China Rumoured to Buy Gold

Friday, February 26, 2010
“People don’t trust the dollar; they don’t trust the euro, so the only way to go is to look at alternatives such as gold. It’s a safe haven”. This view expressed by Bernard Sim, of MKS Finance in Geneva, is a reflection of the views of many gold analysts.

There is a lot to be said of his sentiments. As the dollar fell against the euro yesterday, gold prices saw a slight rise. The euro zone situation is still a constant presence and if Greece fails to put in place the suggested objectives, the euro will still remain unstable.

The big rumour circulating the market at present is that China will acquire over 191m tonnes of gold from the IMF gold sale. If this rumour turns out to have substance then China would emerge as a powerful force in the gold market. It is suggested that gold prices would initially take a dip but would continue to rise, making now a crucial time to buy gold.

Gold Bull Market

Thursday, February 25, 2010
Gold analysts appear to be in agreement over this one, the gold market at present can be confidently be referred to as a bull market.

To understand this it is necessary to differentiate between the two. A bear market is seen through pessimistic eyes. If the market falls by 20% over a period of time, we have entered a bear market.

A bull market in comparison reflects a long upward trend of price movement. The market shows confidence and this is encouraged by more people buying, which in turn pushes the market up.
Analysts go on to suggest that there is no “gold bubble”.

Gold prices have risen due to the current economic circumstances, which could remain for the same for the next few years and keep pushing the price of gold up. They recommend that now is the time to take advantage of what is to come and buy gold.

Solid Reasons to Buy Gold

Wednesday, February 24, 2010

Many catalysts are responsible for igniting recent interest in the gold market. With the current global economic crisis in full swing, more compelling reasons for investing in gold are surfacing.
Gold has stood the test of time. It is regarded as highly desirable the world over. Not only does it respond well to supply and demand but it reflects the markets sentiment, making gold a safe haven for investors.

This week the market has seen gold prices rise and then take a dip, making now an ideal time to buy gold. Countries, such as China and India, have revealed plans to diversify into gold. With the U.S looking at possibly another round of deflation, in order to reduce the burden of debt, forecasters predict gold prices look set to rise in the future.

Weighing up the overwhelming advice from gold market analysts and the compelling arguments they make, having gold in your investment portfolio makes common sense.

Now is the Time to Jump on the Gold Bandwagon

Tuesday, February 23, 2010
Brokers and analysts are urging people to buy gold bullion now before the current level of supplies run out and if predictions ring true, the price of gold increases.

Sales of gold bullion have improved globally in recent months. Countries such as China, India, Russia and Japan have all been seen to be investing heavily in this precious metal. With the unstable U.S dollar they are seeing gold as a hedge investment for the future.

Perhaps it is this bulk buying which will also contribute to the anticipated increase in the value of gold. Analysts feel confident to predict that the present bullish gold market will stay this way for the foreseeable future.

So in the long term, the gold bullion market will be directly affected by supply and demand. At present, demand is on the up. As precious metal dealer Andrew Schectman put it, “the best days are ahead for anyone who owns gold”.

China to Invest in Gold

Monday, February 22, 2010
With the uncertain future of the U.S dollar, China appears to be showing an increased interest in investing in gold as an alternative option to holding dollars.

This is evident when we look at data, recently released bythe U.S Treasury, which shows that China has sold off $34 billionof its U.S Treasuries (government debts issued by the U.S in the formof bonds, notes or bills) since December 2009, which suggests Chinaslack of faith in the U.S dollar.

Also with China's recent decision to acquire more gold mining companiesand their move into ETF's (Exchange Traded Funds), this could also signifythat they are looking to diversify into gold.

In the long term it appears that China is trying to possibly cash in on the currentglobal economic crisis. Its move to buy gold bullion at an increasing rate, wouldindicate that investing in gold, at this point in time, would be a wise option.

What’s The Real Value of An Olympic Gold?

Friday, February 19, 2010
With the Vancouver Winter Olympics well underway, curiosity turns to intrigue as to how much is an Olympic gold medal is really worth.

Surprisingly, gold medals are not required to be solid gold bullion. Ironically they start off as silver and are coated in gold, with only 6% of the medal required to be gold. The Vancouver Olympics are the largest medals yet, weighing around 500 grams, 100 mm in diameter and 6mm thick.

In today’s current climate, the 2010 Winter Olympic medals are valued around £320, making them the most expensive gold medals yet. But should medals be valued in monetary terms or just seen as a symbol of all the hard work and dedication the athlete has endured. As the price of gold continue to rise, as an investment, athletes should really see that to buy gold bullion would be a better financial option!

How far this Greek tragedy will put the future of the Euro in question?

Thursday, February 18, 2010
With the recent financial crisis in Greece, stretching through to Spain and Portugal, the question which arises is how far this Greek tragedy will put the future of the Euro in question?

