Archive for the ‘Gold’ tag

Merry Christmas – Beautiful Gold Christmas Tree

Via: Sparklet.net

Video: Option Action: Gold

Gold Bar Dispensing ATM Machine in Miami’s South Beach!

Everybody loves gold, but we didn’t know it was accepted everywhere.

An ATM that dispenses actual gold bars is coming to the United States with the German creator’s sights on Florida, CNBC reports.

Unless Orlando’s Mickey Mouse is in the market for some gold buck teeth, the logical destination would be somewhere in Miami, namely South Beach.

We’ve already got vending machines that dispense Bentleys, so why not bullion?

Gold to Go works like your every day ATM, except you don’t get cold hard cash. Customers slide in their credit card or dollar bills and get cold hard bricks of gold.

The machines have been a success in Europe, and now Thomas Geissler wants to expand to the U.S., with stops in Florida and Las Vegas. He said his company will issue about 35 machines in new locations this year.

The weight of the bars range from one gram up to one ounce, and the values are automatically updated every 10 minutes to match international markets. It also spits out gold coins from all over the world.

Geissler hasn’t announced when or where in Florida he will locate his pots of gold, but he might be a couple of decades too late for South Beach style.

Gold chains, teeth and rims are so 1990s. And purses are a bit too small to be carrying the bulky bars around on Ocean Drive.

On the bright side, it has to be harder for the door man to turn down a gold bar bribe to get into the VIP at the club.

Gold Futures Extend Gains After Surging to Another Record; Silver Tops $22

Gold futures rose to a record for the ninth time since mid-September as the slumping dollar boosted demand for the precious metal as an alternative. Silver reached the highest price since 1980.

In New York, gold rose to a record $1,314.80 an ounce, and silver climbed above $22 an ounce. The greenback dropped to the lowest level since January against a basket of major currencies on bets the Federal Reserve will ease monetary policy further to bolster the slowing U.S. economy.

“Most of what we have witnessed in the complex during the month has been clearly based on perceptions of an inevitable second chapter in Fed accommodation,” said Jon Nadler, a senior analyst at Kitco Inc. in Montreal.

Gold futures for December delivery rose $4, or 0.3 percent, to $1,312.30 at 11:30 a.m. on the Comex in New York.

Gold for immediate delivery climbed to a record $1,313.45. Before today, the price gained 19 percent this year. The metal headed for the 10th consecutive annual gain, the longest winning streak since at least 1920.

Yesterday, holdings in exchange-traded products backed by gold climbed the most in three months to an all-time high.

The metal has rallied as central banks and governments maintained low borrowing costs and spent trillions of dollars to stimulate their economies. Gold has outperformed global equities, Treasuries and most industrial metals.

‘Inflationary Implications’

“Speculation of additional stimulus measures and its inflationary implications longer term continues to draw investors toward gold and silver,” said James Moore, an analyst at TheBullionDesk.com in London.

Silver futures for December delivery rose 16.3 cents, or 0.8 percent, to $21.87 an ounce on the Comex. Earlier, the price reached $22.075, the highest level since October 1980.

The metal touched an all-time high of $50.35 in 1980, a year after the Hunt brothers tried to corner the market.

Platinum futures for January delivery gained $14.80, or 0.9 percent, to $1,655.50 an ounce on the New York Mercantile Exchange.

Palladium futures for December delivery climbed $7.40, or 1.3 percent, to $567.85 an ounce.

Via: http://www.bloomberg.com/news/2010-09-29/gold-advances-to-record-for-fourth-day-as-fed-may-add-to-monetary-easing.html

Gold Rises to Record on Increased Demand for Wealth Protection

Gold rose to a record in New York and London as investors sought protection against turmoil in the global economy and financial markets. Silver rose to the highest price since March 2008.

Bullion futures climbed as high as $1,279.50 an ounce. The dollar fell to a five-week low against the euro today. The metal usually moves inversely to the U.S. currency. Global holdings of gold by exchange-traded products are up 16 percent this year and this month reached a record, Bloomberg data show.

