Posted by admin on November 24th, 2010
When I think about gold, a lot of things come to mind. Donald Trump’s ridiculous hotel décor, old Ducktales cartoons with Scrooge McDuck, Richie Rich comic books and Fort Knox. These are all randomly collected memories from years and years, showing how much of an influence gold can be on the world. In most cases, I find that gold really represents a lot of influence in people’s lives, even if they don’t realize it. After all, selling gold is a big part of the world’s economy and a lot of us will never see an actual gold bullion bar in our lifetimes.
That’s why I found this story in Bloomberg Business Week so fascinating. Of course the story takes place near Las Vegas, where casinos sometimes hold gold in their vaults for safe keeping and as capital. The Carson Nugget in Carson City just sold its large gold collection (which had been on public display since the 1950s) for $1.1 million dollars. Interestingly enough, the buyer has remained a mystery since the purchase, due to a contract:
“A confidentiality agreement prohibits the release of the buyer’s identity or the price paid for the collection of 170 specimens of gold in both nugget and crystalline form, he said. The Nugget entertained offers from nearly 50 parties, including dealers, private collectors and institutions. Either a collector or institution likely wound up with the collection, Holabird said, and it’s unknown what the buyer intends to do with it. While the capital city’s longest continuously operated casino set a minimum bid of $1.1 million, the collection had been valued in a broad range of up to $5 million.”
According to the article, gold closed at close to $1400 an ounce last Friday, showing how valuable gold can be, monetarily and in our memories.
Posted by admin on November 18th, 2010
We are all aware of the gold buying and selling trending that has been happening in America. With the presence of gold dealers springing up in television commercials, pawn shops seeing a huge influx of old gold jewelry sales and huge booms in gold value in commodities trading.
With all of the focus on gold in the U.S., Europe and Asia, little attention has been paid in the Middle East, which is seeing a boost in gold sales at the moment. I mentioned the Middle East was beginning to see some gold vending machines, but beyond that, news has been scarce. Apparently though, according to an article in the <a href=http://www.kippreport.com/2010/11/saudi-retail-gold-demand-up-during-haj-trade/ rel=”nofollow”>Kipp Report</a>, Saudi Arabia isn’t selling as much gold as normal, but is about to see a huge – albeit temporary – upswing:
“The annual Muslim pilgrimage to Mecca is lifting demand for gold jewelry in Saudi Arabia, but business is still sluggish due to high prices, gold retailers said on Monday. ‘Haj is the main season. After that, the business will be weak,’ said Ali al-Asadi, a gold salesman in Mecca. He said customers bought on average 80 or 100 grams compared with 200 previously, before gold prices went up. Spot gold was bid at $1,365.95 an ounce on Monday, against $1,366.35 late in New York on Friday. That compares with levels of around $1,100 in November a year ago. Several traders said demand for gold was up around 10 percent during haj but that high prices would deter purchases in the rest of the year.”
The article says that the hotel owners in the area are expecting more than 3 million people to stay in the area for the pilgrimage to Mecca and this could effectively translate into larger gold sales and growth for these business owners. Still, people in Saudi Arabia are holding off on bigger purchases of gold because of the world economy.
Will the Middle East gold sellers be able to survive in the upcoming year? Leave a comment!
Posted by admin on November 9th, 2010
With all of the silly commercials and promises from various companies on TV, you definitely know that gold is high demand right now. I’ve discussed the ever-growing power that gold has had all over the world, particularly as the world’s stock markets have been fluctuating wildly with the bad economy. Gold prices have typically stayed at high value, even when the economy has had its ups and downs. All of the exposure that gold has received over the last few years has had a large effect on the overall amount of gold over the world.
Peace FM Online reports that gold has recently had “unprecedented growth” in the west and central parts of Africa where the precious metal is mined. This was announced by the Minister for Lands and Natural Resources, who had some stunning data about the recent production of gold:
“Gold production recorded an unprecedented 3.15 million ounces last year (2009), which is the highest output for any single year, while the proportion of total merchandise exports accounted for by minerals rose from under 20% in the 1980′s through 35% in 1991 to 45% in 2009.”
With the cost of gold now reaching over $1400 dollars an ounce in America, whoever had a hand in that gold production last year could potentially stand to make millions and millions of dollars. At the writing of this post, 3.15 million ounces of gold is worth an astounding $4.4 billion dollars, which is a large leap from the year before.
The Minister noted that more development of natural resources was continuing, according to the article:
“The Minister noted that like other mining-dependent nations, Ghana is committed to the broad policy goals of sustainable development including maximizing retained value of mining, diversification of mineral resource base, value addition to mineral products and improving environmental sustainability among others. He therefore encouraged investors to partner government to explore and exploit its mineral resources, especially newly-discovered minerals including copper, phosphate, chromium and uranium, establish upstream and downstream facilities to manufacture key inputs including cyanide and activated carbon, win solar-salt as well as venture into the services and engineering sector.”
