Makluman: Harga Hari terahir tahun 2009 ialah RM 3.00/ gm
Mulai Esok Harga 2010 akan bertukar kepada RM 4.00/ gm.
Cepat booking hari ini utk dapatkan harga 2009.
Hubungi SilverNetwork yg berdekatan
dengan anda sekarang
CEPAT
Thursday, December 31, 2009
Tuesday, December 29, 2009
Rantai Tangan Baru 10 gm, 15 gm & 20 gm
Mggu depan, sesiapa nak dapatkan Rantai Tangan baru 916.. boleh hubungi kami. Design sama, cuma dalam 3 berat berbeza... 10/15/20 gm.
Harga termasuk upah adalah RM 135/ gm.
Harga termasuk upah adalah RM 135/ gm.
Monday, December 28, 2009
BANTUAN NASIHAT MENGENAI PELABURAN EMAS
Bagi para pelabur yg menghadapi masalah, kami di Rangkaian Niaga Sax-Gold boleh membantu anda untuk berbincang apakah plan anda seterusnya. Kami cuba segala daya untuk menunjuk jalan bagaimana untuk mengurangkan masalah anda. Itu pun bergantung berapa lama sudah anda menyertai program2 tersebut.
Di antaranya adalah:
2. Mengeluarkan barangan di Ar -Rahnu utk mengelak membayar upah simpan yg tinggi
3. Membeli emas secara bijak
4. Dll yg dirasakan berkaitan
Rangkaian Niaga kami:
* Omar DinarKedah
* Yomida Scogold JB
* Adam PutraDinar-L/Kelang
* Samurai Samurai-Putrajaya
* Wantwo 019 2695049
Thursday, December 24, 2009
Wednesday, December 23, 2009
Silver bar terkini (masih dalam proses penyudahan terakhir)
Ini adalah produk silverbar yg terkini. Walau bagaimanapun ia masih dalam proses "last touch" yang mana kami sedang menggunakan mesin untuk menjadikannya lebih licin dan cantik.
Untuk tempahan boleh menghubungi kami dalam masa 1 minggu. Ini kerana kami akan memperkenalkan sekali 10 Dirham sulung kami yg akan berada di pasaran tidak lama lagi.
Nantikan sedikit masa lagi. Belilah keluaran tempatan pertama jongkong dan Dirham.
Sila Lawat SilverHunter
Saturday, December 19, 2009
What Should Investors in Gold & Silver Do Now? (Part II)
Source: Julian Phillips, GoldForecaster 12/04/2009
Adjustments to Ratios Influencing the Gold Price
The Oil Price
Some analysts in the past took the performance of the oil price as a direct guide to coming gold prices. We have believed that at best its influence was and still is indirect. It pointed a general direction when growth and speculation, prior to August 2007 was such that the oil price rocketed to $145 a barrel. As the bubble popped the oil price fell back to $35 a barrel, but gold didn’t fall. Now with Russia trying to sell as much as it can and OPEC keen to hold prices around $80 the oil price is ‘under the control’ of oil producers. In time, once the global economic recovery is established, growth in Asia together with the recovery maturing in the West will see demand outpace supply, taking the oil price up to new territory. But, until then its function as an indicator of future gold prices has been undermined.
The Dollar: Euro Exchange Rate
For most of this year and years before, the Dollar: Euro exchange rate was taken particularly by short-term traders as a direction finder for the gold price with, at times the gold price cleaving to the rate. Many times the gold price decoupled from the Euro as it rose against both, but on a day to day basis the Dollar still triggers moves in the gold price. Why? Inside the U.S. speculators and traders see this rate as being a measure of the value of the Dollar. It harps back to when currencies were complete measures of value. When the Dollar weakened, it was seen in isolation to other currencies, particularly the only other really major currency, the Euro. But now the true picture that the Dollar is the trunk of the tree that all currencies stem from is becoming clear. Consequently gold now has a record of moving up against all currencies. This is symptomatic of the structural faults in the monetary/currency systems. At the turn of the century the Euro price of gold was well below €300 and took some years to rise through this level, but now it has just broken through Euro800.
With China rising from insignificance to growing prominence the tensions rising from a Dollar-pegged Yuan and greater trade tensions on the way the time for another global currency to barge into the world scene has come. This promises some ruptures and ructions to the extent that it is now prudent to retain and or buy gold for national reserves and for investment protection against currency swings. A future of uncertainty and lack of global cooperation is on the horizon. So what relevance does the Dollar: Euro exchange rate, have on this scene? Why should the gold price move with the Euro?
The breaking away from this ratio is more significant than gold’s relationship with oil. This break takes gold away from all currencies and places it as a measure of the entire system.
While we do expect the markets, particularly in the short-term, to take time to be weaned off this relationship, it has, is and will happen.
Changed Direction
This leaves gold in a new world. This was what drove the gold price up to $850 the first time. This time those central banks, which control the world of money are now turning back to gold. Where will they be happy to see gold? And in what role? We will have to wait and see.
It is incumbent on all of us who follow the gold price and its influences to re-address these changes in the gold market and to adjust to this new shape and new future.
Adjustments to Ratios Influencing the Gold Price
The Oil Price
Some analysts in the past took the performance of the oil price as a direct guide to coming gold prices. We have believed that at best its influence was and still is indirect. It pointed a general direction when growth and speculation, prior to August 2007 was such that the oil price rocketed to $145 a barrel. As the bubble popped the oil price fell back to $35 a barrel, but gold didn’t fall. Now with Russia trying to sell as much as it can and OPEC keen to hold prices around $80 the oil price is ‘under the control’ of oil producers. In time, once the global economic recovery is established, growth in Asia together with the recovery maturing in the West will see demand outpace supply, taking the oil price up to new territory. But, until then its function as an indicator of future gold prices has been undermined.
The Dollar: Euro Exchange Rate
For most of this year and years before, the Dollar: Euro exchange rate was taken particularly by short-term traders as a direction finder for the gold price with, at times the gold price cleaving to the rate. Many times the gold price decoupled from the Euro as it rose against both, but on a day to day basis the Dollar still triggers moves in the gold price. Why? Inside the U.S. speculators and traders see this rate as being a measure of the value of the Dollar. It harps back to when currencies were complete measures of value. When the Dollar weakened, it was seen in isolation to other currencies, particularly the only other really major currency, the Euro. But now the true picture that the Dollar is the trunk of the tree that all currencies stem from is becoming clear. Consequently gold now has a record of moving up against all currencies. This is symptomatic of the structural faults in the monetary/currency systems. At the turn of the century the Euro price of gold was well below €300 and took some years to rise through this level, but now it has just broken through Euro800.
With China rising from insignificance to growing prominence the tensions rising from a Dollar-pegged Yuan and greater trade tensions on the way the time for another global currency to barge into the world scene has come. This promises some ruptures and ructions to the extent that it is now prudent to retain and or buy gold for national reserves and for investment protection against currency swings. A future of uncertainty and lack of global cooperation is on the horizon. So what relevance does the Dollar: Euro exchange rate, have on this scene? Why should the gold price move with the Euro?
The breaking away from this ratio is more significant than gold’s relationship with oil. This break takes gold away from all currencies and places it as a measure of the entire system.
While we do expect the markets, particularly in the short-term, to take time to be weaned off this relationship, it has, is and will happen.
Changed Direction
This leaves gold in a new world. This was what drove the gold price up to $850 the first time. This time those central banks, which control the world of money are now turning back to gold. Where will they be happy to see gold? And in what role? We will have to wait and see.
It is incumbent on all of us who follow the gold price and its influences to re-address these changes in the gold market and to adjust to this new shape and new future.
Friday, December 18, 2009
What Should Investors in Gold & Silver Do Now?
Source: Julian Phillips, GoldForecaster 12/04/2009
A Change of Market - Understanding Fundamentals
We have talked about a complete change of tone and shape in the market place in the last few weeks that has altered the future of gold. It has taken 10 years for this to happen, but it is here at last.
Conditions When Gold Last Peaked
When gold was floated off from the Dollar and the U.S. refused to exchange U.S. Dollars for gold, gold was considered to be money, still. The message didn’t sink in to the public for some years. The gold price rose from $42.35 to $850 in a series of neat moves. But all Central Banks had subscribed to the U.S. inspired change in the monetary scene before it hit $100. No, they didn’t accept the Special Drawing Right of the I.M.F., but they did accept the Dollar as the sole global reserve currency when it became apparent that this was the only currency they could use to buy oil with.
First the U.S. sold gold, then the I.M.F. both sales failing to discourage investors, but the campaign was then changed to accelerated sales of gold from producers to overwhelm keen buyers, which it did successfully [through a scheme to lend producers gold ahead of new production of gold, with which they repaid the loan. Quite a time before the gold priced peaked at $850 investors became wary of buying gold shares, letting the bullion price run by itself, to the peak. Gold shares and bullion were considered very acceptable institutional investments by all ahead of this change.
Gold itself gradually went off investor’s screens and into the shadows as a barbarous relic. It took years before the world accepted the fact that central bankers, including European ones, were against gold and were following policies that undermined the gold price. Even gold shares were treated with disdain. For the next 15 years gold from around 1985 gold was sidelined.
