Gold Prices Could Average 8% Higher in 2011

The Australian government have recently announced that gold prices could average 8% more in 2011, reaching $1320 an ounce. This is due to a hike in investment demand due to risks linked to economic growth across the globe.
In 2011 experts suggest that the gold price could peak before heading into a decline, in real terms at about $975 an ounce in 2013 increasing to $1064 in 2016. These figures have been released from the Australia Bureau of Agricultural and Resource Economics and Sciences.
In the report Abares said: "The assumption of world economic recovery over the next few years is expected to lead to a reduction in speculative investment demand. The appetite for higher risk assets such as shares and property is likely to increase."
In the last month the gold price climbed up by 5.7% to a huge $1408.07 an ounce. As investors looked to protect their wealth against currency debasement bullion rose 30% last year also.
Forecasts for the future indicate that world mine production could increase 2% to 2703 metric tons this year. The mine output in Australia could increase by 14% to 274 tons as Newmont Mining Corporation's $3 billion development in Boddington, Western Australia is under way.
Despite the recent predictions of the gold price increasing, gold companies still maintain protection plans. Many gold companies now sell other metals such as silver and copper which are by-products of gold mining to cover financial stability. Selling these by-products helps counter the cost involved with mining gold.
There are some large gold buyers in the UK who offer the public a better price for their scrap gold in comparison to high street jewellers and pawn shops. With gold prices increasing in 2010 this has resulted in members of the public receiving large cash sums for gold they send in to these mail-in gold buyers. With the recent recession, there has been a hike in the use of such gold companies by the public, with many saying they sell their gold to protect their financial security or to pay for household bills they cannot afford. As these gold companies accept a diverse range of gold and silver, they are applicable to a vast majority of the population. Customers can send in anything from an antique watch to a gold dental tooth with things like gold coins in between.This is an innovative and easy way to sell any unwanted gold and receive some money in return.

China Will Surpass India In Gold Consumption

The year has just begun but the financial market shows clear signs that China is going to overtake India as far as gold consumption is regarded. Only in the previous year China managed to import close to 600 tons of gold. If we were to make some calculations we will see that this actually means a quarter of the global mine production. China's plan for the future is to increase the country's gold reserves to 5000 metric tons of glittering metal.
It is clear that China is trying to improve its gold reserves in order to be near of what is happening in other Western Countries. This means that it will actually manage to absorb most of the world's gold production. But as it comes out the Chinese officials are coy about releasing any accurate information on how much the gold reserves have risen. Financial analysts say that this behavior actually has a very simple explanation: by withholding the exact percentage they are stopping a possible immense rise of the price of the yellow metal. Bottom line is that all these actions has transformed China in one of the big gold players on the international market.
India, the world's biggest consumer of gold will probably be over throne in by the China in the years to come, especially if they continue to purchase gold at the current rate. If the Indian investors seem to have become nervous when it comes to purchasing gold as an effect of the rising prices of the glittering metal, the Chinese don't seem to have a serious problem with this. This has become obvious by the fact that the Chinese government has allowed the public to buy gold as until recently this activity was banned. Also various laws regarding mining for gold are also facilitating gold ownership.
Against all odds the government actually encourages the people to put at least 5 percent of their savings in gold. If an average Chinese would do this at the end of only one year he would have saved 40% of his salary in the form of precious metals. Compared to what is happening in the West, most families are lucky if they can end the year without debts.

