that the transaction would be paid in hard currency and not in IMF Special Drawing Rights.
SURPRISE BUYER
Although the IMF’s plan to sell a share of its gold holdings in order to increase low-cost lending to poor countries had been flagged for a year before it was formally approved in September, the speed, scale and identity of the buyer were a surprise.
“It was always thought that some of it would be sold off market but it was a bit of a surprise that as much as 200 tonnes had been sold off market,” said Simon Weeks, director of precious metal sales at Bank of Nova Scotia.
Although India is the world’s biggest consumer of gold, primarily in the form of jewellery and investment among its billion-plus people, its central bank had given few signs of seeking to diversify its reserves pool into bullion.
The proportion of gold as part of its total foreign reserves has fallen from over 20% in 1994 to just under 4%.
India’s foreign exchange reserves held at the central bank totalled $285,5 billion on Oct. 23, of which gold comprised just over $10 billion. The latest purchase will lift its share of gold holdings from near 4% to about 6%, much less than most of the developed world but four times China’s share.
The RBI does not officially talk about its diversification strategy. On Tuesday, the RBI said the purchase of IMF’s gold was done as part of its foreign exchange reserve management.
But there may also be a geopolitical motive behind the deal: India, like China, is also seeking closer ties with the IMF to assert its authority on the global economic stage.
“This transaction is an important step toward achieving the objectives of the IMF’s limited gold sales program, which are to help put the fund’s finances on a sound long-term footing and enable us to step up much-needed concessional lending to the poorest countries,” the IMF’s managing director, Dominique Strauss-Kahn, said in a statement on Monday.
NO MARKET DISRUPTION
A senior IMF official, speaking on condition of anonymity, declined to say whether other central banks have expressed interest in buying the remaining gold for sale.
He said if no other central banks came forward, the IMF would proceed as planned to sell the gold in the market, but reiterated that the fund would publicize its intentions before doing so to avoid disrupting the market.
Still, the threat of further open-market sales remains a source of concern for gold traders, mindful of the five-year pact among European central banks to sell down a maximum 400 tonnes a year of their holdings, an agreement that was renewed in August and includes the IMF volume.
The market’s focus has now shifted to China, which has reportedly been in talks with the IMF about buying some of the fund’s bullion as Beijing seeks to shift some of its more than
$2 trillion in foreign exchange reserves away from the US
dollar.
“Now people may think China will buy the other half,” said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.
Already the world’s top producer of gold and rivalling India as a consumer, China revealed this year that it had quietly lifted its own government holdings of gold stocks to 1054 tonnes from 600 tonnes when it last reported its holdings in 2003.
It is the first time since 2000 that the IMF has sold gold to a central bank. Between December 1999 and April 2000 in separate transactions, the IMF sold a total of 12,9 million ounces of gold to member countries Brazil and Mexico.
Thursday, October 29, 2009
Certified American Buffalo Gold Coins – First Strike and Early Releases
Certified American Buffalo Gold Coins – First Strike and Early Releases
American gold Buffalo coins are mass produced by the United States mint on a commercial production line. These coins are struck for purchase primarily by gold bullion investors who seek a convenient low cost means of owning gold bullion for investment. The advantages of ownership include a net weight and purity guarantee by the United States Government. Not all coins are created equally and some coins have a better strike, luster and surfaces than others. Select coins with superior eye appeal and perfect or near perfect surfaces are very popular and very valuable in the collector market.
Often these select high quality coins command high premiums and are valued based on their condition, rarity and low certified population in addition to their gold content. The current and future value of any collectible coin is predicated on the size and depth of the collector base interested in ownership of the coins. American gold Buffalo coins certified in the premium grades M69 and MS70 have a large and affluent following. In addition to a large and established collector base more than 2,000 coin and bullion dealers are actively trading in these coins. Soon after a coin is released and before it is mishandled or mistreated is the best time to get a high grade certified coin. For this reason PCGS certified First Strike and NGC Early Release coins are popular with collectors. The term First Strike or Early Release refers to coins sent in to a coin grading service within the first 30-days of release. It does not mean they are better or a higher grade than other coins certified MS69 or MS70 but it does make them slightly more marketable. Prices for these coins vary from dealer to dealer we recommend you shop around.
The chart below is taken from information provided by PCGS and NGC and shows the official certified population of the 2008 American Gold Buffalo and the Official price guide. This is provided for informational purposes only.
Description Service Grade Population Price
2008 $50 Gold Buffalo NGC MS69 6,977 $1,290
2008 $50 Gold Buffalo PCGS MS69 6,831 $1,345
2008 $50 Gold Buffalo NGC MS70 7,468 $1,590
2008 $50 Gold Buffalo PCGS MS70 1,584 $1,700
October 29, 2009
American gold Buffalo coins are mass produced by the United States mint on a commercial production line. These coins are struck for purchase primarily by gold bullion investors who seek a convenient low cost means of owning gold bullion for investment. The advantages of ownership include a net weight and purity guarantee by the United States Government. Not all coins are created equally and some coins have a better strike, luster and surfaces than others. Select coins with superior eye appeal and perfect or near perfect surfaces are very popular and very valuable in the collector market.
Often these select high quality coins command high premiums and are valued based on their condition, rarity and low certified population in addition to their gold content. The current and future value of any collectible coin is predicated on the size and depth of the collector base interested in ownership of the coins. American gold Buffalo coins certified in the premium grades M69 and MS70 have a large and affluent following. In addition to a large and established collector base more than 2,000 coin and bullion dealers are actively trading in these coins. Soon after a coin is released and before it is mishandled or mistreated is the best time to get a high grade certified coin. For this reason PCGS certified First Strike and NGC Early Release coins are popular with collectors. The term First Strike or Early Release refers to coins sent in to a coin grading service within the first 30-days of release. It does not mean they are better or a higher grade than other coins certified MS69 or MS70 but it does make them slightly more marketable. Prices for these coins vary from dealer to dealer we recommend you shop around.
The chart below is taken from information provided by PCGS and NGC and shows the official certified population of the 2008 American Gold Buffalo and the Official price guide. This is provided for informational purposes only.
Description Service Grade Population Price
2008 $50 Gold Buffalo NGC MS69 6,977 $1,290
2008 $50 Gold Buffalo PCGS MS69 6,831 $1,345
2008 $50 Gold Buffalo NGC MS70 7,468 $1,590
2008 $50 Gold Buffalo PCGS MS70 1,584 $1,700
October 29, 2009
Tuesday, October 27, 2009
Silver containing wound dressing launched
ANTI-MICROBIALQUALITIES
Silver containing wound dressing launched into $15 billion global market
In yet another medical application for silver, Advanced Medical Solutions has launched a silver-containing wound dressing for the global woundcare market.Author: Lawrence WilliamsPosted: Tuesday , 27 Oct 2009
LONDON -
British specialist technology company, Advanced Medical Solutions (AMS), which supplies the $15 billion global woundcare market with advanced woundcare dressings and tissue adhesives for wound closure has announced a new silver-containing dressing. This has already been launched in the U.S. and is being introduced into the European and other international markets this month.
Systagenix Wound Management, the marketing and distribution partner for AMS's fibre-based silver alginate technology, has expanded its existing anti-microbial wound dressings offering with the introduction of AMS's SILVERCEL Non-Adherent Hydro-Alginate Dressing.
The company notes that silver is widely recognized as a safe and effective broad-spectrum anti-microbial agent for infection control.
In 2003, AMS developed a range of wound dressings whereby silver fibers were incorporated into its proprietary calcium alginate technology which allows a controlled and sustained release of silver into the wound without compromising the performance of the base alginate - a natural wound dressing derived from seaweed. The global silver alginate market is currently estimated at around $350 million and growing at 15% per annum.
The new wound dressing should also have application in the military market as well as for accident applications and demonstrates the growing usage for silver in medical applications as noted on Mineweb last month - see Perfect storm for silver brewing as antibiotics substitute--Silver Institute Such medical usage is one of the growing new markets for silver, and while it may take a long time to replace the losses from the switchover to digital from film in the photographic sector, it is becoming a significant market for the sector.
Silver containing wound dressing launched into $15 billion global market
In yet another medical application for silver, Advanced Medical Solutions has launched a silver-containing wound dressing for the global woundcare market.Author: Lawrence WilliamsPosted: Tuesday , 27 Oct 2009
LONDON -
British specialist technology company, Advanced Medical Solutions (AMS), which supplies the $15 billion global woundcare market with advanced woundcare dressings and tissue adhesives for wound closure has announced a new silver-containing dressing. This has already been launched in the U.S. and is being introduced into the European and other international markets this month.
Systagenix Wound Management, the marketing and distribution partner for AMS's fibre-based silver alginate technology, has expanded its existing anti-microbial wound dressings offering with the introduction of AMS's SILVERCEL Non-Adherent Hydro-Alginate Dressing.
The company notes that silver is widely recognized as a safe and effective broad-spectrum anti-microbial agent for infection control.
In 2003, AMS developed a range of wound dressings whereby silver fibers were incorporated into its proprietary calcium alginate technology which allows a controlled and sustained release of silver into the wound without compromising the performance of the base alginate - a natural wound dressing derived from seaweed. The global silver alginate market is currently estimated at around $350 million and growing at 15% per annum.
The new wound dressing should also have application in the military market as well as for accident applications and demonstrates the growing usage for silver in medical applications as noted on Mineweb last month - see Perfect storm for silver brewing as antibiotics substitute--Silver Institute Such medical usage is one of the growing new markets for silver, and while it may take a long time to replace the losses from the switchover to digital from film in the photographic sector, it is becoming a significant market for the sector.
Tuesday, October 20, 2009
Most Popular Silver Bullion
Most Popular Silver Bullion
Half – Ounce Buffalo Rounds, 2010 Maple Leafs and 5 oz Westminster Bars
sold more in 10 days than any other silver bullion products in the last month.
1. Half ounce Buffalo Rounds
2. 2010 Canadian Maple Leaf coin
3. 5 oz Westminster Mint Bar
4. 10 oz bar with Morgan design
5. 2009 Silver Eagle Monster Box
6. 2009 Silver Eagle 20-coin Rolls
7. 10 oz Heraeus bars
8. Silver Rounds Peace design
9. Silver Rounds silver Eagle design
10. silver rounds Morgan dollar design
Half – Ounce Buffalo Rounds, 2010 Maple Leafs and 5 oz Westminster Bars
sold more in 10 days than any other silver bullion products in the last month.
