Showing posts with label Gold Saving / Investment. Show all posts
Showing posts with label Gold Saving / Investment. Show all posts
Friday, 21 October 2011
Posted by
Admin Hijrah Dinar
Today's inflation figure stands at 0.5 percent. And, although there was negative inflation in June, the 12-month figures are all alarmingly high, topping out at 3.6 percent.
Does that mean it's really and finally back, for sure? We're afraid so.
The Fed has one time-tested way of doing this, which is to strip out food and energy prices: if you do that, inflation was just 0.2% last month, and 1.8% over the past year. Meanwhile, energy costs have gone haywire:
Category:
Sunday, 25 September 2011
September 24, 2011
The drop in gold price was the worst since the 2008 banking crisis. — Reuters pic
Written by Lim Siew May of theedgemalaysia.com
KUALA LUMPUR: Gold’s reign as a safe haven investment is strengthening. The price of the precious metal has almost doubled within a year — it was traded at only US$1,192.51 (RM3,584.69) an ounce a year ago and hit a high of US$1,800 an ounce on Aug 11.
As an investment, gold is held mainly for capital appreciation. But its popularity and security has prompted lenders to create a new mode of financing. Islamic pawnbroking schemes offered by Bank Rakyat and Agrobank allow borrowers to use gold coins or jewellery as collateral. Designed to adhere to Islamic laws, borrowers pay a safe-keeping fee, as opposed to a compounding interest rate.
Friday, 23 September 2011
A recently released WikiLeaks cable shows
that China is converting much of its foreign holdings in gold; far away
from the U.S. dollar.
A majority of China's gold reserves are located here in the U.S and in some European countries.
While the U.S. and Europe have an
alternative agenda to dissuade people from viewing gold as an
international reserve currency, China's upping their ante. In doing so,
China aims to push other countries towards reserving in more and more in
gold; leaving the U.S dollar by the wayside.
1) Economy
The U.S. manufacturing base has been shipped overseas. The few jobs being created are in the service industry or government sector. The official unemployment rate hovers near 10%, and 1 out of every 8 Americans is on food stamps. The 2008 economic implosion destroyed the real estate market, sent foreclosures skyrocketing, and swallowed up a nearly $1 trillion bailout... and yet, most experts predict the worst is still to come.
The U.S. manufacturing base has been shipped overseas. The few jobs being created are in the service industry or government sector. The official unemployment rate hovers near 10%, and 1 out of every 8 Americans is on food stamps. The 2008 economic implosion destroyed the real estate market, sent foreclosures skyrocketing, and swallowed up a nearly $1 trillion bailout... and yet, most experts predict the worst is still to come.
Monday, 12 September 2011
LONDON (Reuters) - The euro and
growth-linked currencies may fall on Monday, hit by a lack of concrete
measures from Group of Seven finance chiefs to address either faltering
growth, the escalating euro zone debt crisis, or exchange rate
volatility.
The dollar, yen and, to a lesser
extent, Swiss franc are set to advance with more investors seeking
safe-haven currencies on the back of rising financial market stress.
That will raise the risk of more solo intervention from Japanese and Swiss authorities.
The flight to safety should drive
core government bonds like German Bunds and British gilts higher,
leading to wider spreads over euro zone peripheral debt, while European
banking shares may ease on mounting worries about contagion engulfing
bigger economies like Italy and Spain.
Finance ministers and central
bankers from the Group of Seven industrialized nations pledged to
respond in a concerted matter to a global slowdown. However, they
offered no specific steps and differed in emphasis on Europe's debt
crisis.
Hedge funds run by Orix Investment
Corp., Superfund and Four Elements Capital Management Pte
benefited from the surge in gold last month, weathering the U.S.
sovereign downgrade and Europe’s deepening debt crisis.
The Orix Commodities Fund, which uses computer programs to search for price signals in futures markets, gained 3.5 percent in August, while Superfund Blue Gold, which invests in global equities and tracks the bullion price, jumped 13.45 percent, the firms said. Gold investments in the Earth Element Fund, run by former commodity traders at BNP Paribas (BNP) and JPMorgan Chase & Co. (JPM), returned 1 percent, helping trim losses in the fund.
Gold surpassed $1,900 an ounce for the first time in August as investors sought protection for their wealth on concerns that global economic growth is slowing. The Eurekahedge Hedge Fund Index lost 1.9 percent in August and the MSCI World Index slid 7.3 percent, their worst month since May 2010.
