Gold
The gold price dropped from Monday's highs due to profit taking and fell to around USD$1,232 before recovering to $1,242 (bid) / $1,247 (ask) on Friday morning (NZT).
All in all it has been an eventful week with reached on Monday. Typically June and July are slow months due to summer holidays in the northern hemisphere, but weak US data and a continuation of Eurozone debt issues has lead to more activity.
The Bullion Desk said in today's update "Gold prices strongly rebounded during afternoon trade on Thursday, as record high Greek credit-default swaps triggered safe-haven demand, while buying also emerged for exchange-traded funds based in Switzerland, traders said."
The Inflation Debate
"The gold market was partially supported off the Fed's widely expected promise to leave US interest rates low for an extended period of time. However, gold was also somewhat undermined by suggestions that the Fed was a little more guarded on the track of the US economy," said Nell Sloane at NS Futures. "In the near term, the gold trade will probably continue to focus on the debate over the direction of the global economy and the prospect of deflation or inflation," Sloane said, adding that resistance stood at $1,259.20 and support at $1,214.90 per ounce.
There are countless discussions going on about inflation, hyperinflation, deflation and stagflation but we found this interesting article about hyperinflation that we thought you might like.
Currency
Yesterday the NZD/USD reached a 6 week high of 0.7161 and is currently sitting around 0.7020 (ask) and 0.7125 (bid). This small decline is due to a combination of risk aversion and profit taking.
NZD Gold
Currently gold is sitting around NZD$1,740 (bid) and NZD$1,777 (ask).
Showing posts with label Gold. Show all posts
Showing posts with label Gold. Show all posts
Friday, 25 June 2010
Monday, 21 June 2010
Gold hits fresh highs in USD, unchanged in NZD
Gold
Gold has been on upward trajectory since last week and Friday's close of the New York market saw prices up at USD$1,256.60 after hitting a high of USD1,262.70 earlier in the session. After some turbulence this morning (New Zealand time) the USD spot price seems to be holding steady around $1,257 (bid) and $1,262 (ask).
Sitting steadily above $1,250, gold looks set to challenge $1,280 and $1,300. In fact, Standard Chartered Bank expects gold to average $1,300 in Q3 of this year and $1,400 in Q4.
So why the climb?
There are several reasons why gold keeps climbing. Recent data out of the US has been poor, including jobless claims. Combine this with the enduring rumours that Spain will be the next to ask for a bailout, concerns about spread of debt in the eurozone and signs of inflation in emerging markets.
But the major influence has been the announcement that the EU will stress test its largest banks.
"Some of the rationale to take gold prices higher was provided by news that the EU planned to stress-test 25 of its largest banks under a scenario of slowing economic growth and elevated stress in sovereign debt holdings," said analyst James Steel at HSBC.
If any of Europe’s major banks do not pass the stress test, the ensuing flight to safety could push gold prices even higher, while physical demand remains strong, Steel said.
Gold has been on upward trajectory since last week and Friday's close of the New York market saw prices up at USD$1,256.60 after hitting a high of USD1,262.70 earlier in the session. After some turbulence this morning (New Zealand time) the USD spot price seems to be holding steady around $1,257 (bid) and $1,262 (ask).
Sitting steadily above $1,250, gold looks set to challenge $1,280 and $1,300. In fact, Standard Chartered Bank expects gold to average $1,300 in Q3 of this year and $1,400 in Q4.
So why the climb?
There are several reasons why gold keeps climbing. Recent data out of the US has been poor, including jobless claims. Combine this with the enduring rumours that Spain will be the next to ask for a bailout, concerns about spread of debt in the eurozone and signs of inflation in emerging markets.
But the major influence has been the announcement that the EU will stress test its largest banks.
"Some of the rationale to take gold prices higher was provided by news that the EU planned to stress-test 25 of its largest banks under a scenario of slowing economic growth and elevated stress in sovereign debt holdings," said analyst James Steel at HSBC.
If any of Europe’s major banks do not pass the stress test, the ensuing flight to safety could push gold prices even higher, while physical demand remains strong, Steel said.
Currency
The New Zealand dollar has crept still higher over the weekend, currently sitting around 0.7067 (bid) and 0.7175 (ask).