Posted by admin on November 4th, 2010
As you know from reading any post in this blog, the frenzy for gold has not died down at all, even as the economy in the United States has been sinking lower and lower. In fact, the more the economy sinks; it seems that the value of gold goes up. This may not be directly connected to the economy because gold has generally always been on the upswing. No matter what you think about the price of gold or gold in general, you know that something is popular when people throw parties for it.
What am I talking about? You know those Tupperware or Avon parties that your mother used to go to at her friend’s house? Well, people are beginning to have the same kind of parties for gold, according to a story on KansasCity.com. There is a major twist however:
“Attorneys general in Missouri and Kansas said they haven’t received any complaints about the parties – which, like Tupperware parties, candle parties, pottery parties and others, spread primarily by word of mouth and friend to friend. “I never heard of it,” said Susan Ruettimann, 40, of Shawnee, Kan. When a friend told her that she was hosting a gold party in April, Ruettimann said, ‘I told her, ‘Don’t invite me.’ I’m not a fan of parties where you have to buy things,” she said. “Every year I’m invited to a Tupperware party, and I always feel obligated to buy.” But then it was explained to her that in gold parties, you don’t buy. You sell.”
So what’s the upside to holding one of these parties? There is a commission allotted to the person holding the party: if the payout for the bought gold is $2,000 or less, the host(s) get 10% of the take. If the payout is more than that $2,000, the host(s) get 15%. This is a pretty good for everyone involved – the hosts get a cut and you get to sell your gold to people you know!
Posted by admin on October 27th, 2010
The more and more I read about trends in gold, the crazier the stories and recommendations get. One thing is for sure in the gold market right now – there is a boom going on and the price of gold (while wavering) has been holding itself on a relative incline for the better part of the last few years.
A suggestion from an op-ed in the Financial Times talks about the amount of gold that the U.S. government holds and what it should do with its stockpile of the precious metal. The author Edwin Truman, a senior fellow at the Peterson Institute for International Economics, says that the U.S. government should think about selling its gold:
“If the US were to sell its entire gold stock at the current market price, it would reduce the gross government debt by 2¼ per cent of gross domestic product. (US net government debt would decline by essentially the same amount because the US gold stock, listed as an asset on the balance sheet, is valued at only $42.22 an ounce.) Based on the average interest cost from 2005 to 2008, this reduction in debt would trim the budget deficit by $15bn annually. Thus, the Obama administration would be doing something about the US fiscal debt and deficit without reducing near-term support for the ailing economy.”
This hypothetical data is based on the actual amount of gold that the U.S. has in its vaults – 261.5 fine troy ounces, which have been languishing since the Great Depression. Truman has a point in his argument for selling the gold in the market – it would absolutely help clear a good portion of the national debt, but is it enough to make a difference?
Should the government sell gold? Is it a good idea? Leave some comments!
Posted by admin on October 20th, 2010
Recently, a remake of the 1974 film The Taking of Pelham One Two Three was released onto DVD. The film, starring John Travolta and Denzel Washington, focused on a hostage situation in a subway car. Without giving much away, one of the major elements of the film was how fickle the stock market can be. We have discussed this topic at length, but it wasn’t until I saw this article from SFGate that I began to consider where gold is going in the long run.
This piece’s title brings up a crucial point in the timeline that gold is on – with the market fluctuating constantly, what are we to do about gold? It starts by talking about cash’s place in the market where the U.S. dollar is falling consistently. Obviously it mentions how the world’s commodities market has boomed based on America’s weak economy:
“Cash used to be a safe haven, but gold has become the new hedge against a falling dollar. Market fears like the issues mentioned above tend to send investors straight into the arms of gold; it’s the one thing that will hold a steady value in the face of eroding currency brought on by government and banking instability. Because of its tendency to move independently of the market, having gold in your portfolio can oftentimes offset volatility in other investments, like stocks. This literal “gold rush”, in addition to demand from emerging markets, has sent the value of gold soaring more than 20% this year.”
This is important to realize about gold – just like anything else, its value can be up one day and down the next. Think about this the next time you are deciding whether or not to buy gold or sell gold. Are you getting as much money as possible for your jewelry or old class ring? Is it worth it for some extra cash or should you wait until the market moves up a little more? Do a lot of research when dealing with issues involving gold.
Posted by admin on October 12th, 2010
You know what it means when Halloween is right around the corner, don’t you? It’s time to start thinking about what to get people for Christmas this year! Ok, so if this seems like a bit early, that’s because it probably is, but the stores have already begun to put up their Christmas wares for the upcoming winter season of shopping. Surprisingly, retailers are not particularly worried about sales being slow this winter – even with the economy still moving slowly during this recession. Why is this happening?
Well, to be frank, there are still some people who have not been hard hit by the economic climate and are looking for specific kinds of items for their stockings this Christmas. A story from JCK published this week discusses the prospects that some retailers have in regards to gold jewelry and other high quality items:
“The nation’s finest jewelers say they are upbeat about the holidays and have inventoried gold, antique-cut stones, natural materials, and even a few whimsical pieces to lure the wary shopper. Most are anticipating flat to single-digit growth in the period compared with last year…[s]tatistical evidence suggests the luxury sector slowed considerably over the summer. During the 12 months ended in June, the sector’s sales declined 6 percent, according to the NPD Group, with fine jewelry representing approximately one-quarter of total jewelry units sold, but three-quarters of the value. Yet many retailers are up for the year.”