“Gold has become a very volatile asset class so if you’re good at trading through the volatility you can profit from it,” said Peter Douglas, principal of Singapore-based GFIA Pte, which advises investors seeking to allocate money to hedge funds and runs a wealth-management business.
The Orix Commodities Fund, which uses computer programs to search for price signals in futures markets, gained 3.5 percent in August, while Superfund Blue Gold, which invests in global equities and tracks the bullion price, jumped 13.45 percent, the firms said. Gold investments in the Earth Element Fund, run by former commodity traders at BNP Paribas (BNP) and JPMorgan Chase & Co. (JPM), returned 1 percent, helping trim losses in the fund.
Gold surpassed $1,900 an ounce for the first time in August as investors sought protection for their wealth on concerns that global economic growth is slowing. The Eurekahedge Hedge Fund Index lost 1.9 percent in August and the MSCI World Index slid 7.3 percent, their worst month since May 2010.
“Gold has become a very volatile asset class so if you’re good at trading through the volatility you can profit from it,” said Peter Douglas, principal of Singapore-based GFIA Pte, which advises investors seeking to allocate money to hedge funds and runs a wealth-management business.
Central banks in Indonesia, Malaysia and the Philippines said on Thursday that inflation pressures were abating, and predicted they will get more relief as the weakening world economy chills demand.
This is not a sure bet. It assumes that a large portion of the price pressure emanates from abroad rather than from domestic demand, which may not be the case in countries such as China where growth remains strong.
But a look back at the 2008 financial crisis shows that many Asian countries are in a better position to respond to another downward spiral now should the need arise.
Even though inflation is running too hot for comfort across the region, it is lower now than it was in 2008 for some economies, including Indonesia and the Philippines.
Overall gold demand fell 17 percent year-on-year in the three months from April to June to 919.8 tonnes, hammered by a sharp drop in investment demand which offset a tentative recovery in jewellery buying, the gold mining industry-funded WGC said in August.
Sunday, 11 September 2011
Posted by Wealth Wire - Friday, September 2nd, 2011
Gold is for wealth preservation and silver is for bartering. If we are talking about protecting wealth in the amount of several million dollars then a good spread to own in precious metals would be 80% gold and 20% silver. If we are talking about a “Mad Max” scenario where we are trying to set ourselves up for a black market bartering system then a good spread would be 75% silver and 25% gold. I will leave it to you to determine what would be an appropriate ratio for you based on the assets you are trying to protect.
Gold is for wealth preservation and silver is for bartering. If we are talking about protecting wealth in the amount of several million dollars then a good spread to own in precious metals would be 80% gold and 20% silver. If we are talking about a “Mad Max” scenario where we are trying to set ourselves up for a black market bartering system then a good spread would be 75% silver and 25% gold. I will leave it to you to determine what would be an appropriate ratio for you based on the assets you are trying to protect.
Posted by Brittany Stepniak - Thursday, September 8th, 2011
It's wedding season in India and nothing says "I love you" like a beautifully, ornate golden necklace or a shiny block of solid investment.
The demand for these physical gold commodities are sky-rocketing as gold prices dipped yesterday after setting another new all-time record high earlier this week.
It's wedding season in India and nothing says "I love you" like a beautifully, ornate golden necklace or a shiny block of solid investment.
The demand for these physical gold commodities are sky-rocketing as gold prices dipped yesterday after setting another new all-time record high earlier this week.
On Tuesday September 6, 2011, 10:07 am EDT
Gold is up 1.7%, or $32, to $1,909 an ounce after the Swiss National Bank capped the Swiss franc exchange rate with the euro at 1.20. Investors are also pouring into the alternative currency as Eurozone markets fell hard yesterday and U.S. markets are opening down over 2%. Italy tumbled 5.3%, Germany fell 5.5% and France dropped 4.9%.
Investing Insights: Will Gold Become Collateral for a Euro Zone Bailout?
Relatedly, Wall St. Cheat Sheet Chief Commodities Analyst Eric McWhinnie examined a new Wikileaks release revealing the thought process behind gold and fiat currencies such as the U.S. Dollar and Euro . The new release says, “China increases it gold reserves in order to kill two birds with one stone. The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao)(04/28):
SINGAPORE: The global economic slowdown has brought emerging Asia's rate-hiking cycle to a premature pause and the next step could be easing if the United States slides into a recession or Europe's debt troubles spawn a full-blown financial crisis.