1. Half ounce Buffalo Rounds
2. 2010 Canadian Maple Leaf coin
3. 5 oz Westminster Mint Bar
4. 10 oz bar with Morgan design
5. 2009 Silver Eagle Monster Box
6. 2009 Silver Eagle 20-coin Rolls
7. 10 oz Heraeus bars
8. Silver Rounds Peace design
9. Silver Rounds silver Eagle design
10. silver rounds Morgan dollar design
Monday, October 12, 2009
What a great deal!
What a great deal!
I was in the offices of a major coin and bullion dealer to pick up some better date Morgan silver dollars from the GSA hoard, VAM coins and to negotiate on some PAMP platinum.
I casually mentioned that I had an interest in American silver eagles dated 2001- 2005. “Yes I have a few” said the dealer, who pressed a few buttons on his calculator and gave me his price. $2.25 over spot! Returning to my car it struck me that anyone can buy silver eagles through our website for up to $2.00 over spot and here I was a major player in the industry being quoted $2.25 over spot by a dealer who thought he was giving me a good deal.
I was in the offices of a major coin and bullion dealer to pick up some better date Morgan silver dollars from the GSA hoard, VAM coins and to negotiate on some PAMP platinum.
I casually mentioned that I had an interest in American silver eagles dated 2001- 2005. “Yes I have a few” said the dealer, who pressed a few buttons on his calculator and gave me his price. $2.25 over spot! Returning to my car it struck me that anyone can buy silver eagles through our website for up to $2.00 over spot and here I was a major player in the industry being quoted $2.25 over spot by a dealer who thought he was giving me a good deal.
Friday, September 18, 2009
The Winner of the Green Coin Design Contest is
Eau Claire, Wis. Resident Earns Grand Prize in Westminster Mint’s Inaugural International “Green Coin” Design Contest
MINNEAPOLIS, September 18, 2009 – Mallory Prucha Rishoi’s parents were ahead of their time. Today, no one bats an eye when people use phrases such as “greening the Earth” and “leaving a carbon footprint.” But in the 1970s, a much smaller percentage of Americans were talking about subjects such as renewable resources. Robert and Linda Prucha were among them.
MINNEAPOLIS, September 18, 2009 – Mallory Prucha Rishoi’s parents were ahead of their time. Today, no one bats an eye when people use phrases such as “greening the Earth” and “leaving a carbon footprint.” But in the 1970s, a much smaller percentage of Americans were talking about subjects such as renewable resources. Robert and Linda Prucha were among them.
“In the 1970s, my mom read books such as Diet for a Small Planet and both she and my dad were very interested in taking care of the Earth and society,” said Rishoi, 28, an Eau Claire, Wisconsin resident who attended the University of Nebraska on an art scholarship and graduated with a Bachelor of Arts degree in Studio Arts and a Master of Arts in Theatre Arts. “My mom, who was a silversmith/goldsmith, and my dad, the former Director of Campus Horticulture at Father Flanagan’s Boys Town, both had a broad world view. They both integrated principles of Earth-conscious living throughout my life.”
With that kind of background in ecology and art, it’s no wonder Rishoi became interested in entering an international contest for the design of a .999 pure silver “Green Coin” from the Westminster Mint of Minneapolis. The company announced today that Rishoi’s design earned the grand prize of $2,009. She will also receive the first coin off the press, as well as the hand sculpts created by world renowned sculptor Caesar Ruffo.
One side of Rishoi’s coin features the Sun with rays transitioning into the wind and an electric plug, an ear of corn extending into a gasoline nozzle, wind turbines, and a hydro-electric dam. It also includes the wording “Renewable Resources,” “Solar-Wind-Bio-Fuel,” and “Hydro-Electric.” The coin’s obverse features a pair of hands holding a globe with arrows. An outline of the atmosphere bounces several arrows back to the Earth’s surface, representing global warming and human impact, as the Sun highlights the edge of space. This design is encircled by the words “Green Coin,” “The Future Is in Our Hands,” and “2009.”
“Both sides of the coin feature a circular design that serves as a reminder that living consciously and preserving natural resources is a theme that infiltrates all levels of society,” said Rishoi, currently an instructor and Costume Shop Supervisor in the Music and Theatre Arts department at the University of Wisconsin-Eau Claire. “The entirety of mankind is encompassed and connected by the precious circle of Earth and must unite in the mission to preserve, protect and renew it for future generations.
“Furthermore, the hands that I drew are actually those of my mother, as I could think of no better hands than hers to represent the gentle, loving and strong grasp that all of us have on the planet. It is inevitably this grasp that will shape and mold the future. I tried to balance the message that the current state of the environment is precarious with that of a hopeful bright future without being too didactic or esoteric.”
Rishoi has lived in Eau Claire with her husband, Greg, for the past three years. She frequently returns to Omaha to visit her parents and grandmother, Phyllis Mallory.
She was interested in art at an early age, opting to pursue the subject despite receiving scholarships to other institutions that would have afforded her study in the fields of astrophysics and meteorology. While at the University of Nebraska, she focused on Drawing, Painting, Costume Design and Politics, serving as the Student Body President/Student Member of the NU Board of Regents. Currently, Rishoi teaches courses in Theatre Appreciation, Stage Make-Up and Stage Costuming. In her spare time, she works as a freelance costume designer and artist.
“This Green Coin contest seemed like an appropriate chance to promote a vital cause that is emerging in the mainstream, while honoring my upbringing,” Rishoi said. “I’m extremely grateful to the organizers of this event at the Westminster Mint for choosing my design.”
With that kind of background in ecology and art, it’s no wonder Rishoi became interested in entering an international contest for the design of a .999 pure silver “Green Coin” from the Westminster Mint of Minneapolis. The company announced today that Rishoi’s design earned the grand prize of $2,009. She will also receive the first coin off the press, as well as the hand sculpts created by world renowned sculptor Caesar Ruffo.
One side of Rishoi’s coin features the Sun with rays transitioning into the wind and an electric plug, an ear of corn extending into a gasoline nozzle, wind turbines, and a hydro-electric dam. It also includes the wording “Renewable Resources,” “Solar-Wind-Bio-Fuel,” and “Hydro-Electric.” The coin’s obverse features a pair of hands holding a globe with arrows. An outline of the atmosphere bounces several arrows back to the Earth’s surface, representing global warming and human impact, as the Sun highlights the edge of space. This design is encircled by the words “Green Coin,” “The Future Is in Our Hands,” and “2009.”
“Both sides of the coin feature a circular design that serves as a reminder that living consciously and preserving natural resources is a theme that infiltrates all levels of society,” said Rishoi, currently an instructor and Costume Shop Supervisor in the Music and Theatre Arts department at the University of Wisconsin-Eau Claire. “The entirety of mankind is encompassed and connected by the precious circle of Earth and must unite in the mission to preserve, protect and renew it for future generations.
“Furthermore, the hands that I drew are actually those of my mother, as I could think of no better hands than hers to represent the gentle, loving and strong grasp that all of us have on the planet. It is inevitably this grasp that will shape and mold the future. I tried to balance the message that the current state of the environment is precarious with that of a hopeful bright future without being too didactic or esoteric.”
Rishoi has lived in Eau Claire with her husband, Greg, for the past three years. She frequently returns to Omaha to visit her parents and grandmother, Phyllis Mallory.
She was interested in art at an early age, opting to pursue the subject despite receiving scholarships to other institutions that would have afforded her study in the fields of astrophysics and meteorology. While at the University of Nebraska, she focused on Drawing, Painting, Costume Design and Politics, serving as the Student Body President/Student Member of the NU Board of Regents. Currently, Rishoi teaches courses in Theatre Appreciation, Stage Make-Up and Stage Costuming. In her spare time, she works as a freelance costume designer and artist.
“This Green Coin contest seemed like an appropriate chance to promote a vital cause that is emerging in the mainstream, while honoring my upbringing,” Rishoi said. “I’m extremely grateful to the organizers of this event at the Westminster Mint for choosing my design.”
Wednesday, September 9, 2009
2009 Silver American Eagles 100 Coins Box with free Silver Eagle
2009 Silver American Eagles 100 Coins Box with free Silver Eagle
Buy silver in bulk and get FREE silver eagle coins. Buy 100 American silver eagle bullion coins and we will send you a silver eagle FREE. The more silver eagles you buy the more free coins you will get. Buy 200 coins and get 2 coins FREE. Buy 300 coins and get 3 coins FREE. This is an incredible offer. All of the silver eagles are guaranteed to be brand new 2009 mint fresh coins that have never been issued to the public before. The coins come in their original “Green Top” U.S. Mint tubes. Each tube contains 20 American silver eagle bullion coins.
Buy silver in bulk and get FREE silver eagle coins. Buy 100 American silver eagle bullion coins and we will send you a silver eagle FREE. The more silver eagles you buy the more free coins you will get. Buy 200 coins and get 2 coins FREE. Buy 300 coins and get 3 coins FREE. This is an incredible offer. All of the silver eagles are guaranteed to be brand new 2009 mint fresh coins that have never been issued to the public before. The coins come in their original “Green Top” U.S. Mint tubes. Each tube contains 20 American silver eagle bullion coins.
Friday, September 4, 2009
Gold at 6-month high, nears $1,000 an ounce
Gold prices bounded higher Thursday, nearing the $1,000 mark for the first time since February. Other metals followed gold higher. Prices have added about $44, or 4.6 percent, over the past three days, breaking free from two months of wayward trading between $930 and $970 an ounce.
Silver prices, which have trailed gold this year, got a boost as well. December silver soared 6 percent, rising 92.5 cents to $16.29 an ounce, after earlier hitting $16.31, its highest point since August 2008. Silver prices have surged more than $2, or 14 percent, in just five days.
Silver prices, which have trailed gold this year, got a boost as well. December silver soared 6 percent, rising 92.5 cents to $16.29 an ounce, after earlier hitting $16.31, its highest point since August 2008. Silver prices have surged more than $2, or 14 percent, in just five days.
Thursday, September 3, 2009
China pushes silver and gold investment to the masses
China pushes silver and gold investment to the masses
A report suggests that the Chinese government is pushing the general public into buying gold and silver bullion, which could have a dramatic effect on the markets.
Author: Lawrence WilliamsPosted: Thursday , 03 Sep 2009 LONDON -
We are indebted again to Paul Mylchreest's Thunder Road Report for news that will bring big smiles to gold and silver investors everywhere. Apparently China is pushing the idea of buying gold and silver for investment purposes to the general population in the way that Western television sells soap powder. If 1.3 billion Chinese citizens start buying gold and silver, even in tiny quantities, imagine what that will do to the market!