Oldest Gold Artefacts

In 2008 a team of scientists who were led by an archaeologist from the University of Arizona discovered the oldest collection to date of gold artefacts found in America. The discovery indicates that early human life with limited resources still understood status symbols and their value. The site, at Jiskairumoko in the South American Andes was explored by professor of anthropology Mark Aldenderfer. It is in a drainage basin here where groups of hunters and gatherers began to make the transition to a more settled existence.
The excavated site included a burial which contained a turquoise and native gold necklace. This had been shaped by a hammer and could have belonged to someone with a higher status in the community. Carbon-14 dates for Jiskairumoko date from 2155 to 1936 BC so the necklace is around four thousand years old. This makes it 600 years older than previous artefacts thought to be the earliest ever made throughout the Americas.
Gold metallurgy is practically exclusive to societies who hold the expertise to create agricultural surpluses and hereditary elite members. Finding the funds to gain raw materials and having the time and skill to create jewellery is a big task for a person who survives by subsistence. The big surprise for finding these artefacts here is that Jiskairumoko was a simple village.
The artist, whoever he or she was, hammered the gold to make it flat and thin enough to roll into cylinder beads. Each cylinder bead was separated with a green bead space and a turquoise bead in the middle. The materials used would not have been found in the Titicaca Basin so a trek of some distance would have been completed to acquire the materials.
Evidence found from Jiskairumoko enforces the hypothesis that the earliest metal industry formed in the Andes was with native gold. It also gives insight into how wealthier people in society gained higher status within society, opening the door for generations of ruling hereditary leaders.
If you have any old gold of your own that may not be quite as precious but still worth something, then send your scrap gold off to a gold buyer. Many buy gold from customers all over the UK and with gold prices at a record high, now is a great time to capitalise on this. Getting rid of your old gold and anything that you no longer need can be refreshing; you never know something you sell could be worth a small fortune.

Why Silver Is The Investment Of The Decade!

With the economy still in turmoil and not recovering the way the US government keeps screaming at us, now is the time to sit down with your family and work out where to part any extra income, or where to invest your money for the future.
Even though there has been a run up on commodities recently, there is a strong call for silver at the moment to be one of the strongest investments this decade. Even though it is at a new high today, there are still calls for the price of silver to go a lot higher. Especially if inflation is added to the mix.
Instead of viewing myths and pundits predictions about silver you need to base current silver price projections on the fundamentals. You can look at various data points that will stick out and show you where silver is likely headed.
Much of the new silver optimism can be traced back to the new investments taking place. The silver ETF's and the funds and just a general demand for people to replace their currencies with silver.
Last year industrial production was up 18%, there are all sorts of new uses for silver such as solar panels, in the health care business, in bandaging and clothing and various other uses such as antibacterial devices. So the industrial demand has been quite surprising. But the real demand has been from the investment side.
In terms of the price of silver on the charts. There is an argument for secular silver. The secular argument is historically silver has traded in a ratio to gold of 16:1. So in other words, if the price of gold was $1600 an ounce, typically silver should trade at $100 dollars. But that ratio has not been effective in the last 20 to 30 years.
The last time it traded in that range was in 1980 when the hunt brothers arranged for the price of silver to go up to $50 and ounce. This ratio is coming down but today it is at 41 and has been as high as about 81. But we are likely to see it trade at the previous 16:1 ratio again, maybe even in the next 3 to 5 years.

Is The MS69 American Silver Eagle Worth The Price?

Arguably the most popular silver bullion coin that exists, the lovely American Silver Eagle coin was first released in 1986. The MS69 silver eagle grade is one of the highest available. But, is that high grade it worth the price you'll pay over and above a plain vanilla silver bullion eagle? That's what we'll address in this article...
First, let's define what the MS-69 grade is.
MS69 stands for "Mint State Brilliant Uncirculated." It is one of the grades used by two of the most popular independent, 3rd party grading services - the NGC, which stands for Numismatic Guaranty Corporation and PCGS, which stands for Professional Coin Grading Service.
If you are truly serious about purchasing a silver eagle with a high grade, it is essential that you stick with these reputable grading services!
A coin graded by these services can receive a score ranging from 1 all the way up to 70. MS70 is the absolute highest grade that a coin can receive. A coin that is graded MS-70 is absolutely perfect. There are some grading services that will not assign a MS70 grade because they claim that an absolute perfect coin cannot exist.
A coin is graded based upon several different factors. These factors include:
1. scratches
2. polishing
3. nicks
4. rims
5. other blemishes
The MS-69 Silver Eagle is a coin that is almost virtually flawless and perfect in condition. When purchased the coin will be encapsulated in a slab that has been sonically sealed. This is done in order to certify and protect its high grade.
The MS-69 grade is only guaranteed if the coin is kept in that slab. The coin will be labeled with the grade, grading service and coin type which for example might be PCGS MS-69 Eagle. It will also include the the mint mark and unique serial number.
Even though the silver American eagle is a super popular coin, they're aren't many available in the highest grades. This is due to the minting process itself. Even the simple act of handling the coin can very easily cause things like minor scratches that would disqualify them from receiving the MS-69 grade.
So now that you know what a MS-69 American Silver Eagle is, you're probably wondering if they are worth the extra cost?
That all depends upon why you are investing in the coin in the first place. If you are buying silver eagles simply for the bullion, I believe you would be better served buying plain vanilla eagles in uncirculated condition.

