KMG Gold Recycling USA KMG Gold Recycling Canada
10/27/2023 9:30 AM     Current Market Spot Prices:     Gold:  $1,984.26/ozt   Silver:  $22.89/ozt   Platinum:  $926.20/ozt   Palladium:  $1,168.05/ozt  

Monday, June 19, 2023

Winnipeg Gold Buyer KMG Gold Recycling Open At 1220 Pembina Hwy

Winnipeg, June 19 2023: KMG Gold Recycling remains open at 1220 Pembina Hwy in Winnipeg. Free parking, accessible, vault storage, and 24-hour gold depository. Please visit for hours of operations.
Posted by Michael Gupton at 7:10 PM 0 Comments

Thursday, January 19, 2023

KMG Gold Recycling Hours of Operation

January 1, 2023
Winnipeg MB
KMG Gold Recycling at 1220 Pembina Hwy, East side, just north of McGillivray, at Waterford Ave in Winnipeg, Manitoba operating hours buying gold, silver, platinum and palladium, jewelry, dental gold and gold bars.
Store Hours:
Monday: 10:00 AM to 4:00 PM
Tuesday: 10:00 AM to 4:00 PM
Wednesday: 10:00 AM to 4:00 PM
Thursday:10:00 AM to 4:00 PM

Friday: Closed
Saturday: Closed
Sunday: Closed
Posted by Michael Gupton at 1:55 PM 0 Comments

Thursday, November 26, 2020

COVID Update: KMG Gold Open For Business Remotely

November 26, 2020. Winnipeg MB.

COVID-19 Update:
In this time of uncertainty, the safety and well-being of our customers, staff and communities is our top priority. We're reaching out to let you know that we are here to help.

1220 Pembina Hwy & 620 Academy Rd locations are OPEN to Buy, Sell, Refine, & Pawn Gold, Silver, Jewelry, Coins & Bullion.
All of our normal goods and services are still available for pick-up, delivery, no-contact, remote, touchless, and curb-side.

Single, individual customers may drop-off, pickup, get paid, buy and pay, but are not allowed inside our showroom.

We also offer NO CONTACT - NO WAITING 24-HOUR DROP-OFF at our Bank Depository, available 24 hours a day at our 1220 Pembina Hwy location only.

KMG Gold 24-Hour Bank Depository

Posted by Michael Gupton at 1:42 PM 0 Comments

Thursday, December 28, 2017


January 2, 2018. Winnipeg MB Canada

KMG Gold Recycling opens the doors on its new home, processing facility and head office at 1220 Pembina Hwy in Winnipeg Manitoba Canada. The doors will open January 2, 2018 Monday to Friday, 9:30-5:30

This new building, a former bank complete with impenetrable vault, will be the new head office and processing centre for the world famous, KMG Gold Recycling.

KMG Gold Recycling founder and President, Michael Gupton says the new facility will house a gold depository, silver repository and will have the ability for customers to securely store gold and silver coins, bars, wafers and precious metal items in the first of its kind secure vault. Complete with after hours gold scrap depository services.

KMG recently opened a new gold buying outlet at 1514 Regent Av W, in Transcona, a suburb of Winnipeg, just three months ago.

KMG Gold Recycling started recycling and buying gold, silver, platinum, and palladium in 2007 and fast became the premier, published, and world famous source for the general public to recycle their unwanted gold jewelry, gold and silver coins, junk silver, platinum thermocouple wire, and dental gold such as gold crowns. Their success lies partly in their efforts to educate consumers about the precious metals recycling industry and how they can get the most money for their unwanted gold, silver, platinum and palladium.

KMG Gold Recycling has 4 locations in Canada and the United States. 620 Academy Rd Winnipeg, 1514 Regent Av Winnipeg, 1220 Pembina Hwy Winnipeg, and 1003 S. Washington St Grand Forks ND

Please visit for updates, locations, hours of operation, and also follow KMG Gold Recycling on Call toll free 1-877-468-2220
KMG Gold Recycling buys, recycles, refines, stores, insures and manufactures precious metals of any kind.

Posted by Mike Gupton at 1:18 PM 0 Comments

Thursday, October 12, 2017


Transcona, Winnipeg. October 11, 2017

Transcona, East Winnipeg
1514 Regent Avenue W Winnipeg

KMG Gold Recycling 1514 Regent Av W

KMG G9ld Recycling 1514 Regent Av

KMG Gold 1514 Regent Av Winnipeg

Transcona, East Winnipeg

KMG Gold Recycling

1514-1 Regent Avenue West
Winnipeg, Manitoba
R2C 3B4, Canada
Office: (204) 452.GOLD (4653)
Toll-Free: (877) 468.2220

Store Hours:

Monday - Saturday: 10:00 AM to 5:30 PM

KMG Gold Recycling’s newest East Winnipeg location now serves Transcona, East Kildonan, Elmwood, North Kildonan, and Seven Oaks. This new office is fully equiped and now makes it easier for folks from Gimli, Lockport, Selkirk, Beausejour, Anola, Dugald, Lac Du Bonnet, Oakbank, Ste. Anne, Steinbach, Niverville, and Falcon Lake to visit KMG Gold Recycling, Canada’s Original Gold Buyer™

Posted by Mike Gupton at 9:54 AM 0 Comments

Friday, September 15, 2017

KMG Gold Recycling Finds New Home, Opens Third Location In Winnipeg

September 15, 2017. Winnipeg MB Canada
KMG Gold Recycling has found a new home and head office at 1220 Pembina Hwy in Winnipeg Manitoba Canada. This new building, a former bank complete with impenetrable vault, will be the new head office and processing centre for the world famous, KMG Gold Recycling. KMG Gold Recycling founder and President, Michael Gupton says the new facility will house a gold depository, silver repository and will have the ability for customers to securely store gold and silver coins, bars, wafers and precious metal items in the first of its kind secure vault. Complete with after hours gold scrap depository services.
This news comes on the heels of the announcement that KMG will be opening a new gold buying outlet at 1514 Regent Av W, in Transcona, a suburb of Winnipeg.
KMG Gold Recycling started recycling and buying gold, silver, platinum, and palladium in 2007 and fast became the premier, published, and world famous source for the general public to recycle their unwanted gold jewelry, gold and silver coins, junk silver, platinum thermocouple wire, and dental gold such as gold crowns. Their success lies partly in their efforts to educate consumers about the precious metals recycling industry and how they can get the most money for their unwanted gold, silver, platinum and palladium.
KMG Gold Recycling will very soon have 4 locations in Canada and the United States. 620 Academy Rd Winnipeg, 1514 Regent Av Winnipeg, 1220 Pembina Hwy Winnipeg, and 1003 S? Washington St Grand Forks ND
Please visit for updates, locations, hours of operation, and also follow KMG Gold Recycling on Call toll free 1-877-468-2220
KMG Gold Recycling buys, recycles, refines, stores, insures and manufactures precious metals of any kind.

Posted by Mike Gupton at 6:09 PM 0 Comments

Friday, September 11, 2015

Where and How To Buy Gold and Silver: KMG Gold on 680 CJOB Tomorrow

Saturday September 12, 2015. Winnipeg.
Join @Mike_Gupton @kmggold with #TOMMILROY on @680CJOB this Saturday between 10-12. Learn where and how to buy gold and silver, what hallmarks are good, which are bad. What does "karat" and "carat" mean? What does EPNS and sterling mean? Listen on #cjob and learn how you can tell the difference between gold or glamour, and precious or plated. This Saturday on the Tom Milroy show between 10-12 on @680cjob @Mike_Gupton @kmggold with #TOMMILROY on @680CJOB this Saturday between 10-12. Learn where and how to buy gold and silver, what hallmarks are good, which are bad. What does "karat" and "carat" mean? What does EPNS and sterling mean? Listen on #cjob and learn how you can tell the difference between gold or glamour, and precious or plated. This Saturday on the Tom Milroy show between 10-12 on @680cjob

Posted by Michael Gupton at 4:07 PM 0 Comments

Friday, June 19, 2015

Urban mining has long-term potential to contribute significantly to gold supply

12TH JUNE 2015 BY: ILAN SOLOMONS CREAMER MEDIA STAFF WRITER @KMGGold excerpt. @MiningWeeklyCA @MiningWeekly

KMG Gold featured in Mining Weekly Article

...US- and Canada-based precious metals and minerals recycler KMG Gold Recycling president Michael Gupton says, if gold stays at around $1 200/oz, this will encourage more people to sell their gold.

"In Canada, our customers monitor not only the price of gold but also the value of the Canadian dollar against the US dollar. In the last five months, we have seen the Canadian dollar decline against the US dollar, therefore, in Canada, gold is selling for around C$1 500/oz, which is sufficient to trigger small and medium-sized businesses to sell their gold reserves," he points out.

Gupton adds that the consumer market is KMG's primary source of recycled gold, owing to individuals selling their scrap jewellery. "In the industrial market, we receive large volumes of gold from jewellers who sell their industrial vacuums and bench sweeps, as well as dentists and dental technicians selling grindings, sprues and dental industrial vacuums," he states.

KMG also recycles platinum-group-metals products such as thermal couple wires and plati- num labware crucibles. "We always try to find solutions to recycle precious metals wherever we can. Our latest solution is for recovery level silver content materials, such as the silver sludge from old X-ray films, which, in the process, destroys unwanted old X-rays that doctors have an obligation to effectively dispose of owing to their confidentiality requirements," Gupton points out.

KMG's gold processing facilities are located in North Dakota, in the US, and Winnipeg, Canada...

It is our preference that if you wish to share this article with others you should please use the following link:

Posted by Michael Gupton at 9:26 AM 0 Comments

Tuesday, March 10, 2015

How Does Gold Change Colours?

Have you ever been confused by the terms white gold, green gold, and rose gold? All real gold is yellow, isn't it, so how do other colours fit in? Those 'other' colours of gold are alloys, new metals that are created by combining two or more different metals.

Chances are the ring on your finger is marked 18K, 14K, or 10K to indicate how much pure gold is present in the mix.
24K gold is pure gold.
18K gold contains 18 parts gold and 6 parts of another metal(s), making it 75% gold.
14K gold contains 14 parts gold and 10 parts of another metal(s), making it 58.3% gold.
12K gold contains 12 parts gold and 12 parts of another metal(s), making it 50% gold.
10K gold contains 10 parts gold and 14 parts another metal(s), making it 41.7% gold.

#Nickel can be mixed with gold to create a white colour, but be aware that nickel can cause dermatitis in some people (nickel is a fairly common allergen).
#Palladium is another metal used to create white gold alloys. Related to #platinum, it is more expensive than nickel, but is less likely to cause allergic reactions than nickel.
#Copper is added to make many gold-coloured alloys, but additional copper creates pink and rose tones -- the more copper, the deeper the effect.
Greenish shades are created by adding #silver to gold.
Posted by Mike Gupton at 12:00 AM 0 Comments

Tuesday, February 24, 2015

Counterfeit Gold, Silver Bars? Not At KMG Gold

 #Gold has a specific electrical conductivity, so does #silver, #platinum and #palladium. @KMGGold uses an electrical conductivity meter to determine real from counterfeit gold and silver bullion. Some unscrupulous people plate #lead or #titanium with gold and silver trying to pass them off as solid. Lead and titanium have similar densities to gold and silver, but of course, have considerably less value. Our electrical conductivity meter will determine solid or plated, even through the plastic case.
Posted by Mike Gupton at 8:26 AM 0 Comments

Wednesday, March 26, 2014

Cutest Coins Ever Made? Anne Geddes For the New Zealand Mint

Photographer Anne Geddes has been long known for her adorable pictures of babies who are often photographed dressed as fairies, fairytale creatures, flowers and little animals. Her images have been published in books and calendars in 83 counties, and Geddes has proven herself to be a savvy photographer, clothing designer and businesswoman. Born in Australia and now living in New Zealand, Geddes has created a limited edition collection of coins for the New Zealand Mint.