The big story in currency over the coming weeks will be China's decision to allow the yuan more flexibility. While a number of governments internationally, including the US have been asking for this for some time, in the short term, the result may not be as anticipated. If the Euro continues to fall against the USD, the yuan could actually depreciate. See the full story here China forex move could thwart U.S. hopes
NZD Gold
Again NZD gold is relatively static, with spot prices at NZD$1,755 (bid) and NZD$1,787 (ask), with the NZDUSD exchange rates offsetting another strongincrease in USD gold. This stabilises the price in NZD over the past week, due to currency strengthening along with gold prices.
Friday, 18 June 2010
No change in local gold price, despite USD$10 rise
Gold
"We are getting close to month- and quarter-end, so I would think if not this Friday then next Friday we will see some real action," a Swiss trader said. As well, lingering doubts over the health of the eurozone, combined with end-of-week book-squaring, could add to upside pressure.
The data put a halt to a rally on Wall Street, weakened the dollar and led to a run on gold.
Currency
With a softening of the USD against the kiwi on the back of jobless claims, the NZD is sitting around .7086, which is a .5c improvement on Wednesday's figure.
NZD Gold
Gold in NZD is currently sitting around NZD$1785, which is little change from Wednesday's price, despite a jump in USD gold. An improvement in the NZD has meant that despite a USD$25 improvement in gold prices, NZD gold is actually NZD$10 less than a week ago.
Gold surged to multi-week highs during Thursday night trading, as poor US data and continued economic uncertainty sparked safe-haven buying, sparking gold to a run towards fresh record highs. Currently sitting fairly steadily around USD$1248, the price briefly edged up to USD$1251.30 at one stage. This isn't far off the high of $1252.30 we saw on June 8th.
"We are getting close to month- and quarter-end, so I would think if not this Friday then next Friday we will see some real action," a Swiss trader said. As well, lingering doubts over the health of the eurozone, combined with end-of-week book-squaring, could add to upside pressure.
The concerns in the market are still Greece and US jobless figures. Most recently t
he US Labor Department reported weekly jobless claims rose 12,000 to 472,000 when a drop of 8,000 to 452,000 had been expected, and the Philly Fed’s index showed manufacturing growth slowed down considerably in June.The data put a halt to a rally on Wall Street, weakened the dollar and led to a run on gold.
Currency
With a softening of the USD against the kiwi on the back of jobless claims, the NZD is sitting around .7086, which is a .5c improvement on Wednesday's figure.
NZD Gold
Gold in NZD is currently sitting around NZD$1785, which is little change from Wednesday's price, despite a jump in USD gold. An improvement in the NZD has meant that despite a USD$25 improvement in gold prices, NZD gold is actually NZD$10 less than a week ago.
Monday, 14 June 2010
NZ dollar up above 0.69
Gold
Gold closed higher over the weekend, and has again pushed higher on Asian trading this morning. Closing at USD$1225 on Friday it has pushed through to USD$1235 on short covering and continued aversion to risk.
Traditionally gold is quieter in June and July during the summer holiday period in the US. Combine this with the DuanWu holiday (also known as the Dragonboat Festival) throughout China and SE Asia and we may see weak movement in the gold prices until Thursday when Asian countries comes back from holiday.
Currency
The NZD increased against the USD at the end of the week, increasing from around 0.65 back up to 0.69, partially due to the increase in the OCR rate, and more confidence in the riskier markets - making the NZD$ more attractive to FX investors again.
NZD Gold
Interesting articles
Gold closed higher over the weekend, and has again pushed higher on Asian trading this morning. Closing at USD$1225 on Friday it has pushed through to USD$1235 on short covering and continued aversion to risk.
Traditionally gold is quieter in June and July during the summer holiday period in the US. Combine this with the DuanWu holiday (also known as the Dragonboat Festival) throughout China and SE Asia and we may see weak movement in the gold prices until Thursday when Asian countries comes back from holiday.
Currency
The NZD increased against the USD at the end of the week, increasing from around 0.65 back up to 0.69, partially due to the increase in the OCR rate, and more confidence in the riskier markets - making the NZD$ more attractive to FX investors again.
NZD Gold
Despite a USD$15 rise in the gold price since Friday's update, NZD gold is only up $4 to $1800 on a stronger kiwi dollar.
Interesting articles
Wednesday, 9 June 2010
Update 9 June 2010
Gold
Spot gold rose to a lifetime peak of $1,252.30 per ounce overnight as poor European economic releases compounded already fragile investor mood before settling back despite another brief run-up to $1,245.20/1,246, still up $5.30 from the previous session.
