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:
"Gold falls as stocks stage early rally"
Author: Sara Lepro
Website: Google.com
Main Points: After settling a tick above $900 an ounce yesterday, gold for June delivery dropped below the threshold today to finish at $891.20.
Gold and the dollar rallied today following a positive labor market report. The rally pulled back some amid the Chrysler bankruptcy announcement.
Gold has been stuck in a range between $870 and $915 an ounce for several weeks largely, according to George Gero, Vice President of RBC Capital Markets Global Futures, due to investor confusion.
"(Gold) is range bound because it seems that the stock market and the financials are just as range bound," he said. "You have a couple of down days and a couple of up days and the result is that investors are confused. And where there is confusion, people tend to sell rather than buy."
Analysis: Investors, though clearly confused on a day-to-day basis, do see hope. And when the market is already apparently near bottom, any glimmer of hope is a sign to buy -- because if you buy now while at the bottom, the profits will be significant throughout the rebound. This optimism, of course, does not help the value of gold.
Thursday, April 30, 2009
Wednesday, April 29, 2009
Today in Gold: Wednesday, April 29
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:
"Gold prices rebound as dollar falls, stocks soar"
Author: Sara Lepro
Website: Google.com
Main Points: Gold is up $6.90 to finish today at $900.50 an ounce. The rally back over $900 is thought to be driven by a weakened dollar and fears associated with the swine flu.
Analysis: This is why yesterday's results are so curious. There were also fears of the swine flu yesterday, yet the price dropped nearly $15 by Tuesday's close. Make no mistake, the main driving factor here is the strength of the dollar, which rather consistently has an inverse relation to the price of gold.
"Flu New Threat to Global Finance"
Author: Rob Cox and John Foley
Website: NYTimes.com
Main Points: In 2003, the SARS health scare impacted the tourism business, but the economy overall could sustain it. This year, such a panic as a result of the swine flu could cause significant problems for a fragile world economy that already has cracks in its foundation.
The industries already suffering have a new problem on their collective plate. Any industry dependent on trade, transportation, tourism and lodging is taking yet another shot to the ribs.
Analysis: How does all of this have anything to do with gold? Poor economic times help the gold price, as investors turn to the safe haven. If the swine flu is not easily contained, gold should benefit due to the repercussions felt across the tourism industry.
This article also discussed why China, which holds a small gold reserve, is unlikely to make a major investment in the yellow metal even during these times. Since the US holds 80 percent of its foreign reserves in gold, a large investment by China will spike the gold price, thus greatly benefiting the US. In fact, if the price of gold were to increase 10 fold (though unlikely), the US would be able to profit enough to erase their $2.5 Trillion debt.
"Gold prices rebound as dollar falls, stocks soar"
Author: Sara Lepro
Website: Google.com
Main Points: Gold is up $6.90 to finish today at $900.50 an ounce. The rally back over $900 is thought to be driven by a weakened dollar and fears associated with the swine flu.
Analysis: This is why yesterday's results are so curious. There were also fears of the swine flu yesterday, yet the price dropped nearly $15 by Tuesday's close. Make no mistake, the main driving factor here is the strength of the dollar, which rather consistently has an inverse relation to the price of gold.
"Flu New Threat to Global Finance"
Author: Rob Cox and John Foley
Website: NYTimes.com
Main Points: In 2003, the SARS health scare impacted the tourism business, but the economy overall could sustain it. This year, such a panic as a result of the swine flu could cause significant problems for a fragile world economy that already has cracks in its foundation.
The industries already suffering have a new problem on their collective plate. Any industry dependent on trade, transportation, tourism and lodging is taking yet another shot to the ribs.
Analysis: How does all of this have anything to do with gold? Poor economic times help the gold price, as investors turn to the safe haven. If the swine flu is not easily contained, gold should benefit due to the repercussions felt across the tourism industry.
This article also discussed why China, which holds a small gold reserve, is unlikely to make a major investment in the yellow metal even during these times. Since the US holds 80 percent of its foreign reserves in gold, a large investment by China will spike the gold price, thus greatly benefiting the US. In fact, if the price of gold were to increase 10 fold (though unlikely), the US would be able to profit enough to erase their $2.5 Trillion debt.