“People are worried about the European financial system and debt market, and the outlook for the U.S. and global economy,” said Mark O’Byrne, executive director of brokerage GoldCore Ltd. in Dublin. “People are worried about equities, debt, property” and currencies, he said.

Gold, up 16 percent this year, is heading for its 10th consecutive annual gain, the longest winning streak since at least 1920. Bullion has outperformed global equities, Treasuries and most industrial metals, prompting record investments in gold-backed ETPs. The metal reached all-time highs in euros, sterling and Swiss francs in June.

Gold futures for December delivery added $7.10, or 0.6 percent, to $1,275.80 an ounce at 8:51 a.m. on the Comex in New York. Prices surpassed the previous all-time high of $1,276.50 set Sept. 14. Bullion for immediate delivery in London gained as much as 0.8 percent to a record $1,278.02 an ounce and was last at $1,273.10.

Bullion has gained as the MSCI World Index of equities fell 1 percent this year. Copper added 4.1 percent and crude oil is down 5.3 percent. Silver and palladium have outperformed bullion this year. Gold priced in Swiss francs today climbed to the highest level since July 5.

Yen-Dollar

The yen advanced against the dollar today, paring losses from yesterday when Japan’s government intervened for the first time since 2004 to curb gains that threaten an export-led recovery. The greenback slipped as much as 0.8 percent against the euro today.

“The dollar has been weakening and that’s been helping gold,” said Eugen Weinberg, head of commodity research at Commerzbank AG. “Investors are looking for a safe haven.”

The Federal Reserve has kept its main interest rate at a record low to stimulate the economy. The central bank last month resumed direct purchases of Treasuries, also known as quantitative easing. The Fed first resorted to buying bonds as part of its response to the world financial crisis.

Quantitative Easing

Economists at Goldman Sachs Group Inc. expect the Fed to announce as early as November a new round of asset purchases to support a weak economy. Treasury purchases may total about $1 trillion in another round of quantitative easing, according to Jan Hatzius, chief U.S. economist for Goldman Sachs.

“Gold has recently been driven notably by the perceived increasing probability of a new round of quantitative easing in the U.S.,” said Anne-Laure Tremblay, a London-based analyst at BNP Paribas SA. “Quantitative easing tends to be supportive of asset prices and is fuelling concerns about the potential longer-term inflationary impact of such measures.”

Still, bullion has gained this year even as U.S. inflation slowed. The metal is traditionally bought as a hedge against rising consumer prices. Inflation expectations, based on the 10-year U.S. Treasury breakeven rate, have fallen to 1.78 percent from 2.25 percent six months ago.

Silver for December delivery in New York added as much as 1.1 percent to $20.795 an ounce, the highest price since March 2008. The metal was last at $20.725, taking its yearly gain to 23 percent.

Global holdings of silver by ETPs gained 45.8 metric tons to 13,211.9 tons yesterday, according to Bloomberg data from four providers. That’s the highest in at least seven months.

Platinum for October was 0.4 percent higher at $1,611.50 an ounce after yesterday reaching $1,613.50, the highest level since June 21. Palladium for December rose 0.7 percent to $563.50 an ounce. The metal earlier today reached $564.55, the highest price since April 27.

Via: bloomberg.com

Goldcorp to buy Andean Resources for $3.42B

TORONTO (AP) — Canada’s Goldcorp Inc. said Friday it has agreed to buy Andean Resources Ltd. for about 3.6 billion Canadian dollars (US$3.42 billion), trumping a rival bid from Eldorado Gold Corp.

The acquisition would give Goldcorp, the world’s second-largest gold producer by market capitalization, access to Andean’s Cerro Negro gold project in Argentina, which is said to have a significant amount of gold and silver.

The Goldcorp-Andean deal has been approved by both companies’ boards but requires approval by a majority of Andean shareholders. The companies expect the deal to close later this year or in early 2011.