Conditions Now
The negative perception and undercurrent of potential central bank sales militated against a rise in the gold price. This situation lasted right up until 1999 and the announcement of the “Washington Agreement." Oddly enough this was an Agreement to sell gold by European Bankers [they had not done this before] but turned the gold price around to the positive side. At the time the gold price was at $275. From there it slowly rose. What changed the scene?
It was the statement that gold was a valued reserve asset in the eyes of central banks and that the sales were limited to specific quantities. This immediately removed the perception that gold sales would continue until all central bank held gold would be sold into the ‘open market’. Supply could then be measured accurately.
It was clear that demand could now overcome supply eventually. Producers slowly realized that the days of falling gold price were over and they were vulnerable to losses, [through the scheme that accelerated gold production] if gold prices rose above the proceeds they hoped to achieve over years from their previously hedged positions. They started buying gold to cover their exposures.
But just as the market took a very long time to realize gold prices were going to go down, again the market has taken nearly 10 years to realize that gold was coming back onto investor’s screens. With the three central bank gold agreements still in front of us, the common perception still remains that central bank’s are sellers. It has taken most of this year for the market to accept that central banks have stopped selling and are now net buyers.
Institutional acceptance from central banks through Sovereign Wealth funds through the many types of funds down to individuals, is now gold’s path into the future. The implications of this for the gold price are enormous. These changes must form the foundation of our approach to gold from now on, with all other factors affecting gold subordinated to this. Right now Asia is leading the way in this appreciation.
A Change of Market - Understanding Fundamentals
We have talked about a complete change of tone and shape in the market place in the last few weeks that has altered the future of gold. It has taken 10 years for this to happen, but it is here at last.
Conditions When Gold Last Peaked
When gold was floated off from the Dollar and the U.S. refused to exchange U.S. Dollars for gold, gold was considered to be money, still. The message didn’t sink in to the public for some years. The gold price rose from $42.35 to $850 in a series of neat moves. But all Central Banks had subscribed to the U.S. inspired change in the monetary scene before it hit $100. No, they didn’t accept the Special Drawing Right of the I.M.F., but they did accept the Dollar as the sole global reserve currency when it became apparent that this was the only currency they could use to buy oil with.
First the U.S. sold gold, then the I.M.F. both sales failing to discourage investors, but the campaign was then changed to accelerated sales of gold from producers to overwhelm keen buyers, which it did successfully [through a scheme to lend producers gold ahead of new production of gold, with which they repaid the loan. Quite a time before the gold priced peaked at $850 investors became wary of buying gold shares, letting the bullion price run by itself, to the peak. Gold shares and bullion were considered very acceptable institutional investments by all ahead of this change.
Gold itself gradually went off investor’s screens and into the shadows as a barbarous relic. It took years before the world accepted the fact that central bankers, including European ones, were against gold and were following policies that undermined the gold price. Even gold shares were treated with disdain. For the next 15 years gold from around 1985 gold was sidelined.
Conditions Now
The negative perception and undercurrent of potential central bank sales militated against a rise in the gold price. This situation lasted right up until 1999 and the announcement of the “Washington Agreement." Oddly enough this was an Agreement to sell gold by European Bankers [they had not done this before] but turned the gold price around to the positive side. At the time the gold price was at $275. From there it slowly rose. What changed the scene?
It was the statement that gold was a valued reserve asset in the eyes of central banks and that the sales were limited to specific quantities. This immediately removed the perception that gold sales would continue until all central bank held gold would be sold into the ‘open market’. Supply could then be measured accurately.
It was clear that demand could now overcome supply eventually. Producers slowly realized that the days of falling gold price were over and they were vulnerable to losses, [through the scheme that accelerated gold production] if gold prices rose above the proceeds they hoped to achieve over years from their previously hedged positions. They started buying gold to cover their exposures.
But just as the market took a very long time to realize gold prices were going to go down, again the market has taken nearly 10 years to realize that gold was coming back onto investor’s screens. With the three central bank gold agreements still in front of us, the common perception still remains that central bank’s are sellers. It has taken most of this year for the market to accept that central banks have stopped selling and are now net buyers.
Institutional acceptance from central banks through Sovereign Wealth funds through the many types of funds down to individuals, is now gold’s path into the future. The implications of this for the gold price are enormous. These changes must form the foundation of our approach to gold from now on, with all other factors affecting gold subordinated to this. Right now Asia is leading the way in this appreciation.
Monday, December 14, 2009
Transformasi goldbar kpd barang kemas
Mengapakah, bangsa2 asing atau agama lain selain Islam sedang dan telah mengumpul logam mulia ini. Hatta, sehinggakan kerajaan mereka pun menggalakkan rakyat menyimpan emas dan perak. Sebagaimana contoh negara China. Mereka antara pengeluar utama emas dunia, masih membeli drp luar negara. Bukan itu sahaja, malah tidak membenarkan hasil keluaran emas ini keluar drp negara mereka. Di tambah pula, sekarangi ini pihak kerajaan China telah membuka sistem pajakan utk logam Perak pula..... bayangkan, galakan drp kerajaan mereka agar rakyat sedar dan menyimpan logam2 mulia ini. Sehinggakan, di kaca televisyen, sering kali disiarkan agar rakyat membeli dan menyimpan logam2 mulia ini.
Bayak lagi fakta dan hakikat yg berlaku sekarang yg ingin saya tuliskan di sini. Tetapi bacaan berat spt ini, masih tidak lagi menjadi budaya kita...Persoalannya sekarang... bagaimanakah caranya kita ingin mengumpul kekuatan, agar impain, azam rakan2 kita yg selama ini dipendam lama akan menjadi kenyataan. Persoalan kita, bukanlah hanya bertanya mengapa perkara ini boleh berlaku..tetapi bagaimana mengatasinya.
Oleh itu, kesimpulannya.. jika anda mempunyai masalah bagaimana untuk mengatasi perkara ini. Bolehlah berhubung dgn Rangkaian Rakan Niaga Omar, Shamsul atau Piji yg mana mungkin mereka mempunyai jalan penyelesaian mereka sendiri. Bagi pihak Rakan Niaga Omar dan saya, kami memberi peluang untuk anda Tranformasi Golbar kpd rantai tangan.. Semoga sedikit sebanyak dapat membantu meringankan beban utk menyimpan d dalam bentuk jongkong. Kami juga bersedia membantu utk menebus dan memberi khidmat kaunseling atau perunding jika terdapat mana2 rakan2 di luar sana yg masih mempunyai masalah dgn pajakan goldbar di Ar rahnu. Jikalau kami tidak mampu, kami akan panjangkan kepada rakan2 kita yg lain yg mempunyai network sendiri spt Shamsul, Piji dn lain2 yg ramai hanya 'low profile".
Jangan segan silu utk hubungi kami. Sekian. Semoga kita akan bersatu agar cita2 dapat direalisasikan.
Saturday, December 12, 2009
Tukar Goldbar jadi Rantai tangan
Kita sediakan Sijil Ketulenan
Anggaran Berat 10g 15g 20g Emas 916
Penerangan lanjut..sila hubungi rakan-rakan niaga
Contoh Pengiraan
Pakej : 1
100g Bar 999 Kepada Barang Kemas 916
100g 999 <> 100g 916
Ketulenan 100g 916 = 94.5g 999 (Kilang Nilaian)
Upah = Rm5/g
menukar Bar Kepada barang kemas
ini adalah pengiraannya.
Anda akan mempunya extra pulus
setiap penukaran tersebut.
Untuk 100g 999 =100g 916 (Upah)
Anggran Rm50-Rm200 Di Kembalikan.
Pakej 2:
100g 999 Bar Kepada 100g 999 Barang Kemas
100g 999 <> 100g 999 (Upah)
Kesimpulan
Untuk 1 Pcs Rega Upah Agak Tinggi (Makluman)
Normal Upah (Rm5/g)
100g Bar 999 => 95g(+-1) Barang Kemas 999
Lebihan Pulus akan dikembalikan.
Juga Anda Boleh Pilih untuk>>
1) Tukar Kepada Barang Kemas Terpakai
2) Tukar Barang Lama Dan Baru
3) Upgred Nilai
Yang di tunggu, sudah tiba
Kempen Tukar Goldbar kepada Rantai tangan Mampu Milik
Anda boleh membuat 3 pilihan berat yg berbeza iaitu 10 gm, 15 gm dan 20 gm.
saux09@yahoo.com
019 2642849
Friday, December 11, 2009
Five Reasons Gold Will Move Higher
In a world of paper currencies and paper promises, I can think of many reasons right off the top of my head why the price of gold will continue to go up in the long term, however since this essay's length is limited, I'll just mention 5 of them. In short, while it may feel like a bubble to some, I believe we are just warming up.
1. The smart money is already piled into gold. Some of the world’s savviest money managers have taken large positions in gold. I mentioned John Paulson, David Einhorn, Paul Tudor Jones and Jim Rogers I forgot to mention George Soros, who increased his holding in gold in the third quarter with gold mining stocks and with the SPDR Gold Trust ETF (GLD). This week the Wall Street Journal reported that John Paulson, who I did mention last week, is launching a new gold fund, which will include $250 million of his own personal investment.
Other well-known fund managers publicly piling into gold include Bill Gross, Kyle Bass (Hayman Capital), Paolo Pellegrini (PSQR), John Burbank (Passport Capital), Evy Hambro (Blackrock), Donald Coxe (Coxe Advisors), and David Tice (Prudent Bear Fund). I would expect other major mutual funds, hedge funds and pension funds to follow their lead.
