Thursday, December 1, 2011

H.M. QUEEN ELIZABETH II - DIAMOND JUBILEE 2012 2OZ GOLD PROOF COIN





  • Proof Quality 99.9% Pure Silver
  • Includes Genuine Diamond
  • Stunningly Designed Coin
  • Extremely Limited Mintage – 60
  • Australian Legal Tender
  • Numbered Certificate of Authenticity
  • Presentation Packaging

"Throughout all my life and with all my heart I shall strive to be worthy of your trust."
- Queen Elizabeth II (1953)

Her Majesty The Queen has been witness to many astonishing changes that have taken place during the sixty years of her reign. This spectacular, extremely limited release celebrates this historic anniversary.

Proof Quality 99.99% Pure Gold

The coin is struck by The Perth Mint from 2oz of 99.99% gold in proof quality.

Includes Genuine Diamond

The 2oz gold coin’s reverse features the original Mary Gillick uncrowned effigy of Her Majesty Queen Elizabeth II and a sparkling diamond set against a background of sunrays. The inscription DIAMOND JUBILEE and the dates 1952 - 2012 are also incorporated into the design.

Australian Legal Tender

Issued as Australian legal tender, the coin’s obverse depicts the Ian Rank-Broadley effigy of Her Majesty Queen Elizabeth II, the year-date and the monetary denomination.

Extremely Limited Mintage

No more than 60 coins worldwide will be issued by The Perth Mint.

Presentation Packaging

The coin is presented in a prestigious display case with a superbly illustrated shipper and accompanied by a numbered Certificate of Authenticity.

Perth Mint

Sunday, November 27, 2011

Debt Crisis Drives Biggest Ever Investment in Gold

Those learning how to trade may be considering the prospect of gold bullion rising in price over the next few weeks, as investors store up the biggest ever stock of the precious commodity.

And Europe's troubling debt situation may encourage even more traders to invest in gold, according to reports from Bloomberg. A survey from the news provider found that 18 of the 26 gold traders it questioned expected bullion prices to rise next week.

It also calculated the current value of holdings in exchange-traded products backed by gold as $127.4 billion (£81.7 billion).

Carole Ferguson, an analyst at Fairfax IS in London, said: "There's absolutely no doubt that people are still worried. The market's being constantly confronted with the flow of bad news. Gold is still an asset that people will look at."

This bad news continued yesterday (November 25th) as serious concerns about the British economy saw the sterling fall in trade.

Monday, September 5, 2011

AUSTRALIAN PERTH MINT LUNAR SERIES II 2012 YEAR OF THE DRAGON GOLD PROOF COIN ISSUE

In 2012, the popular Australian Lunar Gold Proof Coin Series II celebrates the Year of the Dragon, the fifth animal in the 12-year cycle of the Chinese zodiac. These superb proof quality releases are perfect for people born in ‘dragon’ years – 1940, 1952, 1964, 1976, 1988, 2000 and 2012 – who are regarded as confident, enterprising, independent, self-assured, brave and passionate.

Proof Quality 99.99% Pure Gold: Struck from 99.99% pure gold in proof quality, the 2012 releases are available as individual 1oz, 1/4oz and 1/10oz coins, and a three-coin set comprising all three.

Chinese Dragon Reverse Design: The reverse of each coin depicts a traditional Chinese dragon, a long, scaled, serpentine creature with four legs, and a ‘pearl of wisdom’. The Chinese character for ‘dragon’ and the inscription ‘Year of the Dragon’ also appear in the design with The Perth Mint’s traditional ‘P’ mintmark.

Australian Legal Tender: Issued as legal tender under the Australian Currency Act 1965, each coin features the Ian Rank-Broadley effigy of Her Majesty Queen Elizabeth II on its obverse.

Extremely Limited Mintages: No more than 3,000 1oz coins, 5,000 1/4oz coins, 5,000 1/10oz coins and 3,000 three-coin sets will be released.