The announcement came shortly after Canada’s Eldorado made an offer of 3.4 billion Canadian dollars (US$3.2 billion) for the company.

Andean is based in Utah and is listed on the Toronto and Australian stock markets. It acquired the Cerro Negro gold deposit in southern Argentina in 2004.

Chuck Jeannes, Goldcorp’s president and CEO, said the deal represents a 34 percent premium to Andean’s closing price Thursday.

Wayne Hubert, Andean’s CEO, said the Goldcorp deal benefits both companies and allows for the development of Cerro Negro into a key gold project.

He said the board unanimously concluded the timing was right for Goldcorp “to take up the baton at this point and develop an exceptional project into a world class mine we know it will become.”

Under terms of the Goldcorp deal, each Andean common share will be exchanged for 0.14 Goldcorp shares or a cash payment in the amount of 6.50 Canadian dollars ($6.17) per share.

The maximum cash consideration will be 1 billion Canadian dollars ($948.6 million).

Shareholders can choose stock, cash or a combination of the two.

Steven Green of TD Securities said Goldcorp’s offer looks expensive based on recent transactions but likely reflects the high-grade nature of the deposit and the presence of at least two bidders.

Goldcorp’s U.S. shares fell 96 cents, or 2.2 percent, to $42.84 Friday.

Moody’s Investors Service on Friday affirmed its foreign currency issuer rating on Goldcorp, expressing confidence in the company’s ability to handle the deal.

Moody’s said Goldcorp’s earnings and operating cash flow were tracking strongly through June 30, with expectations of a comparable profile for the second half of the year.

“Goldcorp’s stable outlook reflects Moody’s expectation that the company will continue to generate good operating cash flows, prudently manage its investment decisions relative to anticipated levels of cash flow, and maintain a conservative capital structure and healthy liquidity position,” it said.

Paul Wright, president and CEO of Eldorado, said Eldorado had been looking at buying Andean for the past two years and had taken its offer to shareholders after the companies failed to reach an agreement.

Wright said it has not yet received any response to its latest proposal, which was submitted on Monday. A proposal submitted earlier in the month had been rejected by Andean’s board.

“We believe an Andean combination with Eldorado will offer investors the single best golden investment vehicle on the planet,” he told analysts on a conference call.

He said they remain serious bidders and they’ll keep their options open.

“I think you can assume that we will use whatever tools that we have available to us as we see fit,” Wright said.

Earlier this year, Goldcorp also beat out Barrick Gold Corp., the world’s largest gold producer, when it bought a controlling interest in the El Morro gold-copper project in Chile from junior miner New Gold Inc.

Andean’s Cerro Negro gold project has indicated resources of 2.54 million ounces of gold and 23.56 million ounces of silver.

“It all boils down to the fact that Cerro Negro is a truly exceptional asset by any reckoning. And these types of high-quality gold projects have become exceedingly rare,” Jeannes said.

Jeannes said that the project allows Goldcorp to increase its gold resources by expanding existing deposits and exploring more areas that may have additional deposits.

If the transaction doesn’t close, Andean will pay Goldcorp a termination fee equal to 1 percent of the aggregate total offer made by Goldcorp.

Via: http://finance.yahoo.com/news/Goldcorp-to-buy-Andean-apf-1523401683.html?x=0

Gold ATM Machine

Dollar takes a drubbing, gold surges

Via USAToday.com
An interest rate rise in Australia, a disputed British newspaper story and worries about ballooning U.S. debt combined Tuesday to hammer the dollar.

Investors moved out of dollars and into almost anything else. The greenback hit $1.47 against the euro, continuing a months-long slide, while gold closed at $1,038.60 an ounce, an all-time high.

The trigger for Tuesday’s action was the surprise rate increase by the Reserve Bank of Australia, the first G-20 central bank to tighten monetary policy. The RBA raised its benchmark lending rate a quarter of a percentage point to 3.25%.

“Economic conditions in Australia have been stronger than expected. … The risk of serious economic contraction … now (has) passed,” said Glenn Stevens, RBA governor.