2. Central banks are net buyers of gold for the first time in 22 years. This is a major secular change. According to a report by precious-metals research firm GFMS, for the first time since 1987, central banks around the world bought more gold in the second quarter than they sold. India recently bought 200 tons of gold from the IMF and China is expected to purchase the other 200 tons offered for sale.
3. In June there was an item in Bloomberg about Northwestern Mutual Life Insurance Co., the third-largest U.S. life insurer, having bought gold for the first time the company’s 152-year history. According to the report, the insurance company has accumulated about $400 million in gold. I would expect that other insurance companies might follow suit.
4. China holds $2 Trillion in Foreign Currency reserves and only 2% in gold, vs. a 10% worldwide average. The Chinese are seeing the value of their foreign currency reserves turning to dust every day. If China makes the logical move to increase its gold reserves and reduce its fiat currency exposure to even just the worldwide average, gold prices could move substantially higher.
5. Gold is scarce. The gold industry has not replaced gold reserves mined in over a decade meaning near term shortages. We might get to a situation where there is simply not enough physical gold available to cover the massive quantities of gold that has been pledged. This situation could push the price of gold to the stratosphere. Hong Kong has recently pulled all its gold holdings and deposits from London and brought them home. While investors chase gold to get into something more stable than the dollar, producers aren't keeping up. Gold production was down 3% last year, and it was flat in the most recent quarter. Although mining companies are spending more on new production, especially in China and Russia, that is not enough to offset dwindling output from mature mines. Central banks hold a lot of gold. But they are not interested to sell and in any case, they are bound by an agreement that imposes limits on sales.
However, the road to the top will not be a straight line, and since that is the case it makes sense to take advantage of the inevitable corrections. Let's examine the chart (charts courtesy of http://stockcharts.com) of gold to check if we are close to another buying or selling opportunity. In this essay, I will focus on the precious metals stocks.
Przemyslaw Radomski
1. The smart money is already piled into gold. Some of the world’s savviest money managers have taken large positions in gold. I mentioned John Paulson, David Einhorn, Paul Tudor Jones and Jim Rogers I forgot to mention George Soros, who increased his holding in gold in the third quarter with gold mining stocks and with the SPDR Gold Trust ETF (GLD). This week the Wall Street Journal reported that John Paulson, who I did mention last week, is launching a new gold fund, which will include $250 million of his own personal investment.
Other well-known fund managers publicly piling into gold include Bill Gross, Kyle Bass (Hayman Capital), Paolo Pellegrini (PSQR), John Burbank (Passport Capital), Evy Hambro (Blackrock), Donald Coxe (Coxe Advisors), and David Tice (Prudent Bear Fund). I would expect other major mutual funds, hedge funds and pension funds to follow their lead.
2. Central banks are net buyers of gold for the first time in 22 years. This is a major secular change. According to a report by precious-metals research firm GFMS, for the first time since 1987, central banks around the world bought more gold in the second quarter than they sold. India recently bought 200 tons of gold from the IMF and China is expected to purchase the other 200 tons offered for sale.
3. In June there was an item in Bloomberg about Northwestern Mutual Life Insurance Co., the third-largest U.S. life insurer, having bought gold for the first time the company’s 152-year history. According to the report, the insurance company has accumulated about $400 million in gold. I would expect that other insurance companies might follow suit.
4. China holds $2 Trillion in Foreign Currency reserves and only 2% in gold, vs. a 10% worldwide average. The Chinese are seeing the value of their foreign currency reserves turning to dust every day. If China makes the logical move to increase its gold reserves and reduce its fiat currency exposure to even just the worldwide average, gold prices could move substantially higher.
5. Gold is scarce. The gold industry has not replaced gold reserves mined in over a decade meaning near term shortages. We might get to a situation where there is simply not enough physical gold available to cover the massive quantities of gold that has been pledged. This situation could push the price of gold to the stratosphere. Hong Kong has recently pulled all its gold holdings and deposits from London and brought them home. While investors chase gold to get into something more stable than the dollar, producers aren't keeping up. Gold production was down 3% last year, and it was flat in the most recent quarter. Although mining companies are spending more on new production, especially in China and Russia, that is not enough to offset dwindling output from mature mines. Central banks hold a lot of gold. But they are not interested to sell and in any case, they are bound by an agreement that imposes limits on sales.
However, the road to the top will not be a straight line, and since that is the case it makes sense to take advantage of the inevitable corrections. Let's examine the chart (charts courtesy of http://stockcharts.com) of gold to check if we are close to another buying or selling opportunity. In this essay, I will focus on the precious metals stocks.
Przemyslaw Radomski
Thursday, December 10, 2009
The Dubai Financial Nuke
When people think of Dubai the things that come to mind are the massively extravagent 7-star hotels, the towering record breaking skyscraper, palm-shaped island resort complexes etc and forests of new office buildings and apartments etc. What the vast majority don't realize is that the stupendous leverage afforded by derivatives has in addition enabled Dubai to create an immense global empire of businesses, most of the elements of which are broke, having racked up staggering levels of debt. Dubai is the nexus of the derivatives pyramid and it is flat, stony broke. Where did all the money come from to pay for all these things? - why from taxpayers and pension fund contributors the world over of course, but especially in the US, with Wall St acting as a giant conduit sluicing a torrent of cash into Dubai. The interesting thing is that there was never any accountability - countries and companies vied with each other for the privelege of pumping money into the exalted kingdom, seduced by its supposedly limitless oil wealth, and requesting or requiring guarantees was regarded as impolite. Now that Dubai is broke, the Dubai government has suddenly distanced itself from Dubai World, and the attitude towards the Western banks and governments who have poured trillions into Dubai is "Tough luck - you lose, suckers". What this means is that trillions of dollars which are now counted as assets on the balance sheets of banks worldwide and especially in the US are actually liabilities. So what do you think is going to happen to the stock prices of these banks - and stockmarkets generally, when the world wakes up and acknowledges this reality - when the shockwave hits?? Small wonder that the charts for Goldman Sachs and J P Morgan look very like the market charts before the '87 crash, but that was "small potatoes" compared to what is coming down the pipe this time.
Wednesday, December 9, 2009
HOW TO VIEW THE FALLING GOLD PRICE
It's amazing what a $50-per-ounce drop in the price of gold does nowadays.
The decline is front and center in the financial papers. CNBC hosts are grilling every analyst they can find with drivel like, "What a drop! Is the gold rally now dead?"
Our advice to the nervous gold owner: Sit back and take the "long view" of gold. Remember, no bull market rises in a straight line to the sky. And gold regularly experiences wild swings in price.
Gold is the "odd man out" among financial assets. It's not like a rental property, where you can say, "I'll pay eight times annual rent for this." Or a blue-chip stock, where you can say, "I'll pay 10 times annual cash flow for this." Gold represents real wealth and crisis protection. Folks go through periods where they'll dump this protection... or buy it with both hands. This leads to lots of volatility, like we've seen in the past few days.
It could even lead to a bigger drop in gold. But as you can see from today's five-year chart of gold, the yellow metal could drop all the way down to $850 an ounce and still remain in the confines of a big bull market. This sort of drop is unlikely, but anything can happen in the gold market... so be prepared.
The decline is front and center in the financial papers. CNBC hosts are grilling every analyst they can find with drivel like, "What a drop! Is the gold rally now dead?"
Our advice to the nervous gold owner: Sit back and take the "long view" of gold. Remember, no bull market rises in a straight line to the sky. And gold regularly experiences wild swings in price.
Gold is the "odd man out" among financial assets. It's not like a rental property, where you can say, "I'll pay eight times annual rent for this." Or a blue-chip stock, where you can say, "I'll pay 10 times annual cash flow for this." Gold represents real wealth and crisis protection. Folks go through periods where they'll dump this protection... or buy it with both hands. This leads to lots of volatility, like we've seen in the past few days.
It could even lead to a bigger drop in gold. But as you can see from today's five-year chart of gold, the yellow metal could drop all the way down to $850 an ounce and still remain in the confines of a big bull market. This sort of drop is unlikely, but anything can happen in the gold market... so be prepared.
Monday, December 7, 2009
Nantikan keluaran terbaru barang kemas (baru) dgn harga MAMPU MILiK
Untuk pengetahuan semua, dlam sedikit masa lagi kami (Rakan niaga Omar dan Silver Network) akan mengeluarkan produk barang kemas baru dgn harga yg kompetitif. Dengan Motto Harga Mampu Milik, sudah pastilah ramai golongan yg kurang modal dapat membelinya nanti. Usaha dan rancangan sudah berjalan dan ia dalam proses terakhir iaitu perlaksanaan. Insyaallah dalam sedikit masa nanti, anda boleh menghubungi rakan niaga kami utk mendapatkan produk tersebut.
Selain drp barang kemas, kami juga akan mengeluarkan produk silver bar yg mempunyai sedikit kelainan iaitu dari segi "hallmark' atau jenama tersendiri. Tidak itu sahaja, syiling dirham keluaran pertama di Malaysia mungkin akan di"realisasi' dalam sedikit masa lagi dengan nilai komersial 10 dirham bersamaan (30gm).
Saturday, December 5, 2009
The influence on the Gold Price of Official Gold Buying
Indeed most forecasts will be wrong on the lower side. Why?