Numbered Certificate of Authenticity: Each coin and set is accompanied by a numbered Certificate of Authenticity.

Elegant Presentation: Australian Lunar gold proof coins are housed in elegant oval-shaped display cases featuring a granite effect base and a glossy timber-effect lid. Each case comes in an illustrated shipper.




•Proof Quality 99.99% Pure Gold
•Chinese Dragon Reverse Designs
•Australian Legal Tender
•Extremely Limited Mintages
•Numbered Certificates of Authenticity
•Elegant Presentation
•Great Gift Ideas

Available now from the Perth Mint

Monday, August 8, 2011

Demand for Bullion at Fever Pitch


Gold-dispensing vending machines? Laws to make it legal tender? John Collett looks at the rise and rise of bullion.

The gold price is hitting record nominal price highs of more than $US1600 ($1450) an ounce, up from about $US300 10 years ago. And most analysts are forecasting the price will rise even higher, and challenge the all-time high of 1980, when it reached $US2400 in today's dollars.

Gold could easily reach $US2000 this year or next as investors in the US, the euro zone and Britain worry about their governments' ability to manage huge sovereign debts and expect their currencies to face more downward pressure, says the editor of Sound Money Sound Investments, Greg Canavan.

''Gold is in a long-term bull market and it will not end until there is mass participation, where you have a lot of retail investors trying to get involved,'' Canavan says.

Gold has been the favoured safe haven throughout history. It has also long been recognised as a good store of value and a hedge against inflation.

The state of Utah in the US recently passed a law that allows its residents to use gold (and silver) as recognised legal tender alongside the Greenback because it is so worried about the collapse in value of the US dollar against most other currencies over the past two years.

Gold rush

The chief investment officer at fund manager Select Asset Management, Dominic McCormick, has had gold exposures in the funds he runs since the early 2000s. Select's funds have an exposure of between 5 per cent and 10 per cent to gold.

''We think we are closer to the end of the bull market in gold than to the beginning,'' McCormick says. ''At some point, you are going to see excessive enthusiasm for gold.''

There is always the risk that there is too much speculation, he adds.

The yellow metal is rapidly becoming more accessible to small investors, with two securities listed on the Australian sharemarket whose prices reflect the gold price (see box).

And German company Ex Oriente Lux has installed ''Gold to go'' vending machines in the United Arab Emirates, Germany, Italy, Spain and the US. Britain's first recently opened at the Westfield shopping centre in London.

The machines dispense coins and bars of different weights. The prices are updated every 10 minutes and a 1 gram pure-gold bar costs about $60. But whether those buying the gold are doing so for investment purposes or simply to have a memento of their travels or to buy friends a gift is an open question.

The chief economist at AMP Capital Investors, Shane Oliver, says gold is a hedge against a ''blow-up'' in financial markets, a loss of confidence in major currencies and inflation but it is speculative by its nature.

Gold does not provide any income. That means there is no softening of the impact of falls in its price. Gold is a ''growth'' asset and should not be used as a substitute for government bonds or cash, which tend to have more stable returns, he says.

Also, all the gold produced is still in existence and can come back on to the market at any time, Oliver says. ''You are going to be relying on other people paying more for it than you did,'' he says. ''It is not like copper, which has industrial uses and can be analysed in terms of supply and demand.

''From 1980 to about 2000, gold performed terribly and then from 2000 onwards, it has been in a massive bull market, along with other commodities.''

Risk

Anyone thinking of investing in gold would have to weigh the currency factor.

Since the start of 2009, the gold price in Australian dollars has not increased by nearly as much as the US dollar price. That's because of the rise in the value of the Australian dollar against the US dollar over that time. Currency is a double-edged sword and if the Australian dollar were to fall in value against the US dollar, that would add to the returns from gold.

Some gold-related investments, such as managed funds that invest in gold miners (and usually also in gold futures and gold bullion), sometimes remove the exchange-rate risk from the funds' returns. That way, at least the return the investors receive is the return from the actual investments, with the changes in exchange rates removed.

