[Focus] Gold

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no need to think.

next stop, 1700.

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Gold to Rise to $2,000 Amid ‘Massive’ Inflation, Superfund Says
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By Kim Kyoungwha


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.

Gold Forecasts

Smith joins investors including Shayne McGuire, director of global research at the Teacher Retirement System of Texas, and Jim Rogers in forecasting higher gold prices. Pension funds will increase gold holdings as currencies decline, McGuire said on Oct. 22. Gold will probably top $2,000 in the next decade as the dollar weakens, Rogers said Oct. 7.

Superfund, founded in 1995 and backed by $1.6 billion in assets, specializes in so-called managed futures, using its own trading system to generate buy and sell calls on stock, bond, currency and commodity futures. Still, the company’s flagship Superfund A, which gained 35.4 percent last year, has lost 24 percent this year, Smith said.

The ratio of silver to gold, currently at 62.35, will be “cut in half” in the next three to five years as millions of people in South Asia and China buy the metal as an alternative because they can no longer afford gold, Smith said. Silver has soared 46 percent this year to $16.65 an ounce.

To contact the reporter on this story: Kyoungwha Kim in Singapore at Kkim19@bloomberg.net
Last Updated: October 28, 2009 01:59 EDT

via : http://singsupplies.com/showthread.php?t=41667

didn't happen in 09. why would/should it happen in 11, 12?

and why not? since the general trend now is that the US will print to get out of their debt.

which fits into their plan of many their own currency plan.

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Gold futures move past $1,900 an ounce
http://www.marketwatch.com/story/gold-futures-move-past-1900-an-ounce-2011-08-22

By Sarah Turner, MarketWatch

SYDNEY (MarketWatch) — Gold futures traded over $1,900 in Asia on Tuesday, continuing its record-breaking run, as investors stayed on an alert over sovereign debt troubles in the major developed economies.

Gold for December delivery GC1Z +0.37%  advanced $39.70, or 2.1%, to settle at $1,891.90 an ounce on the Comex division of the New York Mercantile Exchange Monday.

Those gains took the metal to its sixth closing gain and fifth settlement record in six trading sessions.
Click to Play
Gold heading to $3,000?

Brett Arends explains on The News Hub why he thinks Gold could soon hit $3,000 an ounce as he compares the meteoric rise in the precious metal to the bubbles in the Nasdaq and real estate.

The metal traded as high as $1,899.40 an ounce on Monday, an intraday record for the metal.

But that record didn’t hold for long, with gold futures at $1,901.80 an ounce in electronic trading on Tuesday, up $10.60.

Citigroup metal strategists raised their price forecasts for gold, a move they said was made “to accommodate the impact that global financial tension is having on the metal.”

“Fears about sovereign defaults and currency debasement have left many investors concerned about switching from equities into government bonds, and cash hardly looks an attractive alternative when real rates are negative. Gold has therefore been the main beneficiary of all these concerns,” they said.

The strategists raised their 2011 forecast to $1,590, from $1,440, their 2012 forecast to $1,650, from $1,325 and long-term real forecast to $1,050 from $950 an ounce.

Still, the kind of gains seen for gold recently are likely to be unsustainable, they said.

“We expect those tensions and concerns to dissipate over time and do not believe that (price-sensitive) jewellery demand will be able to make up for the loss of investment demand once sovereign financial tensions ease,” they added.

Sarah Turner is MarketWatch's bureau chief in Sydney.

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Sauce: Omy


20多名投资者，昨天闹上投资公司，因追讨不回钱，愤怒报警。


20多名投资者，昨天闹上投资公司，因追讨不回钱，愤怒报警。

投资黄金高回报？　120阿嫂疑堕4000万骗案

黄金价格不断飚涨，一群阿嫂投诉堕入黄金投资骗局，受害者多达120个人，被骗金额高达4000万元。

这群阿嫂声称拿出大笔钱给投资公司，以赚取高回报率。不料今年初，公司老板以资金周转不灵，无法支付回报。

其中20名阿嫂在昨天下午，急得闹上公司讨钱，可是她们苦等了4个小时，老板仍不肯出面，她们气得报警。

受访的阿嫂说，公司给予高回报率吸引她们拿出大笔钱投资，她们当中，少则投资几万元，多则投资几十万。

老板说没钱，女友却买公寓；阿嫂投资60万，恐血本无归；以10%高回报，诱更多人投资。完整报道，请翻阅30.08.2011《新明日报》。

Sauce: http://news.omy.sg/News/Local%2BNews/Story/OMYStory201108301540-271914.html

via : http://forums.hardwarezone.com.sg/showthread.php?t=3382210

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The chemical element Au with atomic number 79 "has never been worth zero." King Tutankhamen and the Incas had at least one thing in common - they understood the value and scarcity of gold and used it as a symbol of wealth and power. Nothing has changed since.

Even though gold is no longer used to back currencies like the dollar, it is still stockpiled by countries around the world. Since the price of gold has fluctuated dramatically, the holdings are expressed in metric tons (or tonne = 1000 kg) as documented by the World Gold Council in August 2011. One U.S. ton is approximately 0.9 tonnes. Here's a look at the countries holding the largest gold reserves and the amount of holdings.