With rising unemployment, incompetent bureaucratic decisions and possible corruption, Greece finds itself with a huge budget deficit. This in turn has placed an enormous strain on the rest of the Euro-nations with possible serious consequences.

Following talks earlier in the week, European finance ministers recommended that the Greek government implement immediate measures to reduce the county’s deficit. In response, Greece appears to have taken some steps to make cuts by introducing tax rises, pension reforms and freezing public sector wages. However, is this too little too late, leaving many to question “the integrity of the euro”.

With the global economy attempting to stabilise itself, investors are turning to gold as a safe haven for their assets. With the price of gold forecast to rise in the coming year and with the struggling euro still trying to find a footing in the current European market, now is the opportune time to buy gold bullion.

Gold Price Rises

Wednesday, February 17, 2010
Despite anticipated disruption in market trading due to the Chinese New year and Presidents Day in the U.S, which led to the markets closure on Monday, the price of gold still ended yesterday at a high of $1120.60.

One of the reasons that can be attributed to the recent rise in the price of gold is the present situation in Greece. The country finds itself in a state of financial crisis and with severe debt problems. However recent meetings in Europe among the nations have helped to renew the markets confidence that successful arrangement can be put in place to help resolve the current issues.

Once again it appears that investors are looking to buy gold as a safe haven option. It offers protection against the weakening dollar and with the unpredictability of paper money it makes an excellent hedge against inflation. In the present times of economic and political uncertainty it makes financial sense to buy gold as a wise and solid investment for the future.

CHINA - WORLD CLASS GOLD PRODUCER

Tuesday, February 16, 2010
Over recent years China has taken full advantage of its natural gold supply and has developed an industry which can now boast being the world’s largest supplier of gold bullion, overtaking South Africa and Australia.

Much of Chinas success can be attributed to their development of smaller mines which allows them to concentrate on mining higher grade ores. Over recent years this is has increased in value bringing high returns and allowing China to develop new and lucrative projects.

Many gold producers from other countries can see the potential of investing in Chinese based projects. Vancouver’s Jinshan Gold Mines are now operating in Chang Shan Ho and Gold Fields and Australias Sino Gold Mining Ltd have started production at its Jinfeng Mine in southern China.

Most of the gold China produces stays in the country in the form of jewellery and manufactured items. However with the rise of the middle and upper classes in China, they are finding themselves with surplus income providing them with the opportunity to buy gold as an investment.

2010 Gold Price Forecast

Monday, February 15, 2010
Over the past three years, the market has seen the value of gold jump from $400 to $1,100 per ounce. Some analysts are forecasting that the price of gold will continue to rise in 2010 making it a good time to invest your money in gold bars.

This speculation is fuelled by gold’s relation to the falling U.S dollar. As the value of the dollar appears to remain unstable the price of gold is forecast to increase in the foreseeable future.

Investors can also take note that many investment banks are looking to increase their central bank reserves, which will further increase demand for gold. If supply does not keep up as envisaged, this in turn will push up the value of gold.

Forecasters predict that 2010 will see an increase of private individuals turning to the gold market looking for a good return. With enough compelling evidence and facts, analysts feel confident in recommending gold bullion as a wise investment in the coming year.

Buy Gold Now

Friday, February 12, 2010
Historically gold is seen as the ultimate hedge fund against financial insecurity. Holding its own through times of economic difficulties and recession. With current instability in the global economy, there is no better time to buy gold.

Gold and the U.S dollar tend to move in opposite directions. As the dollar falls the price of gold increases. At present no one has "full faith and credit" in the U.S Government. Central Banks in India, China and other nations are stock piling gold as insurance against the fluctuating dollar."Owning gold is increasingly seen as a hedge against the hazards that come with holding the dollar".

Gold is seen as the standard for safety in investment circles. With inflation expected to return in the future, the worlds most stable form of currency, gold, looks set to soar in value.

It is not hard to make a case for owning gold. With prices predicted to reach a record high in the future, this valuable commodity looks ready to become the fashionable investment of choice.

Is India's Love Affair with Gold Over?

Thursday, February 11, 2010
With the marriage season in full swing, demand for gold in India normally surges at this time of year. Gold traders however, have noted that there is a reluctance by the Indian consumer to buy gold due to current price rises.

Indian weddings are renowned for being sealed with gold. Brides are adorned with elaborate sets of gold jewellery. Families start amassing gold in preparation for marriage when their children are born.Gold is passed down through the generations. The amount of gold you own or display depicts your social standing in society.

With the fluctuating price of gold due to the current global economic crisis, coupled with modernisation and changing views in the middle classes, some hold the opinion that India's attraction with gold maybe over.