Managed funds tend to have high minimum investment amounts of $20,000 or $25,000 and their management fees tend to be high because they are promising to produce returns that are better than the market.

Access to physical gold has always been difficult for small investors. They can buy gold from the Perth Mint, which, for a fee, will also store the gold on behalf of investors.

Canavan says anyone buying from the mint should make sure the gold is not held in an ''unallocated'' account but in an ''allocated'' account, where ownership of the gold is attributed to the investor.

British company BullionVault provides another way to own physical gold. Canavan has used BullionVault for his personal investing. BullionVault allows the investor to choose to have the gold stored in Zurich, London or New York.

Australia is home to some very good gold miners. The standout is Newcrest Mining, which is one of the biggest gold producers in the world. With its headquarters in Melbourne, Newcrest is among the top-20 companies listed on the Australian Stock Exchange by market capitalisation.

Holding shares in a gold miner is a claim on the profits of the company and not the gold itself, Canavan says. The performance of gold-mining shares is also reflective of the performance of the broader sharemarket.

Exchange traded funds - the offerings
For investors wanting to get direct access to gold, the easiest way is through the two exchange-traded funds (ETFs) on the Australian sharemarket. Both are backed by gold bullion held by custodians in segregated accounts in London vaults. Both hold legal title over the bullion.

The BetaShares gold bullion ETF (ticker code QAU) tracks the US dollar gold price, less management and custody fees of 0.59 per cent a year.

An ETF is structured as a trust with unit holders rather than as a company with shareholders. Units of the BetaShares ETF are bought on the Australian sharemarket through a broker and trade just like a share. Its currency exposure is hedged back to Australian dollars, removing the currency exchange-rate risk from the gold bullion returns.

BetaShares ETF has been designed to appeal to self-managed superannuation funds, financial planners for their clients, institutional investors and high-net-worth investors, says the head of investment strategy at BetaShares, Drew Corbett.

''BetaShares maintains full legal charge over the bullion and is independently audited,'' he says.

The other ''ETF'', Gold Bullion Securities (ticker code GOLD), is technically not an ETF.

Director of sales, Asia Pacific at ETF Securities, Nigel Phelan, says it is an ''exchange-traded commodity'' and is structured that way because many fund managers are restricted by how much they can invest in other funds.

The GOLD security is not hedged for exchange-rate risk and the security tracks 10 per cent of the Australian dollar price of gold, minus fees of 0.4 per cent a year.

Of the two options, investors are in effect paying 0.19 percentage points a year more for the BetaShares ETF to protect against exchange-rate risk.

Read Source

Tuesday, June 28, 2011

Gold: Go With Bullion, Not Miners

I was reading a couple of Seeking Alpha articles the other day, entitled "Are Gold Miners Set to Explode?" and "Echoes of 2008 Suggest Caution for Precious Metals Investors." This got me to thinking about the relative performance of gold and gold stocks, because before going to graduate school I interned for a summer as a runner on the Chicago Mercantile Exchange. There I was thrown into the world of trading and introduced to the numerous rules about trading.

Among well known: trade with the trend, cut losses, let profits run, etc ... rules, there was, always go long the strongest performing contract in a complex. Such as buying corn in the grain complex if it was up the most compared to soybeans and wheat.

You get on that horse and ride it until the trend is over!

One can transition this thinking into gold bullion vs. gold stocks since recently, gold bullion (gld) has outperformed gold stocks (gdx-majors gdxj-minors) since late April when the silver market peaked.


GLD - red  GDX - blue  GDXJ - green  from stockcharts.com
(Click to enlarge)

Obviously gold stock investors believe that the gold price has stagnated or peaked. Throw in correlation and tatical asset allocation trading and the movement in gold stocks, as represented by the indexes, are down -16% GDX and -21.5% GDXJ compared to -1.5% GLD from April 29 to June 20, 2011.