United States - 8,133.5
While the U.S. permanently abandoned the gold standard in 1971, it has the largest holdings of any country by a wide margin. While most of the gold is held at Fort Knox in Kentucky, gold is also held by the U.S. Mints in Philadelphia and Denver and several other locations.

Germany - 3,401.0
Germany's central bank, the Deutsche Bundesbank in Frankfurt, is the manager of the country's reserves. However, reports have surfaced that the bulk of Germany's gold is in the physical custody of the New York Federal Reserve. Two years ago, international journalist, Max Keiser received an acknowledgment of these holdings in the U.S. directly from the Bundesbank.

International Monetary Fund (IMF) - 2,846.7
The IMF overseas the economic activity of its 187 member countries around the globe. While its gold policies have changed over time, the reserves are intended to aid national economies and stabilize international markets. Depending on market conditions, it will buy or sell portions of its reserves in support of specific economic initiatives.

Italy - 2,451.8
Italy's reserves are held and managed by the Banca D'Italia. Italy is one of the PIIGS nations (along with Portugal, Ireland, Greece and Spain), all of which are suffering financial woes that threaten the entire eurozone. Parliament approved austerity measures in exchange for financial assistance, but the country is also embroiled in a political crisis that centers on Prime Minister Silvio Berlusconi. In addition to being charged with paying for sex with a minor, his government is under investigation for influence peddling and corruption.

France - 2,435.4
The Banque de France is the central depository for France's gold reserves.

After World War II, the Bretton Woods Agreement established a standard that pegged the dollar at the gold exchange rate of $35 (USD) per ounce. Subsequently, President Charles de Gaulle reduced French dollar reserves by exchanging them for gold from Fort Knox. As a result of this action and other economic considerations, President Richard Nixon ended the convertibility of dollars to gold in 1971.

China - 1,054.1
While the world's most populous country is sixth on the list of total holdings, gold accounts for only 1.6% of China's foreign reserves. It is the largest foreign holder of U.S. Treasuries with a total investment of $1.166 trillion as of June 30, 2011.

China is the world's largest producer of gold and can buy gold from its own mines without reporting those transactions publicly. It has reasons to buy gold off the open market since open market transactions would push the price even higher and devalue its U.S. Treasury holdings.

The Wall Street Journal has reported that China dramatically increased its gold purchases in response to inflation fears. Because of possible stealth transactions, China's total gold holdings and the prices it pays are uncertain.

Switzerland - 1,040.1
Switzerland's seventh place rank on this list is notable considering its economy is the 38th largest and its population is the 95th largest in the world.

The Swiss National Bank is charged with managing the gold reserves and the country's monetary policy.

Russia - 775.2
Russia's gold reserves are in the custody of the Central Bank of the Russian Federation. The country has been on a buying spree, increasing its holdings by 21% in 2009 as it opened several new mines, and another 24% in 2010. The Wall Street Journal has reported that Russia plans to buy an additional 90 tonnes per year to replenish its reserves.

Japan - 765.2
Gold accounts for only 3.3% of Japan's total foreign reserves which are managed by the Bank of Japan.

Netherlands - 615.5
The gold reserves and national finances are managed by the Netherland Bank.

The Bottom line
The biggest holders of gold are governments, central banks and international entities that currently account for 30,500 of the world's estimated 160,000 tonnes. The current rate of new production from mining is about 2,497 tonnes per year. As the price has risen, more mines have become economically feasible to open or reopen.

Gold has gotten much attention lately as the price has risen to new highs, although it is still well below the January 1980 inflation-adjusted high of about $2,400 per ounce. Unlike money, you can't print more gold, so it's likely to continue to be a safe haven investment during uncertain economic times.

Source

via : http://forums.vr-zone.com/chit-chatting/1683405-10-countries-the-largest-gold-reserves.html

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back to sub 1700. (mostly due to the usd up)

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Stocks and euro gain on EFSF deal hopes
By Telis Demos in New York

Gold continues its freefall, despite its supposed role as a beneficiary of broader market volatility. It dropped more than $100 at one point as investors scrambled to liquidate previously winning positions in order to raise funds. Increased margin requirements in the US and China were also exerting selling pressure.

But gold is now down 3.2 per cent to $1,602 an ounce, taking its losses over the past four sessions to 11 per cent. It has shed 16 per cent since hitting its intraday high of $1,920 just three weeks ago. Silver is also under the cosh. The grey metal is down 7 per cent to $30 an ounce, taking its four-day slump to 27 per cent.