Last time we provided an update the gold price was at USD$1208, so why the big change? Firstly, there was a large upward swing late Friday (Saturday New Zealand time) due to poor jobs figures in the US, which sent the dow tumbling and gold right up. Secondly, the European debt crisis seems to be getting worse, not better, with Hungary joining the list of possible defaults.
Analyst Walter de Wet of Standard Bank commented "While we could see some profit-taking, especially in the physical market as gold targets new highs, we do not expect a steep decline in the gold price as we did in May," he added. "Globally risk remains high, and gold and the dollar are reaping the benefits."
Spot gold rose to a lifetime peak of $1,252.30 per ounce overnight as poor European economic releases compounded already fragile investor mood before settling back despite another brief run-up to $1,245.20/1,246, still up $5.30 from the previous session.
Last time we provided an update the gold price was at USD$1208, so why the big change? Firstly, there was a large upward swing late Friday (Saturday New Zealand time) due to poor jobs figures in the US, which sent the dow tumbling and gold right up. Secondly, the European debt crisis seems to be getting worse, not better, with Hungary joining the list of possible defaults.
Analyst Walter de Wet of Standard Bank commented "While we could see some profit-taking, especially in the physical market as gold targets new highs, we do not expect a steep decline in the gold price as we did in May," he added. "Globally risk remains high, and gold and the dollar are reaping the benefits."
Gold also set new lifetime highs across a multitude of currencies as risk aversion surged, including Canadian dollars, the yuan, Swiss francs, sterling and the euro, while also setting multi-month peaks in Australian dollars and rupees.
Currency
The New Zealand dollar has dropped from last week's 0.68 and has been trading at around 0.66 for much of this week. Tomorrow all eyes will be on the Reserve Bank as the decision on whether or not the raise the OCR is made.
NZD Gold
Spot gold in is up around NZD$1885, which is a $120 increase on the price given in last Friday's update. This is however is still a way off the NZD$1950 we saw in February of last year when the dollar was around USD$0.50
Friday, 10 August 2007
Gold Price info - week ending 10 August
“Risk reduction” is the catch phrase of the month.
Once again the sub-prime lending market and credit worries are leading the markets.
What we are seeing beginning to happen is a reduction in risk, coupled with a draw back in expenditure in an effort to secure existing lending and risk ventures.
What is the impact of this? A tightening of funding, a move from riskier investments and further investment in safe-haven products.
Short term: We’ve seen a lot of selling of gold in the past 24 hours as a move to get cash to help shore up unsecured investment. What we are waiting to see if this will then increase the buying as the price decreases (One of the many interesting things about gold – as the price decreases the demand then increases by bargain hunters buying, thus pushing the price back up).
Medium term: the move to safe haven investments will also mean a move to commodities like gold and silver, historically seen as the safe haven of investment practices, and we would expect to see a move up in the prices of precious metals.
The other major news in the gold world is the selling off of large volumes by the European Central Banks.
Central banks may be selling gold reserves to push down the price and calm investors, said James Turk, founder of GoldMoney.com, which manages $191 million of investments in gold and silver. "A rising gold price warns of troubles ahead," Turk said. "That's why central banks are capping the price of gold."
The Bank of Spain sold 25 metric tons of gold in July. It has sold a total of 149 tons in the third year of the Central Bank Gold Agreement, London-based research firm GFMS Ltd estimates. Spain sold 30 tonnes in the first year and 62.5 tonnes in the second year. Under the accord, banks in Europe can sell as much as 500 metric tonnes a year. The ECB said on Aug. 7 that one member bank sold gold worth 29 million euros the previous week after member banks sold 483 million euros worth in the preceding two weeks. The banks had reported selling 294 tons as of June 12, according to the producer-funded World Gold Council. The banks sold 497 tons in the first year and 396 tons in the second year of the five-year accord. The terms of the accord mean that the yearly gold sales will finish in September. Once the sales stop Switzerland has announced they would like to sell 250 tonnes yet, but they have declared that they will organise their sell off over a period of time to reduce the effect on the market.
The phrase “May you live in interesting times” (which is not a Chinese proverb by the way) is certainly apt at the moment.