Each of the four coins depicts a baby in typical Anne Geddes style - very cute, curdled up and sleeping! Each coin comes has a face value of $2 and is made of 999 fine silver. The first two coins in the collection were issued in 2012 (the babies sleeping on and in flowers) with additional ones issued in 2013 (baby in a cocoon) and 2014 (Christmas themed).

Sadly KMG Gold doesn't have any of these awesome coins in stock, but we promise we sell a wide range of other (slightly less cute) coins and bullion!
KMG Gold Recycling Anne Geddes NZ Mint Coins
Posted by Mike Gupton at 12:30 PM 0 Comments

Wednesday, March 19, 2014

What to Expect When You Visit KMG Gold

As you've probably heard by now, at KMG Gold we're known for our awesome customer service. We've been recognized by the BBB as an accredited business and we've even won five BBB Torch Awards for our outstanding customer service and business practices.

But if it's your first time selling your unwanted jewellery or other types of precious metals, you might not know what to expect or feel intimidated by the process. The good news is that we make it our goal to make our customers feel very comfortable and explainKMG Gold xray machine everything we do, step by step. Whether you've recycled with us a hundred times before or if it's your first time ever, we'll walk you through the entire process from the moment you step in the door.

And if you don't want to take our word for it, check out our Facebook reviews and see for yourself! The big theme we're noticing throughout the reviews is how happy our customers are that we explain everything to them, no matter how minor it seems. One of the foundations that we built this business on was customer education and it's still an important part of our mandate.

When you walk through our door, we'll ask if you've ever been here before and then invite you to place what you've brought in on a tray. Then we'll run a magnet over the metals to see if they're magnetic. Gold and silver aren't magnetic so if the magnet picks up the jewellery, it means it's just costume jewellery, which we don't purchase. After this, we'll use a jeweller's loupe to see if the metal has any markings on it, like 10K or 18K or 999. If it's silver, we'll make a notch in the metal and use acid to test if it is genuine. This does hurt the piece of metal or jewellery, but we always get your permission to make sure that it's okay before we do it!

If the item is gold or something other than silver, we might run it through our x-ray machine to get a quick and accurate analysis of the exact metal contents of the item. Putting the item in the x-ray machine doesn't do any damage to it, but we'll be sure to remind you of it just in case you're worried!

So don't be shy, come down to 620 Academy Road and we'll give you a complimentary assessment of whatever you've brought in to us. And if this is really interesting to you, you can even buy your own metal testing supplies at do what we do from inside your home!

Pictured: The KMG Gold xray machine.

Posted by Mike Gupton at 12:00 PM 0 Comments

Wednesday, March 12, 2014

Silver Bullion From Around the World

Silver bullion coins are very popular here at KMG Gold, with many people seeking them out as a form of safe investment. Many investors prefer silver (and gold) bullion to cash because they protect against inflation and deflation.

Although silver isn't typically used in currency anymore (Mexico is the only country that uses very small amounts in its coins), mints around the world produce their own silver bullion coins that investors and collectors enjoy. Oftentimes, with each new issue of the silver bullion coin in a year, the design will vary slightly but still obtain the coin's original theme.

Silver bullion coins and bars can be sold in many different ounces and come from various mints or mines from around the world. These silver coins and bars are typically 99.9% pure and labelled with ".999". They are sold for more than their face value because of their high silver content, for example, the United States 999-fine Silver Eagle bullion coin only has a face value of one dollar.

Here are some of the world's most popular silver bullion coins:
  • USA - Silver Eagle. Released by the United States Mint in November 1986 and has a face value of $1.
  • Canada - Silver Maple Leaf. Released by the Royal Canadian Mint in 1988 and has a face value of $5.
  • Australia - Silver Kookaburra. Released by the Perth Mint in 1990 and the one troy ounce coin has a face value of $1. Australia also has a Silver Kangaroo which was first minted by the Royal Australian Mint in 1993 and has a face value of $1.
  • China - Silver Panda. Released by the People's Republic of China in 1983 and comes in various sizes with various face values. The one troy ounce coin has a face value of 10 Yuan.
  • Britain - Silver Britannia. Released by the Royal Mint in 1997 and has a face value of 2 pounds.
  • Mexico - Silver Libertad. Released by the Mexican Mint in 1982. These coins do not have a face value.
  • Austria - Silver Vienna Philharmonic. Released by the Austrian Mint in 2008 and has a face value of 1.50 Euro.
  • Russia - George the Victorious. Released by the Saint Petersburg Mint in 2009 and has a face value of 3 rubles.
If you're interested in purchasing silver (or gold or sometimes even platinum!) bullion coins or bars from KMG Gold, please give us a call at 1-877-468-2220 or shop online to see what we have in store. We would be more than happy to set anything you'd like aside for pickup - even if it's not silver bullion
KMG Gold Silver Bullion
Posted by Mike Gupton at 11:30 AM 0 Comments

Wednesday, March 05, 2014

10 Things You Didn't Know About Coin Collecting

Source: Paul Fraser Collectibles

KMG Gold Buys Sells Coins and Numismatics1. Romans began collecting coins as early as 100 AD. Although collecting gold and silver bullion coins has taken place for hundreds of years, the common belief was that coin collecting as we know it today began during the Italian Renaissance. However, new evidence has come to light that suggests Emperor Augustus was interested in collecting coins, often giving old and foreign coins to his friends. One of the first commemorative coins produced was created under the reign of Trajanus Decium (AD 249-251) and depicted all of Rome's deified rulers.

This term describes the study of items of numismatic interest, aside from coins and notes. These items often appear under the "exonumia" heading under the backs of catalogs and some examples of these are the altered "hobo nickels" of the US, or China's good luck money charms, both of which are collectible.

3.Stamps were once used as currency
At the beginning of the civil war, American citizens began to hoard coins because they were worried about potential shortages. This, along with trade disruptions from the Confederate Army, led to a shortage of silver and copper-nickel coins and made small transactions nearly impossible.

In response to this, the Postal Currency Act was signed and the public was allowed to use stamps as currency. Inventor John Gault then came up with the idea of encasing the stamps in a small metal container to protect them and even had space for advertising on the back of the container.

4.Coin production is faster than ever
It took the United States Mint two years to produce its first million coins but the Philadelphia Mint can now produce the same amount in 45 minutes. In 2013, the US Mint produced 11.9 billion coins!

5.Current US $100 bills have a slight, conspiratorial difference in them
The clock in the vignette of Philadelphia's Independence Hall on the $100 bill is set to 4:10. However, on the new $100 bills released on October 8, 2013, the clock's hand now reads 10:30. Although there is apparently no significance in the times, the change has conspiracy theorists up in arms!

6.Uzbekistan has the least valuable currency in the world
In 2013 the BBC released a list of the world's least valuable currencies, with Uzbekistan topping the list. One Tiyin is worth the equivalent of 1,999 American cents or 3,038 British pennies. Other countries that were also at the top of the list included Burma, Tanzania and North Korea.

7.1907 was a special year for the US $20 coin
President Theodore Roosevelt ensured that the words "In God We Trust" (a phrase that is heavily repeated on US coinage) were not printed on the 1907 $20 coin. This was because he believed in the separation of church and state and he thought that it showed a lack of respect to God since the money would be used to buy worldly goods and services.

8.The US Mint is more than just that...
While the United States Mint holds 147.3 million ounces of gold that is worth $6.2 billion, it also holds valuable items that belong to other governments and royalty, like Britain's Magna Carta and the crown jewels of St. Stephen, King of Hungary.

It has also housed some of America's most important documents, including the Declaration of Independence, the US Constitution, the Articles of Confederation, Lincoln's Gettysburg Address, three volumes of the Gutenberg Bible and Lincoln's second inaugural address.

9.Travellers cheques are more interesting than you thought!
Between 1118 and 1307, the Knights Templar used a cheque system to fund the travels of pilgrims. This system worked a lot like today's traveller's cheques and was a precursor to how traveller's cheques work today.

10.Dirty money
Coins aren't as dirty as you might think. Only 13% of coins test positive for bad bacteria while 42% of banknotes test positive for bad bacteria like fecal bacteria. And the odor left on your hands after you touch coins is actually caused by you, not the coins. When skin comes into contact with iron, some of the skin oils break down and begin to decompose, creating that smell.

We hope this has been an enlightening post about the world of coin collecting for those who are unfamiliar with it. You can purchase a wide range of coins, numismatics and other products online with KMG Gold at!
Posted by Mike Gupton at 12:00 PM 0 Comments

Wednesday, February 26, 2014

KMG Gold Now Sells Local, Hand Crafted Jewellery

If you like shiny things as much as we do, you'll be pleased to find out that KMG Gold is now selling select wholesale jewellery. Available at our Winnipeg storefront on Academy Road or online here, KMG Gold is happy to offer their customers a new product to enjoy.

Most of the items we now sell in the wholesale jewellery category are earrings, although we do offer a few different pendants. The earrings and pendants we sell are made with 14K white gold or 14K yellow gold and are set with a wide range of different gemstones. Some of the gemstones include: citrine, garnet, blue topaz, diamond and many more.

Selling this jewellery allows us to support our local Winnipeg economy, something we're really happy to be able to do. Each piece of jewellery is handcrafted and brand new, made by Roger Watson Jewellers right here in Winnipeg. Roger Watson Jewellers is a company that KMG Gold trusts and has collaborated with in the past with excellent results, so we can't recommend them enough!

We invite you to visit us online and check out the big selection of jewellery, complete with pictures and detailed information about each piece. They make for a perfect gift for someone you love, especially if that someone is yourself. You can check out the birthstone chart below for a little inspiration!

You can order online with free shipping on orders over $100, visit us at Academy Road or give us a call and we'll set it aside for you to pick up. As always, if there's something you'd like to see us offer online or in our store, leave us a comment or connect with us on Facebook to let us know!

Posted by Mike Gupton at 12:00 PM 0 Comments

Wednesday, February 19, 2014

KMG Gold Sponsors 2nd Annual Attire to Inspire Fashion Show

KMG Gold attends Easter Seals Manitoba Fashion ShowFor the second year in a row, and since its inception, KMG Gold was a proud sponsor of the SMD Foundation and KMG Gold attends Easter Seals Manitoba Fashion ShowEaster Seals Manitoba's second annual Attire to Inspire Fashion Show. This exciting fundraiser raised money for children, youth and adults with disabilities in Manitoba.

We love giving back to a good cause and this year was even better than last year because we were able to make it out to the event this time! Project Specialist Tasha DiLoreto (that's me!) and Office Manager Jodi Micelli both attended and we got to see a runway of beautiful clothing and local celebrities, not to mention the delicious food and wine that we were served.

KMG Gold was named the Inspire Sponsor of the show which was held in a new venue this year because it had expanded so much since last year. It took place at the Qualico Family Centre in the Assiniboine Park and 144 people attended the sold out show. The fashion show featured local clothing from several small boutiques in Winnipeg and all of the celebrities in attendance were also local Winnipeg persoKMG Gold attends Easter Seals Manitoba Fashion Shownalities, like Blue Bombers teammates, local news anchors and local politicians.KMG Gold attends Easter Seals Manitoba Fashion Show

We were so happy to be able to support such a fantastic cause and we can't wait to see the show again next year. Our guess is that it will expand again since it was such a fun evening, which is always appreciated in the cold Winnipeg winter!