The report notes that China's Central Television, the main state-owned television company, has run a news programme letting the public know how easy it is to buy precious metals as an investment. On silver investment the announcer is quoted as saying " China has introduced its first ever investment opportunity for silver bullion. The bars are available in 500g, 1kg, 2kg and 5kg with a purity of 99.9%. Figures show that gold was fifty times more expensive than silver in 2007, but now that figure has reached over seventy times. Analysts say that silver has been undervalued in recent years. They add that the metal is the right investment for individual investors and could be a good way to cash in."
What appears to have happened in China is a total relaxation of strictures on holding precious metals by the individual with the government pushing gold and silver as an investment option, seemingly at every opportunity. This is a far cry from the situation only a few years ago where the distribution of gold and silver was strictly controlled. Now, the Thunder Road Report notes that every bank will sell gold and silver bullion bars in four different sizes to individuals and gold related investments are said to be soaring in popularity.
Around a year ago, Leyshon Resources managing director, Paul Atherley, in an investor presentation in London - and no doubt delivered elsewhere in the world too - commented that some employees at the company's gold mining project in northern China would, on pay day, go to the local bank and buy a small gold bar as an investment and wealth protector. To an extent we put this down at the time to mining company hype - but this seems to be exactly the same phenomenon noted by Thunder Road. The Chinese are being converted from being the lowest per capita gold consumers in the world to a nation of small precious metals investors. Now, by next year, Chinese consumption of gold is likely to exceed that of India, which has been for years the world's biggest gold market. And one suspects that the potential for gold purchasing by individuals is only in its earliest stages. As more and more Chinese move into the cities and individual wealth grows, this trend is only likely to accelerate.
Paul ends the piece on Chinese gold and silver potential with the following comment: "Simply put, the Chinese government is trying to trigger a national gold craze...and it's working. The Chinese public now has gold trading platforms on steroids.... ...Also, for the first time in history, Chinese investors can even trade gold abroad (in London) with the swipe of a ‘Lucky Gold' card. I can't even get Bank of America to open a foreign currency account."
This may be an overstatement of the case from a precious metals bull - or it may not! Certainly if China is indeed pushing the public to buy gold then there may well be a hidden agenda here. It's unlikely they are doing it and will suddenly pull the rug out from under millions of investors. A cynic (or a raging gold bull) would suggest that this will precede a move to switch a good proportion of the country's reserves into gold which would have a huge effect on the global gold price and could prove disastrous for the dollar. Maybe it's not in China's interests to drive the dollar down too much until it has managed to divest itself of the huge dollar overhang (see the article on Chinese Sovereign Wealth Funds we published yesterday - Chinese sovereign wealth fund dumping dollars for strategic investments like gold ). The country may well already be, of course, surreptitiously building its gold reserves without reporting the build-up.
If the Chinese are indeed beginning to buy gold and silver as the quoted report suggests then this has to be a strong signal that prices are going to rise, and perhaps rise dramatically, in the relatively near future. We await comment from other China watchers for confirmation of the gold and silver buying spree, but with global gold production at best flat and probably in decline, even a small increase in Chinese buying could have a substantial impact on gold and silver prices.
A report suggests that the Chinese government is pushing the general public into buying gold and silver bullion, which could have a dramatic effect on the markets.
Author: Lawrence WilliamsPosted: Thursday , 03 Sep 2009 LONDON -
We are indebted again to Paul Mylchreest's Thunder Road Report for news that will bring big smiles to gold and silver investors everywhere. Apparently China is pushing the idea of buying gold and silver for investment purposes to the general population in the way that Western television sells soap powder. If 1.3 billion Chinese citizens start buying gold and silver, even in tiny quantities, imagine what that will do to the market!
The report notes that China's Central Television, the main state-owned television company, has run a news programme letting the public know how easy it is to buy precious metals as an investment. On silver investment the announcer is quoted as saying " China has introduced its first ever investment opportunity for silver bullion. The bars are available in 500g, 1kg, 2kg and 5kg with a purity of 99.9%. Figures show that gold was fifty times more expensive than silver in 2007, but now that figure has reached over seventy times. Analysts say that silver has been undervalued in recent years. They add that the metal is the right investment for individual investors and could be a good way to cash in."
What appears to have happened in China is a total relaxation of strictures on holding precious metals by the individual with the government pushing gold and silver as an investment option, seemingly at every opportunity. This is a far cry from the situation only a few years ago where the distribution of gold and silver was strictly controlled. Now, the Thunder Road Report notes that every bank will sell gold and silver bullion bars in four different sizes to individuals and gold related investments are said to be soaring in popularity.
Around a year ago, Leyshon Resources managing director, Paul Atherley, in an investor presentation in London - and no doubt delivered elsewhere in the world too - commented that some employees at the company's gold mining project in northern China would, on pay day, go to the local bank and buy a small gold bar as an investment and wealth protector. To an extent we put this down at the time to mining company hype - but this seems to be exactly the same phenomenon noted by Thunder Road. The Chinese are being converted from being the lowest per capita gold consumers in the world to a nation of small precious metals investors. Now, by next year, Chinese consumption of gold is likely to exceed that of India, which has been for years the world's biggest gold market. And one suspects that the potential for gold purchasing by individuals is only in its earliest stages. As more and more Chinese move into the cities and individual wealth grows, this trend is only likely to accelerate.
Paul ends the piece on Chinese gold and silver potential with the following comment: "Simply put, the Chinese government is trying to trigger a national gold craze...and it's working. The Chinese public now has gold trading platforms on steroids.... ...Also, for the first time in history, Chinese investors can even trade gold abroad (in London) with the swipe of a ‘Lucky Gold' card. I can't even get Bank of America to open a foreign currency account."
This may be an overstatement of the case from a precious metals bull - or it may not! Certainly if China is indeed pushing the public to buy gold then there may well be a hidden agenda here. It's unlikely they are doing it and will suddenly pull the rug out from under millions of investors. A cynic (or a raging gold bull) would suggest that this will precede a move to switch a good proportion of the country's reserves into gold which would have a huge effect on the global gold price and could prove disastrous for the dollar. Maybe it's not in China's interests to drive the dollar down too much until it has managed to divest itself of the huge dollar overhang (see the article on Chinese Sovereign Wealth Funds we published yesterday - Chinese sovereign wealth fund dumping dollars for strategic investments like gold ). The country may well already be, of course, surreptitiously building its gold reserves without reporting the build-up.
If the Chinese are indeed beginning to buy gold and silver as the quoted report suggests then this has to be a strong signal that prices are going to rise, and perhaps rise dramatically, in the relatively near future. We await comment from other China watchers for confirmation of the gold and silver buying spree, but with global gold production at best flat and probably in decline, even a small increase in Chinese buying could have a substantial impact on gold and silver prices.
Monday, August 3, 2009
What kind of a metal is Silver?
Silver
Silver is hybrid between an industrial metal and a precious metal. About 53% of the end demand for silver is from the industrial sector, compared to about 12% for gold. This means silver is more sensitive to swings in the business cycle than gold is. Investors view silver as a safe haven asset in the same way they do gold, and as a hedge against inflation and paper currency weakness. Silver is benefiting from the uncertainty over the outlook for the global financial system and over what government intentions are, given the aggressive quantitative easing and the rapid run-up in government debt levels.
Silver is the Green Metal
Unlike gold which is useful predominately as a store of value, silver has a dual personality, as both an industrial and monetary asset. Silver's innate physical properties make it an ideal ingredient in several industrial applications. As nature's best electrical and thermal conductor, the metal is perfect for high-performance electronics or high-voltage circuits. Silver's high reflectivity makes it a must for fine-precision optics, and photosensitive silver compounds are the engine behind photographic film. The metal is even a natural biocide, which is handy in sterilization and treating wounds. Demand could continue to grow long term, since silver is a component in many up-and-coming "green" technologies. Photovoltaic cells in solar arrays require silver coatings. Water purification plants use silver compounds to prevent bacteria and algae buildup and super-efficient, eco-friendly silver-zinc batteries may soon supplant their lithium-ion cousins in the rapidly growing electric car market.
Gold/ Silver Ratio Helps Silver Bullion Buyers
In the second half of 2008, the gold/silver ratio reached its highest point in almost 14 years. The historic gold/silver price ratio is 15:1. With gold now approaching $1000/oz, the ratio is currently at 62:1. In order for that ratio to come back into its historical range, silver would have to jump to over $65/oz.
Silver is hybrid between an industrial metal and a precious metal. About 53% of the end demand for silver is from the industrial sector, compared to about 12% for gold. This means silver is more sensitive to swings in the business cycle than gold is. Investors view silver as a safe haven asset in the same way they do gold, and as a hedge against inflation and paper currency weakness. Silver is benefiting from the uncertainty over the outlook for the global financial system and over what government intentions are, given the aggressive quantitative easing and the rapid run-up in government debt levels.
Silver is the Green Metal
Unlike gold which is useful predominately as a store of value, silver has a dual personality, as both an industrial and monetary asset. Silver's innate physical properties make it an ideal ingredient in several industrial applications. As nature's best electrical and thermal conductor, the metal is perfect for high-performance electronics or high-voltage circuits. Silver's high reflectivity makes it a must for fine-precision optics, and photosensitive silver compounds are the engine behind photographic film. The metal is even a natural biocide, which is handy in sterilization and treating wounds. Demand could continue to grow long term, since silver is a component in many up-and-coming "green" technologies. Photovoltaic cells in solar arrays require silver coatings. Water purification plants use silver compounds to prevent bacteria and algae buildup and super-efficient, eco-friendly silver-zinc batteries may soon supplant their lithium-ion cousins in the rapidly growing electric car market.
Gold/ Silver Ratio Helps Silver Bullion Buyers
In the second half of 2008, the gold/silver ratio reached its highest point in almost 14 years. The historic gold/silver price ratio is 15:1. With gold now approaching $1000/oz, the ratio is currently at 62:1. In order for that ratio to come back into its historical range, silver would have to jump to over $65/oz.
Friday, July 17, 2009
Collector Coins
Collector Coins
Many factors determine the value of collector coins, such as its rarity, age, condition and the number originally minted.. Historically when gold goes up, rare coins follow, often with a significant lag. However, when the rare coin market does go up, it goes up much faster and farther than the market in gold bullion. Reliable, independent reports show that average annual returns on rare coins have historically been more than 400 percent greater than the returns on gold bullion.