Because the signals being given on 'Official' fronts are that times are here where global cooperation on the monetary front will dissipate leaving tensions and pressure that will hurt exchange rates and currency values in unpredictable but crisis making ways. Gold will really become the safe-haven it has been in history again. China and U.S. currency tensions are but the start of this.
Repeat of last week's commentary: - President Obama is about to go to China where he will face their leaders. What does he want and expect? He wants China to let its currency rise [this won't happen]. He wants friendly cooperation between the nations. But very much to the point he then says that, "if we don't solve some of these problems, then I think both economically and politically it will put enormous strains on the relationship." They didn't solve those that affect gold!
A look at the two very different national interests shows that there cannot be cooperation on these issues. Political pressure therefore has to rise in the days ahead. Bear in mind that the battlefields are not on land but in the banking and currency worlds, where all economic exchanges happen. So here is where the influences on the gold price will be most keenly felt.
Already the U.S. has seen a decimation of its manufacturing base, a feature that President Obama realizes. In recognizing this he has said, "It is particularly important for us when it comes to Asia as a whole to recognize that in the absence of a more robust export strategy it is going to be hard for us to rebuild our manufacturing base and employment base in this country,"
Take this to a global view, where last year the G-20 expressed a desire to find global cooperation of monetary and economic issues and what do we now see? Central banks and government intentions are now subsiding, and coordinated activity among member states is being replaced by more unilateral, nationalistic decision making by individual countries. As gold is now a 'tacit' currency, gold is benefitting as the prospects for collective action on currencies is included. Now, as we have expressed before, the overriding objective of nearly all members is to maintain some level of currency competitiveness all of which makes a weaker U.S. $ likely and benefits gold. With national interests becoming more selfish as the pressures grow, political tension between East and West must grow. In this way we are moving towards 'extreme times'. This is when gold becomes money and the possessor of that gold is empowered.
Such tensions are as significant as the change from summer to winter. Investors who recognize this first will be the biggest beneficiaries.
More Announcements to come from the I.M.F.
After the buying by Mauritius, there remains 201.3 tonnes to go. China remains the favorite, but who else is anybody's guess. So we wait and see.
One pertinent observation is that it is the emerging East that is most keen to buy gold. This is because in those cultures gold has been and always will be, money. The U.S. $ doesn't strike a chord like gold does. Gold has no government, currencies do.
As each announcement is made, it rings another vote of confidence in the metal as a form of money. If the I.M.F. doesn't want this to happen, it would do well to save the balance of the announcements until all the gold is sold and make one announcement and hope its effect will blow away quickly. Alternatively, as they should be maximizing the proceeds of the sales, they do well to stagger the announcements and sales to raise the price up?
Because the signals being given on 'Official' fronts are that times are here where global cooperation on the monetary front will dissipate leaving tensions and pressure that will hurt exchange rates and currency values in unpredictable but crisis making ways. Gold will really become the safe-haven it has been in history again. China and U.S. currency tensions are but the start of this.
Repeat of last week's commentary: - President Obama is about to go to China where he will face their leaders. What does he want and expect? He wants China to let its currency rise [this won't happen]. He wants friendly cooperation between the nations. But very much to the point he then says that, "if we don't solve some of these problems, then I think both economically and politically it will put enormous strains on the relationship." They didn't solve those that affect gold!
A look at the two very different national interests shows that there cannot be cooperation on these issues. Political pressure therefore has to rise in the days ahead. Bear in mind that the battlefields are not on land but in the banking and currency worlds, where all economic exchanges happen. So here is where the influences on the gold price will be most keenly felt.
Already the U.S. has seen a decimation of its manufacturing base, a feature that President Obama realizes. In recognizing this he has said, "It is particularly important for us when it comes to Asia as a whole to recognize that in the absence of a more robust export strategy it is going to be hard for us to rebuild our manufacturing base and employment base in this country,"
Take this to a global view, where last year the G-20 expressed a desire to find global cooperation of monetary and economic issues and what do we now see? Central banks and government intentions are now subsiding, and coordinated activity among member states is being replaced by more unilateral, nationalistic decision making by individual countries. As gold is now a 'tacit' currency, gold is benefitting as the prospects for collective action on currencies is included. Now, as we have expressed before, the overriding objective of nearly all members is to maintain some level of currency competitiveness all of which makes a weaker U.S. $ likely and benefits gold. With national interests becoming more selfish as the pressures grow, political tension between East and West must grow. In this way we are moving towards 'extreme times'. This is when gold becomes money and the possessor of that gold is empowered.
Such tensions are as significant as the change from summer to winter. Investors who recognize this first will be the biggest beneficiaries.
More Announcements to come from the I.M.F.
After the buying by Mauritius, there remains 201.3 tonnes to go. China remains the favorite, but who else is anybody's guess. So we wait and see.
One pertinent observation is that it is the emerging East that is most keen to buy gold. This is because in those cultures gold has been and always will be, money. The U.S. $ doesn't strike a chord like gold does. Gold has no government, currencies do.
As each announcement is made, it rings another vote of confidence in the metal as a form of money. If the I.M.F. doesn't want this to happen, it would do well to save the balance of the announcements until all the gold is sold and make one announcement and hope its effect will blow away quickly. Alternatively, as they should be maximizing the proceeds of the sales, they do well to stagger the announcements and sales to raise the price up?
How High Will the Gold Price Rise in the Short-Term?
It took a few days for the market to understand the impact of the Indian Reserve Bank's purchase of 200 tonnes of the I.M.F.'s gold sale of 403.3 tonnes, but eventually the market did respond. Since then, one of several announcements has been made, concerning the balance of 200.3 tonnes still being sold. The I.M.F. has promised to inform us that they will tell us how much they were unable to sell and to sell that amount, if any, slowly in the 'open market' without disrupting the price. We will be surprised if there is any left. India has indicated it will buy more if given the chance. So keep your eye open for the next announcement too [Since this was published Sri Lanka has bought 10 tonnes].
Mauritius Buys 2 tonnes
Mauritius bought 2 tonnes, so the I.M.F. informed us. They will probably reap the benefits of this purchase as people rush to find out where the country is.
To help you in this, it is a sub-tropical Island to the North of Madagascar East of South Africa. Populated by fleeing French nobles during the French Revolution, who became sugar planters with a house by the sea and plantations inland, alongside African and subsequently Creole workers, the island was filled with people from the Indian sub-continent from Independence on. Originally a French colony it was handed to the British as a prize after a sea battle, leaving its neighbor Reunion still very French to this day [the writer prefers Reunion for its scenic beauty, black sand beaches and volcanoes - where he had his honeymoon]. A rich country that benefitted from the sanctions imposed on South Africa it is now a very popular holiday island for primarily South Africans who visit this hotel covered island to be pampered for a couple of weeks a year.
So their buying gold is not tainted by any political overtones or restrained by any. Perhaps the Indian influence that favors gold anyway and the Indian purchase of 200 tonnes prompted the buying. We believe it was bought for the same reasons as India bought - prudence in the face of a decaying $.
Wednesday, December 2, 2009
The bankruptcy of the United States is now certain
It's one of those numbers that's so unbelievable you have to actually think about it for a while... Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt. And that's not counting any additional deficit spending, which is estimated to be around $1.5 trillion. Put the two numbers together. Then ask yourself, how in the world can the Treasury borrow $3.5 trillion in only one year? That's an amount equal to nearly 30% of our entire GDP. And we're the world's biggest economy. Where will the money come from?
How did we end up with so much short-term debt? Like most entities that have far too much debt - whether subprime borrowers, GM, Fannie, or GE - the U.S. Treasury has tried to minimize its interest burden by borrowing for short durations and then "rolling over" the loans when they come due. As they say on Wall Street, "a rolling debt collects no moss." What they mean is, as long as you can extend the debt, you have no problem. Unfortunately, that leads folks to take on ever greater amounts of debt… at ever shorter durations… at ever lower interest rates. Sooner or later, the creditors wake up and ask themselves: What are the chances I will ever actually be repaid? And that's when the trouble starts. Interest rates go up dramatically. Funding costs soar. The party is over. Bankruptcy is next.
When governments go bankrupt it's called "a default." Currency speculators figured out how to accurately predict when a country would default. Two well-known economists - Alan Greenspan and Pablo Guidotti - published the secret formula in a 1999 academic paper. That's why the formula is called the Greenspan-Guidotti rule. The rule states: To avoid a default, countries should maintain hard currency reserves equal to at least 100% of their short-term foreign debt maturities. The world's largest money management firm, PIMCO, explains the rule this way: "The minimum benchmark of reserves equal to at least 100% of short-term external debt is known as the Greenspan-Guidotti rule. Greenspan-Guidotti is perhaps the single concept of reserve adequacy that has the most adherents and empirical support."
The principle behind the rule is simple. If you can't pay off all of your foreign debts in the next 12 months, you're a terrible credit risk. Speculators are going to target your bonds and your currency, making it impossible to refinance your debts. A default is assured.
So how does America rank on the Greenspan-Guidotti scale? It's a guaranteed default. The U.S. holds gold, oil, and foreign currency in reserve. The U.S. has 8,133.5 metric tonnes of gold (it is the world's largest holder). That's 16,267,000 pounds. At current dollar values, it's worth around $300 billion. The U.S. strategic petroleum reserve shows a current total position of 725 million barrels. At current dollar prices, that's roughly $58 billion worth of oil. And according to the IMF, the U.S. has $136 billion in foreign currency reserves. So altogether... that's around $500 billion of reserves. Our short-term foreign debts are far bigger.