In the meantime, we'll continue to support Easter Seals Manitoba in a new way: the Drop Zone Challenge! Come read about our quest to watch our boss Michael Gupton rappel down the side of one of Winnipeg's tallest buildings and help us reach our goal of raising $1,500.

Posted by Mike Gupton at 12:30 PM 0 Comments

Wednesday, February 12, 2014

Bitcoin 101

KMG Gold accepts bitcoinPerhaps you've heard of Bitcoin before, the digital currency that popped up in 2009 and which seems to be in the headlines every so often. There are numerous different opinions floating around about Bitcoin, a lot of them uninformed. Since KMG Gold has very recently begun accepting Bitcoin as a form of payment, we thought it would be a great idea to give our customers a quick overview of all things Bitcoin.

Here's the lowdown: Bitcoin is a digital currency that people can transfer between one another by using cryptography to control its creation and the transfer of funds. Bitcoin aren't regulated by any country or any person, the way they even come into existence is through a process called mining where people verify and record payments with one another. Bitcoin are stored in digital wallets which are essentially different software programs that you would use on your computer or smartphone. Bitcoin can be transferred instantly and if you're using your smartphone, it would use a QR code to do so.

KMG Gold accepts bitcoinBitcoin can be bought and sold and traded across anywhere in the world and is somewhat anonymous in the sense that only the Bitcoin address is viewable and not the owner's name. Bitcoin can be stolen and it is impossible to get them back, which is why Bitcoin often generates a lot of flack. However, this can be prevented by working with trustworthy individuals and companies, which is why KMG Gold is eager to adopt this additional form of currency.

Like we mentioned earlier, KMG Gold is now accepting Bitcoin as a form of payment at our 620 Academy Road location in Winnipeg, and is one of the first merchants in town to do so. This means you can use Bitcoin to buy gold, silver, platinum and palladium bullion, gold testing supplies, coins, numismatics and handcrafted jewellery. In the near future, KMG Gold will also be a trusted seller of Bitcoin, offering customers a safe and easy way to purchase Bitcoin.

If you're interested in learning even more about Bitcoin, visit CoinFest Winnipeg 2014 this Saturday February 15. KMG Gold is one of its proud sponsors. It's running from 1pm-5pm at the Santa Lucia Pizza lounge at 4 St. Mary's Rd and will share information about Bitcoin to individuals and local merchants looking to learn more about the digital currency. There will be guest speakers, a Q&A session and door prizes at this event so be sure to come on out if you want to learn more!

Have more questions? Check out this video below that is very informative.

Posted by Mike Gupton at 12:00 PM 0 Comments

Wednesday, January 29, 2014

KMG Gold Attends Manitoba Dental Convention Trade Show

KMG Gold Dentist Convention Dental GoldAt KMG Gold we love trade shows because they're a fun way for us to get to know our customers and potential future customers. It's always nice to get the opportunity to introduce people to KMG Gold and the services we provide that they might not have known about before. We also like getting to know our community and other local business owners in such a friendly setting.

This past Friday and Saturday KMG Gold attended the Manitoba Dental Convention at the Winnipeg Convention Centre. We set up our booth at the trade show on Thursday night and bright and early on Friday and Saturday morning we got to meet all the dentists, hygienists, assistants and KMG Gold pens for trade showstudents who stopped by our booth.

We got to hand out some of our new swag (pens, magnets and bags, woohoo!) and chatted with the dental professionals about how KMG Gold can help them recycle their dental gold. We found that there are a lot of people who don't know exactly what KMG Gold can do for their dental practice and many were surprised by how much money they could get for their unwanted dental gold.

The next trade shows that we'll be at are the Ultimate Women's Show on April 12 and 13 and then the BBB Home Repair and Renovation Show on April 25-27.

We can't wait to see you there!

Posted by Mike Gupton at 2:15 PM 0 Comments

Wednesday, January 22, 2014

Gold Gossip: Earthquakes and Gold

KMG Gold Gold Buyers Gold Gossip Blog Series EarthquakesGold can be found across the globe but did you know that some experts believe that earthquakes can actually create new gold deposits? The latest in the KMG Gold Gold Gossip blog series is all about the role that earthquakes can play in gold production.

In the March 17, 2013 issue of the journal Nature Geoscience, it was reported that the water that is found in the faults created by earthquakes will vapourize during an earthquake and can create new gold deposits. The lead author of the study, Dion Weatherly, a geophysicist at the University of Queensland in Australia, believes that this theory offers an explanation for the link between gold and quartz found in many of the world's gold deposits.

When an earthquake hits, it moves along fault lines in the ground. Large faults can have many smaller fractures along their length which are connected by jogs that appear as rectangular voids. Water often lubricates the faults and fills in these fractures and jogs. And since these are often six miles underground, under very high temperatures and pressures, the water carries high concentrations of carbon dioxide, silica and precious metals like gold.

As the fault jog opens wider during an earthquake, the water inside of this void immediately vapourizes and forces silica (which forms quartz) and gold out of the fluids and onto nearby surfaces.

But don't get too excited because the amount of gold left behind after an earthquake is extremely small and the underground liquids only carry one part per million of the precious metal. However, these deposits can build up over time and can even occur with earthquakes with a magnitude smaller than 4.0. After all, the quartz-linked gold deposits are what sparked historic gold rushes like the ones in California and the Klondike, with prospectors tracing the gravels back to their sources, where hard-rock mining continues today.

The above picture is an example of what gold found in quartz looks like. This is an extreme example, but you never know what you might find!

Stay tuned for KMG Gold's next blog post, published every Wednesday. If there's a topic you'd like to read about, share your thoughts in the comments below or via Facebook or Twitter.

Posted by Mike Gupton at 12:00 PM 0 Comments

Wednesday, January 15, 2014

How does KMG Gold offer such high payout rates?

KMG Gold Gold Buyers Melts GoldHave you ever wondered how KMG Gold is able to offer its customers such high payouts compared to the competitors? One reason for this is thanks to our electric induction gold melter. This state-of-the-art melting furnace truly exemplifies our award-winning customer-first philosophy since it eliminates the need for customers to sell their precious metals through a middleman. We can actually melt our customers' gold at our Academy Road location!

Most customers don't know that all recycled gold eventually ends up at a refinery for processing, so it actually can cost quite a bit when you go through middlemen to recycle your precious metals. Middlemen can include pawn shops, coin dealers, traveling road shows, gold parties, kiosks and cheque cashing outlets. All of these middlemen eventually sell the customer's gold and other precious metals to a refinery where the gold is then melted. This is why they aren't able to offer their customers as much money as a business who does their own melting.

We purchased this awesome melter to ensure that in this competitive market, our customers will be best served to ensure they're completely happy with the services that we provide them with. It is this attention to detail and determination that continues to earn us our leadership position in the precious metal recycling industry and so many Better Business Bureau Torch Awards.

If you know of a way we can improve our service to you, please leave your thoughts in a comment below! Don't forget to like us on Facebook and follow us on Twitter!

Posted by Mike Gupton at 2:30 PM 0 Comments

Thursday, January 02, 2014

Our New Year's Resolutions

We're so happy to be able to wish you a wonderful new year and to thank you for helping support KMG Gold and allowing us to grow into the thriving business that we've become known for.

We couldn't have done any of this without our loyal customers so we want to share how we plan on giving back to our community this year. We have a few things in the works for 2014 but as the year begins, we're lending our support to the Easter Seals and Society for Manitobans with Disabilities (SMD).

The SMD programs that are funded through Easter Seals Manitoba give people with disabilities the opportunity to further their education, build successful careers, develop their life skills, explore recreational activities and create connections with professionals and equipment that can improve their overall quality of life. The SMD also helps strengthen the abilities people already have, enabling them to develop new strengths so that they can truly live their lives to the fullest. KMG Gold proudly supports these mandates and is excited to partner up with such an important organization.

KMG Gold will be supporting the Attire to Inspire Fashion Show for 2014, becoming a sponsor for the second year in a row. We're so excited because this year we'll actually be attending the show too and we can't wait to see firsthand what they have in store.

But the thing we're most excited about participating in is the Easter Seals Drop Zone! If you aren't familiar with the Drop Zone event, you're in for a treat. An event that happens in several cities across Canada, individuals are invited to raise money for the Easter Seals and then rappel down the side of a large building. And since 2005, nearly 6,000 superheroes have raised more than $10 million for Canadians with disabilities.

Of course, we'll be sending our own Michael Gupton down the side of the building and we're still trying to decide which superhero he should dress up as. But as excited as we are to see him in action, we're even more excited about how many lives will be changed as a result of this event.

If you'd like to donate to this awesome cause, you can do so online here and you'll even receive a tax receipt for your donation. Or you can give us a call at 1-877-468-2220 if you'd rather donate that way!

Don't forget to stay tuned for fundraising news, events and updates from us!

Posted by Mike Gupton at 11:00 AM 0 Comments

Wednesday, December 11, 2013

KMG Gold wins BBB Environment Friendly Torch Award for 2013!

KMG Gold Recycling wins BBB Torch AwardWe're happy to be adding another beautiful Torch Award trophy to our collection this year. Our second win for 2013, KMG Gold has been awarded the Environment Friendly award from the Better Business Bureau. This is our fifth consecutive award from the BBB and we couldn't have done it without the nominations we received from our loyal and satisfied customers like you!

You might already know that the BBB Torch Awards is an annual program that recognizes businesses that build trust, advertise honestly, remain transparent in their business dealings, honor their promises and display integrity in all of their marketplace KMG Gold Recycling MIchael Guptonactivities. Companies are nominated by peers and customers and the winners are then selected by a panel of independent judges.

We're proud to announce that KMG Gold is currently the only company in the precious metal recycling industry to receive multiple BBB Torch Awards for Business Excellence and the only company to win the Environment Friendly award for 2013.

To be nominated for the Environment Friendly Award, a business must demonstrate leadership and innovation in minimizing the impact the business has on the environment. In our case, the environmental impact is much broader than just our business. All of the precious metals refined by KMG Gold are recycled and placed back into the world's precious metal markets. This helps reduce the demand for newly mined metals, which in turn, helps reduce both the amount of energy required to mine virgin metal, as well as decrease the amount of acid rock drainage generated by mine waste rock dumps and tailings ponds. By recycling their precious metals, KMG Gold customers have helped reduce the amount of acid waste rock generated by virgin mining of gold alone by more than three million tons.

Posted by Mike Gupton at 11:29 AM 0 Comments

Wednesday, December 04, 2013

Mike's Movember Wrap Up

KMG Gold's MIchael Gupton supports MovemberAs November came to a close, so did this year's Movember campaign. If you've been following our blog posts or seeing our recent Facebook updates, you'll recall that KMG Gold President and CEO Michael Gupton participated for the first time this year. Motivated by a KMG Gold Mike Gupton's moustache, last daydesire to help raise money for men's health, he decided to do a twist on the typical moustache and grow his into a handlebar!

We think he did pretty well, and so did his moustache! Mike raised over $185 to support Movember which came from donations from his family, friends and even a few KMG Gold customers. He said he had a lot of fun doing it so we're looking forward to round two in November 2014!

Although Movember is officially over, you can still donate to support the cause. You can donate via Mike's Movember page or through the Movember homepage. Donating to such a great cause is fashionable any time of year, whether or not a cool moustache is involved!

Posted by Mike Gupton at 2:07 PM 0 Comments

Wednesday, November 20, 2013

It's Beginning to Look A Lot Like Christmas...