Gold Bullion in Focus: The History of the South African Krugerrand Coin

It's a fact, independent investors usually buy gold bullion as protection against economic uncertainty. So, with governments around the world engaged in quantitative easing, cutting edge economic pundits such as Marc Faber, Max Keiser, Gerald Celente and Peter Schiff, believe this perhaps, in the long term, will result in the devaluation of paper currencies against commodities like gold. Gold can be bought and sold using ETFs (Exchange Traded Funds), however with the cry of "If you don't hold it you don't own it!" ringing in their ears, some investors are feeling safer with purchasing physical bullion in the form of bars and coins.
Coins Of The Sun
Gold doubloons, ducats, reals, talents, guineas and sovereigns: These are some of the sun coins that humanity has mined, minted, used as coin of the realm, killed for and died for. This gleaming metal has held the eye and inspired the avarice of legions of cultures since ancient Sumer and Egypt. The Romans minted hundreds of millions of gold coins that were imprinted with the profiles of numerous emperors of the sun. The gold coin has been glorified as a microcosm of the limitless energy of the sun, and gold coins were the preeminent means of exchange until the worthless, fiat, greenback paper money of the twentieth century created artificial inflation at the touch of a printing press. William Jennings Bryant made his stirring speech concerning Americans being crucified on a cross of gold, and the gold-backed currency that the Constitution demanded soon vanished with the setting sun of monetary stability.
The Sun Coin Also Rises
In the late nineteenth century, when the sun never set on the British empire, South Africa was mining massive amounts of gold. This was toward the end of Le Belle Epoque, the beautiful era, and the demand for gold jewelry was extremely high among the aristocracy. The Witwatersrand area became the largest gold mine in the world.
The huge South African gold reserves led to the conflicts between the Dutch Boers and the British. The Dutch gained their independence in the first Boar War, in which they were led by Paul Kruger, who became the president of the South African Republic. A decade later, after incurring huge loses, the British defeated the Dutch in the second Boer War, which saw the first usage of the modern concentration camp, in which a hundred thousand Dutch women and children were herded into horrid conditions. Twenty five thousand died in these camps. This war, which was over control of the country's gold, was undoubtedly fomented by Cecil Rhodes, who already controlled the diamond mining industry and who came to control the gold cartel after the war. The Boars were not totally defeated since they received some concessions after the war. Sixty five years after the end of this fool's gold war, the Krugerrand gold coin was minted. Paul Kruger, the Boer leader, lent his name and likeness to the Krugerrand.
The Law Of Gold
In the early nineteen thirties, it can be seen that both the United States and Germany adhered to the Golden Rule: Those who control the gold make the rules. It became illegal to own gold bullion in these two countries. Gold and gold backed currency had to be turned in to the government.
In 1967 the South African government got around this golden rule by creating this gold Krugerrand as a circulating coin. It was legal tender and could be owned by the freedom loving citizens of the United States. However, most Western countries had sanctions against South Africa due the apartheid practices of this country. These sanctions were terminated when South Africa terminated its apartheid policy in 1994. In the nineteen eighties the Krugerrand represented ninety percent of the gold coin market.
The Krugerrand coin spans 32.6 mm in diameter and is 2.74 mm thick. At 91.67 percent purity, it contains one troy once of gold. While other gold coins have entered the lucrative gold coin market, the Krugerrand continues as the most successful.
Reflections In A Golden Coin
The Krugerrand is a gilded reflection of the millennial wars over the wealth of the world, which has come to be symbolized in this metal of the sun called gold. Ironically, Paul Kruger may have been immensely disturbed to be featured on a gold coin. His ultimate desire was only to have an independent state for the farming Dutch Boers; to be free of British rule. However, the Boer wars ended with the conversion of the Boer republics into an outpost of the British empire, so it is quite paradoxical that the Krugerrand should bear the name and likeness of Paul Kruger.