NZD$: the New Zealand dollar is starting to slide against the US dollar as US treasury bonds pick up in the current climate, and with the oil price decreasing on Thursday night we’ve seen a lot of the earlier weeks gains and stability removed. The question is: How long will this last? It is not expected the Kiwi dollar will remain high, but it is worth noting that since we’ve dropped from the 81c high the price of gold locally has increased to over NZD$900 again.
Important gold news: Seeing that gold is an inert substance, its one of the few metals you can safely eat: Tasting evening presents 24-carat gold food
Or wear? (GBP140, 000 for a dress? Belongs with the handbag from the other week!! )
Once again the sub-prime lending market and credit worries are leading the markets.
What we are seeing beginning to happen is a reduction in risk, coupled with a draw back in expenditure in an effort to secure existing lending and risk ventures.
What is the impact of this? A tightening of funding, a move from riskier investments and further investment in safe-haven products.
Short term: We’ve seen a lot of selling of gold in the past 24 hours as a move to get cash to help shore up unsecured investment. What we are waiting to see if this will then increase the buying as the price decreases (One of the many interesting things about gold – as the price decreases the demand then increases by bargain hunters buying, thus pushing the price back up).
Medium term: the move to safe haven investments will also mean a move to commodities like gold and silver, historically seen as the safe haven of investment practices, and we would expect to see a move up in the prices of precious metals.
The other major news in the gold world is the selling off of large volumes by the European Central Banks.
Central banks may be selling gold reserves to push down the price and calm investors, said James Turk, founder of GoldMoney.com, which manages $191 million of investments in gold and silver. "A rising gold price warns of troubles ahead," Turk said. "That's why central banks are capping the price of gold."
The Bank of Spain sold 25 metric tons of gold in July. It has sold a total of 149 tons in the third year of the Central Bank Gold Agreement, London-based research firm GFMS Ltd estimates. Spain sold 30 tonnes in the first year and 62.5 tonnes in the second year. Under the accord, banks in Europe can sell as much as 500 metric tonnes a year. The ECB said on Aug. 7 that one member bank sold gold worth 29 million euros the previous week after member banks sold 483 million euros worth in the preceding two weeks. The banks had reported selling 294 tons as of June 12, according to the producer-funded World Gold Council. The banks sold 497 tons in the first year and 396 tons in the second year of the five-year accord. The terms of the accord mean that the yearly gold sales will finish in September. Once the sales stop Switzerland has announced they would like to sell 250 tonnes yet, but they have declared that they will organise their sell off over a period of time to reduce the effect on the market.
The phrase “May you live in interesting times” (which is not a Chinese proverb by the way) is certainly apt at the moment.
NZD$: the New Zealand dollar is starting to slide against the US dollar as US treasury bonds pick up in the current climate, and with the oil price decreasing on Thursday night we’ve seen a lot of the earlier weeks gains and stability removed. The question is: How long will this last? It is not expected the Kiwi dollar will remain high, but it is worth noting that since we’ve dropped from the 81c high the price of gold locally has increased to over NZD$900 again.
Important gold news: Seeing that gold is an inert substance, its one of the few metals you can safely eat: Tasting evening presents 24-carat gold food
Or wear? (GBP140, 000 for a dress? Belongs with the handbag from the other week!! )
Friday, 6 July 2007
Gold price info - week ending July 6
Gold spot price ranges
USD: 657 – 647.00
NZD: 827.00 – 844.00
NZDUSD: .7870- .7760
A steady week for gold. We are seeing a compressed price range, with the main emphasis being on expectation of growth rather than immediate rises.
A stronger US dollar has seen downward pressure on gold; this can be seen by the drop below $650 and recovery after the July 4th holiday period.
The NZD again is the major player in the local market, with no sign of the Reserve bank intervening despite the 78c mark being reached. We have calculated that if you took the exchange rate back 1year ( .6300 ) you would expect to see a 22% increase on today’s price. A great argument for hedging!
Newmont mines announced this morning that they had scrapped their entire 1.85million oz gold hedge position. This is expected to push prices up, but appears to be still being digested by the markets. Watch this space.
Once again oil is hitting the headlines, this time because of the issues in Nigeria, including a series of kidnappings of oil workers, which coupled with the gasoline stock issues in the US and the continuing problems in the gulf; we are starting to see the oil prices creep upwards, which in turn adds impetus to the upward gold price.
Again the over all consensus is a period of consolidation prior to more upward growth for the bullion market.