...around the KMG Gold office in Winnipeg! Thankfully the weather hasn't quite turned Winnipeg into a winter wonderland just yet but that hasn't stopped us from getting into the Christmas spirit around here. KMG Gold Recycling Christmas stockings

Our newest gold buyer Lindy loves to decorate the office for all the major holidays and Christmas isn't any different. You may have seen her flare for decorating if you stopped by the office in October and saw what she did for Halloween. She got out the KMG Christmas tree (prelit, thank goodness!) and trimmed it with shimmering ornaments, bows and candy canes. And if you stop by, we promise we'll let you choose a candy cane from the tree!

With winter coming we also wanted to share our newest promotions with you. If you've visited the store lately, you might have noticed the green sheet of paper attached to your receipt inviting you to like us on Facebook and write us a review about how your experience was. Everyone who shares their experience with us on the KMG Facebook page will be entered in a draw to win a $100 VISA giftcard!

The other promotion that we have going on is our monthly draw. For November we've partnered up with Just Breathe Aesthetics and we're inviting you to enter our in-store draw to win a $25 giftcard from the spa/salon. Take our word for it, it's a very relaxing place to get pampered and we strongly recommend their manicures and polish selection! KMG Gold's newest partner November

Stay tuned for more exciting holiday news as we get into December and don't forget to check our Facebook page for the latest updates and promotions around KMG Gold!

Posted by Mike Gupton at 9:30 AM 0 Comments

Wednesday, November 13, 2013

World Kindness Day

KMG Gold does MovemberWith November 13 marking World Kindness Day, we thought we'd share a little about what KMG Gold does to make the world a little more kind.

KMG strives to donate to a lot of great charities because we truly believe in the importance of giving back to our community and making it a stronger, better place to live in. If you follow our blog, you'll remember that in the summer we supported a local soccer team who made it to the finals! But with the ending of the summer and soccer season, we started looking for new ways to give back.

One of our more recent community service ventures was donating a real gold bar to the Special Olympics' Gold Gala on October 25, an event that celebrated the athletes and the people who support them. While we weren't able to make it out to the event itself, the pictures looked fantastic and we're sure that whoever won the silent auction for the KMG gold bar was as excited about it as we were! KMG Gold Michael Gupton

Our most recent charity venture is Movember. You've probably noticed the spike in men with moustaches in November and maybe wondered what it was all about. Well, it's called Movember (moustache + November = movember!) and men grow the biggest and best moustaches they can while raising money that goes to supporting men's health. Men usually take pictures of themselves throughout the process (we've been posting ours on the KMG Facebook page) and friends, coworkers and family members donate money to support them. You can donate with cash or a cheque but a lot of people find it easier and more convenient to simply visit the participant's individual Movember page and donate online.

With all that said, our boss Mike decided (read: was persuaded by the office) to join Movember and see how much he could raise and how great of a moustache he could grow. You can visit his Movember page here, or visit the KMG Gold home page and click on the moustache pic to be directed to his personal page. We post weekly updates on the KMG Facebook page and you can expect a blog post at the end of the month with before and after pictures, along with the grand total of money he raised for this great cause.

To all of the men out there doing Movember, good luck! Send us your best moustache pictures and we'll post some of the best ones we receive!

Posted by Mike Gupton at 6:30 PM 0 Comments

Wednesday, November 06, 2013

Inside the KMG Coin Shop: The Swiss Franc

KMG Gold sells Swiss RappenAt the KMG Gold head office in Winnipeg, Manitoba, we try to curate a collection of coins that is both interesting and desirable to collectors. If you've visited our new ecommerce website recently and taken a peek around, you've probably noticed that we're expanding our coin and numismatic collection daily.

While we have an impressive amount of Royal Canadian Mint coins for sale, we're also proud to offer a wide assortment of coins from around the globe. We find it very interesting to be able to look at different currencies from different countries and see how they're similar to, and different from, Canadian money!

We like a little excitement in the KMG Gold offices so we thought we'd share one of our coolest coin finds of the week, the Swiss franc. Called Rappen in German or centimes in French, these coins are among the world's oldest currency that is still valid today. The oldest coins, the 10 Rappen, date back to 1879 and are still KMG Gold sells 10 Swiss Rappenmade of their original alloy of copper and nickel. In 1967, francs that circulated with face values of 1/2 franc to 5 francs changed in composition since their silver alloy was worth more than the face value of the coin!

It's interesting that a Swiss Franc from 1879 looks identical to a modern day Swiss Franc (except for some wear and tear!). And each coin is still inscribed with the words Confoederatio Helvetica, the Latin name of the Swiss Confederation.

Each coin that exists is an interesting connection to history and KMG Gold is happy to offer a small selection of this interesting currency online and in-store.

Posted by Mike Gupton at 11:00 AM 0 Comments

Wednesday, October 30, 2013

The Results Are In...We Won!

After receiving dozens of kind nominations from our happy customers and being named a finalist by the Manitoba and Northern Ontario chapter of the Better Business Bureau, we're happy to announce that on October 21, 2013 we were named the winner of the 2013 Torch Award for Marketplace Excellence.

We won the award for a midsize business and were recognized for our display of honesty, integrity and transparency in all out marketplace activities. It is because of our strong customer service that we were able to win this prestigious award and we never could have done it without support from YOU, our happy customers.

President and CEO Michael Gupton started KMG Gold from inside his home (in his dining room, in case you were curious!) in 2007 and when the business outgrew the space, he moved to a Winnipeg storefront in 2009. Since 2009 and since the inception of the Manitoba and Northern Ontario BBB in that same year, we have worked hard to win four consecutive Torch Awards each year since then!

One of the reasons why KMG Gold has been repeatedly recognized is thanks to our mandate of strong customer service and education. When a customer walks into KMG Gold, our goal is to make them feel at home and comfortable with the precious metal recycling business. We want to educate our customers on the processes involved in purchasing their precious metals so that they can make informed decisions when they decide to sell their gold, silver, coins, etc. We believe this is very important since this industry often attracts its fair share of unsavory characters who are willing to do anything to get a sale.

If you nominated us for an award - thank you! And if you didn't, come by and see what sets KMG Gold apart from the competition!
Posted by Mike Gupton at 10:00 AM 0 Comments

Wednesday, September 04, 2013

A Warm Welcome to KMG Gold Recycling's Newest Team Member, Gold-N-Memories of Steinbach, MB

KMG Gold New PartnershipIn an industry rife with unethical businesses, KMG Gold recognizes the importance of only working with businesses and individuals who have a commitment to the same high standards of ethics and integrity as we do. That's why we've implemented the Trusted Gold Buyer program, a designation that recognizes the same high standards as us.

The latest addition to the KMG Gold team is Gold-N-Memories from Steinbach, Manitoba. Gold-N-Memories joins a select group of business authorized to represent the KMG Gold Refinery in the purchase and recycling of unwanted gold and silver jewelry and other precious metals. Gold-N-Memories has made a commitment to the same high standards of ethics and integrity in their business dealings as have, which is why we've chosen to bring them into our network. They will now be able to display the KMG Gold Trusted Gold Buyer banner and decals in their place of business and will be able to incorporate the designation in their business cards, stationery and other marketing materials.

As a winner of multiple BBB Torch Awards that recognize the importance of integrity and ethics in the business place, KMG Gold has long been recognized as the trusted authority in North America for the recycling of precious metals. We strive to educate our customers to ensure they receive the highest payout possible and ensure that they aren't taken advantage of by some less than scrupulous individuals in the gold buying industry.

Posted by Mike Gupton at 3:25 PM 0 Comments

Wednesday, August 28, 2013

KMG Gold Recycling's New Lineup of Refinery Products

As part of a planned expansion of products and services that are intended to better serve our existing and future customer base, KMG Gold will begin distributing a leading line of refinery products from RDO Induction LLC, a leading supplier of induction furnace melting equipment for ferrous, non-ferrous and precious metal alloys. In addition to furnaces and melters, the company also supplies accessories such as crucibles, ingot molds, safety and handling equipment and much more. These products are now available for purchase on our customer-friendly and easy-to-use ecommerce site.

This latest expansion of the KMG Gold product line and service is a reflection of our desire to better serve you - our customer! - by providing a one-stop shop for tools, equipment and knowledgeable industry advice. All the tools that are produced by RDO and sold by KMG are perfect for anyone looking to start their own gold recycling program from their very own home at an affordable price point.

Have you used RDO products in the past? What did you think? Share your experience with us in the comments!
Posted by Mike Gupton at 10:30 AM 0 Comments

Wednesday, August 14, 2013

It's Finally Here! Shop Online with KMG Gold!

KMG Gold shop online ecommerce siteThe wait is over! KMG Gold Recycling is proud to announce the official launch of our new ecommerce site that gives customers a high-quality online shopping experience. Our first class ecommerce site offers our customers a shopping experience that is truly one-of-a-kind.

Our new site is ideal for those looking to set up their own gold buying businesses, offering everything to complete the process from start to finish; including gold testing products, crucibles, ingot molds and more. Truly offering something for every customer, our site also features hundreds of collectible coins for purchase. We're excited to sell numismatics, Royal Canadian Mint products as well as other coins and paper money from around the world. New items are added daily and feature a wide range of products that are perfect for beginners starting their coin collections and for seasoned coin veterans looking for that specific, rare coin.

Easy to navigate and laid out in a user-friendly manner, KMG Gold is certain that this site will be a game-changer in terms of how people shop in the gold buying industry. We look forward to attracting new customers from across North America and are certain that our high-quality products and positive shipping experience will further increase our already expanding customer base.
Posted by Mike Gupton at 12:30 PM 0 Comments

Wednesday, August 07, 2013

Coming Soon! KMG Gold Recycling's E-Commerce Site

KMG Gold is excited to announce the upcoming launch of our new ecommerce site which will offer products and services to better serve our existing, and future, customer base. We've teamed up with RDO Induction LLC (a leading supplier of induction furnace melting equipment for ferrous, non-ferrous and precious metal alloys) so that we can distribute their leading line of refinery products to our valued customers across North America.

KMG Gold is now officially a Canadian distributor for RDO Induction LLC and we'll be offering several different types of accessories like crucibles, ingot molds, safety and handling equipment and much more, that are crucial to the precious metals industry. We're so excited to offer our loyal customers these new products and services, and we hope they'll be as excited as we are. With the launch of our ecommerce site, we hope to better serve our customers by giving them a one-stop shop for tools, equipment and knowledgeable industry advice. We also know that by increasing our services offered, it helps solidify our position as Canada's leading precious metal recycler. KMG digger logo

For more updates and information about the launch of our ecommerce site, be sure to like us on Facebook and follow us on Twitter. And of course, keep reading our blog to stay tuned for exciting updates and other industry news!

Posted by Mike Gupton at 1:13 PM 0 Comments

Thursday, July 25, 2013

Paper Money? We Buy That Too!

 At KMG Gold we mostly buy and recycle precious metals; anything and everything that's silver, gold, platinum or palladium. But did you know that we also buy coins and paper money too? We have a lot of happy customers who are often surprised at how much we offer to purchase their old coins for and now we can add a couple customers who've sold us paper money!

We got the following paper bills a couple weeks ago and most of us were surprised to find an American $2 bill and a $1 Canadian bill in the mix. We always thought that $1 bills were only found in America and that $2 bills were a thing of Canada's not-so-distant past! Aside from being extremely interesting and very cool, we figured we'd do a little research on the subject and share what we came up with.

It turns out that Canada still used $1 bills up until printing ceased in 1991 and you can actually use $1 bills that you might discover in your attic since they're still considered legal tender! These notes are almost never seen in normal circulation (as us at KMG Gold can attest to!) and certain versions are sought after by collectors, depending on when they were issued and whether or not they were a part of a special collection. The version that we have pictured is a special issue of the bill since it was produced in 1967 to commemorate Canada's centennial, rendering it a highly sought-after collectible piece that depicts the young Queen Elizabeth I.