A recent study, which was originally done for the Joint Committee on Taxation of the House and Senate, showed that U.S. rare coins were a better hedge than gold and produced far better investment returns. This study, updated through 2006, provides a comparison of the investment performance of gold and rare coins. Conducted by Raymond E. Lombra, Professor of Economics at Penn State , the study served as the investment basis for legislation that was passed by Congress and which provided for the inclusion of gold in Individual Retirement Accounts. The conclusions over the 28-year period covered by the Lombra Report show that
• The average annual return on rare coins was more than 400% greater than the return on
gold.
• The return on rare coins in their best year was approximately 100% greater than the return
on gold in its best year.
• The return on rare coins in their best three years was approximately 100% greater than the
return on gold in its best three years.
Many factors determine the value of collector coins, such as its rarity, age, condition and the number originally minted.. Historically when gold goes up, rare coins follow, often with a significant lag. However, when the rare coin market does go up, it goes up much faster and farther than the market in gold bullion. Reliable, independent reports show that average annual returns on rare coins have historically been more than 400 percent greater than the returns on gold bullion.
A recent study, which was originally done for the Joint Committee on Taxation of the House and Senate, showed that U.S. rare coins were a better hedge than gold and produced far better investment returns. This study, updated through 2006, provides a comparison of the investment performance of gold and rare coins. Conducted by Raymond E. Lombra, Professor of Economics at Penn State , the study served as the investment basis for legislation that was passed by Congress and which provided for the inclusion of gold in Individual Retirement Accounts. The conclusions over the 28-year period covered by the Lombra Report show that
• The average annual return on rare coins was more than 400% greater than the return on
gold.
• The return on rare coins in their best year was approximately 100% greater than the return
on gold in its best year.
• The return on rare coins in their best three years was approximately 100% greater than the
return on gold in its best three years.
Tuesday, July 14, 2009
Canadian Maple Leaf Gold Coin
One of the most practical ways to invest in gold is to own Canadian Gold Maple Leaf coins, produced by the Royal Canadian Mint. Every Maple Leaf coin is guaranteed by the Government of Canada for its weight and purity. Because of this, Maple Leafs are easy buy and sell anywhere in the world where precious metals are traded. The Canadian Gold Maple Leaf coin commands universal respect and attention, as it has been traded on the world market since 1979. And it was the first gold bullion coin to be minted in the ultimate 99.99% purity. No gold coin in the world boasts a higher purity.
Maple Leaf – CanadaWeight: 1 troy ounceDiameter: 30 mmPurity: 24 karatCondition: BU
Maple Leaf – CanadaWeight: 1 troy ounceDiameter: 30 mmPurity: 24 karatCondition: BU
Thursday, June 25, 2009
American Gold Eagle Bullion Coins. 1986-2009
American Eagle Gold Bullion Coins are one of the world's leading gold bullion investment coins. By law they are produced from gold mined in the United States, American Eagles are imprinted with their gold content and legal tender "face" value. American Eagles use the durable 22 karat standard established for gold circulating coinage over 350 years ago. They contain their stated amount of pure gold, plus small amounts of alloy. This creates harder coins that resist scratching and marring, which can diminish resale value. Minted to exacting standards, the obverse (front) design is inspired by what's often considered one of America's most beautiful coins: Augustus Saint-Gaudens' celebrated $20 gold piece, minted from 1907-1933. The reverse features a nest of American Eagles, symbolizing family tradition and unity.
Weight: 33.931g
Diameter: 32.7mm
Gold: .9167 oz
Purity: 22 karat Condition: BU
Diameter: 32.7mm
Gold: .9167 oz
Purity: 22 karat Condition: BU
Thursday, June 18, 2009
Westminster Mint Releases One Trillion Dollar Design on One-Troy Pound Silver Bar
Westminster Mint Releases One Trillion Dollar Design on One-Troy Pound Silver Bar
MINNEAPOLIS , June 17, 2009 – Back when the economy was in good shape, we would occasionally hear someone say, “I feel like a million bucks!” Bad economic climate or not, Westminster Mint, Inc. – one of the U.S. ’s largest silver bullion dealers – just upped the ante to a trillion.
MINNEAPOLIS , June 17, 2009 – Back when the economy was in good shape, we would occasionally hear someone say, “I feel like a million bucks!” Bad economic climate or not, Westminster Mint, Inc. – one of the U.S. ’s largest silver bullion dealers – just upped the ante to a trillion.
The Minneapolis-based company announced today that it has produced a one-troy pound silver bar with a one trillion dollar design. Minted from 12 troy ounces of pure .999 silver bullion, the Trillion Dollar Bill features a surface area exceeding 30 inches and is over one-eighth of an inch thick. The bar is the same length and width as a dollar bill, but is 37 times thicker than paper money.
Each Trillion Dollar Bill is struck to a collector qualify proof finish and exhibits deep, mirror-like surfaces. It is fully encapsulated in a hard acrylic holder and housed in a deluxe presentation case with an individually-numbered Certificate of Authenticity.
Only 10,000 of these individually-numbered Trillion Dollar Bills will be minted, ensuring the bullion and collectible value of these pieces. The price is $50 over spot silver (as of June 17, the price was $238.48, based on spot silver) for the Trillion Dollar Bill, which may be purchased by visiting www.coin-rare.com/silver-bar.aspx or by calling toll-free 1-800-301-3868. Those who purchase more than one bar will receive consecutive serial numbers.
* * *
Note – How big is the number one trillion? Well, if you can keep track of the next one trillion seconds of your life, you will be 32,000 years older than you are today.
Wednesday, June 3, 2009
Westminster Mint certified coins
Westminster Mint is a member in good standing with the four major rare coin grading certification services PCGS, NGC, ANACS and ICG. In addition to providing collectors with coins certified by these independent third parts grading services; Westminster Mint certifies certain high profile, modern issue collectible coins where it sees an opportunity for collectors to save money in grading fees, bring coins to the market in a timely manner and enhance the collectors enjoyment of owning the coins. You can be assured that Westminster Mint adheres to the strictest standards and certifies coins in accordance with American Numismatic Association coin grading standards and guidelines.
Westminster Mint certified coins are encapsulated and protected by the Westminster Mint secure seal hologram. We offer an unconditional lifetime guarantee of authenticity and accuracy of grade as long as the coins remain intact in our original holders. In addition to the regular description of the coin provided by PCGS, NGC, ANACS and ICG. We take the additional step of identifying the designer, weight, size and purity of the coin on the holder. This additional feature is not provided on other certified holders.
PCGS and NGC standard coin grading fees are $30 per coin and can take from 12 to 30 business days to certify. Westminster Mint certified coins come in a secure, tamper proof hologram protected slab or tube, are accurately graded in accordance with ANA grading standards, have an unconditional lifetime guarantee for authenticity and grade and afford the collector significant savings enabling you to buy a lot more coin for the money.
Westminster Mint certified coins are encapsulated and protected by the Westminster Mint secure seal hologram. We offer an unconditional lifetime guarantee of authenticity and accuracy of grade as long as the coins remain intact in our original holders. In addition to the regular description of the coin provided by PCGS, NGC, ANACS and ICG. We take the additional step of identifying the designer, weight, size and purity of the coin on the holder. This additional feature is not provided on other certified holders.
PCGS and NGC standard coin grading fees are $30 per coin and can take from 12 to 30 business days to certify. Westminster Mint certified coins come in a secure, tamper proof hologram protected slab or tube, are accurately graded in accordance with ANA grading standards, have an unconditional lifetime guarantee for authenticity and grade and afford the collector significant savings enabling you to buy a lot more coin for the money.
Monday, April 13, 2009
GOLD BUYERS CAN DIVERSFY WITH SILVER
GOLD BUYERS CAN DIVERSFY WITH SILVER!
In March 2009, the gold-silver ratio is 72:1. This means that at the current price of silver it takes 72 ounces of silver to buy 1 ounce of gold. Last March it would only take 48.18 ounces of silver to buy one ounce of gold.
In 12-months lets see how you would do if you bought a one ounce gold eagle From Westminster Mint for $1,039 and 72 silver bullion rounds at $14.33 4/13/2009.
In March 2009, the gold-silver ratio is 72:1. This means that at the current price of silver it takes 72 ounces of silver to buy 1 ounce of gold. Last March it would only take 48.18 ounces of silver to buy one ounce of gold.
In 12-months lets see how you would do if you bought a one ounce gold eagle From Westminster Mint for $1,039 and 72 silver bullion rounds at $14.33 4/13/2009.
Thursday, April 2, 2009
U.K. Says IMF Should Free Funds by Selling Gold
U.K. Says IMF Should Free Funds by Selling Gold
By Kitty Donaldson and Nicholas Larkin
April 2 (Bloomberg) -- Britain wants an agreement from the Group of 20 nations to improve the way the International Monetary Fund uses its cash, including freeing up money for lending by selling gold reserves, International Development Secretary Douglas Alexander said.
“Among the measures we hope we can affect is the commitment to provide more and better funds for the IMF and World Bank including by using profits from the sale of IMF gold reserves,” Alexander said at the Group of 20 nations summit in London today. “There have already been conversations with the South Africans and others in terms of whether the gold market can bear a phased and appropriate sale in a way that makes sense commercially.”
The IMF’s board approved a proposal in April 2008 to sell 403.3 tons of bullion as part of a plan to close the Washington- based lender’s annual deficit. The Obama administration soon will push Congress for legislation that allows the IMF to “mobilize” its stockpile of gold to boost its funds, U.S. Treasury Secretary Timothy Geithner said on March 11.
A decision to sell gold requires the backing of 85 percent of the IMF’s executive board, and the board representative from the U.S. needs the approval of Congress to vote in favor of any sales, according to the organization’s Web site.
“I wouldn’t expect there to be an immediate decision out of today’s decision to sell gold tomorrow on behalf of the IMF,” Alexander said. “On the other hand, there is recognition from all parts of the international financial system that we are risking an unprecedented crisis which risks impoverishing many hundreds of millions more people around the world.”
Gold for immediate delivery traded at $911.77 an ounce in London as of 12:21 p.m. local time. The metal gained the past eight years and is up 3.3 percent in 2009.
By Kitty Donaldson and Nicholas Larkin
April 2 (Bloomberg) -- Britain wants an agreement from the Group of 20 nations to improve the way the International Monetary Fund uses its cash, including freeing up money for lending by selling gold reserves, International Development Secretary Douglas Alexander said.
“Among the measures we hope we can affect is the commitment to provide more and better funds for the IMF and World Bank including by using profits from the sale of IMF gold reserves,” Alexander said at the Group of 20 nations summit in London today. “There have already been conversations with the South Africans and others in terms of whether the gold market can bear a phased and appropriate sale in a way that makes sense commercially.”