Reefton gold mine opening
Don’t throw away your cell phone – $340 million worth of gold in them.
USD: 657 – 647.00
NZD: 827.00 – 844.00
NZDUSD: .7870- .7760
A steady week for gold. We are seeing a compressed price range, with the main emphasis being on expectation of growth rather than immediate rises.
A stronger US dollar has seen downward pressure on gold; this can be seen by the drop below $650 and recovery after the July 4th holiday period.
The NZD again is the major player in the local market, with no sign of the Reserve bank intervening despite the 78c mark being reached. We have calculated that if you took the exchange rate back 1year ( .6300 ) you would expect to see a 22% increase on today’s price. A great argument for hedging!
Newmont mines announced this morning that they had scrapped their entire 1.85million oz gold hedge position. This is expected to push prices up, but appears to be still being digested by the markets. Watch this space.
Once again oil is hitting the headlines, this time because of the issues in Nigeria, including a series of kidnappings of oil workers, which coupled with the gasoline stock issues in the US and the continuing problems in the gulf; we are starting to see the oil prices creep upwards, which in turn adds impetus to the upward gold price.
Again the over all consensus is a period of consolidation prior to more upward growth for the bullion market.
Reefton gold mine opening
Don’t throw away your cell phone – $340 million worth of gold in them.
Friday, 1 June 2007
Gold price info - week ending June 1
Weekly overview - still positive medium and long term
Gold Spot price ranges:
USD: 652- 665
NZD: 893 - 907
NZDUSD: 0.7250 - 0.7330
Current influences on price:
A strong rally in pricing by gold and silver at the end of the week, primarily due to weak US economic data, GDP at 0.6%
Positive US Economic data being released this week has kept the price of Gold subdued, with the expectation of the US dollar strengthening keeping the Gold price in the low $650’s. Oil prices are also subdued, again not pushing the prices forward, however as mentioned last week the gasoline prices in the US are at record highs and climbing. Despite this gold has finished on upbeat notes several times this week, once again reaffirming the long term belief in Gold as an investment for the future.
The price of Gold has leapt from an average of $300 in 2002 to around $660 currently and isn’t expected to decline. Rob Mcewen, Chairman and CEO of US Gold, talking to Timesnow.com said: “I see it going much higher. It reached its floor at $250 in 1999 and 2001. I think it's moving in 3 stages. The first stage we have already completed where it went from $250-$440 by the end of '04. Right now i think it's in a stage going from $440-$850 testing the old highs by the end of '08 and then '09, '10 it is going significantly higher 2,000-5,000 dollars an ounce."
Gold sales in China increased by 15% to $87 Billion in April.
Record numbers of American Eagle and Gold Kiwi gold coins are being snapped up by investors across the world. This is due to the coins having a high gold content and investors are specifically looking to purchase gold coins in order to acquire a secure investment so that currency fluctuations are offset. This is also the finding at New Zealand Mint, with the Gold Kiwi coins being the general preference of investors, as the .9999 Gold coins are GST free, and a sound base to a solid portfolio. DeMeritt of Lear Financial, the parent company of Gold Central, stated: "This is the best way for the small investor to enter the gold market with an investment in gold coins."
Currency news
Late flurry of news released at the end of the week, primarily the US GDP at 0.6% down from 1.3% (and the expected 0.8%). This means once again, that the NZDUSD exchange rate is back over the 73c mark, and is holding strongly. This is good news for bullion investors as this means the price of Gold in New Zealand is being held lower than against offshore currencies.
Mining news
South African gold production fell by 7.6% to 62,806 kilograms (2,019,276 troy ounces) in first quarter 2007 compared to first quarter 2006 as grades mined in the quarter declined by an average of 12.9%.
About 8% of production came from marginal mines, the SA Chamber of Mines said in a statement.
This is backed up by an industry insider predicting that China will become the largest gold producer in the world by 2010, according to Interfax-China.
According to the news source, the editor of gold investment report Goldletter International, Morino G Pieterse, made the comment at the Western China Mining Summit 2007 in Chengdu.
Mr Pieterse pointed to the fact that between 1997 and 2006 production of gold in China increased by 162.8 tonnes to 247.2 tonnes.
"China's gold output surpassed Australia's last year, is due to surpass US production this year and will surpass South African production within two years," Mr Pieterse told the news source.