As for the $2 US bill, it's still in circulation, with the latest issue as recent as 2008. It depicts Thomas Jefferson on the front with a reproduction of the painting The Declaration of Independence by John Trumbull. Although these bills are fairly rare, with their production comprising a mere 1% of all printed US money, they aren't usually worth much more than their face value. They do have a few interesting myths that surround them (like that the bill brings bad luck to the holder which can only be dispelled by tearing off a small corner of the bill), so KMG Gold still thinks they're pretty cool!
Posted by Mike Gupton at 1:40 PM 0 Comments

Monday, July 15, 2013

KMG Gold Recycling Receives Two More BBB Nominations

As a previous winner of several Better Business Bureau (BBB) Torch Awards, KMG Gold Recycling is proud to announce that we've been nominated for two more of these highly-coveted awards for 2013. We've been nominated for the Marketplace Excellence award and the Environmentally Friendly award, both of which we've won in the past, and both of which we're crossing our fingers for this time around!

Since 2010, the BBB Torch Awards has operated as an annual program that recognizes businesses that build trust, advertise honestly, remain transparent in their business dealings, honour their promises and display integrity in all of their marketplace activities. Companies are nominated for the awards by peers and customers and the winners are selected by a panel of independent judges. KMG Gold is currently the only company in the precious metal recycling industry (and in Winnipeg!) to receive multiple BBB Torch Awards for Business Excellence.

According to Michael Gupton, President of KMG Environmental Inc., the parent company of KMG Gold, being recognized for the Environmentally Friendly Award this year is something very special. To be nominated for the Environmentally Friendly Award, a business must demonstrate leadership and innovation in minimizing the impact the business has on the environment. All of the precious metals refined by KMG Gold are recycled and placed back into the world's precious metal markets, helping decrease the amount of acid rock drainage generated by mine waste rock dumps and tailings ponds. By recycling their precious metals, KMG Gold customers have helped reduce the amount of acid waste rock generated by virgin mining of gold alone by more than six million tons.
Posted by Mike Gupton at 3:35 PM 0 Comments

Friday, July 05, 2013

Looking Back: Attire to Inspire Fashion Show

One of our favourite charity events that we attended in the past few months was the Attire to Inspire Fashion Show. The sold-out February show raised money for the Society of Manitobans with Disabilities and for the Easter Seals Manitoba, helping 47,000 Manitoban children, youth and adults. All the proceeds raised stayed within the province to help sustain and support the programs and services provides by these two fantastic charities.

KMG Gold attends Attire to Inspire Fashion Show for Easter Seals ManitobaSince KMG Gold Recycling was founded in 2007, working with charities has been an important element of our business that president and founder Michael Gupton supports. At KMG Gold, we're proud to be able to lend our support to the SMD Foundation and Easter Seals Manitoba in helping them achieve their mission of building a community that supports independence, participation and empowerment of persons of all abilities in Manitoba. As much as we love being recognized as Winnipeg's most-trustworthy gold buyer, we also strive to be recognized as vibrant community leaders who give back to charities through donations and other means. This latest expansion of community support is another part of our ongoing commitment to give back to our local communities in which we operate.

To learn more about KMG Gold's role in community advocacy, please visit us at Like us on Facebook and follow us on Twitter for updates, news and promotions at KMG Gold. For more information about the Society of Manitobans with Disabilities and Easter Seals Manioba, visit
Posted by Mike Gupton at 10:05 AM 0 Comments

Tuesday, July 02, 2013

It's Ladies' Night in Elma, Manitoba!

KMG Gold loves ladies' Night in ManitobaIs there anything better than having a glass of wine and catching up on some gossip with your girlfriends on ladies' night? If you live in Elma, there is. Ladies at the local community centre invited Michael Gupton, the president and founder of KMG Gold Recycling, to their last event, asking him to evaluate and purchase their unwanted jewellery, coins and silverware. These ladies were looking to have a fun night out together and also make a little spending money!

Gupton said he was surprised by the invitation but was flattered, saying, "I think we've found ourselves a new market niche." Used to receiving gold and other precious metals in the mail and seeing lots of different people coming through the doors of his popular store on Academy Road in Winnipeg, 
KMG Gold attends ladies' night in Elma Manitoba with great results Gupton is happy to have found another way to purchase gold that is even more convenient for the customer. Since customer satisfaction is one of the key mandates in KMG Gold's commitment to service excellence, being invited to evaluate and purchase precious metals in a new environment is right up Gupton's alley.

If you are interested in hosting a gold party of your own, we'd be happy to give you some more information about how we can help you do so. Give us a call toll-free at 1-877-468-2220 or reach out to us on Facebook or Twitter and we'll be happy to help!
Posted by Mike Gupton at 10:51 AM 0 Comments

Monday, June 24, 2013

The Latest in Metal Analysis Technology Hits KMG Gold

KMG Gold Latest Innovative TechnologyKMG Gold is ready to improve the speed and efficiency of metal analysis even more with the newest addition to their location at 620 Academy Road. The Fischerscope X-Ray XAN 123 Spectrometer was recently purchased by the company and is one of two machines in all of Winnipeg. This innovative machine is optimized for fast, non-destructive analysis of jewellery, precious metals, gold, platinum, silver, rhodium coins and all jewellery alloys and coatings - everything KMG Gold sees on a daily basis.

This new machine allows for extreme precision and very low detection limits, detecting elements of precious metals in mere seconds. Fast and accurate, with better than 1% precision for gold, this machine displays its results in karats or KMG Gold Latest Innovative Technologyweight
 percentages and results can easily be printed out as custom reports. Our customers will benefit from this high-tech equipment and get a faster and more accurate analysis of materials they bring to us, resulting in an even higher payout.

KMG Gold president Michael Gupton says of the machine, "With only two of these machines in Winnipeg, KMG Gold is committed to providing our customers with the absolute best that the industry has to offer." This statement certainly rings true as the acquisition of this machine marks another part of KMG Gold's ongoing commitment to using the latest developments in science and technology to improve their level of service to the customer and as a tool in their ongoing efforts to help create a more educated consumer.

Posted by Mike Gupton at 11:51 AM 0 Comments

Friday, October 14, 2011

Gold Rises Again

In the opening markets, gold rose on track to post its biggest weekly gain in more than a month. There is still uncertainty in the markets with the anticipated G20 meeting whose agenda will be dominated by the euro zone debt crisis and steps to tackle spreading issues.

Spot gold rose 0.4 percent to $1,671.99 an ounce at 1139 GMT, from $1,666.20 late in New York on Thursday.

Reflecting growing concern about the region's debt crisis, ratings agency Standard and Poor's downgraded the long-term credit rating of Spain by one notch, just as policymakers get ready to pressure Europe to act swiftly to tackle its financial woes at a weekend meeting.

Although investors are not expecting any concrete resolutions to the debt crisis, they hope it will provide an opportunity for officials to agree on the outlines of a plan in time for a European Union summit on October 23.

"Like always, the big picture remains positive,” said Michael Gupton, founder and president of KMG Gold. “The supply-demand fundamentals are in place and everything still looks good.”

Also helping boost gold was a fall in the dollar, which dipped against a basket of currencies. A weak dollar makes commodities priced in the U.S. unit cheaper for holders of other currencies.

Gold prices are up 2.3 percent so far this week, on track to post its strongest weekly gain since early September.

U.S. gold gained 0.4 percent to $1,674.80 an ounce, while spot silver rose 0.2 percent to $31.85 an ounce.
Posted by Caitlyn Diamond at 7:34 AM 0 Comments

Friday, September 23, 2011

Crucial Steps In Buying Gold

The world economic scenario has undergone a lot of turbulence and uncertainty in the past few decades. Therefore, it is a secure alternative to make long term investments. The retirement accounts are decreasing, the stock exchange is also subject to huge fluctuations and the value of all currencies is on a decline. Gold has become a prized investment in such these circumstances. Gold has emerged as a winner because it has been able to withstand all the lashes of recession. Apart from being used in ornaments, gold also possesses immense historical value and importance. What’s more is that by buying gold at a lower price and selling it at a higher price, one can make money.

To ensure that gold proves to be a secure and reliable investment, people should understand some simple steps to buy gold. To gain a full understanding of the ins and outs of the market, people should thoroughly analyze the gold market. If one wants to know the potential value of gold holdings, people should understand the value of the metal and have complete knowledge of its historical relevance. Moreover, people should be aware that gold investment is not restricted to one specific option. People can buy metal futures, certificates, stocks of mining companies, wafers, physical bars and coins and mutual funds of precious metals amongst others.

Before settling on one form of investment, people should have a thorough understanding of the gold industry. In addition, the mode of investment which is selected should enable people to make money and should also be within means. Those investors should look for gold coins that have a limited allocation. Not only these coins have immense historical value, but are easy to transport and convenient to store and hold.

Finding a reliable gold dealer is the next step which has to be followed. It is essential to find a dealer who is honest, trustworthy and follows all business ethics from the ones which are available locally as well as online. All Canadian cities like Toronto, Calgary, Kamloops, Vancouver, Winnipeg, Victoria etc have their own gold dealers.
There are several gold dealers located in each city. It can be seen that people can save on the transportation and shipping costs can be saved if one opts to use a local dealer. On several occasions, people can gain confidence by investing in smaller items.

People can choose any gold refinery in Canada for confirming gold authenticity of gold with the help of gold assay services. KMG Gold Recycling is a suitable choice when looking for a precious metal refinery in Canada. People can make a decision once the refinery has analyzed the gold. KMG would be the ideal choice as it conducts all its transactions with honesty. 
Posted by Caitlyn Diamond at 7:56 AM 0 Comments

Thursday, September 22, 2011

Silver Sales Rise 30%

The Royal Canadian Mint is on track to raise sales of its silver bullion coins by around 30 percent to 25 million ounces this year and to match last year's record gold sales of around 1 million ounces, an executive from the Mint said.
Speaking on the sidelines of the London Bullion Market Association annual conference, John Moore, executive director of bullion and refinery services at the Mint, told Reuters investors believed silver had more room to rise than gold.
"In terms of our sales this year, year to date we're tracking to the same volumes as we had last year in gold, which were record volumes for us. heading toward a million ounces," he said.
"In silver, we are 30 percent ahead of where we were last year," he said. "We finished last year with 18 million ounces of silver (sales). We are looking at increasing those sales by about 30 percent to the end of this year, to around 25 million ounces."
While silver sales have been strong, very few scrap coins are being returned to the market despite a rally in silver prices to record highs near $50 an ounce in late April.
The metal dropped sharply from that high, however, falling by around a third in just six sessions after its record high, unsettling some investors.
"Analysts are still calling for silver to follow gold and go back up to $50," Moore said. "If you believe gold is going to $2,000, you will probably believe that silver will follow it and go to $50."

Posted by Caitlyn Diamond at 1:06 AM 0 Comments

Tuesday, September 06, 2011

Gold Prices

The London Gold Fixing is the most common benchmark for the price of gold. The London Gold Fix refers to a twice daily telephone meeting of committee members from five bullion trading companies on the London Bullion market.

Representatives from the five firms meet twice daily to set the price of gold bullion. However, gold trading goes on world over based on the intra-day spot price, which is typically taken from over-the-counter gold-trading markets globally.

Recent Price Increases

The recent increase in the price of gold can perhaps be traced back to 2008, when the gold price went above US$1,000 to peak at US$1,004.38. However, after the March 2008 increase, Gold prices once again fell to a low of US$712.30 per ounce.