The article goes on to say that rose gold is the hottest item right now, with celebrities like Cameron Diaz and Nicole Ritchie being huge fans. Even though these items can range between $10,000 to $30,000, these retailers are not worried about the cost:
“‘In the end, retailers agree on one thing: Times are tough, but you can’t keep fine jewelry down for long. Even small gains during the holidays will be welcome, and there’s optimism for the future. ‘People love to adorn themselves,’ says the Luxury Institute’s Pedraza. ‘As long as the opposite sex is around, that will happen till the end of time.’”
Posted by admin on October 6th, 2010
Gold is very hot commodity, but that’s not anything new. Gold’s value has historically been very high and stayed at those levels depending on inflation. As I’ve written about before, because of the economy and the stock markets, gold has been riding high as of late and isn’t showing signs of slowing down. With all of the talk of gold’s value a
nd people buying it from ATM machines, I have one question – what exactly do people do with their gold?
Well, if Listicles’ list of 5 craziest luxury items has anything to do with it, people with gold can do some really silly things with it. This list has a few items that do not factor in gold as a main part, but are still crazy. For instance, this ice pick from Belvedere vodka costs a whopping $250,000! Who needs ice that bad? Can’t you just go to the corner store for a bag of it?
There is also this $50,000 umbrella made out of a crocodile’s scaly skin as the umbrella portion. I guess it looks kind of cool, but for $50,000 I’d rather buy a car.
Now onto the gold silliness. First off we have this cell phone, more widely known as the Vertu Boucheron 150. Made out of solid gold, this celebration of Vertu’s (a luxury cell phone designer?!) 150th anniversary features sapphire buttons and a custom handmade walnut case, which seems excessive.
There’s also a 1.5 million dollar Christmas tree, which is incredibly unnecessary. Man, the things people will do with gold! Before you sell your gold you should find out exactly what the buyer is going to do with it. At least the next time you see that ludicrous cell phone, you’ll know that you helped make it a reality for a billionaire.
Posted by admin on September 30th, 2010
More and more the gold buying and selling craze across the country continues, the crazier the ideas that people have about the process become. First it started with some reasonable TV commercials about selling your old gold for cash and naturally progressed to having newer versions of mailers. I thought that the silly ideas had peaked with the Super Bowl commercials with Ed McMahon and MC Hammer hawking ridiculous (and as we’ve discussed, dangerous) means of selling gold through the mail. Unfortunately, something newer has come out that trumps any dumb ideas about gold buying and selling: gold vending machines.
No, no…you read that right. A company has decided to start selling gold through vending machines. According to 24/7 Wall St., a German company called “Gold to go” is planning to release machines that vend gold bars by the end of the year in the U.S., which the article says is to coincide with state elections and the holiday season. Apparently this company has already installed machines in Abu Dhabi and at a few locations around Europe, with plans to have 35 machines in all across the world.
The first two American machines will be in Florida and Las Vegas.
This newest ‘innovation’ in the gold trade is probably aiming to get behind the gold prices, which have been soaring upwards on a rather steady pace for the last year or so. Using debit cards, customers can purchase gold bars in the measurements of 1 gram, 5 gram, 10 gram and 1 ounce bars. The bars will apparently come in little gift boxes that will make your purchase even more unnecessary.
Some critics, including myself, think that this idea is overkill on the gold buying craze that’s going on. Are they going to install gold selling machines right next to the buying machines? Even if they do (I wouldn’t put it past them), take your gold to reputable buyer and get the most money for your old gold.
Posted by admin on September 20th, 2010
In this blog, I have discussed at length the fluctuation that gold goes through in terms of value in the commodities market. The typical historical value of gold has always been good and held up to dips in the world economy over the years. Over the past few years, gold has seen a near-constant rise in worth and power due to the housing market crash and bank bailouts that caused a massive recession in the United States and across the world.
An article from Trader’s Huddle talks about concerns for gold in 2011, saying that it may not hold up its value like it has before:
“The problem with gold is that every time that it sees new highs it has seen a rejection accompanied by significant selling pressure. At least this has been the pattern on three previous occasions. Last Friday we saw how Gold opened the trading session higher, but was unable to hold the gap with the price action of the marquee Gold ETF, the Spider Gold Trust (NYSE:GLD) or GLD opening at $125 and closing near the lows on a very tight range at $124.52.”
The article goes on to discuss how important September is in terms of owning gold:
“Investors have been positioning for the last few weeks for September, which is historically the best month to own gold. Price action appears to be confirming the September gold rush, as the GLD is at all time highs with momentum still moving its price action higher.”
It turns out that gold usually gains its most strength in the fourth quarter of the year, making it difficult to determine how valuable it will be during the next year. The first quarter trading after the holidays is a tricky time for all of the markets, arguably more for gold than other areas of financial gambling. It could be the best time to sell gold or the worst.