During this time I have been long gold stocks primarily through options, without leverage, so the beating was not as bad, but still hurt! (example of cutting losses).

Now if the bears are correct about the price of gold, then a roll over most likely would bring gold stocks down with it. However, if the gold bull market is intact, and just resting, then GLD has shown itself the strongest of the complex.

The thought that gold miners are "undervalued" based on a stable gold price is tempting. However, I keep two things in mind on the minus side of the pro/con list.

First, gold mines can be confiscated by unfriendly governments much easier than gold (I don't want to get into order 6102 discussion here). Second, one reason to own gold is to hedge against inflation, and with this in mind, inflation causes problems as shown in this article "Fear the Boom, Not the Bust."

"Avoid those industries that are most capital intensive, because in an inflationary environment government taxes phony profits. Much capital investment was expended years ago at lower replacement prices, but the tax man does not recognize replacement cost, only historical cost. So capital-intensive industries report higher profits due to low, historical depreciation expense. In effect, they are being taxed on their capital and cannot retain enough earnings to replace their worn-out plant and equipment. America's so-called Rust Belt of the '70s and '80s can be attributed to the inflation that was begun in the '60s. Now it is coming back."

Mining is very capital intensive.

I have come to the conclusion through reading, research and writing that going long gold bullion appears to be the best way to proceed with a position in the precious metal sector; if one still adheres to the hypothesis that a gold bull market is still underway. I will do some selective stock picking of gold mining stocks but buying the whole gold stock index for an investment seems inferior. I will most likely use gold call options and bull call spreads with options, just in case the gold bears are right. This does produce inferior results compared to outright longs but one is much less concerned about forced liquidation contagion, as happened in 2008 with gold and gold stocks; there is always enough dry powder left to take advantage of fire sale prices.

Disclosure: I am long RBY. Gold, gold stocks, gold stock options

VIEW SOURCE: SEEKING ALPHA

Sunday, June 26, 2011

TREASURES OF AUSTRALIA DIAMONDS 1OZ GOLD PROOF LOCKET COIN





TREASURES OF AUSTRALIA DIAMONDS 1OZ GOLD PROOF LOCKET COIN
  • Proof Quality 99.99% Pure Gold
  • Striking Reverse Design
  • Contains 1-Carat of Diamonds
  • Australian Legal Tender
  • Presentation Packaging
  • Limited Mintage
  • Numbered Certificate of Authenticity

Proof Quality 99.99% Pure Gold

This 2009-dated coin is struck from 1oz of 99.99% pure gold in proof quality.

Striking Reverse Design

The coin’s reverse design portrays an abstract interpretation of Australia’s stark and beautiful landscape.

Contains 1-Carat of Diamonds

The design surrounds a transparent half-circle locket containing approximately 1-carat of Australian natural rough diamonds. The most desirable of all gemstones, diamonds are a traditional symbol of love, and the modern birthstone of people born in April.

Australian Legal Tender

Issued as legal tender under the Australian Currency Act 1965, the coin bears the Ian Rank-Broadley effigy of Her Majesty Queen Elizabeth II on its obverse.

Presentation Packaging

The coin is housed in a presentation case with a jarrah timber lid featuring a circular viewing window. The case comes in a beautifully illustrated box shipper.

Limited Mintage

The Perth Mint will release no more than 1,000 of these gold proof locket coins.

Numbered Certificate of Authenticity

Each coin is accompanied by a numbered Certificate of Authenticity.

Collect the Complete Series

Scheduled for release between 2007 and 2011, Treasures of Australia celebrates five glittering prizes found in Australia: Sapphires, Opals, Diamonds, Gold, and Pearls.

www.perthmint.com.au

Monday, June 13, 2011

If Gold’s Going Up… Why Are Gold Stocks Falling?

If gold is going up...why are gold stocks falling?