But it wasn’t long before the prices begun to rise again in late February 2009. Towards this time, the gold price provisionally went above US$1000 but later experienced a slight decline towards the end of the first quarter of 2009. By the end of 2009, the earlier March intra-day spot price record of US$1,033.90 was surpassed numerous times in October.

The price of gold effectively began climbing new highs in late 2009, peaking at about US$1226 before a sudden slight decline. However, as of August 19, 2011, the price of gold had peaked at a new all time high of US$1852.00 at the London Gold Fix.

A number of factors account for the fluctuating price of Gold.

Like any other goods, the price of gold is largely determined by speculation, supply and demand. On the one hand though, saving and disposal also affect greatly the price of gold more than its consumption. The fact is, most of the world’s gold ever mined can be found in bullion bars or jewelry, but with minimal value in terms of gold’s fine weight. As of the end of 2006, estimates indicate that all gold ever mined globally summed up to 158,000 tons.

Considering the fact that vast amounts of gold are stored above ground than annual gold production, the gold price is mainly driven by alternating sentiment (demand), as opposed to annual production (supply).

Estimates from the World Gold Council indicate that annual mine production of gold in recent years has been around 2,500 tons. Out of this amount, about 2,000 tons goes into the jewelry and dental industry and a further 500 tons is used by retail investors and exchange traded gold funds.

There has never been a better time to sell gold given the high price of gold currently in the international bullion market. Generally, the price of gold has also historically gone up in uncertain economic situations, such as inflation, as investors rush to hedge against financial losses.
Posted by Caitlyn Diamond at 9:02 AM 0 Comments

Thursday, August 18, 2011

Buying Gold Bullion In Winnipeg

There has been a drastic increase in gold investment in the city of Winnipeg. People often chose to invest the spare cash they have into gold and then liquidate it when prices rise. Like other cities in Canada such as Calgary, Vancouver, Montreal, Victoria etc, Winnipeg is also becoming the hub of gold trading. Buying Canadian gold bullions can lead to a variety of options for people in regard to investment. As there is no lock period for the purpose of liquidating your investment, you can sell your gold when you want.

People reap certain benefits when they purchase gold:

• It is said to be the safest and most reliable form of investment, because the gold bullion is offered to people by the government. A variety of options are offered by the Canadian Mint for to invest in gold bullion. When you want to buy gold, you have the option of public or private parties. Trading is conducting with the help of spot prices but premium may also be charged. A Winnipeg gold buyer should remember that for gold investment, there are numerous ways. There are different ways to invest in gold so it is not necessary to purchase gold bullion.

• People can make use of the internet to make an online purchase and thus make an investment in gold. In this manner, people can use gold as a means of trading as they will not get their hands on tangible gold but it will instead be available in the form of stock or a commodity. But this is only applicable in situations where gold is bought for investment purposes.

• For people who are newcomers in the market and are making gold investments for the first time, there are literature and magazines which can offer all the necessary information about the gold market and explain its trends which can lead to better decision making. Reading them will be helpful in comprehending the moods and trends of the market and will help people in deciding the correct time for making or selling investments.

To earn top dollar as a buyer, one needs to spend time in educating oneself about the trends of the market and the different trading strategies which are used and will eventually allow you to get higher returns from your investment. If one wants good results, then for starters, small investments should be used and once people have analyzed and understood the market conditions and trends, huge investments can be made. To make a great profit in a short time, people can make large investments once they have gained confidence. The most liquid and highly paying investment is gold. But it requires large investments so one should be cautious. Before investing in private parties, people should get feedback from old clients and research it thoroughly. Before entering the market, one should be aware of the trends and political conditions.
Posted by Caitlyn Diamond at 9:10 AM 0 Comments

Tuesday, August 16, 2011

Buying Gold- Knowing All The Workings

Because of the economic turbulence prevailing worldwide, it has become very difficult for people to come across a secure and long term investment option nowadays. Fluctuation of stock exchange, shrinking of retirement accounts and erosion of the value of money are the reasons which contribute to it. Investors are now using gold to enhance their investment portfolio as they have come to accept and believe in its historical importance and value and not thinking of this precious metal as a jewelry making commodity only. By opting to buy gold, people can make money through it later as it can be sold at a higher price.

There are a few steps which one has to follow when choosing to buy gold in order to make a safe investment. Getting all the knowledge about the gold market is the first crucial step which should be taken. A gold buyer should role and historical importance of gold as this will give them knowledge of the potential gold holds as a mode of investment. It should also be understood that the five primary methods of gold investment are certificates, stock in mining companies, metal futures, tangible bars and coins and precious metals mutual funds.

Before deciding on an investment option, research should be done on each option. You can choose one based on your budget or the mode which has the possibility of giving you most money. The ideal choice is gold coins if one has a limited or small budget. This is because they are easy to transport, store as well as hide. They also have historical value. Selecting a dealer is the next step when one has decided to buy gold. It’s difficult to choose one dealer or company as there are numerous who sell gold. No matter which dealer or company they select, the dealer should follow all business ethics.

When people wish to ascertain the value of their gold, they can get assay services at a gold refinery. KMG Gold Recycling is a very suitable choice when you are looking for a refinery which practices honesty. Instead of choosing an online dealer who is virtual, it is better to choose one with whom you can meet face to face. People can select any dealer they want as there are different dealers in every Canadian city such as Calgary, Victoria, Kamloops, Toronto, Winnipeg, Vancouver etc.

By using a local dealer, transportation and shipping costs can be saved. Once the gold has been tested by the refinery, people can finalize their decision. People should invest in what they can afford and thus start with small gold coins. By offering gold assaying services, KMG Gold Recycling helps to ensure that your investment is safe and sound.
Posted by Caitlyn Diamond at 1:06 PM 0 Comments

Tuesday, July 26, 2011

Gold and Silver

Gold and silver are some of the oldest rare metals known to man and have been used for varying purposes throughout history. Today, Gold and Silver are used widely in industry amongst other applications.

Gold Uses

Gold is increasingly finding usage in industry due to its range of favorable properties. Gold has been used in dentistry, jewelry as well as in the manufacture of industrial applications. The use of Gold has been necessitated by favorable properties such as:

•Its resistance to corrosion
•Efficient electrical conductivity.
•Gold has suitable Thermal Conductivity
•Infrared reflectivity
•High Ductile and Malleable

Today, Gold is used in a variety of industrial applications such as manufacture of electronics components, equipment such as computers, mobile phones and home appliances. These applications have been made possible by Gold’s superior electrical conductivity, high malleability and resistance to wear and corrosion.

With a high infrared reflectivity, Gold has found suitable usage in the manufacture of shielding used to protect spacecrafts and satellites from the effects of solar radiation. In addition, industrial and medical lasers also make use of a Gold coated reflector that focuses light energy. In medical research, Gold is extensively being used as it portends no harm to the body. Gold has traditionally been used in the treatment and management of arthritis amounts others intractable diseases.
There has been a steady growth in industrial demand for Gold. Currently, most of the world’s gold supply goes into the Jewellery industry.

Silver Uses

Silver has been used historically for various purposes, ranging from medicine, coinage to industry. Silver has the best electrical conductivity properties of all metals and does not corrode. Silver has widely been used in the production of coins and silverware. However, recent years have witnessed a fall in global silver supply, as demand from industry continues to grow. 

Silver use in industry has also been made possible by the metal’s favorable properties. Today, the US leads in overall global silver consumption. The photography industry also takes a considerable amount of the overall silver supply globally. Silver is used in the manufacture if color film used in shutter cameras.

However, the advent of the digital camera has somewhat affected the uptake of silver in the photography industry. Silver demand is also driven by the electronics industry. Electronics manufacturers prefer silver due to its high electrical conductivity per unit volume. However, its high price and unavailability has seen silver replaced by Copper.

Silver is also used in the manufacture of switch and relay contacts for vehicles and automotive window heating systems. Today, a very small amount of silver is used in coinage. Major silver miners in the world include Peru, the US, Canada, Spain, Australia and Mexico.

Posted by Caitlyn Diamond at 9:49 AM 0 Comments

Thursday, July 14, 2011

Scrap Gold Buyer Online

Scrap gold buyer online in Canada, KMG Gold is the right place to sell gold. KMG Gold is the 2010 BBB Award Winner for Marketplace Excellence, Honesty, Ethics and Integrity in Business. This is enough proof for the integrity and ethics in business. You might want to read through real time customer testimonials in the KMG Gold website.

When we talk about buying precious metal bullion, we mean to talk about buying gold bullion, buying silver bullion, buying platinum bullion, buying palladium bullion, and buying rhodium bullion. It can be either one or more of these bullion types based on your affordability. These metals are precious because they are rare. Whether you are buying gold bullion or selling gold bullion it is very important you understand the reputation of the buyer and then go about the buying process.

Ensure that the dealer from whom you are buying the bullion is providing you with a consistently better price than the rest of the dealers. Since the prices for precious metals are transparently displayed in online gold selling sites you can safely compare the rates from different gold buying and gold selling sites about the price you can pay to buy for your gold or the price you can get for your gold, in case you are selling your gold.

When you set out to buy precious metal bullions you will find a mix of them in different weights, shapes and sizes:
• Gold coins, gold wafers, gold coins of different weights, gold bars, gold kilo bars
• Silver coins, silver wafers, silver coins of different weights, silver bars, silver kilo bars
• Platinum coins, platinum wafers, platinum coins of different weights, platinum bars, platinum kilo bars
• Palladium coins, palladium wafers, palladium coins of different weights, palladium bars, palladium kilo bars
• Rhodium coins, rhodium wafers, rhodium coins of different weights, rhodium bars, rhodium kilo bars

From the assortment of available choices you have to decide the form of bullion you would like to posses and you should make your purchase accordingly. If you want to buy precious metals in Canada whether you are looking to buy gold in Canada, buy silver in Canada, buy platinum in Canada, buy palladium in Canada, or buy palladium in Canada deal with a company who has a stable customer service in case you might want to deal with them after sale. A good dealer will answer your concerns even long after you have completed the purchase.

There are online gold buying websites that allow you to continue with the gold buying and gold selling round the clock. You can take your time and shop at your convenience to reach the best price possible for your purchase.

Posted by Caitlyn Diamond at 9:12 AM 0 Comments

Wednesday, July 13, 2011

Tailings and Waste Rock from Mining

Tailings and waste rock is a direct product of modern large scale commercial mining activities. Today, mining is responsible for significant environmental damage. Tailings and waste rock make up the bulk of mining waste.

By definition, tailings refer to whatever is left after the ore has been crushed and the metal obtained. Tailings will typically be slurry that contains hazardous chemicals. On the other hand, waste rock refers to the displaced earth when searching for the metal ore. Modern commercial mining is typically done on a large scale and requires vast areas of land.

Mining Types

Tailings and waste rock will typically result from either of the following mining methods;
1. Hard Rock Mining
2. Placer Mining

Placer Mining

Placer mining refers to the extraction of gold or silver from surface placer deposits. Placer mining is mostly carried out on small scale and produces insignificant tailings or waste rock. Place mining is today confined to small scale prospectors, with modern miners employing complex techniques to excavate the rare metals. Therefore, placer mining does not produce tailings or slurry containing hazardous chemicals. Placer mining uses techniques such as the sluice box or the gold pan.

Hard Rock Mining

Hard rock mining is perhaps responsible for vast tailings and waste rock. Waste rock is produced by giant earth movers and powerful drills that bore through earth in search of metal ore. Waste rock has no use for a miner; it is simply ground that is displaced to obtain the ore. On the other hand, the extraction of the underlying precious metal uses various dangerous chemicals such as arsenic, mercury, acids etc. These chemicals finally make up the composition of the slurry that is kept in holding pools as tailings. Therefore, tailings will typically consist of whatever chemicals are used during the extraction process for gold, silver, platinum and palladium.