He also noted that while gold production in traditional producing countries such as South Africa has declined over recent years, output from emerging gold producing countries has increased from 17.7 per cent of global production to 29.8 per cent in the last ten years
Closer to home, the owners of Solomon Islands' only gold mine say their operation will begin gold production in June 2008, eight years after it was shut down by militant fighting. During its one year of operation between 1999 and 2000, Gold Ridge Mine produced 30 per cent of Solomon Islands GDP. Gold Ridge Mine manager, Val Buenic, says the new operation will be 30 per cent larger than before.
Mr Buenic says the operation will employ between 400 to 500 locals and will be on a larger scale than the previous operation."The project should be in production on 30th June 2008," he said."We're a year away from pouring our first gold. "The stage of the project right now is we're refurbishing the accommodation village on the site ... we're about to begin two new relocation villages for the landowners."
Interesting story of the week:
Thieves steal an 80kg $1,000,000 gold bathtub from the men's bathroom of a Tokyo hotel. The odd news is the ladies bath is still there.
Stolen Golden Bathtub
Gold Spot price ranges:
USD: 652- 665
NZD: 893 - 907
NZDUSD: 0.7250 - 0.7330
Current influences on price:
A strong rally in pricing by gold and silver at the end of the week, primarily due to weak US economic data, GDP at 0.6%
Positive US Economic data being released this week has kept the price of Gold subdued, with the expectation of the US dollar strengthening keeping the Gold price in the low $650’s. Oil prices are also subdued, again not pushing the prices forward, however as mentioned last week the gasoline prices in the US are at record highs and climbing. Despite this gold has finished on upbeat notes several times this week, once again reaffirming the long term belief in Gold as an investment for the future.
The price of Gold has leapt from an average of $300 in 2002 to around $660 currently and isn’t expected to decline. Rob Mcewen, Chairman and CEO of US Gold, talking to Timesnow.com said: “I see it going much higher. It reached its floor at $250 in 1999 and 2001. I think it's moving in 3 stages. The first stage we have already completed where it went from $250-$440 by the end of '04. Right now i think it's in a stage going from $440-$850 testing the old highs by the end of '08 and then '09, '10 it is going significantly higher 2,000-5,000 dollars an ounce."
Gold sales in China increased by 15% to $87 Billion in April.
Record numbers of American Eagle and Gold Kiwi gold coins are being snapped up by investors across the world. This is due to the coins having a high gold content and investors are specifically looking to purchase gold coins in order to acquire a secure investment so that currency fluctuations are offset. This is also the finding at New Zealand Mint, with the Gold Kiwi coins being the general preference of investors, as the .9999 Gold coins are GST free, and a sound base to a solid portfolio. DeMeritt of Lear Financial, the parent company of Gold Central, stated: "This is the best way for the small investor to enter the gold market with an investment in gold coins."
Currency news
Late flurry of news released at the end of the week, primarily the US GDP at 0.6% down from 1.3% (and the expected 0.8%). This means once again, that the NZDUSD exchange rate is back over the 73c mark, and is holding strongly. This is good news for bullion investors as this means the price of Gold in New Zealand is being held lower than against offshore currencies.
Mining news
South African gold production fell by 7.6% to 62,806 kilograms (2,019,276 troy ounces) in first quarter 2007 compared to first quarter 2006 as grades mined in the quarter declined by an average of 12.9%.
About 8% of production came from marginal mines, the SA Chamber of Mines said in a statement.
This is backed up by an industry insider predicting that China will become the largest gold producer in the world by 2010, according to Interfax-China.
According to the news source, the editor of gold investment report Goldletter International, Morino G Pieterse, made the comment at the Western China Mining Summit 2007 in Chengdu.
Mr Pieterse pointed to the fact that between 1997 and 2006 production of gold in China increased by 162.8 tonnes to 247.2 tonnes.
"China's gold output surpassed Australia's last year, is due to surpass US production this year and will surpass South African production within two years," Mr Pieterse told the news source.
He also noted that while gold production in traditional producing countries such as South Africa has declined over recent years, output from emerging gold producing countries has increased from 17.7 per cent of global production to 29.8 per cent in the last ten years
Closer to home, the owners of Solomon Islands' only gold mine say their operation will begin gold production in June 2008, eight years after it was shut down by militant fighting. During its one year of operation between 1999 and 2000, Gold Ridge Mine produced 30 per cent of Solomon Islands GDP. Gold Ridge Mine manager, Val Buenic, says the new operation will be 30 per cent larger than before.