Cash4Gold Applauds Florida Lawmakers for Passing Landmark Industry Bill
(Florida House Bill 339)
FOR IMMEDIATE RELEASE
April 29, 2009 – Pompano Beach, FL – Cash4Gold CEO Jeff Aronson made the following statement on the passage of first-of-its-kind legislation enhancing the regulation of the industry pioneered by the company:
"Cash4Gold applauds the Florida legislature for passing this historic legislation, and is proud to have worked closely with lawmakers to develop a bill increasing the transparency of transactions in our industry to law enforcement. We are delighted that Florida has now become the first state to pass laws that will help regulate our industry and protect our citizens."
"We also express our appreciation to Florida law enforcement officials, with whom we have worked diligently to generate innovative ideas to enhance the integrity of our industry and facilitate law enforcement investigations. We strongly support the creation of a national database, which will make industry transaction information about suspect goods readily available to police all across the country. We are proud of our ongoing partnership with law enforcement, and look forward to continuing our joint, day-to-day efforts to make our industry more transparent and safe."
"As the leader in its industry, Cash4Gold felt compelled to take on a key role in helping lawmakers craft a new bill that takes into account the revolutionary business model we created, and for which the pre-existing laws were not designed."
About Cash4Gold
Cash4Gold is the #1 American buyer of precious metals including gold, silver and platinum from the general public, and one of the largest refiners of precious metals in the nation. Through an efficient and proprietary process, the company has revolutionized its industry with innovations in marketing, customer service, refining, and logistics. In 2001, Cash4Gold CEO Jeff Aronson founded Albar Precious Metals, a precious metals refinery in Chicago, IL. Then, in April of 2007, Aronson and Cash4Gold President Howard Mofshin co-founded the company known as Green Bullion Financial Services, LLC d/b/a Cash4Gold that now employs almost 300 people in its Florida headquarters. Cash4Gold is a fully-integrated company with front-end customer service and marketing operations, and a back-end refinery. Hundreds of thousands of satisfied customers have received millions of dollars from Cash4Gold since its inception. Cash4Gold’s popular advertisements can be seen on national television and heard across the satellite and terrestrial radio dials. Please visit www.Cash4Gold.com or call 1-877-GOLD590 for more information.
FOR IMMEDIATE RELEASE
April 29, 2009 – Pompano Beach, FL – Cash4Gold CEO Jeff Aronson made the following statement on the passage of first-of-its-kind legislation enhancing the regulation of the industry pioneered by the company:
"Cash4Gold applauds the Florida legislature for passing this historic legislation, and is proud to have worked closely with lawmakers to develop a bill increasing the transparency of transactions in our industry to law enforcement. We are delighted that Florida has now become the first state to pass laws that will help regulate our industry and protect our citizens."
"We also express our appreciation to Florida law enforcement officials, with whom we have worked diligently to generate innovative ideas to enhance the integrity of our industry and facilitate law enforcement investigations. We strongly support the creation of a national database, which will make industry transaction information about suspect goods readily available to police all across the country. We are proud of our ongoing partnership with law enforcement, and look forward to continuing our joint, day-to-day efforts to make our industry more transparent and safe."
"As the leader in its industry, Cash4Gold felt compelled to take on a key role in helping lawmakers craft a new bill that takes into account the revolutionary business model we created, and for which the pre-existing laws were not designed."
About Cash4Gold
Cash4Gold is the #1 American buyer of precious metals including gold, silver and platinum from the general public, and one of the largest refiners of precious metals in the nation. Through an efficient and proprietary process, the company has revolutionized its industry with innovations in marketing, customer service, refining, and logistics. In 2001, Cash4Gold CEO Jeff Aronson founded Albar Precious Metals, a precious metals refinery in Chicago, IL. Then, in April of 2007, Aronson and Cash4Gold President Howard Mofshin co-founded the company known as Green Bullion Financial Services, LLC d/b/a Cash4Gold that now employs almost 300 people in its Florida headquarters. Cash4Gold is a fully-integrated company with front-end customer service and marketing operations, and a back-end refinery. Hundreds of thousands of satisfied customers have received millions of dollars from Cash4Gold since its inception. Cash4Gold’s popular advertisements can be seen on national television and heard across the satellite and terrestrial radio dials. Please visit www.Cash4Gold.com or call 1-877-GOLD590 for more information.
Tuesday, April 28, 2009
Today in Gold: Tuesday, April 28
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:
"US gold ends 1.6 pct lower, tracks platinum drop"
Author: Frank Tang
Website: UK.Reuters.com
Main Points: Gold for June delivery dropped $14.60 to finish the day at $893.60 an ounce, ranging from $884.60 to $907.70 throughout the day. Although fears of a swine flu pandemic could have driven the gold price higher, those reactions seemed to be outweighed by investors wanting to make a profit on their gold. Also, a gold buying festival in India, which otherwise was thought to benefit the gold retail industry, was not as profitable as previously expected.