According to the U.S. Treasury, $2 trillion worth of debt will mature in the next 12 months. So looking only at short-term debt, we know the Treasury will have to finance at least $2 trillion worth of maturing debt in the next 12 months. That might not cause a crisis if we were still funding our national debt internally. But since 1985, we've been a net debtor to the world. Today, foreigners own 44% of all our debts, which means we owe foreign creditors at least $880 billion in the next 12 months - an amount far larger than our reserves.
Keep in mind, this only covers our existing debts. The Office of Management and Budget is predicting a $1.5 trillion budget deficit over the next year. That puts our total funding requirements on the order of $3.5 trillion over the next 12 months.
So… where will the money come from? Total domestic savings in the U.S. are only around $600 billion annually. Even if we all put every penny of our savings into U.S. Treasury debt, we're still going to come up nearly $3 trillion short. That's an annual funding requirement equal to roughly 40% of GDP. Where is the money going to come from? From our foreign creditors? Not according to Greenspan-Guidotti. And not according to the Indian or the Russian central bank, which have stopped buying Treasury bills and begun to buy enormous amounts of gold. The Indians bought 200 metric tonnes this month. Sources in Russia say the central bank there will double its gold reserves.
So where will the money come from? The printing press. The Federal Reserve has already monetized nearly $2 trillion worth of Treasury debt and mortgage debt. This weakens the value of the dollar and devalues our existing Treasury bonds. Sooner or later, our creditors will face a stark choice: Hold our bonds and continue to see the value diminish slowly, or try to escape to gold and see the value of their U.S. bonds plummet.
One thing they're not going to do is buy more of our debt. Which central banks will abandon the dollar next? Brazil, Korea, and Chile. These are the three largest central banks that own the least amount of gold. None own even 1% of their total reserves in gold.
How did we end up with so much short-term debt? Like most entities that have far too much debt - whether subprime borrowers, GM, Fannie, or GE - the U.S. Treasury has tried to minimize its interest burden by borrowing for short durations and then "rolling over" the loans when they come due. As they say on Wall Street, "a rolling debt collects no moss." What they mean is, as long as you can extend the debt, you have no problem. Unfortunately, that leads folks to take on ever greater amounts of debt… at ever shorter durations… at ever lower interest rates. Sooner or later, the creditors wake up and ask themselves: What are the chances I will ever actually be repaid? And that's when the trouble starts. Interest rates go up dramatically. Funding costs soar. The party is over. Bankruptcy is next.
When governments go bankrupt it's called "a default." Currency speculators figured out how to accurately predict when a country would default. Two well-known economists - Alan Greenspan and Pablo Guidotti - published the secret formula in a 1999 academic paper. That's why the formula is called the Greenspan-Guidotti rule. The rule states: To avoid a default, countries should maintain hard currency reserves equal to at least 100% of their short-term foreign debt maturities. The world's largest money management firm, PIMCO, explains the rule this way: "The minimum benchmark of reserves equal to at least 100% of short-term external debt is known as the Greenspan-Guidotti rule. Greenspan-Guidotti is perhaps the single concept of reserve adequacy that has the most adherents and empirical support."
The principle behind the rule is simple. If you can't pay off all of your foreign debts in the next 12 months, you're a terrible credit risk. Speculators are going to target your bonds and your currency, making it impossible to refinance your debts. A default is assured.
So how does America rank on the Greenspan-Guidotti scale? It's a guaranteed default. The U.S. holds gold, oil, and foreign currency in reserve. The U.S. has 8,133.5 metric tonnes of gold (it is the world's largest holder). That's 16,267,000 pounds. At current dollar values, it's worth around $300 billion. The U.S. strategic petroleum reserve shows a current total position of 725 million barrels. At current dollar prices, that's roughly $58 billion worth of oil. And according to the IMF, the U.S. has $136 billion in foreign currency reserves. So altogether... that's around $500 billion of reserves. Our short-term foreign debts are far bigger.
According to the U.S. Treasury, $2 trillion worth of debt will mature in the next 12 months. So looking only at short-term debt, we know the Treasury will have to finance at least $2 trillion worth of maturing debt in the next 12 months. That might not cause a crisis if we were still funding our national debt internally. But since 1985, we've been a net debtor to the world. Today, foreigners own 44% of all our debts, which means we owe foreign creditors at least $880 billion in the next 12 months - an amount far larger than our reserves.
Keep in mind, this only covers our existing debts. The Office of Management and Budget is predicting a $1.5 trillion budget deficit over the next year. That puts our total funding requirements on the order of $3.5 trillion over the next 12 months.
So… where will the money come from? Total domestic savings in the U.S. are only around $600 billion annually. Even if we all put every penny of our savings into U.S. Treasury debt, we're still going to come up nearly $3 trillion short. That's an annual funding requirement equal to roughly 40% of GDP. Where is the money going to come from? From our foreign creditors? Not according to Greenspan-Guidotti. And not according to the Indian or the Russian central bank, which have stopped buying Treasury bills and begun to buy enormous amounts of gold. The Indians bought 200 metric tonnes this month. Sources in Russia say the central bank there will double its gold reserves.
So where will the money come from? The printing press. The Federal Reserve has already monetized nearly $2 trillion worth of Treasury debt and mortgage debt. This weakens the value of the dollar and devalues our existing Treasury bonds. Sooner or later, our creditors will face a stark choice: Hold our bonds and continue to see the value diminish slowly, or try to escape to gold and see the value of their U.S. bonds plummet.
One thing they're not going to do is buy more of our debt. Which central banks will abandon the dollar next? Brazil, Korea, and Chile. These are the three largest central banks that own the least amount of gold. None own even 1% of their total reserves in gold.
Tuesday, December 1, 2009
How to predict the price of gold
By Jeff Clark in Casey's Daily Dispatch:
Long-term readers know that gold moves inversely to the dollar, meaning if the dollar drops, gold tends to rise (and vice versa). This happens with about 80% regularity. But what many gold writers haven’t acknowledged is the leveraged movement our favorite metal has demonstrated this year to the world’s reserve currency.
The U.S. dollar index, a six-currency gauge of the greenback’s value, has dropped 7.1% so far this year. Meanwhile, gold is up 34% year-to-date. In other words, for every 1% drop in the dollar index, gold has risen 4.7%. If that approximate percentage holds over time, one can begin to estimate what the gold price might be if you know what the dollar might do.
While the dollar is likely to bounce at some point, making gold correct, the long-term fate of the dollar has already dried in cement. If the dollar were simply to return to its March 2008 low of 71.30 next year - a 5% drop from current levels - this would imply a rise in gold of 23.5% and a price of about $1,437 an ounce.
The long-term scenario is more dramatic. If you believe the dollar will lose half its value from current levels, this would imply a gold price around $2,735. If you believe it will lose 75% of its value, gold would reach about $4,103. Doug Casey has called for a $5,000 gold price; if he’s right, guess what that implies for the dollar?
And think about this: these calculations ignore what else might “show up,” such as when price inflation shows up in the economy, the greater public shows up to buy gold, or the Chinese don’t show up at an auction. Could $5,000 gold be too low?
Unless you think the dollar’s problems are solved, its eventual demise is gold’s eventual glory. Prepare, and invest, accordingly.
Long-term readers know that gold moves inversely to the dollar, meaning if the dollar drops, gold tends to rise (and vice versa). This happens with about 80% regularity. But what many gold writers haven’t acknowledged is the leveraged movement our favorite metal has demonstrated this year to the world’s reserve currency.
The U.S. dollar index, a six-currency gauge of the greenback’s value, has dropped 7.1% so far this year. Meanwhile, gold is up 34% year-to-date. In other words, for every 1% drop in the dollar index, gold has risen 4.7%. If that approximate percentage holds over time, one can begin to estimate what the gold price might be if you know what the dollar might do.
While the dollar is likely to bounce at some point, making gold correct, the long-term fate of the dollar has already dried in cement. If the dollar were simply to return to its March 2008 low of 71.30 next year - a 5% drop from current levels - this would imply a rise in gold of 23.5% and a price of about $1,437 an ounce.
The long-term scenario is more dramatic. If you believe the dollar will lose half its value from current levels, this would imply a gold price around $2,735. If you believe it will lose 75% of its value, gold would reach about $4,103. Doug Casey has called for a $5,000 gold price; if he’s right, guess what that implies for the dollar?
And think about this: these calculations ignore what else might “show up,” such as when price inflation shows up in the economy, the greater public shows up to buy gold, or the Chinese don’t show up at an auction. Could $5,000 gold be too low?
Unless you think the dollar’s problems are solved, its eventual demise is gold’s eventual glory. Prepare, and invest, accordingly.
Monday, November 30, 2009
How China Will Flood the Gold Market
As you read this, the Chinese government is doing an extraordinary thing. . .something nearly unheard of in the modern world.
It is encouraging citizens to put at least 5% of their savings into precious metals.
The Chinese government is telling people gold and silver are good investments that will safeguard their wealth. After last year's meltdown in the stock market, people believe it. After all, Chinese citizens don't receive government retirement money. . .and they don't have company pension plans like people in many other countries do.
This is why folks in China are lining up outside of banks, post offices, and the new official mint stores to buy gold and silver (they especially like silver because it's cheaper per ounce).