Mr Buenic says the operation will employ between 400 to 500 locals and will be on a larger scale than the previous operation."The project should be in production on 30th June 2008," he said."We're a year away from pouring our first gold. "The stage of the project right now is we're refurbishing the accommodation village on the site ... we're about to begin two new relocation villages for the landowners."
Interesting story of the week:
Thieves steal an 80kg $1,000,000 gold bathtub from the men's bathroom of a Tokyo hotel. The odd news is the ladies bath is still there.
Stolen Golden Bathtub
Thursday, 24 May 2007
Gold price information - week ending May 25
Weekly overview - still positive medium and long term
Gold Spot price ranges:
USD: 653.85 - 674.30
NZD: 914.72 - 900.10
NZDUSD: 0.7315 - 0.7239
Asian Markets:
Gold hoarding is becoming common in India, but even more so in China where gold purchases were around 270 tonnes in 2006 and spending on gold for investment and jewellery is stronger than ever before.
The Year of the Gold Pig has had an impact on demand as it is an auspicious year to buy Gold. This has resulted in a 27% year on year rise in consumption of gold jewellery.
The World Gold Council - WGC- has announced Q1 Jewellery spending increased to US$12bn, 38% up on last year.
Currencies:
USD vs. EUR A weaker USD against the EUR is helping to push the gold price higher as investors move away from the US dollar again. Higher oil prices are helping to subdue the USD.
USD vs. NZD NZDUSD has dropped below the .73 mark, good US economy data being released is helping to keep the NZD down. With the lower NZD this is helping to keep the gold price stable, with any drop in price being flattened out with a reduction in the exchange rate. Should the gold price increase or the exchange rate drop further we would expect to see a healthy increase in the NZD gold price.
Gas prices in US - New record reached this week - Highest ever Gas price in the US - $3.20/gallon, this is higher than the inflation adjusted price during the oil crisis of the 70s. This is expected to increase due to the lower than normal levels due to reduced refinery output.
Interesting news of the week:
A shipwreck has been found with 500,000 silver coins an estimated value of around $500m. So far the sites of the wreck (possibly off the Scilly Isles) or the name of the wreck haven’t been released, but the news of the "Black Swan" has caused quite a stir. For interesting reading have a look here - The Black Swan
Thanks for reading, have a great week.
Gold Spot price ranges:
USD: 653.85 - 674.30
NZD: 914.72 - 900.10
NZDUSD: 0.7315 - 0.7239
Current influences on price:
A lack of exploration spending and the failure to discover any significant sized deposit is helping to keep prices buoyant Ian Cockerill CEO of Gold Fields Ltd (Worlds 4th largest mining company) told Reuters
Current annual consumption is around 85 million ounces per year, but this is not being replaced by the mining industries.
According to Cockerill: "Gold has in the past decade become the barometer of the geo-political state of the globe. With the increasing hostilities over the last 10 years, we have seen sentiment come under gold from the prices of around US$200/oz In November 200 to the current range of US$600-$700 an ounce. "
Prices are currently being suppressed due to large amounts of selling by the Central Banks with around 120 tonnes being sold in the last 10 weeks. Once these sales are finished it is expected that the gold price will increase.
Base metal prices dropped significantly late last week and early this week, which had an impact on the precious metals markets, bringing the gold price down temporarily.
Asian Markets:
Gold hoarding is becoming common in India, but even more so in China where gold purchases were around 270 tonnes in 2006 and spending on gold for investment and jewellery is stronger than ever before.
The Year of the Gold Pig has had an impact on demand as it is an auspicious year to buy Gold. This has resulted in a 27% year on year rise in consumption of gold jewellery.
The World Gold Council - WGC- has announced Q1 Jewellery spending increased to US$12bn, 38% up on last year.
Currencies:
USD vs. EUR A weaker USD against the EUR is helping to push the gold price higher as investors move away from the US dollar again. Higher oil prices are helping to subdue the USD.
USD vs. NZD NZDUSD has dropped below the .73 mark, good US economy data being released is helping to keep the NZD down. With the lower NZD this is helping to keep the gold price stable, with any drop in price being flattened out with a reduction in the exchange rate. Should the gold price increase or the exchange rate drop further we would expect to see a healthy increase in the NZD gold price.