Analysis: This is actually quite surprising. Gold has been quite solid during the past week-plus, and the current environment would have seemed to benefit gold. Swine flu fears combined with negative bank stress test results and increasing concerns about the US auto industry should have benefited gold investors -- these are prime conditions for safe haven buying.
Maybe the price will jump back up tomorrow, but the one day drop of nearly 2% is difficult to explain. This is the first time gold has finished a day below $900 an ounce since last Wednesday, April 22, when it was on its way back up to $900.
"Festival Demand Inauspicious for Gold Sales"
Author: Swansy Afonso
Website: WSJ.com
Main Points: The expectation that the Indian gold-buying festival of Akshaya Trithya would significantly boost the gold retail business has not played out. This is largely due to the higher price of gold jewelry (and gold in general) compared to this time last year.
Retail gold jewelry prices were up about 25% compared to last year's festival, which causes problems considering the price-conscious consumers. The increase is due to a rupee which has weakened when compared to the US dollar (40 to the dollar at this year's festival compared to 50 to the dollar last year).
The result: Retail sales are expected to be down 60-70% when compared to last year, even though last year's sales were also considered weak, down 11% year over year.
Analysis: The decline makes sense. Not only does the higher gold price raise the cost of jewelry, but the poor global economic conditions allow for more cautious buying habits. You'd assume that during normal economic times, even with a higher price of gold the income from the festival, even if not the quantity, would remain steady. The fact that buyers are less inclined to spend their money on jewelry due to these tough times magnifies the struggles of the retail jewelry industry -- even during gold-buying festivals like this one with a reputation for lavish spending.
"US gold ends 1.6 pct lower, tracks platinum drop"
Author: Frank Tang
Website: UK.Reuters.com
Main Points: Gold for June delivery dropped $14.60 to finish the day at $893.60 an ounce, ranging from $884.60 to $907.70 throughout the day. Although fears of a swine flu pandemic could have driven the gold price higher, those reactions seemed to be outweighed by investors wanting to make a profit on their gold. Also, a gold buying festival in India, which otherwise was thought to benefit the gold retail industry, was not as profitable as previously expected.
Analysis: This is actually quite surprising. Gold has been quite solid during the past week-plus, and the current environment would have seemed to benefit gold. Swine flu fears combined with negative bank stress test results and increasing concerns about the US auto industry should have benefited gold investors -- these are prime conditions for safe haven buying.
Maybe the price will jump back up tomorrow, but the one day drop of nearly 2% is difficult to explain. This is the first time gold has finished a day below $900 an ounce since last Wednesday, April 22, when it was on its way back up to $900.
"Festival Demand Inauspicious for Gold Sales"
Author: Swansy Afonso
Website: WSJ.com
Main Points: The expectation that the Indian gold-buying festival of Akshaya Trithya would significantly boost the gold retail business has not played out. This is largely due to the higher price of gold jewelry (and gold in general) compared to this time last year.
Retail gold jewelry prices were up about 25% compared to last year's festival, which causes problems considering the price-conscious consumers. The increase is due to a rupee which has weakened when compared to the US dollar (40 to the dollar at this year's festival compared to 50 to the dollar last year).
The result: Retail sales are expected to be down 60-70% when compared to last year, even though last year's sales were also considered weak, down 11% year over year.
Analysis: The decline makes sense. Not only does the higher gold price raise the cost of jewelry, but the poor global economic conditions allow for more cautious buying habits. You'd assume that during normal economic times, even with a higher price of gold the income from the festival, even if not the quantity, would remain steady. The fact that buyers are less inclined to spend their money on jewelry due to these tough times magnifies the struggles of the retail jewelry industry -- even during gold-buying festivals like this one with a reputation for lavish spending.
Monday, April 27, 2009
Today in Gold: Monday, April 27
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:
"China buying 'could push Gold Prices past $1,000 per oz'"
Author: Goldbug
Website: BullionVault.com
Main Points: The price of gold is on its way back up, and according to BullionVault.com it could soon approach $1,000 an ounce once again. The price of gold was last over $1,000 an ounce in March of 2008.
The main factor for gold's revival is not so much the poor global economy as it is the recent news that China has bought more than 450 tons of gold to increase their stockpile to more than 1,000 tons.