Environmental Impacts Posed by Tailings and Waste Rock

Mining poses considerable negative environmental impacts. Tailings contain hazardous chemicals that can cause serious environmental damage. To protect against leaks to the environmental, miners build holding pools that contain the slurry. However, leaks have been common, with wall breakages and enormous chemical leaks. Therefore, if not well contained, careless mining can cause serious environmental impact. Leakage to water pipes or rivers and streams can be disastrous. The chemicals can also cause considerable water and air pollution.

Commercial miners also bring to the surface underground sulfur rocks that can cause acidic run-off, killing crops. The acidic run-off can leak to human water pipes, with disastrous impacts. For these reasons, countries have put in place effective mining legislation to prevent against pollution or disasters. However, there are countries, such as in the third world that still have ineffective mining legislation and experience considerable mining pollution.

Posted by Caitlyn Diamond at 9:06 AM 0 Comments

Monday, July 04, 2011

Dutch Guilders

The Dutch Guilder was used as currency in the Netherlands for centuries. It was however discontinued in 2002 and replaced by the Euro. The Netherlands used the guilder as the official national subunit of the Euro between 1999 and 2002. The Dutch guilder, as the name indicates, was typically made of gold. ‘Gulden’ is a Dutch name for ‘golden.’

The Netherlands has minted and issued a long line of numerous gold coins throughout its history. The Dutch guilders were issued in different weights and sizes, each carrying varying levels of pure gold. Some Dutch guilders have over one name, a potential cause for confusion.

Some of the Dutch coins produced include 1875 Willem III 10, 1876 to 1889 Willem III 10 Guilders, 1911 to 1917 Wilhelmina 10 Guilders, 1925 to 1933 Wilhelmina 10 Guilders and Ducats.

The various gold coins would have gold content as follows; For the 1 Guilder coin, it would have a gold content of .2652; the 5 Guilder had .0973 gold content; 10 Guilder had .1947 gold content; 20 Guilder had .3894 gold content and the 1 Ducat had .1106 gold content.

The first guilder ever minted was the 10.61 gram silver coin with a silver purity of .910. It was minted and issued by the states of Holland and West Friesland in 1680, all parts of Netherlands Kingdom. This original guilder was further split into 20 stuivers, with each stuiver having 8 duiten or 16 penningen.

The advent of the gold coins effectively replaced the other existing silver coins in the Netherlands Kingdom. Such silver coins included the florijn made up of 28 stuivers, daalder made up of 1½ guilders or 30 stuivers, rijksdaalder made up of 2½ guilders or 50 stuivers, silver ducat made up of 2½ guilders or 50 stuivers and the silver rider ducaton made of 3 guilders or 60 stuivers.

However, the mintage and issue of the guilder was interrupted between 1810 and 1814 when France conquered and annexed the United Netherlands Kingdom. During this period, French Francs were widely circulated in the Netherlands. When the Napoleonic wars ended, the Netherlands reverted back to the use of the guilder. In 1817, the Kingdom decimalized the guilder, making it equivalent to 100 cents. These coins were however later withdrawn from circulation.

The last pre-decimal coins were removed from circulation in the 1840s. Most of these coins dated back to the 17th Century. Originally, the Netherlands operated on a bimetallic standard and a guilder was equivalent to 605.61 milligrams of fine gold, or 9.615 grams of fine silver. However, the silver standard was adjusted to 9.45 grams in 1840, while the gold standard was removed in 1848. In 1875, the Netherlands adopted a gold standard with 1 guilder being equated to 604.8 milligrams of fine gold.

Posted by Mike Gupton at 2:56 PM 0 Comments

Wednesday, June 29, 2011

Casting Grain

Casting grain is done by jewelers when creating unique gold grains. Typically, high quality pre-casting grain comes in different karats and colors. The colors are created depending on tastes and color preference. Typically, the strength and color of the grain being cast will largely depend on the chemical composition of the metal being used, whether it is silver, gold, copper etc. Generally, the ratios of silver and copper in an alloy have a bearing on the overall color of the alloy. The ratios of the same will also determine the strength and hardness of the alloy. When casting grain, the chemical composition of the alloys mainly determines the overall characteristics of the outcomes.

As such, alloy chemistries are very important in determining color. But in cases where the chemistries create a challenge, jewelers will typically compromise. When using high zinc content, jewelers run the risk of creating bigger, unusual shrink voids. Other than this, grain such as red karat gold can be difficult to cast, as it forms copper oxide slag. In addition, red karat gold is highly susceptible to porosity.

Certain silver and copper variations may also force jewelers to compromise. Silver and copper content in certain variations can create very hard castings that are hard to work with. To mitigate this, jewelers prefer casting grain with tried and tested compositions of the various metals.

Generally though, workable casting grains feature a fine detail that is demonstrated by proper flow and fill characteristics. In addition, workable grain also has a clean as-cast surface and no impurities at all, such as oxides. Other than these, jewelers will also give preference to workable grain that has very minimal shrink characteristics, but with excellent physical attributes such as ductility and malleability. Workable casting grain has to be nearly as fine as-cast grain size and should be able to harden with age.

When casting grains, a jeweler chooses the best color for a cast after deciding on the Karatage of the gold being cast. However, the color of the gold being cast will solely depend on the relative amounts of silver, gold, copper, zinc and nickel being used. For instance, when casting colored karat gold, whether red, green or yellow; silver, zinc and copper will mostly be used.

White karat gold uses alloys of gold, copper, nickel and zinc. On the other hand, palladium white gold is also used sometimes and contains alloys of gold, palladium and silver. In addition to color requirements, the mechanical characteristics of an alloy are also important. Such mechanical properties include malleability and ductility, and depend on what the alloy is being used for. Therefore, casting grain depends on a number of factors that jewelers must consider when looking for quality outcomes.

Posted by Mike Gupton at 9:52 AM 0 Comments

Tuesday, May 31, 2011

Gold at three-week high on Greek woes

KMG Gold: Gold legal currency in Utah, with other states considering the move
NEW YORK (MarketWatch) — Gold futures on Monday rose to a three-week high as ongoing concern about Greek sovereign debt heightened the safe-haven appeal of the metal.

Gold for August delivery   GCQ11 -0.05% , the most-active contract, rose $2.50, or 0.2%, to $1,539.8 an ounce in electronic trade on the Comex division of the New York Mercantile Exchange.

Silver also moved higher, with the July contract  SIN11 +0.38% rising 23 cents, or 0.6%, to $38.09.

In Athens, Greece’s government on Monday readied to unveil billions of euros worth of new spending cuts and tax hikes, to be unveiled in coming days, as public demonstrations against the new measures continued.

Late Sunday, the Financial Times reported European leaders are trying to negotiate a new bailout for Greece that would bring wider outside intervention in the country’s financials.

Last week, gold prices gained 1.8%, with buying supported by concerns about euro-zone debt levels and a weaker dollar, which can encourage investment in dollar-priced commodities such as metals.

U.S. floor trading was closed Monday for the Memorial Day holiday.

The dollar index  DXY -0.22% , which measures the greenback against a basket of six other major currencies, stood at 74.954 versus 74.911 late Friday.

And, in a move viewed largely as symbolic, Utah recently passed a first-of-its-kind law intended to encourage the use of gold and silver coins as cash.

The legislation, which legalizes gold and silver coins as currency, also eliminates state capital gains taxes on the sale of gold and silver, although federal capital gains taxes would still apply.
KMG Gold
Posted by Mike Gupton at 7:07 PM 0 Comments

Friday, May 20, 2011

Bullion Shortage Hits Gold and Silver Coin Market - 20 May 2011

Gold coin premiums shoot up...

WHILE precious metals are currently in correction mode, the long-term concerns with supply won't disappear anytime soon, reckons Jeff Clark, editor of Casey Research's Big Gold newsletter.

In attempt to get a handle on the Bullion market, I spoke to Andy Schectman of Miles Franklin, who has contacts that run deep in the industry. What he sees everyday – especially the shortages in gold and silver coins – might just compel you to count how many ounces you own…

Jeff Clark: Andy, tell us about your industry contacts and how you get the information you're privy to.

Andy Schectman: We source our product from three of the largest six primary US mint distributors. Having 20 years of experience with these sources, as well as the dealers in the secondary market, we're as tied into the industry as anyone.

Jeff: You made some interesting comments to me about supply and premiums. Tell us what you're hearing and seeing in the Bullion market right now.

Andy Schectman: I feel as though I'm the boy who cries wolf or that I've been beating the same drum for too long. But in reality, it has been my feeling since late 2007 that ultimately this market will be defined less by the price going parabolic – which I think ultimately will happen – and more by a lack of supply. You see occasional reports that state it's just a lack of refined silver or lack of silver in investable form. But as far as I'm concerned, there is a major supply deficit issue, and it's getting worse.

Take the US Mint, for example. Right now, as we talk, you can barely get silver Eagles. We're seeing delivery delays of three to four weeks, and premium hikes of a Dollar or more in the last three weeks. Most of the suppliers in the country are reluctant to take large orders on silver Eagles because they don't know (a) when they'll get them, and (b) what the premiums will be when they arrive.

I was talking to the head of Prudential Bache and asked him about silver Eagles. He said, "You know, as soon as the allocations come in, they're sold out. We can't keep them in." This is coming from one of the largest distributors of US Mint products in the country.

And this is all occurring in an environment that has only minimal participation by the masses. Few people in this country have ever even held a Gold Coin or a silver coin. So, if it's this difficult to get Bullion now, what's it going to be like when it becomes evident to the masses they need to buy? This is what keeps me up at night. 

Jeff: Some analysts say it's a bottleneck issue, that the mints have enough stock but just need more time or more workers to fabricate the metal into the bars and coins customers want.

Andy Schectman: No, I don't believe that. What business do you know that if they had that much profit potential wouldn't increase production and hire more workers to meet demand? To me, the "inefficient model" argument is an excuse.

Look at what the US Mint alone has done: they haven't made the platinum Eagle since 2008. They make maybe one-tenth as many gold Buffalos as they do gold Eagles. They've made hardly any fractional-ounce gold Eagles. Heck, they can't even keep up with the demand for the products they do offer. Does that sound like a bottleneck to you? Or is it because there is far more demand than there is available supply? It's pretty clear to me it's the latter.

Jeff: What are you seeing in the secondary market; are investors selling Bullion?

Andy Schectman: There is no secondary market. Absolutely none. Nobody is selling back anything, at least not to us. Think about that: if this was a traditional investment and your portfolio went up 100% in the last year, like silver has, you'd think some investors would take some profits and ride the rest out – but nobody's selling anything.

This is why I think the lack of supply is the single biggest issue in this market. And in time, I think it will become much more obvious. 

There are only five major mints – US, Canada, South Africa, Austria and Australia. Yes, there is a Chinese Mint and a couple Swiss Mints and some private refiners, but they amount to very little in the overall scheme of things. We're in a situation where the mints are limiting the selection and raising the premiums, and this is occurring at a time when most people own no Bullion. As it becomes more apparent that people want Bullion instead of paper Dollars, I think you'll see premiums go parabolic and supply get even tighter.

Jeff: Are you getting a lot of new buyers to the Bullion market?

Andy Schectman: More than ever. One of the interesting things we're seeing is a lot of younger people dipping a toe in the water, buying little bits of silver here and there. We're also seeing bigger orders, as well as more frequent phone calls from financial advisers asking us if we can help their clients. So yes, the base is broadening.

Jeff: That's very interesting. So are you seeing more demand for gold or Silver Bullion right now?

