Each weekday, Cash4Gold will troll through the web's gold banter and post some of the bigger or more interesting stories. Following is a run-down of today's features:
"New Gold Rush"
Author: Carol Costello (video)
Website: www.CNN.com
Main Points: A couple of Cash4Gold commercials launch this CNN story about the increased popularity of selling gold -- and the resultant rise of the gold buying market. It's an interesting review of why people use the services, what people are selling, and how the business works.
Analysis: Times are tough, which creates a need for gold buyers. People are selling broken and unwanted jewelry and other gold items because they can get money -- and sometimes a substantial amount -- for something they no longer use to help pay for the bills. One of the items this story discussed was gold teeth. These were popular in the '80s, and now people are having them removed to get paid for the gold.
"Gold firm on currency fears, rising demand"
Author: Frank Tang and Paul Lauener
Website: www.Reuters.com
Main Points: Gold futures for April delivery rose $6.10 to finish at $930.10 on Friday on the heels of a weaker dollar. The US dollar fell to a 2 1/2 week low against the Euro.
Concerns about impending inflation also seemed to drive the price of gold. "Gold can go over $1,000 when we start getting inflation, which is going to be inevitable here," said Zachary Oxman, senior trader at Wisdom Financial.
Analysis: It was interesting how gold's rise a few weeks ago stopped once it eclipsed $1,000 an ounce; then, following a consistent downward trend, gold rebounded after briefly dropping below $900 an ounce. While the price of gold was slightly down overall for the week, things have seemed to balanced out for the time being.
"World mints report soaring demand for gold coins"
Author: Jan Harvey, Frank Tang, James Macharia, Cameron French, Adrian Bathgate, Gus Trompiz
Website: www.Reuters.com
Main Points: Gold's appeal isn't only reflected on Wall Street, but in booming business in the minting industry. Demand for gold coins has soared along with the spot price.
The Royal Canadian Mint says it quadrupled its production capacity late last year. The US Mint said sales of its American Eagle gold coins jumped to 710,000 ounces in 2008 from 140,000 in 2007. The French Mint says that sales doubled in 2008 and are expected to rise another 50% this year.
Analysis: The gold dynamic -- opposites, depending upon the industry -- is interesting. Gold as an investment or collectible continues to be appealing. On the flip side, jewelery retailers and manufacturers are struggling as the demand for their product during tough economic times has dropped.
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