The IMF’s board approved a proposal in April 2008 to sell 403.3 tons of bullion as part of a plan to close the Washington- based lender’s annual deficit. The Obama administration soon will push Congress for legislation that allows the IMF to “mobilize” its stockpile of gold to boost its funds, U.S. Treasury Secretary Timothy Geithner said on March 11.
A decision to sell gold requires the backing of 85 percent of the IMF’s executive board, and the board representative from the U.S. needs the approval of Congress to vote in favor of any sales, according to the organization’s Web site.
“I wouldn’t expect there to be an immediate decision out of today’s decision to sell gold tomorrow on behalf of the IMF,” Alexander said. “On the other hand, there is recognition from all parts of the international financial system that we are risking an unprecedented crisis which risks impoverishing many hundreds of millions more people around the world.”
Gold for immediate delivery traded at $911.77 an ounce in London as of 12:21 p.m. local time. The metal gained the past eight years and is up 3.3 percent in 2009.
Monday, March 30, 2009
“Green Coin,” Contest
MINNEAPOLIS, March 30, 2009 – Westminster Mint, Inc. of Minneapolis, one of the U.S.’s largest silver bullion dealers, today announced the launch of an international contest for the design of its new one-ounce .999 pure silver “Green Coin,” to be unveiled in May 2009.
The deadline for submitting a design for this 39-millimeter coin corresponds with the 39th Anniversary of Earth Day – April 22, 2009. The winning design will incorporate a variety of green themes, such as global warming, climate change, recycling, energy efficiency, conservation and clean fuels.
The contest is open to the public, and designs must be submitted on an Official Entry Form obtained from www.coin-rare.com/contest.aspx, either by email or mail (Westminster Mint, 1660 Highway 100, Suite 429 , Minneapolis , MN 55416 ). The grand prize for the winning design of the inaugural "Green Coin" contest will be $2,009 (in cash or in silver equivalent). The winner will also receive the first coin off the press, as well as the hand sculpts created by world renowned sculptor Caesar Ruffo.
“We're seeing an increased demand for silver bullion as more and more people invest in silver and gold due to the state of the economy,” said Westminster Mint President Ian Clay. “We want to mint a silver bullion coin that speaks to the key environmental issues we're facing today, and we believe that this coin design contest will draw more attention to those important issues.”
Once it’s produced in May, the Westminster Mint’s inaugural “Green Coin” will be made available to the public exclusively by Westminster Mint.
The deadline for submitting a design for this 39-millimeter coin corresponds with the 39th Anniversary of Earth Day – April 22, 2009. The winning design will incorporate a variety of green themes, such as global warming, climate change, recycling, energy efficiency, conservation and clean fuels.
The contest is open to the public, and designs must be submitted on an Official Entry Form obtained from www.coin-rare.com/contest.aspx, either by email or mail (Westminster Mint, 1660 Highway 100, Suite 429 , Minneapolis , MN 55416 ). The grand prize for the winning design of the inaugural "Green Coin" contest will be $2,009 (in cash or in silver equivalent). The winner will also receive the first coin off the press, as well as the hand sculpts created by world renowned sculptor Caesar Ruffo.
“We're seeing an increased demand for silver bullion as more and more people invest in silver and gold due to the state of the economy,” said Westminster Mint President Ian Clay. “We want to mint a silver bullion coin that speaks to the key environmental issues we're facing today, and we believe that this coin design contest will draw more attention to those important issues.”
Once it’s produced in May, the Westminster Mint’s inaugural “Green Coin” will be made available to the public exclusively by Westminster Mint.
Wednesday, March 25, 2009
Gold spikes after Geithner speaks on dollar
Gold spikes after Geithner speaks on dollar
By Frank Tang and Paul Lauener
NEW YORK/LONDON (Reuters) - Gold prices rose sharply on Wednesday as the dollar weakened after U.S. Treasury Secretary Timothy Geithner talked about a system put forward by China that would replace the dollar as the world's reserve currency.
Geithner said he was "quite open" to China's suggestion of moving toward a currency system linked to the International Monetary Fund's Special Drawing Rights (SDRs), a basket of dollars, euros, sterling and yen, as a super-sovereign reserve currency.
That hit dollar sentiment as it could mean countries selling large portions of their dollar reserves, highlighting the use of gold as a hedge against the U.S. currency, analysts said.
Spot gold was at $937.10 an ounce at 2:10 p.m. EDT, up 1.3 percent from its last quote in New York late Tuesday.
U.S. gold futures for April delivery settled up $12.00, or 1.3 percent, at $935.80 an ounce on the COMEX division of the New York Mercantile Exchange.
"The dollar came off after Geithner's comments," said Eugen Weinberg, analyst at Commerzbank. "Gold gained on the dollar."
A weaker U.S. currency makes metals priced in dollars cheaper for holders of other currencies.
However, gold pared gains when Geithner later said the dollar would remain the world's reserve currency for a long time.
Gold's use as a hedge against financial uncertainty has come under pressure in recent days as stock markets rallied on optimism about the U.S. government's drive to clean up bad loans held by banks.
U.S. stocks, however, turned negative later in the session as enthusiasm from upbeat economic data faded, supporting the price of the metal.
Bullion is up about 5 percent from a six-week low of $882.90 hit on March 18, but is still more than 7 percent shy of the 11-month high above $1,000 set in February. It soared to an all-time peak of $1,030.80 in March 2008.
Investors piled into gold in recent months as the financial crisis escalated, the dollar tumbled and markets started to worry about price pressures in the pipeline because of the vast amounts of money being pumped into economies.
"In addition to the factors that have always been driving gold prices higher, the Fed's decision last week is simply another impetus," said Dennis Gartman, independent investor and author of the daily Gartman Letter.
Last Wednesday, the Federal Reserve said it would buy up to $300 billion worth of long-dated U.S. government debt to help ease credit market conditions.
Strong interest can be seen in the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, which said its holdings rose to a record 1,124.99 tonnes on March 24, up 10.7 tonnes from the day before.
Spot silver was bid $13.45 an ounce from $13.40 an ounce on Tuesday, palladium at $206 from $205.50 and platinum at $1,115 from $1,114.
Platinum used in autocatalysts to clean car emissions has tumbled alongside deteriorating sales in the auto sector. Prices have halved since a record $2,290 in March 2008.
By Frank Tang and Paul Lauener
NEW YORK/LONDON (Reuters) - Gold prices rose sharply on Wednesday as the dollar weakened after U.S. Treasury Secretary Timothy Geithner talked about a system put forward by China that would replace the dollar as the world's reserve currency.
Geithner said he was "quite open" to China's suggestion of moving toward a currency system linked to the International Monetary Fund's Special Drawing Rights (SDRs), a basket of dollars, euros, sterling and yen, as a super-sovereign reserve currency.
That hit dollar sentiment as it could mean countries selling large portions of their dollar reserves, highlighting the use of gold as a hedge against the U.S. currency, analysts said.
Spot gold was at $937.10 an ounce at 2:10 p.m. EDT, up 1.3 percent from its last quote in New York late Tuesday.
U.S. gold futures for April delivery settled up $12.00, or 1.3 percent, at $935.80 an ounce on the COMEX division of the New York Mercantile Exchange.
"The dollar came off after Geithner's comments," said Eugen Weinberg, analyst at Commerzbank. "Gold gained on the dollar."
A weaker U.S. currency makes metals priced in dollars cheaper for holders of other currencies.
However, gold pared gains when Geithner later said the dollar would remain the world's reserve currency for a long time.
Gold's use as a hedge against financial uncertainty has come under pressure in recent days as stock markets rallied on optimism about the U.S. government's drive to clean up bad loans held by banks.
U.S. stocks, however, turned negative later in the session as enthusiasm from upbeat economic data faded, supporting the price of the metal.
Bullion is up about 5 percent from a six-week low of $882.90 hit on March 18, but is still more than 7 percent shy of the 11-month high above $1,000 set in February. It soared to an all-time peak of $1,030.80 in March 2008.
Investors piled into gold in recent months as the financial crisis escalated, the dollar tumbled and markets started to worry about price pressures in the pipeline because of the vast amounts of money being pumped into economies.
"In addition to the factors that have always been driving gold prices higher, the Fed's decision last week is simply another impetus," said Dennis Gartman, independent investor and author of the daily Gartman Letter.
Last Wednesday, the Federal Reserve said it would buy up to $300 billion worth of long-dated U.S. government debt to help ease credit market conditions.
Strong interest can be seen in the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, which said its holdings rose to a record 1,124.99 tonnes on March 24, up 10.7 tonnes from the day before.
Spot silver was bid $13.45 an ounce from $13.40 an ounce on Tuesday, palladium at $206 from $205.50 and platinum at $1,115 from $1,114.
Platinum used in autocatalysts to clean car emissions has tumbled alongside deteriorating sales in the auto sector. Prices have halved since a record $2,290 in March 2008.
Friday, March 20, 2009
China Aims to Boost Underground Gold Reserves, Output
China Aims to Boost Underground Gold Reserves, Output
By Richard Dobson and Li Xiaowei Bloomberg
March 20 (Bloomberg)
China, the world’s biggest gold producer, will seek to increase its underground gold reserves by 800 metric tons and raise production to 290 tons this year, the Ministry of Industry and Information Technology said.
The government aims to encourage industry mergers so the top 10 gold producers account for more than half the nation’s output, according to a statement on the ministry’s Web site, citing Deputy Minister Miao Yu. The country’s output was 282 tons last year, the statement said, without elaborating.
Gold climbed 8.6 percent this year as investors sought to protect their wealth amid the worst financial crisis since the Great Depression. The Federal Reserve may buy more than $1 trillion in government and mortgage debt to help end the recession and the credit crisis, it said this week, spurring a slump in the dollar and a gain in gold.
Shandong Gold Mining Co., Zhaojin Mining Industry Co., Zijin Mining Group Co. and Lingbao Gold Co. are among China’s biggest producers.
Gold demand in China, the world’s second-largest consumer after India, may stagnate as volatile prices dissuade buyers and industrial usage drops because of the economic slowdown, Hou Huimin, vice chairman of the China Gold Association, said in December. He estimated annual consumption at about 360 tons.
The country has the world’s biggest foreign-exchange reserves at $1.95 trillion, with about 600 tons of gold, according to data compiled by Bloomberg. Gold for immediate delivery traded little changed at $955.83 an ounce at 1 p.m. in Shanghai. The price reached a record $1,032.70 last March.