According to Carey Smith, an analyst with Alto Capital, the news from China is what drove the recent gold rally. "It put a bit of a rocket under the gold price. I mean, it's run from about $860 when they announced it to, at the moment, about $917," said Smith. "So it's once again trying to go through that $1,000 mark."
Analysis: This explains some things. The upward trend has otherwise defied logic given that there haven't been any major negative economic changes during the past couple of weeks that would drive the price of gold upward. The demand for gold as a result of the India gold festivals may have contributed, but China's activity is also a factor since it would affect supply.
"GLOBAL MARKETS-Oil, stocks fall as flu sparks risk aversion"
Author: Herbert Lash
Website: Guardian.co
Main Points: Gold for June delivery dropped $5.90 to finish at $908.20 an ounce on Monday amid fears of a global pandemic associated with the swine flu.
Analysis: This behavior is not consistent with what we've come to see when Wall Street gets jittery. Guardian says that investors turned to the US dollar as a safe haven; typically, we'll see the dollar fall along with stocks as investors turn to gold as much safer investment. According to Guardian, the price of gold only fell $5.90 due to its safe haven appeal. This could be a sign of an impending rebound tomorrow.
"China buying 'could push Gold Prices past $1,000 per oz'"
Author: Goldbug
Website: BullionVault.com
Main Points: The price of gold is on its way back up, and according to BullionVault.com it could soon approach $1,000 an ounce once again. The price of gold was last over $1,000 an ounce in March of 2008.
The main factor for gold's revival is not so much the poor global economy as it is the recent news that China has bought more than 450 tons of gold to increase their stockpile to more than 1,000 tons.
According to Carey Smith, an analyst with Alto Capital, the news from China is what drove the recent gold rally. "It put a bit of a rocket under the gold price. I mean, it's run from about $860 when they announced it to, at the moment, about $917," said Smith. "So it's once again trying to go through that $1,000 mark."
Analysis: This explains some things. The upward trend has otherwise defied logic given that there haven't been any major negative economic changes during the past couple of weeks that would drive the price of gold upward. The demand for gold as a result of the India gold festivals may have contributed, but China's activity is also a factor since it would affect supply.
"GLOBAL MARKETS-Oil, stocks fall as flu sparks risk aversion"
Author: Herbert Lash
Website: Guardian.co
Main Points: Gold for June delivery dropped $5.90 to finish at $908.20 an ounce on Monday amid fears of a global pandemic associated with the swine flu.
Analysis: This behavior is not consistent with what we've come to see when Wall Street gets jittery. Guardian says that investors turned to the US dollar as a safe haven; typically, we'll see the dollar fall along with stocks as investors turn to gold as much safer investment. According to Guardian, the price of gold only fell $5.90 due to its safe haven appeal. This could be a sign of an impending rebound tomorrow.
Friday, April 24, 2009
Today in Gold: Friday, April 24
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:
"Gold prices finish higher as dollar weakens"
Author: Sara Lepro
Website: Google.com
Main Points: Gold was up $7.50 to finish the week at $914.10 an ounce, largely as a result of a weakened dollar.
Analysis: Impressive. If not for a hiccup on Tuesday when the price of gold rose early only to drop by the end of the day, gold would have been up every day this week. We wondered yesterday if the momentum could be sustained after eclipsing the $900 mark, but clearly it could. Because of that, you have to start reassessing the ceiling. But again, don't underestimate the impact of the gold festival in India on the gold retail industry. Gold retail had otherwise been holding the price down.
"Gold prices surge but can it last?"
Author: Xavier La Canna
Website: TheAge.com
Main Points: Consistent with our recent tracking on this blog, gold has had a strong surge during the past week, but TheAge.com cautions investors who believe the trend will continue for the long term.
"I think it will go higher, perhaps as much as $950 per ounce by around the middle of the year," said David Moore, Commodities strategist for Commonwealth Bank, "but we forecast it to fall back to about $875 per ounce by the end of the year, and continue to fall over 2010."
TheAge sites 2008's high of $1,011.25 an ounce and fall to $712.50 in October. Additionally, an investor needs to be confident that economic stability is nowhere in sight to expect further gains in the gold price.
"I think the risks are there for a rebalance (in gold prices)," said Grant Craighead, managing director of Stock Resource. "The safe-haven attributes are what is holding it up and the potential for a return to economic stability and growth is putting that at risk."
Analysis: As we continue to do here, use caution. There is no certainty in this environment. Gold passed a major milestone yesterday by piercing $900 an ounce, but it is a milestone that was also passed a couple of months ago. We'll likely see $950 an ounce again, and we'll likely see it in multiple cycles. Similarly, we're likely to see $850 an ounce in the not too distant future. There is little use attempting to time such a volatile market. If you have gold to sell, the best time to sell it is when you need the money.