The “mint ratio”, which measures the amount of silver needed to purchase an ounce of gold, has surged to 56.8. A low “mint” is seen to illustrate heightened risk appetite and so its move up from the low of 32 hit in March provides another indicator that traders are becoming more wary. Both metals were noticeably lower into the Asian market close, however.

read more from the source : http://www.ft.com/intl/cms/s/0/a234dcf8-e801-11e0-9fc7-00144feab49a.html

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learn something today.

gold fixing.
http://www.lbma.org.uk/pages/index.cfm?page_id=46&title=current_statistics

Current statistics - as at Wed 23 Nov 2011
London Gold Fixing    USD   GBP   EUR
AM   1697.50   1083.903   1253.137
PM   1699.00   1086.873   1257.029

Posted: 15:08 Tue
London Silver Fixing CENTS   PENCE   EUR-CTS
3185.00   2034.360   2350.900
        

Posted: 12:07 Tue
GOFO MEANS
(Gold Forward Rates) 1m   2m   3m   6m   12m
0.57133   0.67333   0.69250   0.72283   0.77000

Posted: 11:04 Tue
SIFO MEANS
(Indicative Silver Forward Mid-Rates) 1m   2m   3m   6m   12m
0.51333   0.48833   0.48833   0.48333   0.44500

Posted: 11:04 Tue

Fixing levels are set per troy ounce. Silver fixing data is in cents and pence per troy ounce. Fixing data courtesy the London Gold Market Fixing Ltd and the London Silver Market Fixing Ltd.

No gold or silver fixings will be held on the days designated as UK bank holidays.

As of 1 September 2008 this page no longer shows BBA LIBOR or figures derived therefrom. LIBOR is available from news services. Gold and silver fixings will be shown as usual. However, the LIBOR data are shown with a 7-day delay on the historic GOFO and SIFO pages.

If you wish to use the gold or silver Fixing prices for commercial purposes, including to incorporate them into commercial products which you intend to market, sell or otherwise provide to third parties, you must pay the required fee and obtain a licence from The London Gold Market Fixing Limited and / or The London Silver Market Fixing Limited as appropriate. See www.goldfixing.com and www.silverfixing.com for full details.

The London Bullion Market Association, The London Gold Market Fixing Limited and The London Silver Market Fixing Limited accept no liability or responsibility for the accuracy of the prices, any underlying product to which the prices may be referenced or otherwise in connection with your reliance on the published prices or their subsequent use.

It has come to our attention that, owing to a system fault, the GOFO and LIBOR rates posted on our website for the 22nd August 2011 were incorrect. These data have now been corrected.

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Singapore seeks gold hub status with tax-free bullion

SINGAPORE - Singapore is seeking to lure bullion refiners by scrapping taxes on gold, a move which could also attract trading houses to open storage facilities and transform the country into a key Asian pricing hub, industry sources said on Monday.

Singapore will exempt investment-grade gold and other precious metals from a seven per cent goods and services tax to spur the development of gold trading, Finance Minister Tharman Shanmugaratnam said on Friday.

The change takes effect in October and may lift demand for gold bars and coins in the fourth quarter and into 2012. Singapore's investment gold demand nearly tripled to 3.5 tonnes in 2011, according to consultancy firm Thomson Reuters GFMS.


"It seems a little unfair to put a sales tax on what is essentially money. The removal of the GST on gold will allow Singapore to better compete with Hong Kong and other bullion trading centres in the region," said Nick Trevethan, a senior commodity strategist at ANZ in Singapore.

Refiners have been put off by Singapore's taxes, opting instead to mould and sell gold bars in Hong Kong, which does not impose duties on bullion, and Japan, where the consumption tax on gold is 5 per cent.

Industry sources, however, said at least one major refiner has shown interest in opening a factory in Singapore around the talk of the tax change. More gold traders are expected to set up offices here and store more bullion, following JP Morgan Chase & Co which opened a precious metals vault in 2010.

"I think this is really going to change the landscape in Singapore. A lot of companies will find the incentive to start operations in Singapore," a gold dealer said.

"This news is going to draw attention to Singapore as a safe place to park funds. Asset managers will also very excited. The trend in the last three years is that people are moving to physical hard assets from paper."

SINGAPORE PRICING CONTRACT

Singapore imports gold bars from Australia, Switzerland, Hong Kong and Japan, which are then sold to buyers in Southeast Asia and India, the world's largest gold consumer.

Gold scraps from the across the region are also traded in Singapore, and this helps determine the premiums for gold bars against prices in London.

Gold, typically a safe-haven asset, has been tracking the fortunes of the euro and stocks in recent months, with speculators selling the metal for cash to cover losses in other markets as the euro zone debt crisis caused much turbulence in financial markets.

Gold stood firm above $1,730 an ounce on hopes for Greece to seal a bailout deal, on course for its biggest daily rise in two weeks. Bullion struck a lifetime high around $1,920 an ounce last September.

"Singapore is already considered a safe destination for cash from investors in the region... and even as far out as the Middle East," an industry source said.

"Having the option of becoming a physical safe haven for assets like gold will only boost overall flows here."

The tax changes could be the first step towards a Singapore gold contract to complement the daily fixing in London, which is widely used as the benchmark spot transaction, analyst Trevethan said.

"There has been a tendency for exchanges to launch more Asia-centric contracts and benchmarks in the past few years, with varying degrees of success," said Trevethan at ANZ.

"An Asian gold fix would be sensible given the nexus of the physical market is centred on India and China, and the early fix from London comes late in the Asian trading day, providing it can attract enough sufficient participants to make it credible."

via : http://www.asiaone.com/Business/News/My+Money/Story/A1Story20120220-329045.html