By Richard Dobson and Li Xiaowei Bloomberg
March 20 (Bloomberg)
China, the world’s biggest gold producer, will seek to increase its underground gold reserves by 800 metric tons and raise production to 290 tons this year, the Ministry of Industry and Information Technology said.
The government aims to encourage industry mergers so the top 10 gold producers account for more than half the nation’s output, according to a statement on the ministry’s Web site, citing Deputy Minister Miao Yu. The country’s output was 282 tons last year, the statement said, without elaborating.
Gold climbed 8.6 percent this year as investors sought to protect their wealth amid the worst financial crisis since the Great Depression. The Federal Reserve may buy more than $1 trillion in government and mortgage debt to help end the recession and the credit crisis, it said this week, spurring a slump in the dollar and a gain in gold.
Shandong Gold Mining Co., Zhaojin Mining Industry Co., Zijin Mining Group Co. and Lingbao Gold Co. are among China’s biggest producers.
Gold demand in China, the world’s second-largest consumer after India, may stagnate as volatile prices dissuade buyers and industrial usage drops because of the economic slowdown, Hou Huimin, vice chairman of the China Gold Association, said in December. He estimated annual consumption at about 360 tons.
The country has the world’s biggest foreign-exchange reserves at $1.95 trillion, with about 600 tons of gold, according to data compiled by Bloomberg. Gold for immediate delivery traded little changed at $955.83 an ounce at 1 p.m. in Shanghai. The price reached a record $1,032.70 last March.
Thursday, March 19, 2009
Gold Climbs Most in Four Months as Fed Plan May Spur Inflation
Gold Climbs Most in Four Months as Fed Plan May Spur Inflation
Bloomberg
By Nicholas Larkin
March 19 (Bloomberg) -- Gold rose the most in four months in New York after the Federal Reserve said it would buy as much as $1.15 trillion in bonds to lower borrowing costs, reviving concern that inflation will accelerate.
The Fed pledged to buy as much as $300 billion of Treasuries, up to $750 billion of bonds backed by government- controlled mortgage companies and $100 billion in debt from other government agencies to loosen credit and bolster the housing market. Gold, which yesterday dropped the most in two months, is up 5.7 percent this year.
“The action of the Fed and other central banks will no doubt fuel inflationary pressures,” James Moore, an analyst at TheBullionDesk.com in London, wrote today in a note. “With no clear plan yet from the U.S. on toxic assets, investors are still likely to favor safer assets.”
Gold futures for April delivery rose as much as $52.50, or 5.9 percent, to $941.60 an ounce in electronic trading on the New York Mercantile Exchange’s Comex division. That’s the biggest intraday increase since Nov. 14. It traded at $937.10 an ounce as of 11:09 a.m. London time.
The metal advanced to $937.25 in the morning “fixing” in London, used by some mining companies to sell production, from $893.25 at yesterday’s afternoon fixing. Bullion for immediate delivery in London traded down 0.6 percent at $936.49 an ounce. Prices had jumped about $56 after the Fed announcement before the London market closed. Comex closed before the announcement.
‘Far From Recovery’
“The effects of the announcement were magnified as it portrayed the fact that perhaps the economy is far from recovery,” Emanuel Georgouras, a precious-metals trader at Marex Financial Ltd. in London, wrote today in a note. “Should quantitative easing continue, you can expect to see further gains in gold.”
The Fed kept its main rate at almost zero and may keep it there for an “extended” time. Central banks are lowering interest rates and spending trillions of dollars in response to the worst financial crisis since the Great Depression. That may devalue currencies and boost demand for bullion as an alternative investment.
The dollar yesterday fell against a weighted basket of six major currencies and today traded lower for an eighth day. Gold historically has moved inversely to the U.S. currency, though the correlation hasn’t held for much of 2009 as investors sought the safety of both assets.
Investors are continuing to buy gold in a bid to protect their wealth. Assets in the SPDR Gold Trust, the biggest ETF backed by bullion, expanded 1.4 percent to a record 1,084.33 metric tons yesterday, according to the company’s Web site.
Exchange-Traded Products
ETF Securities Ltd.’s exchange-traded products backed by bullion attracted almost $134 million last week, the company said today.
Gold’s climb since yesterday is “insane” because U.S. inflation may not accelerate until 2011, said Peter Fertig, owner of Quantitative Commodity Research Ltd.
“There’s no real spillover from the monetary system to the real economy yet,” Fertig said today by phone from Hainburg, Germany. “The U.S. is far from inflationary pressures. It will take some time before the gap is closed.”
Among other metals for immediate delivery in London, silver futures advanced 7.8 percent to $12.86 an ounce. Platinum added 2.1 percent to $1,064.50 an ounce, and palladium rose 1.7 percent to $198 an ounce.
Bloomberg
By Nicholas Larkin
March 19 (Bloomberg) -- Gold rose the most in four months in New York after the Federal Reserve said it would buy as much as $1.15 trillion in bonds to lower borrowing costs, reviving concern that inflation will accelerate.
The Fed pledged to buy as much as $300 billion of Treasuries, up to $750 billion of bonds backed by government- controlled mortgage companies and $100 billion in debt from other government agencies to loosen credit and bolster the housing market. Gold, which yesterday dropped the most in two months, is up 5.7 percent this year.
“The action of the Fed and other central banks will no doubt fuel inflationary pressures,” James Moore, an analyst at TheBullionDesk.com in London, wrote today in a note. “With no clear plan yet from the U.S. on toxic assets, investors are still likely to favor safer assets.”
Gold futures for April delivery rose as much as $52.50, or 5.9 percent, to $941.60 an ounce in electronic trading on the New York Mercantile Exchange’s Comex division. That’s the biggest intraday increase since Nov. 14. It traded at $937.10 an ounce as of 11:09 a.m. London time.
The metal advanced to $937.25 in the morning “fixing” in London, used by some mining companies to sell production, from $893.25 at yesterday’s afternoon fixing. Bullion for immediate delivery in London traded down 0.6 percent at $936.49 an ounce. Prices had jumped about $56 after the Fed announcement before the London market closed. Comex closed before the announcement.
‘Far From Recovery’
“The effects of the announcement were magnified as it portrayed the fact that perhaps the economy is far from recovery,” Emanuel Georgouras, a precious-metals trader at Marex Financial Ltd. in London, wrote today in a note. “Should quantitative easing continue, you can expect to see further gains in gold.”
The Fed kept its main rate at almost zero and may keep it there for an “extended” time. Central banks are lowering interest rates and spending trillions of dollars in response to the worst financial crisis since the Great Depression. That may devalue currencies and boost demand for bullion as an alternative investment.
The dollar yesterday fell against a weighted basket of six major currencies and today traded lower for an eighth day. Gold historically has moved inversely to the U.S. currency, though the correlation hasn’t held for much of 2009 as investors sought the safety of both assets.
Investors are continuing to buy gold in a bid to protect their wealth. Assets in the SPDR Gold Trust, the biggest ETF backed by bullion, expanded 1.4 percent to a record 1,084.33 metric tons yesterday, according to the company’s Web site.
Exchange-Traded Products
ETF Securities Ltd.’s exchange-traded products backed by bullion attracted almost $134 million last week, the company said today.
Gold’s climb since yesterday is “insane” because U.S. inflation may not accelerate until 2011, said Peter Fertig, owner of Quantitative Commodity Research Ltd.
“There’s no real spillover from the monetary system to the real economy yet,” Fertig said today by phone from Hainburg, Germany. “The U.S. is far from inflationary pressures. It will take some time before the gap is closed.”
Among other metals for immediate delivery in London, silver futures advanced 7.8 percent to $12.86 an ounce. Platinum added 2.1 percent to $1,064.50 an ounce, and palladium rose 1.7 percent to $198 an ounce.
Tuesday, March 17, 2009
The Case for Inflation
The Case for Inflation
By Howard RuffThe Ruff Times
Inflation is always a monetary phenomenon. Since the printing press, it has in all times and in all places been the inevitable consequence of creating large amounts of money, not backed by any commodity, such as gold.
Now we are in a period of deflation, with falling prices. Government will do what it feels it has to do to fight deflation, because deflation is synonymous with depression, like in the 1930s. But the only way they know how to solve a problem like this is to throw money at it. The amounts are in the trillions; nothing is like it in all of history.
If all of this newly created money does not cause inflation, it will be the first time in the history of fiat money that inflation has not resulted. Based on the lessons of history, that’s the way to bet.
One of the natural consequences of a dominant world-wide currency, like the dollar, being created in vast quantities, is that the dollar will fall versus other currencies. The irony is that right now the dollar is rising against other world currencies. That only means the dollar is the healthiest patient in the hospital. Why? Other currencies are the early victims of the inflationary plague.
You Americans who earn and spend only dollars will soon see the natural consequences of inflation, which are rising dollar prices.
When will we begin to see the consequence of monetary inflation; broad-based price inflation?
I was on CNBC recently, and they asked me to tell them when this was going to happen. I told them I didn’t have my crystal ball, and the best way to become a fallen prophet was to set a date for something like that and get it wrong. I’m too old and smart to do that. I did give my best guess, which is some place between six months to a year, when trillions of dollars we are creating are no longer sitting silently on the balance sheets of banks but start circulating. That’s when the real inflation starts.
What Will It Look Like?
What will the inflationary world look like?
Gasoline and other oil-derivative prices will start rising. Oil will go back above $145 eventually. Sometime within the next year you will see oil at $75 to $80 per barrel, which will put gasoline prices back under $5. Food will get more expensive.
That’s my best guess; it is not an exact science. You are relying on my experience and instincts to be right more often than I’m wrong.
The Death Throes of the Dollar
One consequence of rising monetary inflation is that the dollar will begin its death throes. History tells us that the world is littered with dead paper currencies. They all have a life span of about 75 years. This one is living on borrowed time.
Glenn Beck, one of my favorite talk-show hosts, has said in his gold commercials that he is not buying gold as an investment, but as insurance. Insurance against what? You are insuring yourself against the ultimate total collapse of the dollar because of inflation!
Money is supposed to be a means of exchange and a store of value. The dollar is still a means of exchange, but years ago it ceased to be a store of value. If you want to store the value of your assets, don’t store them in anything that is dollar denominated other than gold and silver, which immediately places into question the stock market.
Again going to the lessons of history, something in the human psyche instinctively moves us towards precious metals. That is exactly what’s happening now. Despite the apparent non-price-responsive metals, eventually they will take off big time, based on demand.