In the depths of the financial crisis, the dollar rose, thanks to investors seeking safety and liquidity.

But since earlier this year, the U.S. currency has drooped amid concerns that inflation will erode its value. “Dollar weakness is just going to be a grind for the next couple of months,” said Marc Chandler, senior vice president at Brown Bros. Harriman.

A weaker dollar makes U.S. exports less expensive but also means higher prices for imports.

Markets also were unsettled by a report in The Independent newspaper, which said the Gulf Arab states, China, Russia, Japan and France had secretly agreed to abandon the dollar as the standard for oil trading.

Several of the countries denied such talks had been held. Saudi Central Bank Governor Muhammad al-Jasser called the report “absolutely incorrect.”

Analysts likewise were dismissive. “I don’t take the (story) from the Middle East all that seriously. It doesn’t make much sense for any of the Gulf states to abandon the dollar,” says Greg Salvaggio, senior vice president for capital markets at Tempus Consulting in Washington, D.C.

The U.S. Treasury declined to comment.

Gold bugs weren’t convinced. “There has been increasing talk for months and months about the role of the dollar as the world’s reserve currency,” said Caesar Bryan, manager of Gamco Gold fund. “The Russians have raised the issue, the Chinese have raised the issue, the OPEC countries have raised the issue.”

World Bank President Robert Zoellick drew notice last month when he said the euro and yuan one day could rival the dollar.

Chinese officials, who have much of their $2.1 trillion in reserves invested in U.S. Treasuries, have publicly fretted about seeing those investments decline. Still, for all the talk, the Chinese today hold more of their reserves in dollars than they did one year ago.

Investors Betting On Gold

Article Clipping via: CNBC

In the past, gold has paired up with the stock market for long periods because investors were betting on the same thing: inflation. Moderate inflation can help corporate profits and stock prices and also cause investors to hedge that inflation with bullion. At that same time though, they will sell bonds on fear inflation will erode the future value of interest payments.

After witnessing this recent phenomenon, I looked to one of the best market therapists out there for dealing with these complicated matters: Dennis Gartman, of The Gartman Letter, which is required reading on every smart trading desk. He wrote back: ” Relationships in stocks and commodities are like relationships between people… even married couples. For a while, relationships are strong; then they become stronger; then they begin to fray at the edges and then they collapse, never to return to their old form. Such is the relationship between stocks, gold and bonds. I’ve seen two of the three move in tandem, but never all three. And those relationships hold until they stop. There is really nothing more that one can say. Right now, it is possible for stocks and gold, or for stocks and bonds, to move together in tandem, but not all three.” So whose love will go on after this love triangle ends?

The Fast Money players seem to be leaning toward gold and bonds. Technical analyst Greg Troccoli of Opalesque sees gold testing the 1,017 area. Joe Terranova, FM trader and Virtus Investment Partners chief market strategist, is betting with gold too. Seasonally, going long gold and short the stock market from September to January has made you money on average over the last six years.

Gold to Hit $1,040 ‘Very Quickly’

Gold’s “breaking out” to a higher level as imminent, Chris Locke, managing director at Oystertrade.com Management, told CNBC Wednesday, as other analysts have said the precious metal could shine again as inflation fears resurface.

“We’re on this point of the market making a substantial move to the upside,” Locke said.

“We will see the market move through the bull market highs of $1,040 very, very quickly,” he added.

The S&P 500 index has maintained its uptrend from the March lows and the next target for it is 1,050, Locke said. But for the fall period, Locke sees the index weakening.

Locke told CNBC he’s been looking for a signal that the U.S. index will peak in August before correcting slightly, but that signal hasn’t occurred yet.

But he said he’s “seeing some kind of loss of momentum to the upside” and therefore predicted that the September to November period “will be weaker” and will test the levels below 950.

He also sees sterling reaching “levels towards parity” against the euro, at 95 cents. “Sterling looks the most vulnerable to me,” he said.

Via: CNBC

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