Friday, May 1, 2009

Today in Gold: Friday, May 1

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:

"PRECIOUS METALS: Comex Gold Dims As Risk Appetite Rises"
Author: Matt Whittaker

Main Points: Gold dropped $3 to finish the week at $888.20 an ounce today. Investors simply have more appetite for risk, and are therefore preferring other high reward options.

Analysis: Gold couldn't sustain $900 an ounce and it couldn't keep any momentum amid swine flu fears. Gold really does appear to be capped since there's not much more that could be thrown at the economy right now (well, it could theoretically always get worse) to provide a better environment for gold. It may again rise above $900 an ounce, but $1,000 an ounce in the near future seems to look less likely by the day.

"Employee accused of stealing up to $12 million in gold"
Author: Edmund DeMarche

Main Points: Teresa Tambunting, 50, of Scarsdale, New York, is accused of stealing as much as $12 Million in gold from Jacmel Jewelry, a Long Island, New York business.

An employee with the company for 28 years, Tambunting had been vault manager since 1991. It is thought that she created pockets in her purse as ways to sneak the gold. It is not known for how long she had been stealing it.

After determining that the vault was missing $12 Million in gold, Tambunting brought a suitcase containing 66 pounds of the metal, worth less than $1 Million. A search of her residence revealed an additional 450 pounds of gold.

Analysis: Not a typical featured article on this blog, but a fascinating story. How long did she have that gold? What did she plan to do with it? It's quite amazing that someone thought that they could get away with $12 Million of gold.

Also a lesson learned by jewelers when it comes to security. Clearly, the controls could have been much tighter. At Cash4Gold, for example, no personal clothing or accessories are allowed within the building. All employees wear smocks, go through metal detectors and security wands upon entrance and exit, and have security guards and cameras watching them at all times.

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