In theory, a gold stock is worth the value of its future cashflow. So a stronger gold price should lift gold stocks. That’s pretty much the pattern we have seen in the past.

So in times of new highs in the gold price every few months, why are gold stocks falling?

Gold price goes up – Gold stock index drags lower


Gold stocks normally amplify the gains from gold. If gold goes up 10%, then a good gold stock should go up 20%. So traders look for this ‘leverage’ to the gold price in gold stocks.

That was until ETFs became such a big force on the market.

Now traders can invest directly in gold ETFs with borrowed money to get the same effect. It saves having to do all that annoying research into a gold company.

So with all that money heading for the ETFs – instead of the stocks – the gold price and gold stocks are diverging.

It looks like some of them are even short selling the gold stocks to reduce their risk. This suppresses the price of the gold stocks even more.

But the ETFs can only push this trade so far.

For one thing, wherever the price goes, gold stocks are still worth the price of their future cash flows. And as the gold price rises further, so does the stock’s value. Gold stocks at current prices are incredible value.

And good value will lead to good buying.

If we start to get bargain hunters taking this opportunity up, then at some point the traders will start having to close their short positions. This increases the price, and soon the traders could start a stampede as they all try to get out. This could lead to a big spike in the price, blowing up months’ worth of profits in minutes.

This will happen at some point, and gold stocks will go ballistic as they get back to where they should be.

Closing this trade would also mean selling the gold ETF. It’s amazing to think that the largest gold ETF in the world now holds more gold than most central banks.

Or so they say...

Apparently, the US Commodity Futures Trading Commission, with the Gold Anti-Trust Action Committee, reckon there is now one hundred times more gold in ETFs in the world…than physically exists above ground.

ETFs are convenient. They are the cheapest way to buy and sell precious metals and they have their role in the market. They let you buy and sell metal via Etrade or Commsec quicker than you can say ‘Goldfinger’.

At the other end of the spectrum, buying physical gold or silver metal is more expensive – because dealers charge a premium. You then have the cost of delivery, storage and insurance. Dealers also take their cut when you sell.

So why bother with bullion? For one reason – to avoid ‘counterparty risk’.

This is the risk of trusting another party with your investment. When you buy an ETF, the metal you buy is generally not held by the ETF provider, but by a large global bank like HSBC or Morgan Stanley.

Thankfully buying gold and silver yourself is easy in Australia. I took a look at how to do that in this month’s Diggers and Drillers, so readers had a full list of ways to buy and store gold themselves. This included a few ways to get bullion that you may not have thought of. But you might be able to turn up with a bit of research.

With precious metals stocks looking very cheap, and set to catch up with the gold and silver price before long, I have been busy recommending gold and silver explorers for the last few months. This month, as well as looking at buying bullion, I recommended a precious metals stock that could make a 600% return in the next few years. Not everything is overbought. There are still some value picks out there if you’re prepared to look. I’ve got another newsletter brewing, and have my eye on the next tip already.

You can make good money on good precious metals stocks. But I don’t think there’s any replacement for actual physical gold and silver ownership.

Thursday, May 19, 2011

Gold Australia: AUSTRALIAN GOLD SOVEREIGN 2011 PERTH MINT PROOF ISSUE

Gold Australia: AUSTRALIAN GOLD SOVEREIGN 2011 PERTH MINT PROOF ISSUE

Sunday, May 8, 2011

LUCKY WAVING CAT Series - Perth Mint Fractional Gold 1/5 1/10 1/25






LUCKY WAVING CAT SERIES

•99.99% Pure Gold
•Coloured Reverse Design
•Issued as Legal Tender
•Presentation Packaging
•Limited Mintage
•Numbered Certificate of Authenticity

The popular Maneki Neko, or Lucky Waving Cat, is believed to bring good luck to homes and businesses. The Perth Mint now brings all the fortune of this famed figurine to you in a stunning three-coin set, comprising two 1/25oz gold coins and one 1/10oz gold coin.