The fundamentals are being built now as the public demands for gold and silver is soaring. One reason I like silver is that people can afford to buy some. When the gold gets near $1,000, an ounce becomes too expensive for the average guy. So I will place my bet on silver where the average guy can act.Worldwide a tremendous amount of bullion and coin buying is going on, even creating silver shortages. The monetary authorities (bankers) have done all they can to keep gold under control. $1,000 an ounce gold seems to be a trigger point for them. They will do all they can to suppress it, because rising gold is an insult to the dollar.
I will write later on how this manipulation occurs and why gold and silver have not yet gone as high as you think they should. The fundamentals seem to demand higher prices, given the rising worldwide demand.
Ten or 20 years from now, you will brag about having bought the metals at these prices. Remember, you are buying it as insurance against the total eventual collapse of the store-of-value function of the paper dollar.
This is much more apocalyptic sounding than, “You should buy gold and silver because you will make a lot of money.” That happens to be true; but it’s not the real reason to own it.
On CNBC Squawk Box I was asked, “When will you tell the world that the stock market is cheap enough to buy.”
I was caught a little off guard, but basically I sad, “You assume that day will come. I think that is a difficult bet.” I’m betting against it!
The Terminally Ill Dollar!
The stock market is in its death throes, and the dollar will soon be in its death throes, when the Chinese, the Indians, and the Japanese stop buying U.S. paper. Now it seems to be recovering. But that is a temporary phenomenon and eventually the dollar will implode, leaving the world knee-deep in a failed currency, as it has always done throughout history.
Does history always have to repeat itself? No, of course not. But that is the way to bet. All the factors are in place, including a President and a Congress that have no compunction against creating unlimited amounts of dollars and spending them through the banking system. This is sheer madness and makes Obama perhaps the most dangerous president the United States has ever had.
His ignorance of economic principles is monumental, equaled only by his arrogance in pursuing this destructive course.
I’m sorry if you don’t like my politics and because I haven’t joined the ranks of those who have been infected by Obama-mania. I just hope I will live long enough to see the day when we will return to some level of sanity. But that sanity will not include the recovery of the dollar as a store of value. Some day we will need a new currency backed by a fixed commodity. I don’t know what form it will take, but the market will speak and create a new piece of paper that has some tangible anchoring.
In the meantime, the world as we knew it is dying and the dollar is beginning its death throes, regardless of the current daily price of the dollar versus other currencies. When we get sick, the rest of the world gets pneumonia. We will probably attempt to make the euro the reigning world currency (perhaps even the yen), but that is only a temporary stop-gap.
In the meantime, precious metals are an insurance policy that preserves the value of your assets. You can offset the failure of your paper dollars by putting about a third of your assets into precious metals, preferably silver.
By Howard RuffThe Ruff Times
Howard J. Ruff, the legendary author and financial advisor, has re-edited and re-issued his 1978 mega best seller, How to Prosper During the Coming Bad Years, still the biggest-selling financial book in history, with 2.6 million copies in print. He is founder and editor of The Ruff Times financial newsletter. This article is from a recent article in The Ruff Times. The newsletter is much more comprehensive and deals with a broad spectrum of middle-class financial issues and includes an Investment Menu from which you can build your portfolio. (You can learn about it here).
The Ruff Times has served more than 600,000 subscribers – more than any financial-advisory newsletter in the world. His updated and revised book, How to Prosper During the Coming Bad Years in the 21st Century, is in book stores or at http://www.rufftimes.com/. You can get it free when you subscribe to The Ruff Times, or if you buy the book at your favorite bookstore, you can deduct $10 from the subscription price.
Howard was a guest on CNBC on March 4th. You can view the interview at http://www.rufftimes.com/.
By Howard RuffThe Ruff Times
Inflation is always a monetary phenomenon. Since the printing press, it has in all times and in all places been the inevitable consequence of creating large amounts of money, not backed by any commodity, such as gold.
Now we are in a period of deflation, with falling prices. Government will do what it feels it has to do to fight deflation, because deflation is synonymous with depression, like in the 1930s. But the only way they know how to solve a problem like this is to throw money at it. The amounts are in the trillions; nothing is like it in all of history.
If all of this newly created money does not cause inflation, it will be the first time in the history of fiat money that inflation has not resulted. Based on the lessons of history, that’s the way to bet.
One of the natural consequences of a dominant world-wide currency, like the dollar, being created in vast quantities, is that the dollar will fall versus other currencies. The irony is that right now the dollar is rising against other world currencies. That only means the dollar is the healthiest patient in the hospital. Why? Other currencies are the early victims of the inflationary plague.
You Americans who earn and spend only dollars will soon see the natural consequences of inflation, which are rising dollar prices.
When will we begin to see the consequence of monetary inflation; broad-based price inflation?
I was on CNBC recently, and they asked me to tell them when this was going to happen. I told them I didn’t have my crystal ball, and the best way to become a fallen prophet was to set a date for something like that and get it wrong. I’m too old and smart to do that. I did give my best guess, which is some place between six months to a year, when trillions of dollars we are creating are no longer sitting silently on the balance sheets of banks but start circulating. That’s when the real inflation starts.
What Will It Look Like?
What will the inflationary world look like?
Gasoline and other oil-derivative prices will start rising. Oil will go back above $145 eventually. Sometime within the next year you will see oil at $75 to $80 per barrel, which will put gasoline prices back under $5. Food will get more expensive.
That’s my best guess; it is not an exact science. You are relying on my experience and instincts to be right more often than I’m wrong.
The Death Throes of the Dollar
One consequence of rising monetary inflation is that the dollar will begin its death throes. History tells us that the world is littered with dead paper currencies. They all have a life span of about 75 years. This one is living on borrowed time.
Glenn Beck, one of my favorite talk-show hosts, has said in his gold commercials that he is not buying gold as an investment, but as insurance. Insurance against what? You are insuring yourself against the ultimate total collapse of the dollar because of inflation!
Money is supposed to be a means of exchange and a store of value. The dollar is still a means of exchange, but years ago it ceased to be a store of value. If you want to store the value of your assets, don’t store them in anything that is dollar denominated other than gold and silver, which immediately places into question the stock market.
Again going to the lessons of history, something in the human psyche instinctively moves us towards precious metals. That is exactly what’s happening now. Despite the apparent non-price-responsive metals, eventually they will take off big time, based on demand.
The fundamentals are being built now as the public demands for gold and silver is soaring. One reason I like silver is that people can afford to buy some. When the gold gets near $1,000, an ounce becomes too expensive for the average guy. So I will place my bet on silver where the average guy can act.Worldwide a tremendous amount of bullion and coin buying is going on, even creating silver shortages. The monetary authorities (bankers) have done all they can to keep gold under control. $1,000 an ounce gold seems to be a trigger point for them. They will do all they can to suppress it, because rising gold is an insult to the dollar.
I will write later on how this manipulation occurs and why gold and silver have not yet gone as high as you think they should. The fundamentals seem to demand higher prices, given the rising worldwide demand.
Ten or 20 years from now, you will brag about having bought the metals at these prices. Remember, you are buying it as insurance against the total eventual collapse of the store-of-value function of the paper dollar.
This is much more apocalyptic sounding than, “You should buy gold and silver because you will make a lot of money.” That happens to be true; but it’s not the real reason to own it.
On CNBC Squawk Box I was asked, “When will you tell the world that the stock market is cheap enough to buy.”
I was caught a little off guard, but basically I sad, “You assume that day will come. I think that is a difficult bet.” I’m betting against it!
The Terminally Ill Dollar!
The stock market is in its death throes, and the dollar will soon be in its death throes, when the Chinese, the Indians, and the Japanese stop buying U.S. paper. Now it seems to be recovering. But that is a temporary phenomenon and eventually the dollar will implode, leaving the world knee-deep in a failed currency, as it has always done throughout history.
Does history always have to repeat itself? No, of course not. But that is the way to bet. All the factors are in place, including a President and a Congress that have no compunction against creating unlimited amounts of dollars and spending them through the banking system. This is sheer madness and makes Obama perhaps the most dangerous president the United States has ever had.
His ignorance of economic principles is monumental, equaled only by his arrogance in pursuing this destructive course.
I’m sorry if you don’t like my politics and because I haven’t joined the ranks of those who have been infected by Obama-mania. I just hope I will live long enough to see the day when we will return to some level of sanity. But that sanity will not include the recovery of the dollar as a store of value. Some day we will need a new currency backed by a fixed commodity. I don’t know what form it will take, but the market will speak and create a new piece of paper that has some tangible anchoring.
In the meantime, the world as we knew it is dying and the dollar is beginning its death throes, regardless of the current daily price of the dollar versus other currencies. When we get sick, the rest of the world gets pneumonia. We will probably attempt to make the euro the reigning world currency (perhaps even the yen), but that is only a temporary stop-gap.
In the meantime, precious metals are an insurance policy that preserves the value of your assets. You can offset the failure of your paper dollars by putting about a third of your assets into precious metals, preferably silver.
By Howard RuffThe Ruff Times
Howard J. Ruff, the legendary author and financial advisor, has re-edited and re-issued his 1978 mega best seller, How to Prosper During the Coming Bad Years, still the biggest-selling financial book in history, with 2.6 million copies in print. He is founder and editor of The Ruff Times financial newsletter. This article is from a recent article in The Ruff Times. The newsletter is much more comprehensive and deals with a broad spectrum of middle-class financial issues and includes an Investment Menu from which you can build your portfolio. (You can learn about it here).
The Ruff Times has served more than 600,000 subscribers – more than any financial-advisory newsletter in the world. His updated and revised book, How to Prosper During the Coming Bad Years in the 21st Century, is in book stores or at http://www.rufftimes.com/. You can get it free when you subscribe to The Ruff Times, or if you buy the book at your favorite bookstore, you can deduct $10 from the subscription price.
Howard was a guest on CNBC on March 4th. You can view the interview at http://www.rufftimes.com/.
Friday, March 13, 2009
World mints report soaring demand for gold coins
World mints report soaring demand for gold coins
LONDON (Reuters) - Mints around the world say demand for gold coins has risen sharply as interest in the precious metal soars on the back of financial instability and concerns over the inflation outlook.
The Royal Canadian Mint, which produces Maple Leaf bullion coins, said it quadrupled its production capacity late last year as demand for gold and silver bullion products leapt. Gold was one of the few commodities to rise last year as turmoil in the financial sector sharpened investors' appetite for assets seen as a safe store of value, such as bullion.
Spot gold rallied to an 11-month high of $1,005.40 on February 20 as a slide in equity markets increased interest in the precious metal. Demand for physical gold products such as coins and bars has been particularly strong, traders say.