The Chinese attitude toward gold and silver is a striking contrast to the American attitude right now. I don't recall a TV or radio ad from my congressman or President Obama encouraging me to buy gold or silver. Does your bank sell silver bars? Are gold mints popping up in your neighborhood? Are any of your friends, family, or coworkers scrambling to buy precious metals?
In spite of a few ads on television and satellite radio, buying gold and silver in the U.S. is still largely seen as a fringe-group activity. That's not the case in China. And in the big picture, there are three distinct trends occurring in China today that many in the Occidental world are not paying attention to.
First, look where China stands as a gold-producing nation.
In 2008, China produced 9,070,000 ounces of gold, exceeding all other countries. Further, its production continues to rise, while many of the top-producing countries are in decline.
Second, China had the lowest per-capita gold consumption of any country over the past half-century. This year, it is widely expected that Chinese demand for gold will surpass that of India. In other words, they'll also become the world's No. 1 retail buyer.
Third, the Chinese government has been using its foreign exchange reserves to buy gold—a lot of it—and doing so on the sly. This past April, Chinese officials made a surprise announcement that they had been secretly buying gold since 2003, increasing their gold reserves by 76% to 33,886,000 ounces. The Chinese government now owns 30 times the gold it held in 1990. And China is believed to be a leading candidate to buy some or all of the 12.9 million ounces the International Monetary Fund says it will sell.
It is encouraging citizens to put at least 5% of their savings into precious metals.
The Chinese government is telling people gold and silver are good investments that will safeguard their wealth. After last year's meltdown in the stock market, people believe it. After all, Chinese citizens don't receive government retirement money. . .and they don't have company pension plans like people in many other countries do.
This is why folks in China are lining up outside of banks, post offices, and the new official mint stores to buy gold and silver (they especially like silver because it's cheaper per ounce).
The Chinese attitude toward gold and silver is a striking contrast to the American attitude right now. I don't recall a TV or radio ad from my congressman or President Obama encouraging me to buy gold or silver. Does your bank sell silver bars? Are gold mints popping up in your neighborhood? Are any of your friends, family, or coworkers scrambling to buy precious metals?
In spite of a few ads on television and satellite radio, buying gold and silver in the U.S. is still largely seen as a fringe-group activity. That's not the case in China. And in the big picture, there are three distinct trends occurring in China today that many in the Occidental world are not paying attention to.
First, look where China stands as a gold-producing nation.
In 2008, China produced 9,070,000 ounces of gold, exceeding all other countries. Further, its production continues to rise, while many of the top-producing countries are in decline.
Second, China had the lowest per-capita gold consumption of any country over the past half-century. This year, it is widely expected that Chinese demand for gold will surpass that of India. In other words, they'll also become the world's No. 1 retail buyer.
Third, the Chinese government has been using its foreign exchange reserves to buy gold—a lot of it—and doing so on the sly. This past April, Chinese officials made a surprise announcement that they had been secretly buying gold since 2003, increasing their gold reserves by 76% to 33,886,000 ounces. The Chinese government now owns 30 times the gold it held in 1990. And China is believed to be a leading candidate to buy some or all of the 12.9 million ounces the International Monetary Fund says it will sell.
Sunday, November 29, 2009
Gold Momentum's Picking Up Dramatically
By: Eric Sprott
Source: The Gold Report
Various members of the G-20 talk about commodity backing and so on. You could create a computer system where you could actually use commodities as currencies. It's pretty easy to quantify all these units, so maybe we will go there. Hardly any hard currency physically trades hands now, you could literally have everything just trade in gold and silver on computers. Maybe it goes to that. We will see.
We have been seriously involved in precious metals for 10 years now. With some obvious ups and downs, it has been 10 great years. I had purchased gold and silver because I knew there would be more demand than supply, and I am sure that is the case today. I could not have predicted quantitative easing in 2009, nor could I have predicted that the financial world might actually buy into it. I still almost pinch myself when I think about it.
I always knew there would be a bonus thrown in by fiat currencies being damaged, and with quantitative easing you know that the values of currencies are going down. That makes the precious metals story just that much more compelling and I am sure that is why India bought 200 tons of IMF gold and others will follow suit. We are also seeing many hedge funds and pension funds moving into gold. Whereas central banks used to sell gold, now they are buying it. Then there are the ETFs. You can just feel the momentum in gold—it's picking up dramatically.
Eric Sprott has accumulated 35 years of experience in the investment industry. After earning his designation as a chartered accountant, he entered the investment industry as a research analyst at Merrill Lynch. In 1981, he founded Sprott Securities. After establishing Sprott Asset Management Inc. in December 2001 as a separate entity, Eric divested his entire ownership of Sprott Securities to its employees. In December 2004, the Sprott Hedge Fund L.P. won the Opportunistic Strategy Hedge Fund Award at the Canadian Investment Awards.
Various members of the G-20 talk about commodity backing and so on. You could create a computer system where you could actually use commodities as currencies. It's pretty easy to quantify all these units, so maybe we will go there. Hardly any hard currency physically trades hands now, you could literally have everything just trade in gold and silver on computers. Maybe it goes to that. We will see.
We have been seriously involved in precious metals for 10 years now. With some obvious ups and downs, it has been 10 great years. I had purchased gold and silver because I knew there would be more demand than supply, and I am sure that is the case today. I could not have predicted quantitative easing in 2009, nor could I have predicted that the financial world might actually buy into it. I still almost pinch myself when I think about it.
I always knew there would be a bonus thrown in by fiat currencies being damaged, and with quantitative easing you know that the values of currencies are going down. That makes the precious metals story just that much more compelling and I am sure that is why India bought 200 tons of IMF gold and others will follow suit. We are also seeing many hedge funds and pension funds moving into gold. Whereas central banks used to sell gold, now they are buying it. Then there are the ETFs. You can just feel the momentum in gold—it's picking up dramatically.
Eric Sprott has accumulated 35 years of experience in the investment industry. After earning his designation as a chartered accountant, he entered the investment industry as a research analyst at Merrill Lynch. In 1981, he founded Sprott Securities. After establishing Sprott Asset Management Inc. in December 2001 as a separate entity, Eric divested his entire ownership of Sprott Securities to its employees. In December 2004, the Sprott Hedge Fund L.P. won the Opportunistic Strategy Hedge Fund Award at the Canadian Investment Awards.
Saturday, November 28, 2009
Friday, November 27, 2009
SELAMAT HARI RAYA KORBAN
KAMI MENGUCAPKAN SELAMAT HARI RAYA KORBAN KEPADA SEMUA MUSLIMIN DAN MUSLIMAT
Daripada
Monday, November 16, 2009
A good Question From Kitco's reader
Q: Gold price rise is very unrealistic. How can the price of a metal go up like this. I think manipulators are driving up gold prices. We should stop trading in gold futures at COMEX. ?
A: Mans People think, that the COMEX is the Place, where the Gold Price is manipulated heavily. But Not on the Long - side. It's a fact, that 2 Banks are responsible for nearly all Short positions on Comex. One is Jp Morgan, acting obviously for the FED because they increase their Short positions steadily to prevent Gold prices to climb on 2.000 USD Level, this would be no help for financing new dept around 12% of GDP. But FEDs problem is that too many people know about FED Situation of having NO GOLD Reserves. According to official Export Statistics, the US have now Exportes all the gold, which is officially in their 8100 to Reserve. John Paulson has invested billions of Dollars into physical Gold this Year - and Mr Greenspan is an advisor for Paulsons Company... Gold is from à fundamental Point of View far Away from beeing expensive: Cash Costs are around 4-500 USD, and total costs including Exploration, financing, Mine Building are around 700-850. Compared to Oil, Gold has a clearly bettet Price/ cost Ratio. Best regards, Andreas
A: Mans People think, that the COMEX is the Place, where the Gold Price is manipulated heavily. But Not on the Long - side. It's a fact, that 2 Banks are responsible for nearly all Short positions on Comex. One is Jp Morgan, acting obviously for the FED because they increase their Short positions steadily to prevent Gold prices to climb on 2.000 USD Level, this would be no help for financing new dept around 12% of GDP. But FEDs problem is that too many people know about FED Situation of having NO GOLD Reserves. According to official Export Statistics, the US have now Exportes all the gold, which is officially in their 8100 to Reserve. John Paulson has invested billions of Dollars into physical Gold this Year - and Mr Greenspan is an advisor for Paulsons Company... Gold is from à fundamental Point of View far Away from beeing expensive: Cash Costs are around 4-500 USD, and total costs including Exploration, financing, Mine Building are around 700-850. Compared to Oil, Gold has a clearly bettet Price/ cost Ratio. Best regards, Andreas
Sunday, November 15, 2009
India's central bank buy gold from IMF
On November 3, 2009, India's central bank bought more than 7 million ounces of gold from the International Monetary Fund.
Timothy Green, author of The Ages of Gold, says this is "the biggest single central-bank purchase we know about for at least 30 years in such a short period."
And that's why right now is exactly the time to be buying gold-related stocks, especially those that collect royalties on existing gold mines...
Instead of owning a mining business or trying to hoard physical gold... it can be much, much safer and more lucrative to simply own a stake in the real estate where the best mines are located...
Saturday, November 14, 2009
Why stocking up the gold
"We are still contemplating the massive gold purchase by the Reserve Bank of India – the largest in at least 30 years that took up half of what the IMF intends to sell. Look for China to come in next.