99.99% PURE GOLD

Each coin is struck by The Perth Mint from either 1/25oz or 1/10oz of 99.99% pure gold in proof quality.

COLOURED REVERSE DESIGNS

One of the 1/25oz coins in the set portrays a Lucky Waving Cat with purple markings – a colour believed to attract wealth. The cat has its left paw raised, which is said to attract customers, friendship and love and is holding a red heart.

The other 1/25oz coin features the same design but portrays a Lucky Waving Cat with green markings – a colour said to attract health and camaraderie.

The 1/10oz coin in this set depicts a Lucky Waving Cat with yellow and black markings – colours said to attract prosperity and success. The cat has a raised right paw and is holding a traditional Japanese token – believed to attract wealth and good luck.

The monetary denomination is also shown on each reverse design.

LEGAL TENDER

Issued as legal tender under the authority of the Government of Tuvalu, each coin bears the Raphael Maklouf effigy of Her Majesty Queen Elizabeth II, and the inscriptions QUEEN ELIZABETH II and TUVALU on its obverse.

LIMITED MINTAGE

No more than 2,000 sets will be released.

NUMBERED CERTIFICATE OF AUTHENTICITY

A numbered Certificate of Authenticity accompanies each coin.

PRESENTATION PACKAGING
Each set is housed in an attractive presentation display case featuring a granite-effect base and glossy timber lid. The case comes in a colourful illustrated shipper.

Monday, March 21, 2011

Silver Investment News by GaleForceSales: New Carbon and Mining Taxes to drive up Commodity Prices

Silver Investment News by GaleForceSales: New Carbon and Mining Taxes to drive up Commodity Prices

Saturday, January 15, 2011

Australia's Central Bank Decision To Sell Gold Reserves Cost the Country $5 Billion


Just over ten years ago, Australia’s central bank the RBA sold off most of the countries gold reserves under the belief that the price of gold would continue to remain flat, and that as an asset, it would no longer play any role in the future financial system, or any crises that may result.

Based on the current market price of $1,400 an ounce for gold, the decision to sell 167 tonnes of the precious metal by the central bank has cost Australia approximately $5 billion.

A paper written by the central bank which recommended selling off the gold reserves conceded that that asset whilst the assets served as “insurance against a breakdown in the international financial system”, it was not necessary to hold.

In recommending the decision the paper went on to add that Australia did not need to be overly concerned about selling off its existing gold stock because it has vast reserves of the precious metal, though according to Geoscience Australia, the country has reserves that will last no more than 30 years.

In 1997 the Reserve Bank of Australia sold 167 tonnes of gold over a six month period, reducing the nation’s gold reserves to just 80 tonnes. Over that period the value of its gold holdings declined to $1.1 billion from $3.6 billion.

The sale of gold by the Australian central bank had a significant impact on world gold prices, sending them tumbling to an 11 year low, returning just $2.4bn for the gold that was sold via a single broker engaged without a tender. The same amount of gold would be worth about $7.4bn today.

The central bank’s justification for reducing its gold reserves so drastically was that gold represented a poor investment, and Australia had successfully integrated itself into global financial markets, and that it need not worry about access to those markets during a financial crisis.

Since the sale of the gold reserves the global financial systems has experienced severe stress on a number of different occasions, starting with the implosion of the technology bubble at the start of the millennium followed by the September 11th terrorist attacks, and more recently the global financial crisis in 2008.

The price of the precious metal over that time frame has risen spectacularly and the asset has begun to play an increasingly important role in the global financial system since the financial crisis.

The central bank argued that continuing development of financial system meant that circumstances which would require Australia to call upon our gold holdings for economic reasons looked increasingly remote.

“Central banks traditionally hold gold because of its ability to be used in the event of a crisis in the international financial system; it is the only reserve asset that is not a claim on some other government, international institution or bank. However, over the past two or three decades, the world has experienced a number of economic ‘crises’, but gold played no part in coping with them,” the paper said.