The United States Mint said sales of its one-ounce American Eagle gold bullion coins rocketed to 710,000 ounces in 2008, from 140,000 ounces a year before. "The demand for gold and silver has been unprecedented," a spokesman for the Mint told Reuters.
The chairman of the French Mint, Christophe Beaux, said sales roughly doubled last year in value terms and are expected to rise by another 50 percent this year.
The 2009 catalogue the mint had produced was almost entirely pre-sold, he said. The French Mint produces 100 euro gold coins, and plans to mint 10-ounce and 1-kilo coins this year.
In South Africa -- the world's second-largest gold producer -- Natanya van Niekerk, deputy general manager for numismatics at the South African Mint Company, said she had seen a big increase in demand for gold.
"I think we will see this same trend in this and the next quarter," she said. "Gold surely has been resilient in these times."
Michael O'Kane, head bullion trader at the New Zealand Mint, said many overseas buyers had come into the New Zealand market. "We're seen as a safe-haven market," he said. He said buying had been strong since the collapse of U.S. investment bank Lehman Brothers in September, as investors moved money from banks into hard assets like gold.
The mint was averaging "a month's transactions in a day," he said, adding he saw demand continuing to rise.
(Reporting by Jan Harvey, Frank Tang, James Macharia, Cameron French, Adrian Bathgate, Gus Trompiz; Editing by Sue Thomas)
LONDON (Reuters) - Mints around the world say demand for gold coins has risen sharply as interest in the precious metal soars on the back of financial instability and concerns over the inflation outlook.
The Royal Canadian Mint, which produces Maple Leaf bullion coins, said it quadrupled its production capacity late last year as demand for gold and silver bullion products leapt. Gold was one of the few commodities to rise last year as turmoil in the financial sector sharpened investors' appetite for assets seen as a safe store of value, such as bullion.
Spot gold rallied to an 11-month high of $1,005.40 on February 20 as a slide in equity markets increased interest in the precious metal. Demand for physical gold products such as coins and bars has been particularly strong, traders say.
The United States Mint said sales of its one-ounce American Eagle gold bullion coins rocketed to 710,000 ounces in 2008, from 140,000 ounces a year before. "The demand for gold and silver has been unprecedented," a spokesman for the Mint told Reuters.
The chairman of the French Mint, Christophe Beaux, said sales roughly doubled last year in value terms and are expected to rise by another 50 percent this year.
The 2009 catalogue the mint had produced was almost entirely pre-sold, he said. The French Mint produces 100 euro gold coins, and plans to mint 10-ounce and 1-kilo coins this year.
In South Africa -- the world's second-largest gold producer -- Natanya van Niekerk, deputy general manager for numismatics at the South African Mint Company, said she had seen a big increase in demand for gold.
"I think we will see this same trend in this and the next quarter," she said. "Gold surely has been resilient in these times."
Michael O'Kane, head bullion trader at the New Zealand Mint, said many overseas buyers had come into the New Zealand market. "We're seen as a safe-haven market," he said. He said buying had been strong since the collapse of U.S. investment bank Lehman Brothers in September, as investors moved money from banks into hard assets like gold.
The mint was averaging "a month's transactions in a day," he said, adding he saw demand continuing to rise.
(Reporting by Jan Harvey, Frank Tang, James Macharia, Cameron French, Adrian Bathgate, Gus Trompiz; Editing by Sue Thomas)
2008 AMERICAN BUFFALO SET PCGS MS70
American Buffalo gold coins Now Extinct! Get yours while you can.
American Buffalo gold coins were first struck in 2006. These coins hold the unique distinction of being the first coins struck by the U.S. Mint in pure 24kt gold. Their popular design is based on the famous Buffalo design by James Earl Fraser that first appeared on nickels in 1913. In 2008 for the first and only time! the U.S. Mint struck three fractional versions of this coin. Now you can own the complete set featuring the $50, $25, $10 & $5 versions of these popular coins. These coins have been certified by PCGS, the leading coin grading service in America as perfect, flawless mint state 70 coins (MS70), the highest grade any coin can be certified. Anyone who knows anything about PCGS knows that only a tiny fraction of coins ever make perfect MS70. You can count the number of these sets in double digits! Less than two people per state can hope to add these to their collections.
• Perfect MS70 coins with First Strike designation• Very rare less than 100 sets known• Includes three fractional coins $25, $10 & $5 made for one year only• Coins struck at WestPoint Mint• Don’t confuse with sets and prices of coins certified by others!
Tuesday, March 10, 2009
The most valuable coin I own
The most valuable coin I own
I’ve been a coin collector for over 40 years during which time I have bought and sold over $100 million worth of coins. The most valuable coin I own and the only coin I will never sell is my Churchill Crown. I’ve had the coin for over 40 years, I’ve taken it to over 30 countries and after all this time its still only worth about $5.00 on the open market.
The coin was issued in Great Britain following the death of Sir Winston Leonard Spencer Churchill in 1965.
I’ve been a coin collector for over 40 years during which time I have bought and sold over $100 million worth of coins. The most valuable coin I own and the only coin I will never sell is my Churchill Crown. I’ve had the coin for over 40 years, I’ve taken it to over 30 countries and after all this time its still only worth about $5.00 on the open market.
The coin was issued in Great Britain following the death of Sir Winston Leonard Spencer Churchill in 1965.
Friday, March 6, 2009
What are Eagle Coins?
What are Eagle Coins?
In 1986, the U.S. Mint introduced the Eagle coins – the first silver and gold bullion coins in U.S. history. They were known as the Eagle coins because of the eagle designs on the reverse. The eagle is a symbol of the United States. In addition, the term “eagle” is the technical description for the $10 U.S. gold coin, so it conjured up images of classic gold coins.
The Silver Eagle is the largest and heaviest silver coin in U.S. history. It is struck with one full ounce of pure silver, so it is even bigger than a classic Morgan or Peace Silver Dollar. The obverse is the Walking Liberty design that first appeared on the 1916-1947 Walking Liberty Half Dollar, while the reverse shows a heraldic eagle and 13 stars to represent the original 13 states. The reverse also includes the U.S. government’s guarantee of the coin’s silver weight and One Dollar legal tender value. The same design is used each year; in addition to standard Brilliant Uncirculated bullion coins, a small number of Proof coins are also made each year.
The Gold Eagle is made in four different sizes: $5 coin with 1/10 ounce of pure gold, $10 coin with 1/4 ounce of pure gold, $25 coin with 1/2 ounce of pure gold, and $50 coin with one ounce of pure gold. The obverse is Augustus Saint Gaudens’ design of Liberty that was first used on the 1907-1933 $20 gold coin, while the reverse is a family of eagles and the U.S. government’s guarantee of the coin’s gold weight and legal tender status. Like the Silver Eagle, the same design is used each year. A small number of Proof coins are also struck every year in addition to the Brilliant Uncirculated coins.
The Platinum Eagle was first issued in 1997. There are four different coin sizes: $10 coin with 1/10 ounce of pure platinum, $25 coin with 1/4 ounce of pure platinum, $50 coin with 1/2 ounce of pure platinum, and $100 coin with one ounce of pure platinum. The $100 Platinum Eagle is the highest- denomination U.S. coin ever made. The obverse of each Brilliant Uncirculated coin depicts the face of the Statue of Liberty, while the reverse shows an eagle in flight. Proof coins in 1997 had the same design, but since 1998 a new reverse design of an eagle has been used each year for the Proof coins.
Wednesday, March 4, 2009
What is a silver bullion round?
What is a silver bullion round?
Silver bullion rounds are simply another name for silver coins.
How do silver bullion rounds differ from silver bullion coins?
For counterfeit and vending machine protection, private mints in the United States are not allowed to strike coins/rounds with the same diameter as United States Mint issued coins.
Silver bullion is marketed in Troy Ounces, 1 Troy ounce = 31.1 grams. U.S. Mint silver eagle bullion coins have 31.101 grams of silver, silver bullion rounds also have 31.101 grams of silver but have a different diameter and thickness. Silver bullion coins like American silver eagles and Canadian Maple Leafs are issued by governments and are legal tender for the amount stated on the coins. Despite having legal tender status they are not expected to be used as money because their silver value exceeds their face value. An American silver eagle has a face value of $1 but is made from one troy ounce of silver that has an approximate value of $12.00 an ounce or 12 times its face value. Silver rounds Are privately minted for investors and collectors they often have designs that resemble famous coins, people and places. Typically silver rounds sell for a lower premium than government issued coins.
Are silver bullion rounds and silver bullion coins .999 silver ?
Yes both bullion coins and bullion rounds are minted from .999 fine silver. They both have the same net weight but are slightly different sizes.
Why do silver rounds sell for a lower premium over silver than American silver eagle coins?
The United States Mint does not sell its bullion coins directly to the public. Instead, the United States Mint distributes the coins in bulk, through a network of official distributors called Authorized Purchasers who, in turn, mark them up and sell them to secondary retailers. In many cases this means you the investor are the fourth person in the chain!
The U.S. Mint, the Authorized Purchaser and the coin/bullion dealer have all made a mark up before you buy! When you buy silver rounds you are cutting out and removing these middlemen, which lowers the premium over spot silver that you have to pay.
Are some silver rounds more valuable than others?
Silver bullion rounds are available in both brand name and generic. Some people prefer one design over another. However, their current and future value is directly correlated to the price of silver. So ultimately they have the same monetary value.
What is the advantage of buying silver bullion rounds over other forms of silver?
Silver bullion rounds are a safe, low cost and convenient way to own silver. They are easy to buy, sell, count and stack. They are portable, offer privacy and take up very little storage room. They are especially convenient when measured against other silver investments. When measured against silver coins they have the same weight and purity but can be bought for a much smaller premium. Prices vary but often rounds can be bought for $2 less premium than coins. This means on a purchase of 100 rounds over 100 coins you could be getting 13 ounces of pure silver FREE. Because of the high margin many bullion dealers promote $1,000 face value sacks of 90% silver coins. These sacks usually have 10,000 dimes or 4,000 quarters or 200 half dollars. These sacks are heavy and weigh 54.5 pounds, they are also very bulky. Imagine storing or transporting $10,000 face value in silver bags versus neatly stacked compact rolls of silver rounds. 100 ounce silver bars are a popular silver investment and usually have a low premium over spot silver. However, these are bulky and don’t have the flexibility of rounds. When you want to sell your 1,000 ounce bar you have to sell it all. With silver rounds you can determine how many ounces you want to sell and how many you want to keep.
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