Turning Carats Into Cash

Gold is considered as one of the precious metal that can be found all over the world. It can be in the form of bars, coins, a piece of art, and most commonly as jewelry. Nowadays, gold may regard as a good investment, if you know how to assess the value of gold in the market. Investors consider buying gold as to elude any crisis that may arise in their country.
Selling gold will mainly depend on its purity and on its form. Gold bars are easier to sell as it can be easily turned into jewelry but on the other hand gold coins sells better because the quantity and quality of the gold is guaranteed. Broken jewelries or deformed rings, or single earrings are known as scrap gold. You can also sell these items though with a little resale value for about less than 30 to 60 percent of its original value.
Before you decide to sell your gold, you must understand how the gold is priced. Many websites provides calculators which will help you get the right value of your gold. Variables can change daily depending on the international gold market. You can also do research by going to at least to three different pawnshops for them to weigh your gold and will help you recommend the right price.
There are many ways to sell your gold. You may consider selling gold online, put it on a public auction, or simply sell your gold directly to dealers. Whichever way you choose you must do a lot of research you need to find out the process, benefits, risks and all other things before you decide to sell gold and turn it into cash or you might end up being scammed. If you think there are fake sellers, there are also fake buyers. That is why you should always be keen in finding precise the buyers of your gold. Also, you must learn different terms that are being used in the market to describe your item.
Your jewelries can make the statement of your living and style. You can pass it to your love ones and can last a lifetime. Though gold is sturdy and lasting, it can get damaged and lose its luster. Thus, taking care of your gold is very important to retain its durability and shine
Competitors are everywhere. People always look for extra earnings and selling gold can be one way to turn your jewelry into cash. If you think you are still not that confident in selling your gold. Never stop on researching and you may opt to seek professional advice as possible. Understanding the ins and outs of selling gold is the way of becoming a successful gold seller. This may take a lot of your time but once you be acquainted with everything will be easier. You can always count on your gold in times of financial difficulties. And selling gold can actually be done in less than 24 hours.

Gold Rate: The 4 Most Important Factors That Influence the Gold Rate

What are the reasons that the gold rate goes up and down? First, personal and industrial demand; second influences by central banks and major mining companies; third speculators and traders; and lastly war and national emergencies.
1. Personal and Industrial Demand
The biggest factor influencing the gold rate is demand for jewellery, which consumes two thirds of the annual gold production. Here, India contributes 27% to the demand. India has a long history of an affinity to jewellery of this precious metal. China is lifting its restrictions to possess gold. This additionally drives up demand for gold.
Industrial demand accounts for around 12% of gold demand. This includes uses in medicine. Gold is a favourite material in the industry as it has a high thermal conductivity and high resistance to corrosion. Demand for jewellery and industrial increases over the years as the population grows. A further boost to gold demand comes from the emerging markets (India, China, Middle East etc.) which become more industrial and its citizens wealthier.
2. Central Banks
Market participants with large gold reserves, such as central banks and mining companies can influence the gold price significantly. To reduce the level of the gold price, gold is sold (to provoke short sales). To increase the price, gold is either sold or production is stepped up.
However, central banks hold less gold reserves than is usually believed. In 2010 only 16% of the produced gold was in possession of central banks. Further, the Washington Agreement on Gold (WAG) from 1999 puts a cap on the sales of gold by its members (United States, Japan, Europe, Australia, Bank of International Settlements and the International Monetary Fund). This agreement limits the sale to less than 500 tonnes annually.
Besides influencing the gold rate by means of selling and buying, central banks also have a power over the rate by changing interest rates. High interest rates makes an investment in gold less favourable, as this precious material produces not interests.
3. Speculation and Trading
Of course, gold is not only in demand for further processing (industry) or just showing off (jewellery), but also for speculative motives. This is same as other commodities, such as oil, wheat and copper. Gold can be used to hedge against inflation and the devaluation of currencies. Inflation reduces the value of currencies. Thus, gold in a portfolio eases the loss. Also, the price is negatively correlated to the US dollar value. Meaning, if the dollar weakens, the gold price will rise. More speculative actions are futures and options where investors can even benefit from falling prices of this precious material.
4. War and National Emergencies
The last factor influencing the gold rate is national emergencies and crooks in the government. On the one hand, war times reduce gold purchases, as people have less disposable income, and probably other priorities (for example to survive). On the other hand, in such extreme situations gold might bring a stable value into the portfolio, as the national currency is likely to suffer. Think about the hyperinflation in the 1920s in Europe, or Zimbabwe's current situation. Another issue are dictators who nationalize gold mines, restrict export or just steal the supplies from the central bank.