"But here is the reality. All India did was bring gold to a 6% share of its total FX reserves from 4%. Fifteen years ago, that representation was closer to 20%. China has increased its gold holdings by 76% over the past six years but they are a mere 1.9% of the aggregate 2.2 trillion of reserves and Russia's gold holdings is just under 5%. This is not the 1990s when Bob Rubin was running a hard US dollar policy, US fiscal deficits were vanishing and gold production was on the rise. Today's world is exactly the opposite.
"Policymakers beginning in the 1990s wanted disinflation and got it. Now they want inflation – it will take years, maybe a decade, but it will come. For the near-term, we are still optimistic on Treasury securities but be forewarned that this view has an expiry date that is earlier than the peak we are likely to see in gold.
"It is very clear that central banks are behaving in a way that would suggest that gold is now again being considered a currency within the global monetary system. As we said before, it is all about relative scarcity and a well-defined supply curve – fiat currency at this juncture does not share that quality. As a good friend reminded me yesterday, when the Fed was created nearly a century ago, it was acceptable to have at least 40% of the money supply backed by gold reserves. The US now has 8,133 tons of gold in reserve, which equates to $285 billion at this year's pricing.
"Meanwhile, the Fed has spiked the punchbowl to such an extent that the monetary base now stands at $1.7 trillion. Do the math – under the old regime (which indeed hamstrung the Fed), the US alone would need to buy an incremental $400 billion of Gold Bullion or the equivalent of what would be nearly four times the typical level of annual demand. We could do the same calculation based on M2 but we don't want anyone falling off their chairs..."
Friday, November 13, 2009
World economy crisis
"Well, it's still a very, very long shot, but it's no longer entirely unimaginable. Governments of rich countries are borrowing so much that it's conceivable that one day the twin assumptions underlying their burgeoning debt (that lenders will continue to lend and that governments will continue to pay) might collapse. What happens then?
"People have predicted such a crisis for decades. It hasn't happened yet. The currency's decline has been orderly, because the dollar retains a bedrock confidence based on America's political stability, openness, wealth and low inflation. But something could shatter that confidence – tomorrow or 10 years from tomorrow.
"Despite huge deficits, interest rates on 10-year Treasury bonds have hovered around 3.5%. In time of financial crisis, investors have sought the apparent sanctuary of government bonds. But the correct conclusion to draw is not that major governments (such as Japan and the United States) can easily borrow as much as they want. It is that they can easily borrow as much as they want until confidence that they can do so evaporates - and we don't know when, how or whether that may happen."
Thursday, November 12, 2009
Gold Getting Nervous
GOLD HAS ADVANCED towards a new milestone, writes Bill Bonner in his Daily Reckoning, the level of $1100 an ounce.
It makes us nervous. We always feel more comfortable out in the wide, open spaces...that is to say, in trades we have all to ourselves.
But gold is still a marginal holding by marginal investors like us. Central banks – especially those in emerging countries – have very little gold. The man on the street doesn't know anything about gold. He wouldn't know a Gold Coin if it hit him on the head. As gold becomes accepted as a true store of value, we can expect more and more people to want to own it.
Governments are running breathtaking deficits...and accumulating alarming debts. Japan has a national debt of nearly 200% of its GDP. Where did that debt come from? It came from 20 years of trying to buy its way out of a slump with borrowed money. Of course, it didn't work. But now, Britain and America are following the Japanese lead...and the Japanese are still at it!
At the present rate, Japan's government debt will grow to 300% of GDP in 10 years. America's debt could grow to 100%...and then 200% of GDP...over the next decade (depending on whose projections you believe). And Britain, if we read the report in the Financial Times correctly, will have debt equal to 200% of GDP within 3 years.
Just what kind of crisis do these numbers portend? It's hard to say. Probably a combination of confidence, followed by debt default and inflation.
Wednesday, November 11, 2009
Sax-Gold Enterprise
Terima Kasih
Gold May Drop as Dollar Strengthens, Record Prices Spur Sales
Bullion futures reached $1,111.70 an ounce yesterday. That lifted its 14-day relative strength index, a gauge of whether a commodity or security is overbought or oversold, above the level of 70 viewed by some investors as a signal of an impending retreat. The Dollar Index added as much as 0.3 percent today after yesterday slipping to a 15-month low.
“Gold is clearly overbought, gold is clearly over- participated in by the investing/speculating public, and gold needs a good sound thrashing to take the late-comers out of the positions and in the process restore relative health,” economist Dennis Gartman said in his Suffolk, Virginia-based Gartman Letter.
Wednesday, November 4, 2009
Point to Ponder
Michael told me you should keep two things in mind when you buy gold coins. First, you want a good deal. He says you should buy the coins with the lowest premium to the international gold spot price you can find. Right now, there's an orderly market in gold coins and you shouldn't pay more than a 5% premium to spot. As I write, gold is at around $1,060. So you shouldn't pay more than $1,113 an ounce for your coins.
Secondly, you should buy coins with the highest worldwide acceptability, so you'll have no problem selling them anywhere in the world. For example, Michael says Asians prefer 24-karat gold coins, but the American Eagle and the Krugerrand are only 22-karat gold. They aren't so popular in Asia. He also says the South African Krugerrand, the British Sovereign, the Mexican Peso, and the Austrian Corona gold coins are "passé" and not as popular worldwide anymore. You won't get such a good deal when you sell these.
Tuesday, November 3, 2009
Amazing chart shows October's market action is exactly like September's
Sometimes we feel like Bill Murray's character in the movie Groundhog Day, where he relives the same day over and over again. If you have been watching the market recently and also keep finding yourself getting a feeling of Deja Vu, you're not alone. The S&P 500's performance in October has nearly been an exact replica of most of September. The chart below highlights the intraday trading of the S&P 500 from September 2nd to September 30th (left axis), and compares it to the intraday trading from October 2nd through the 21st (right axis). Although it began from a higher price, the S&P 500 has followed the September blueprint nearly tick for tick!
From the low of the month, both rallies lasted thirteen trading days. In September, the S&P 500 rallied by 8.8%, and in October the rally was 7.9%. Then both rallies ended on the 14th day of the advance, when the S&P 500 hit a new high for the year only to sell off and close at its lows for the day. If (big if) October continues to follow the September script, this implies that equities would continue to trade sideways to lower for the rest of the month.
Monday, November 2, 2009
The best way to make huge gains in gold
Fed Chairman Ben Bernanke can't create a 100 million new ounces out of thin air whenever he wants to buy more bad mortgages. He has to print dollars... and the more dollars he circulates, the more it takes to buy gold ounces.
While lots of hard assets will rise in value for the same reason, gold is the ultimate option for protecting wealth. Solid gold bullion is one of the easiest commodities to buy and sell. Gold bullion should not be our only gold play, however.
From May 13, 2005 to May 12, 2006, the price of gold rose 71% – a nice 12-month return for any investment and a huge move for the metal. But consider that over the same period, the AMEX Gold Bugs Index (which tracks the major gold mining stocks) went up 105%.
That was no fluke. The movement in gold stocks is always more exaggerated than those of the metal. They are said to be "leveraged" to the gold price. That's why to make a lot of money in gold, you must own gold stocks.
Here's why it happens: The share prices for mining companies are driven by their profits. And those profits are based on the gold price because their costs are (relatively) fixed. So let's say a company spends $400 per ounce to mine gold. When gold sells for $700 an ounce, the company books $300-an-ounce profits. If gold prices shoot to $1,000, its profits jump to $600 an ounce. So while the metal has appreciated about 43%, the company's profits (and market value) rocketed 100%.
That's leverage. And that's how investors get rich in gold.
Thursday, October 29, 2009
Gold to Rise to $2,000 Amid ‘Massive’ Inflation, Superfund Says
Oct. 28 (Bloomberg) -- Gold may rise to a record $2,000 an ounce in the next three years as investors hedge against “massive” inflation sparked by governments printing money, according to Superfund Financial Singapore Pte’s Aaron Smith.
“In the next few years, after the deflation cycle, we’ll see massive inflation,” Managing Director Smith, 30, said in an interview. “Soon, when you go to buy a cup of coffee, you’ll pay $20 or $30 because the dollar won’t be worth anything.”
The company’s Superfund Green Gold A Fund, which has more than doubled since its inception in 2005, has lost 15.6 percent this year because of higher volatility, said Smith, who joined in 2002. Gold rose to an all-time high this month as governments including the U.S. boosted debt to combat the global recession.
“When the U.S. dollar crashes, all the paper currencies have to crash, otherwise if their currencies are too strong, their economies will be weak,” said Smith, who issued similar gold forecasts in May and earlier this month. “Another excellent buying opportunity for investors is silver.”
Gold for immediate delivery, which touched a high of $1,070.80 an ounce on Oct. 14, traded at $1,039.32 at midday in Singapore. The metal has strengthened 18 percent this year, while the Dollar Index, a six-currency gauge of the dollar’s strength, fell 6.4 percent.
Wednesday, October 28, 2009
Gold Hits 3-Week Low on "Scrap Supply Victory"; Bank of England Says Inflation Fears "Only for Nutters" - Tuesday 27th October 2009
The price of Gold dropped to a 3-week low as Asian stock markets fell hard early Tuesday, twice bouncing from $1037 an ounce as European stocks crept higher by lunchtime in London.