India, however, still remains one of the world's largest importers of gold. If the marriage traditions holds strong and the price of gold stabilises, traders are predicting that this will encourage Indians to once again see gold as a defensive asset and a sound investment in the present economic climate.

Gold Prices and the US Dollar

Wednesday, February 10, 2010
When first dipping your toe in the the gold market, it can often appear complicated and confusing. But with a few simple explanations, what at first appears daunting, can soon get you hooked!

Basically gold is measured in troy ounces (XAU) and is traded in pair with the U.S dollar. So when looking at a gold quote, 500XAU/USD would read as one ounce of gold is valued at $500 USD. Essentially as you buy gold you are selling the dollar and vice versa.

The cost of gold rises and falls with the value of the U.S dollar. Due to the current economic situation, where the dollar has fallen significantly, now would be an opportune time to buy gold as the dollar still remains unstable against most currencies.

It is genearlly speculated that the U.S dollar will continue to fluctuate as the U.S attempts to stabilise their housing and financial market by lowering interest rates. This possible further fall in the dollar allows traders to hedge, that is, take managed risks, by investing in gold in the reassurance that future gold prices will increase significantly bringing a very lucrative return for its investors.

Gold Company Report Record Profits

Tuesday, February 09, 2010
African focussed gold company, Randgold Resources have seen their profits reach a record high despite the current econonic crisis.

Chief Executive, Mark Bristow, said that the year had been "extremely challenging" and "they had done well in every sphere of the business". He went on to say that “panic is an amazing mover of the gold price”.

Randgold have attributted their current success not only to the rise in gold prices but with their increased production through the expansion of their flagship Loulo mine in Mali. They plan to build on this success by bringing forward production, to 2014, of its Moto goldmines and Kibali Project in the Democratic Republic of the Congo, which they jointly own with AngloGold Ashanti.

So, with increased gold production, gold prices reaching a record high and rising and despite the current global econmic uncertainty, it would appear that the argument to buy gold remains strong.

UK's Last Working Gold Mine Needs Investors

Monday, February 08, 2010
Located in the picturesque Loch Lommond and Trossochs National park, Cononish mine, Scotland's last remaining working mine, is looking for investors.

The company behind this venture is Scotsgold Resources, who purchased the mine in 2007, hoping to tap into the UK's unexploited mineral wealth.

Scotsgold's Chief Executive, Chris Sangster, said with renewed "British and Europeans interest following their recent sucesses in the Coronish Gold and Silver Project" they are looking for investors to back a flotation on the Alternative Investment Market.

The planned expansion of the mine, with the necessary investment, will not only provide essential employment for the area but will bolster the local economy and tourist industry.

If predictions ring true and the price of gold continues to rise, investors wanting to buy gold need to look no further than the UK.

Deutsche Bank - Gold Price Forecast

Friday, February 05, 2010
The internationally respected Deutsche Bank, has released its gold price forecast for the next two years. Predicting how they see the gold market will perform.

They estimate that in 2010 gold will maintain an average price of $1,150 per ounce. By 2011 the investment bank predict that gold prices will rise to $1,250 per ounce.

If this prediction rings true then it makes financial sense to buy gold now. According to Leon Westgate at South Africa's Standard Bank, “gold remains under pressure, however it is maintaining to perform relatively well”.

At the moment it is a buyers market for gold. This buyers opportunity looks set to remain untill the U.S dollar stabilises. There are not many commodities, in the current unsteady economic climate, which can lay claim to this statement.

Is Now a Good Time to Buy Gold?

Thursday, February 04, 2010
With recent rises in gold prices, there is growing concern in many investment camps, that its too late to invest in gold.

We believe that it's the right time to buy gold. The one commodity which remains relatively stable and thrives in recession and a fluctuating economy is gold. Gold is seen as a safe haven for investors. It allows you to hedge financial uncertainties such as, inflation, currency and market difficulties.

With gold prices rising against most of the major currencies, especially the U.S dollar, reflecting the county's volatile economy and response to its national debt, surely investment in gold is a wise choice.

Furthermore, last year, gold outperformed many investments and coupled with growing global interest, especially in Asia and India, it looks like now is the time to buy gold. Gold has been one of the world most valuable commodities over the centuries and for the foreseeable future it looks set to stay that way!

Rise in Gold Prices

Wednesday, February 03, 2010
Spot gold prices saw a rise today, up 0.8% on the close of market on Monday. This can be attributed to the euro gaining some strength against the dollar.

This current rise in gold prices will depend much upon the mood or sentiment of the market as it reacts to the movement of the volatile dollar. Further, President Obama's budget deficit forecast might create negative sentiments and this in turn might affect commodity prices.

Traders and analysts appear optimistic however, that with wholesale traders noting "strong physical demand" for gold in Asia, price's will continue to rise and now might be an opportune time to buy gold.

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