Central banks in Indonesia, Malaysia and the Philippines said on Thursday that inflation pressures were abating, and predicted they will get more relief as the weakening world economy chills demand.
This is not a sure bet. It assumes that a large portion of the price pressure emanates from abroad rather than from domestic demand, which may not be the case in countries such as China where growth remains strong.
By RACHEL LOUISE ENSIGN
As
the dollar continues its fall against other world currencies, it makes
imports and foreign travel more expensive for Americans. But some
investors have cashed in on the trend -- by investing in mutual funds
and ETFs that trade in currencies.
Currency exchange-traded funds and mutual funds -- all of which bet on the dollar's movement against one or more currencies -- are growing quickly, though still a niche product. In the first seven months of the year, they took in nearly $2.8 billion in new cash from investors, sending their assets up 37% from the year before, according to Morningstar Inc.
Most of these funds bet against the dollar, which fell 6.2% this year, through August, against a broad basket of currencies including the euro, the Japanese yen and the Swiss franc.
Currency exchange-traded funds and mutual funds -- all of which bet on the dollar's movement against one or more currencies -- are growing quickly, though still a niche product. In the first seven months of the year, they took in nearly $2.8 billion in new cash from investors, sending their assets up 37% from the year before, according to Morningstar Inc.
Most of these funds bet against the dollar, which fell 6.2% this year, through August, against a broad basket of currencies including the euro, the Japanese yen and the Swiss franc.
"I am sitting inside the truck, watching a screen. The truck reels
the tool back up out of the hole, slowly - more slowly than if you were
reeling it in by hand - and foot by foot, the tool passes through all
that dark mystery of time, emitting signals and picking up signals. I
watch the tool's response to the formations it passes through on my
screen, little green blips of radioactivity, and like an EKG, each blip
indicates something...
By Renisha Chainani
Gold keeps finding new catalysts to rise and hit record highs every time. On 2nd August, despite news reports showing Republicans and Democrats are on the verge of resolving the debt-ceiling issue, it rose to view records of $1660.
Many of us anticipated a temporary correction lower in Gold when the deficit-ceiling impasse ended, because Gold had ran up roughly 10% from 1st July to entire month, a period when the debt-ceiling gridlock and potential for a default increasingly dominated headlines.
Gold keeps finding new catalysts to rise and hit record highs every time. On 2nd August, despite news reports showing Republicans and Democrats are on the verge of resolving the debt-ceiling issue, it rose to view records of $1660.
Many of us anticipated a temporary correction lower in Gold when the deficit-ceiling impasse ended, because Gold had ran up roughly 10% from 1st July to entire month, a period when the debt-ceiling gridlock and potential for a default increasingly dominated headlines.
Price forecast: Q3 11: $1725/oz; Q4 11: $1875/oz; 2012 annual average: $2000/oz
Gold prices tested fresh all-time intraday highs before dipping below $1800/oz this week; however the macro environment has become increasingly Gold favourable with central banks keeping interest rates unchanged, the SNB's (Swiss National Bank’s) decision to limit the strength of the CHF and continued uncertainty surrounding the state of the global economy. Good physical demand has emerged from price dips, and other central banks have announced they will add to their gold reserves. In turn, barring short-term corrections, we remain positive on gold.
NEW DELHI |
Daniel's wife owns at least a kilogram of jewellery and he sports a gold watch. But he is also shrewd enough to realise that the world's biggest gold consumers are falling out of love with wearing their wealth, preferring to stock up on coins, bars and bullion-based investment funds as they look for returns safe from the ravages of inflation and the dictates of fashion.
Last updated on 8 September 2011 - 07:32pm
LONDON (Sept 8, 2011): Gold
bounced back on Thursday as the previous session's dramatic 3% price
slide tempted physical bullion buyers back to the market, with concerns
over euro zone debt and the US economy firmly underpinning interest.
Financial markets are keenly awaiting key speeches on the US economy from President Barack Obama and Federal Reserve chairman Ben Bernanke later, and the outcome of the latest policy meeting of the European Central Bank (ECB).
Financial markets are keenly awaiting key speeches on the US economy from President Barack Obama and Federal Reserve chairman Ben Bernanke later, and the outcome of the latest policy meeting of the European Central Bank (ECB).
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