Gas prices in US - New record reached this week - Highest ever Gas price in the US - $3.20/gallon, this is higher than the inflation adjusted price during the oil crisis of the 70s. This is expected to increase due to the lower than normal levels due to reduced refinery output.
Interesting news of the week:
A shipwreck has been found with 500,000 silver coins an estimated value of around $500m. So far the sites of the wreck (possibly off the Scilly Isles) or the name of the wreck haven’t been released, but the news of the "Black Swan" has caused quite a stir. For interesting reading have a look here - The Black Swan
Thanks for reading, have a great week.
Friday, 18 May 2007
Gold price information - week ending May 18
Welcome to the New Zealand Mint blog. We’ll be posting weekly updates on gold prices and the factors influencing them.
This week:
Weekly overview: A positive outlook - good time to buy, good time to hold.
Current influences on the price:
The NZ dollar remains high against the US. While normally the NZ dollar drops when the US dollar drops, Australian and Japanese investors are investing in New Zealand, maintaining the high rate versus the US.
This is good news for New Zealanders looking to invest in gold as gold prices are quoted in US dollars.
US interest rates are being held at 5.25%, and this has removed some strength from the exchange rate, but investors are now reacting to Bank of England rate rise of 0.25% and Euro central bank indication that there will be a rate rise there in June. This will further act in favour of the NZ dollar.
It’s also important to note that the US trade deficit has increased again - $6.2Bn since February with major companies like Wal-Mart posting their worst sales month ever. This would anticipate a further weakening in the US dollar going forward.
Oil Inventories in the US - A large rise in US oil inventories has led to reduction in investments by funds wanting to mitigate risk in the US. This has removed some of the impetus behind the Gold price. It is still rising, but not as quickly as it was. The US$700 level is still to be broken.
Interesting upcoming news – A predicted bad hurricane season for the Gulf coast of the US will have an impact on the US oil reserves – meaning many will head to gold as a hedge.
Demand for gold from the Jewellery industry is currently subdued, but is expected to pick up again when the Jewellery season begins. This will increase the price as the Jewellery sector currently uses around 80% of the gold mined each year.
Also worth noting: The Bank of Spain sold 80 tonnes (2.6 Million ounces!) of Gold in March and April which, with the increased supply, is helping to keep the price subdued in the short term. Current expectation is for a very strong medium term.
South African Gold output dropped by 10% year on year for March.
The weekly Spot range - Monday through Friday: High $NZD909 Low NZD$899.
Thanks for reading. If you have any questions, please email me Michael (at) newzealandmint.com.
This week:
Weekly overview: A positive outlook - good time to buy, good time to hold.
Current influences on the price:
The NZ dollar remains high against the US. While normally the NZ dollar drops when the US dollar drops, Australian and Japanese investors are investing in New Zealand, maintaining the high rate versus the US.
This is good news for New Zealanders looking to invest in gold as gold prices are quoted in US dollars.
US interest rates are being held at 5.25%, and this has removed some strength from the exchange rate, but investors are now reacting to Bank of England rate rise of 0.25% and Euro central bank indication that there will be a rate rise there in June. This will further act in favour of the NZ dollar.
It’s also important to note that the US trade deficit has increased again - $6.2Bn since February with major companies like Wal-Mart posting their worst sales month ever. This would anticipate a further weakening in the US dollar going forward.
Oil Inventories in the US - A large rise in US oil inventories has led to reduction in investments by funds wanting to mitigate risk in the US. This has removed some of the impetus behind the Gold price. It is still rising, but not as quickly as it was. The US$700 level is still to be broken.
Interesting upcoming news – A predicted bad hurricane season for the Gulf coast of the US will have an impact on the US oil reserves – meaning many will head to gold as a hedge.
Demand for gold from the Jewellery industry is currently subdued, but is expected to pick up again when the Jewellery season begins. This will increase the price as the Jewellery sector currently uses around 80% of the gold mined each year.
Also worth noting: The Bank of Spain sold 80 tonnes (2.6 Million ounces!) of Gold in March and April which, with the increased supply, is helping to keep the price subdued in the short term. Current expectation is for a very strong medium term.
South African Gold output dropped by 10% year on year for March.
The weekly Spot range - Monday through Friday: High $NZD909 Low NZD$899.
Thanks for reading. If you have any questions, please email me Michael (at) newzealandmint.com.
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