Tuesday, September 30, 2008

Gold Futures Down for First Time in Three Sessions

For the first time in three days gold fell as the U.S. dollar strengthened, putting downward pressure on the futures' price for December delivery.

The precious metal finished the session down by $13.60 to end at $880.80 an ounce on the Comex division of the NYMEX. That brought the metal down by 5.5 percent for September.

For the quarter it's down by 6.1 percent, while for they year it's still in the positive, having grown by 1.7 percent so far.

Friday, September 26, 2008

Royal Canadian Mint Says Ready for Gold Bullion Coin Demand

We talked yesterday about the inability of some gold products to keep up with the demand, as a number of coins are being suspended until production can catch up.

There's been a surge in the acquisition of physical gold coins as uncertainty in the financial sector has caused people to look for safety; not just investment safety, but an alternative currency in case things completely fall apart.

So even though the American Buffalo 24-karat gold one-ounce bullion coin has been suspended, the Royal Canadian Mint says it's not suspending its gold coin production at this time.

Coin dealers all across North America have reported a big surge in the demand for gold coins as the financial markets continue to flirt with disaster.

While the Royal Canadian Mint may eventually have to suspend some operations, they're in a much better position than their American counterparts because of the abundance of gold in Canada. That makes them less dependent on outside suppliers.

They control their mint from digging it out of the ground to striking the coins.

Thursday, September 25, 2008

Gold Bullion Dealers Say There's Shortage in Many Popular Bullion Products

Demand for gold bullion has resulted in a shortage in a number of popular products for bullion dealers. The shortage, which has been rumored for about a month, has now become a reality, although it's hopeful that it's temporary.

The shortage has had a significant impact on dealers, as some now have a lengthening waiting list. Some dealers who have policies of not taking orders for a product unless they have physical possession or guaranteed delivery from reliable sources of the metal have been hit especially hard.

To get an idea of the demand, most dealers have had about five times the usual orders in the last two weeks because of concerns over the faltering U.S. economy.

Some of the gold products not available at this time are the Pamp 1-ounce and 10-ounce gold bars; 5-9s special edition Maple Leaf; 1-ounce gold Eagles; and gold Buffalo coins. The U.S. mint is no longer taking orders for the Buffalo coin at this time. Gold Eagles are still being produced, but at such a slow rate that most retailers can't get hold of them.

Wednesday, September 17, 2008

Gold Prices Explode by over $60 an Ounce

Jittery investors pulled their money out of equities and again poured into gold and other commodities as the U.S. dollar fell in price and financial companies continue to flirt with bankruptcy and failure.

December delivery for goal surged by 8.25 percent, rising to $64.50, reaching $845 an ounce on the NYMEX.

Silver prices also increased significantly for the day. The December contract moved up by 88.8 cents to $11.405 an ounce.

Thursday, September 4, 2008

Gold Settles at $803.20 for December Delivery - Drops 4th Straight Day

The U.S. dollar finished the day the strongest it has this year against the euro, as investors continue to abandon precious metals and other commodities. It was the fourth straight session drop for the metal, which plunged by $5 to finish at $803.20 for December delivery on the NYMEX. Earlier in the day it fell as low as $798.10.

With the U.S. dollar strengthening lately, traders have been abandoning commodities as an inflation hedge and moving their funds elsewhere.

"The short-term direction in gold remains pointed to lower levels, and selling could intensify if $790 is breached this week," Jon Nadler, analyst with Kitco Bullion Dealers Montreal, said in a note.
Silver also dropped today, as well as copper, although silver only fell by less than a penny to $12.94 an ounce. Copper ended the session at $3.266 a pound, shedding 4.6 cents.