The US Dollar rose on the currency market, while crude oil held at $78 per barrel.
Government bonds ticked higher, pushing interest rates down.
The US Treasury will today auction $44 billion in new two-year debt.
"Physical [Gold] demand from India picked up on this move," says one London dealer, "but it seems scrap supply from Asia (strong once again last night) has won the fundamental battle."
"Gold has broken lower," agrees Scotia Mocatta's technical note, "[after] price action over the past two weeks formed into a small triple top.
"It is too early to say whether the move will be deeper then 1025," the bullion banks' analysts say.
"1044 will likely hold any retracement."
"Physical buying is being overshadowed by investment selling of gold," says another bank comment, "but we have seen some buying interest at these levels.
"Technically, Gold could test $1024, from where we see a recovery."
On the data front this morning, the Case-Shiller Index of US home prices showed a smaller-than-expected drop of 11.3% for the year to Sept.
Money-supply growth in the 16-nation Eurozone fell last month to 1.6% annually, the slowest pace since current records began in 1980.
Outstanding loans to households and business across the 350 million citizen currency zone shrank for the first time on record, down 0.3% from September last year.
The US Dollar rose on the currency market, while crude oil held at $78 per barrel.
Government bonds ticked higher, pushing interest rates down.
The US Treasury will today auction $44 billion in new two-year debt.
"Physical [Gold] demand from India picked up on this move," says one London dealer, "but it seems scrap supply from Asia (strong once again last night) has won the fundamental battle."
"Gold has broken lower," agrees Scotia Mocatta's technical note, "[after] price action over the past two weeks formed into a small triple top.
"It is too early to say whether the move will be deeper then 1025," the bullion banks' analysts say.
"1044 will likely hold any retracement."
"Physical buying is being overshadowed by investment selling of gold," says another bank comment, "but we have seen some buying interest at these levels.
"Technically, Gold could test $1024, from where we see a recovery."
On the data front this morning, the Case-Shiller Index of US home prices showed a smaller-than-expected drop of 11.3% for the year to Sept.
Money-supply growth in the 16-nation Eurozone fell last month to 1.6% annually, the slowest pace since current records began in 1980.
Outstanding loans to households and business across the 350 million citizen currency zone shrank for the first time on record, down 0.3% from September last year.
Gold Declines on Concern Rising Dollar May Erode Metal Demand
Oct. 27 (Bloomberg) -- Gold fell for a fourth straight session, the longest slide since August, amid concern that the dollar will extend a rally, curbing demand for the precious metal as an alternative asset. The dollar rose against a basket of six major currencies, adding to three consecutive advances since Oct. 21, when it touched a 14-month low. Gold, which often moves inversely to the greenback, has dropped 2.7 percent in the past four sessions.
“Gold doesn’t have that much buying interest,” said Matt Zeman, a LaSalle Futures Group Inc. metals trader in Chicago. “The dollar could undergo a wicked short-covering rally, and the gold market needs to look out below.”
Gold futures for December delivery fell $7.40, or 0.7 percent, to $1,035.40 an ounce on the Comex division of the New York Mercantile Exchange. The slump was the longest since Aug. 10. The metal has climbed 17 percent this year, reaching a record $1,072 on Oct. 14.
A rise in bets on a drop in futures is a “signal that an increasing proportion of market players view the current gold price as unsustainable,” Eugen Weinberg, a Commerzbank AG analyst in Frankfurt, said yesterday in a report. “Should this sentiment spread further, gold could come under considerable pressure.” 
Hedge funds and other large speculators trimmed their net- long position in gold futures by 2 percent as of Oct. 20, from a record in the previous week, and miners, producers and commercial users increased their net-short position, Commodity Futures Trading Commission data show. A net-long position benefits when prices rise, while net-shorts gain from a decline.
Thursday, October 22, 2009
"We see it as now the FLOOR (1000 oz)
"$1,000 an ounce is thought by some to be gold's ceiling..." John Doody wrote last week to his subscribers. "We see it as now the FLOOR."
One thing I like about this former economics professor is that it's all about the numbers to him... It's not about conspiracy theories like it is with so many gold bugs. For example, John will actually tell you when gold stocks are overpriced according to his model – imagine that with dyed-in-the-wool gold bugs!
So why does John think gold will keep going up now, when many others say it's bumping up against its ceiling? I asked John that yesterday...
It's simple, he said, if you just compare the price of gold to interest rates.
In short, when interest rates are high, then gold (which pays no interest) falls. And when interest rates are low (like they are now), gold rises. To keep it apples to apples over time, John subtracts inflation from interest rates.
In the 1980s and 1990s, you earned high rates of interest on your cash. So gold was flat for those two decades. Plain as day.
But for much of this decade and the decade of the 1970s, you typically earned NEGATIVE interest on your cash (after you subtracted inflation). So gold has soared.
John sees those negative real interest rates continuing. So gold will keep rising. Simple as that.
For the specifics, currently, the consensus inflation rate forecast for the first half of 2010 is around 2%. But banks basically pay you no interest. So you have a choice: Own gold, which pays no interest. Or hold cash, which pays you NEGATIVE interest, when you take inflation into account.
Yesterday, John explained that since the Federal Reserve will likely keep interest rates very low for a very long period of time, gold can keep going higher.
I asked John if gold had become too popular these days. He said absolutely not...
"Look, hedge funds are just starting to get into gold. Retail investors haven't bought. CNBC calls gold a bad inflation hedge. Central banks haven't bought. If gold was popular, I'd have a hundred thousand subscribers, not a couple thousand. We've got a long way to go. $1,000 isn't the ceiling... it's the new floor."
John ran the numbers, and in a sneak preview of his upcoming issue, he proves how the price of gold has "beaten" inflation fivefold since it first started freely trading 40 years ago.
"CNBC says that gold has only gone from a peak of $850 in 1980 to $1,050 today – for a $200 gain," he said. "So CNBC's conclusion is that gold is not a good inflation hedge... That's just plain wrong, but the people believe it."
To be brutally honest, if you plan to be a serious investor in gold stocks – and you're willing to do your homework – you're foolish if you don't read John's newsletter. John updates his unique valuation numbers every month for the 75 precious metals companies he follows. Plus, he writes up a detailed analysis about once a quarter on each company.
Up 80% This Year
The Easiest Way to Tell If Gold Is in a Bubble
It is the best starting point in the business. It's the first place I go to find out how much gold each company has in the ground and what its cash flows are.
If you agree with John – that $1,000 gold is the new floor, not the ceiling – chances are, you're buying gold stocks. And if you're buying gold stocks in size, you ought to do it with John's help.
Good investing,
Steve
Dailywealth
One thing I like about this former economics professor is that it's all about the numbers to him... It's not about conspiracy theories like it is with so many gold bugs. For example, John will actually tell you when gold stocks are overpriced according to his model – imagine that with dyed-in-the-wool gold bugs!
So why does John think gold will keep going up now, when many others say it's bumping up against its ceiling? I asked John that yesterday...
It's simple, he said, if you just compare the price of gold to interest rates.
In short, when interest rates are high, then gold (which pays no interest) falls. And when interest rates are low (like they are now), gold rises. To keep it apples to apples over time, John subtracts inflation from interest rates.
In the 1980s and 1990s, you earned high rates of interest on your cash. So gold was flat for those two decades. Plain as day.
But for much of this decade and the decade of the 1970s, you typically earned NEGATIVE interest on your cash (after you subtracted inflation). So gold has soared.
John sees those negative real interest rates continuing. So gold will keep rising. Simple as that.
For the specifics, currently, the consensus inflation rate forecast for the first half of 2010 is around 2%. But banks basically pay you no interest. So you have a choice: Own gold, which pays no interest. Or hold cash, which pays you NEGATIVE interest, when you take inflation into account.
Yesterday, John explained that since the Federal Reserve will likely keep interest rates very low for a very long period of time, gold can keep going higher.
I asked John if gold had become too popular these days. He said absolutely not...
"Look, hedge funds are just starting to get into gold. Retail investors haven't bought. CNBC calls gold a bad inflation hedge. Central banks haven't bought. If gold was popular, I'd have a hundred thousand subscribers, not a couple thousand. We've got a long way to go. $1,000 isn't the ceiling... it's the new floor."
John ran the numbers, and in a sneak preview of his upcoming issue, he proves how the price of gold has "beaten" inflation fivefold since it first started freely trading 40 years ago.
"CNBC says that gold has only gone from a peak of $850 in 1980 to $1,050 today – for a $200 gain," he said. "So CNBC's conclusion is that gold is not a good inflation hedge... That's just plain wrong, but the people believe it."
To be brutally honest, if you plan to be a serious investor in gold stocks – and you're willing to do your homework – you're foolish if you don't read John's newsletter. John updates his unique valuation numbers every month for the 75 precious metals companies he follows. Plus, he writes up a detailed analysis about once a quarter on each company.
Up 80% This Year
The Easiest Way to Tell If Gold Is in a Bubble
It is the best starting point in the business. It's the first place I go to find out how much gold each company has in the ground and what its cash flows are.
If you agree with John – that $1,000 gold is the new floor, not the ceiling – chances are, you're buying gold stocks. And if you're buying gold stocks in size, you ought to do it with John's help.
Good investing,
Steve
Dailywealth
Tuesday, October 20, 2009
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