"Gold prices finish higher as dollar weakens"
Author: Sara Lepro
Website: Google.com
Main Points: Gold was up $7.50 to finish the week at $914.10 an ounce, largely as a result of a weakened dollar.
Analysis: Impressive. If not for a hiccup on Tuesday when the price of gold rose early only to drop by the end of the day, gold would have been up every day this week. We wondered yesterday if the momentum could be sustained after eclipsing the $900 mark, but clearly it could. Because of that, you have to start reassessing the ceiling. But again, don't underestimate the impact of the gold festival in India on the gold retail industry. Gold retail had otherwise been holding the price down.
"Gold prices surge but can it last?"
Author: Xavier La Canna
Website: TheAge.com
Main Points: Consistent with our recent tracking on this blog, gold has had a strong surge during the past week, but TheAge.com cautions investors who believe the trend will continue for the long term.
"I think it will go higher, perhaps as much as $950 per ounce by around the middle of the year," said David Moore, Commodities strategist for Commonwealth Bank, "but we forecast it to fall back to about $875 per ounce by the end of the year, and continue to fall over 2010."
TheAge sites 2008's high of $1,011.25 an ounce and fall to $712.50 in October. Additionally, an investor needs to be confident that economic stability is nowhere in sight to expect further gains in the gold price.
"I think the risks are there for a rebalance (in gold prices)," said Grant Craighead, managing director of Stock Resource. "The safe-haven attributes are what is holding it up and the potential for a return to economic stability and growth is putting that at risk."
Analysis: As we continue to do here, use caution. There is no certainty in this environment. Gold passed a major milestone yesterday by piercing $900 an ounce, but it is a milestone that was also passed a couple of months ago. We'll likely see $950 an ounce again, and we'll likely see it in multiple cycles. Similarly, we're likely to see $850 an ounce in the not too distant future. There is little use attempting to time such a volatile market. If you have gold to sell, the best time to sell it is when you need the money.
Thursday, April 23, 2009
Today in Gold: Thursday, April 23
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:
"US gold rises over $900/oz on fund, trade buying"
Author: Felix Salmon
Website: Reuters.com
Main Points: Gold had a big day today, rising $14.10 to finish at $906.60 an ounce. The price was as high as $910.40, the highest price since April 3.
The reason, at least the general reason, is expected. The dollar was weakened as stocks took a tumble, and investors turned towards gold as a safe haven. Gold, rather consistently, has an inverse relationship with the dollar and stocks.
Another contributing factor is that gold jewelry demand is up due to Akshaya Tritya, a gold jewelry festival in India.
Analysis: It's been largely a good week so far for the price of gold:
Monday: Up nearly $16
Tuesday: Down $4.80 (after being up early in the day)
Wednesday: Up $9.80
Thursday: Up $14.10
This is the longest sustain gold rally in some time. In recent weeks, there have been very few consecutive days of gold gains. Now that the $900 barrier has been breached, it will be interesting to see if this momentum will be sustained tomorrow. Recent history would suggest it will not. If it does, one could infer that there is no immediate cap.
Don't, however, forget about the impact of the festival in India. The jewelry industry can't rely on this every week.
"US gold rises over $900/oz on fund, trade buying"
Author: Felix Salmon
Website: Reuters.com
Main Points: Gold had a big day today, rising $14.10 to finish at $906.60 an ounce. The price was as high as $910.40, the highest price since April 3.
The reason, at least the general reason, is expected. The dollar was weakened as stocks took a tumble, and investors turned towards gold as a safe haven. Gold, rather consistently, has an inverse relationship with the dollar and stocks.
Another contributing factor is that gold jewelry demand is up due to Akshaya Tritya, a gold jewelry festival in India.
Analysis: It's been largely a good week so far for the price of gold:
Monday: Up nearly $16
Tuesday: Down $4.80 (after being up early in the day)
Wednesday: Up $9.80
Thursday: Up $14.10
This is the longest sustain gold rally in some time. In recent weeks, there have been very few consecutive days of gold gains. Now that the $900 barrier has been breached, it will be interesting to see if this momentum will be sustained tomorrow. Recent history would suggest it will not. If it does, one could infer that there is no immediate cap.
Don't, however, forget about the impact of the festival in India. The jewelry industry can't rely on this every week.
Subscribe to:
Posts (Atom)
Posts