Andy Schectman: 90% of the new business is in silver. And I think that's indicative of the state of the economy. People are trying to get into precious metals, but they think gold is too high. I think they're Buying Silver because they realize the fundamentals for owning gold also apply to silver. They think the profit potential is better in silver, too. This has actually made the supply for gold better than it is for silver right now, and a lot of that has to do with price.

Jeff: Why are premiums fluctuating so frequently?

Andy Schectman: Premiums are almost impossible to gauge right now. Because the availability of product is getting smaller and smaller and the demand is getting stronger and stronger, premiums are changing literally overnight. And it doesn't take many large investors around the country to force premiums higher.

The net of this is that it's really hard for us to be able to say what the premium for a specific product will be two weeks out.

Jeff: You mentioned increased interest from fund managers. Tell us the kind of comments you're hearing and why they're buying Bullion.

Andy Schectman: I think it's coming from their clients. It's my impression that people are taking it upon themselves to study a little bit more, to be more accountable for their assets, and I think they're telling their financial advisors to Buy Gold. And in some cases it's because they don't want a paper derivative.

It's no secret that financial advisors don't like gold and silver. Once money goes to a Bullion dealer, it's not coming back to a stock portfolio anytime soon, so they discredit it. But now it's my impression they're being asked by their clients to buy it. So it's not necessarily because the financial advisor wants gold as much as it is the client requesting it.

Here's a good example. There's a firm here in Minneapolis that represents the Pillsbury fortune, and they asked me to talk to their partners about precious metals a few months ago. At the end of the conversation they said, "Okay, we're going to place an order for one of our clients." Upon hearing it was for one client, I thought it would be in the range of $50,000 to $100,000. Well, the order was for $5 million.

There are two astonishing things about this. First, that's twice as big as the largest order I've ever had. It was one order, for one client, who's brand new to the market. How many more potential buyers are out there like that? 

Second, they made it abundantly clear to me that it was out of pressure from one of their clients that they sought me out. So clients are increasingly demanding Bullion, regardless of what their financial advisers say.

Jeff: Hearing about all this new buying might make some think we're near a top in the market. Could that be the case?

Andy Schectman: No, no. I think Richard Russell says it best: "Bull markets die of exhaustion and overparticipation." Well, we're nowhere near that point when so few people in this country own gold and silver. Heck, I'm a Bullion dealer, and most of my peers don't own any gold and silver! Yes, you're seeing more commercials, but there are just as many commercials to Buy Gold as there are to sell it. I think that's an indication this market is not exhausted.

Remember that in the year 2000 everyone and his brother had some NASDAQ shares. That's an example of an exhausted or overparticipated market. We're nowhere near that.

Jeff: Where are the best premiums for silver?

Andy Schectman: The very best buy in silver right now is junk silver. And by the way, I think the term "junk" is unfair. It isn't junk anymore. It used to be junk in the ‘90s when silver was 3 or 4 bucks an ounce and it was sold basically at melt value and carried no premium. So I'd call it "90% dimes and quarters." Anyway, junk silver has the lowest premium right now and, in my opinion, offers the best upside potential.

Next would be 10- and 100-ounce Silver Bars. And then one-ounce silver coins – but the Eagles are very expensive at the moment, if you can get them. The Austrian Philharmonic has the best value in a one-ounce silver coin right now, and they're available. But again, premiums for all silver coins are escalating.

Jeff: What about gold?

Andy Schectman: Gold is not as bad. In fact, I would say that gold availability is decent right now for one-ounce coins and bars. There isn't much available in fractionals. And Buffalos are still kind of hard to get. Other than that, the one-ounce coins with decent availability are Canadian Maple Leafs, Australian Kangaroos, and Krugerrands. And they all have decent premiums.

Jeff: So the take-away message is what?

Andy Schectman: First, I think you said it best with your recommendation to "accumulate." Not only will it smooth out the volatility in price and premiums you pay, it will also give you a bird in the hand. If I'm right about this market, and I really believe I am, it will be defined by lack of availability of refined product. To combat that, just accumulate month in and month out, and be thankful when you're able to get what you want.

Second, it's about the number of ounces you own. You want to get as many ounces as you can without being penny wise and pound foolish. Stick with the most recognized products – don't buy 1,000-ounce bars, for example, because they're illiquid. You want to maximize your liquidity, and you do that by buying the most common forms of Bullion – one-ounce coins, bars, and rounds; 10- and 100-ounce products; and junk silver.

Last, keep in mind that premium and commission are two different animals. Commission is what the dealers make on top of the premium. Premium is what the industry bears. So if the US Mint is selling silver Eagles for $3 over spot to the distributors, that's before they're marked up to the public. So even though the "premium" is high, you're actually going to get most of that back when you sell. 

So, Buy Gold and silver while it's available, even if you don't buy it from me, because if I'm right, getting it at all could soon be your biggest challenge.

Jeff: Thanks for your insights, Andy.

Ready to buy gold or Silver Bullion, but worried about high coin premiums? Try KMG Gold... 

Posted by Mike Gupton at 8:30 AM 0 Comments

Tuesday, May 17, 2011

Commodities running on empty?

by Goldmoney
Published : May 17th, 2011 

A growing number of market participants think that the commodities bull market is running out of steam. These estimates are based partially on the recent developments in futures and options markets, where many hedge funds have recently been liquidating their long positions. But Chuck Jeannes, CEO of the world’s fifth-largest gold producer, Goldcorp, argued at the weekend that the upward trend in the precious metals sector still has a long way to go.

Data from the Commodity Futures Trading Commission (CFTC) show that major investors trimmed their net-long commodities positions in the week ending May 10, with hedge funds and speculators among the largest sellers. According to Reuters, professional money management funds dumped about 222,000 long contracts in 22 US Futures markets within only five trading days. Net long positions declined by 13% compared with the previous week. Many investors were caught on the hop by sudden and unexpected margin hikes on futures contracts, something that hit the silver sector especially hard.

The number of outstanding Comex long contracts in the gold sector has declined by almost 20,000 in comparison with the previous reporting period. This corresponds to a setback of 10%, or a nominal decline amounting to $3 billion. The situation is even worse in the silver sector, where investors cut their net-long positions by about 25%, which led to a nominal decline of $1.1billion. The total number of positions held by global funds decreased to $116.8 billion. However, the total number of outstanding long contracts is still at very high levels, and precious metals did manage to stage a partial recovery last week.

Famous investor Jim Rogers for one remains unconcerned by the correction, and stated in an interview last week that commodities will continue to appreciate over the coming years. In his view volatility will remain high, but the fundamentals underpinning this bull market remain intact. Continuing dovish policies by the world’s central banks – and in particular, the US Federal Reserve – are a particularly important fundamental factor. As the renowned fund manager Eric Sprott pointed out at a conference in Las Vegas last week, the markets have once again chosen gold as the world’s reserve currency.

Goldcorp’s Chuck Jeannes argues that the supply and demand dynamic remains bullish as far as precious metals are concerned. He notes that while mining production in the gold sector has steadily declined over the last ten years, demand for the metal has dramatically risen. In contrast to the recent announcement from Goldman Sachs, which called on gold producers to start hedging against potential price set backs, Jeannes said that Goldcorp was not planning on following Goldman´s advice.

Posted by Mike Gupton at 5:17 PM 0 Comments

Wednesday, May 11, 2011

Gold, Silver Futures Slump in New York as Dollar Strengthens Against Euro

Bloomberg: May 11, 2011. Gold fell in New York, halting a three-session rally, as a stronger dollar eroded the appeal of the precious metal as an alternative asset. Silver also declined.

The dollar rose against the euro on speculation that European leaders may not grant Greece additional aid, forcing the nation to restructure its debt. Gold touched a record $1,577.40 an ounce on May 2 before dropping 4.2 percent last week as the greenback climbed.

“The correction in the dollar will have more room on the upside, and that’s going to pressure precious metals,” said Matt Zeman, a strategist at Kingsview Financial in Chicago. “Too many people were short the dollar and long gold. There will be additional unwinding of that trade.”

Gold futures for June delivery fell $15.50, or 1 percent, to settle at $1,501.40 at 1:49 p.m. on the Comex in New York. The metal has gained 23 percent in the past year.

The euro has dropped 2.5 percent in a measure of 10 developed-nation currencies since May 4, the day before European Central Bank President Jean-Claude Trichet signaled the bank may wait until after June to raise borrowing costs again, according to Bloomberg Correlation-Weighted Currency Indexes. The bank raised the main interest rate 25 basis points to 1.25 percent in April.

“The falling euro is going to drag gold down with it,” said Zeman of Kingsview.

Gold Trust Holdings

Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged yesterday at 1,201.95 metric tons, after declining 2 percent last week. The last gain in holdings was April 15.

“We would’ve expected that they’d have risen a bit in the last day or two, given the sharp bounce” in gold prices, said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter. “That suggests to us that the worst of the liquidation is not yet over.”

Gartman has recommended holding gold in other currencies to hedge against the relative strength of the dollar.

Silver, which has wider industrial applications than gold, also fell on speculation that China will raise interest rates to stem inflation. The Asian nation’s consumer prices rose 5.3 percent in April, the statistics bureau said today in Beijing. The country’s target inflation rate is 4 percent for this year.

“There’s chatter about China raising rates to curb growth, and that’s made copper and silver vulnerable,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago.

Silver futures for July delivery fell $2.971, or 7.7 percent, to $35.515 an ounce on the Comex. The metal gained 9.1 percent in the previous two days after shedding 27 percent last week.

Palladium futures for June delivery declined $17.25, or 2.4 percent, to $715.40 an ounce on the New York Mercantile Exchange. Platinum futures for July delivery dropped $23.10, or 1.3 percent, to $1,777.80 an ounce on the Nymex.
Posted by Mike Gupton at 5:13 PM 0 Comments

Wednesday, May 11, 2011

Silver down nearly 8% as dollar strengthens

Concerns about Greece’s debt load drag euro
SAN FRANCISCO (MarketWatch) — Silver futures on Wednesday led yet another commodities selloff , down 8% as traders judged a default for Greece unavoidable, a sentiment that weighed down the euro and sent the dollar higher.

Gold for June delivery GCM11 -1.08%  declined $15.50, or 1%, to settle at $1,501.40 an ounce on the Comex division of the New York Mercantile Exchange.

July silver SIN11 -8.84%  retreated $2.97, or 7.7%, to settle at $35.52 an ounce.

Greece’s debt restructuring seems “inevitable,” said Bill O’Neill, a principal at Logic Advisors in New Jersey. “That’s a real threat to the banking system.”

In a restructuring, investors holding Greek debt will likely be offered less than face value for the bonds they hold. The stark possibility was enough to drag down the euro and prop the dollar up against most major currencies.

A stronger dollar is negative for commodities as it makes them more expensive to holders of other currencies.

For gold, and to a lesser extent for silver, dollar movements add another layer of complexity as dollar weakness and its twin fear of currency devaluation often spark precious metals buying.

Gold held up better than silver because it got some flight-to-quality support, said Adam Klopfenstein, a senior market strategist at Lind Waldock in Chicago.

“At the first sign of weakness, people dump” silver, he added.

In the first two days of this week, metals and other commodities had recouped some of last week’s steep losses. It all came undone as the dollar rose steadily throughout the day.

The dollar index DXY +0.96% , which measures the greenback’s performance against a basket of six rival currencies, lately traded at 75.308, compared with 74.700 in North American trade late Tuesday.

It had struggled for direction in early trading, as the British pound soared on word of a potential future rate hike in England. Read more about currencies.

Earlier, investors digested inflation data from China. The country’s consumer-price index climbed 5.3% in April from a year earlier, while analysts expected a 5.2% rise. Read more about latest data from China.

Inflation concerns tend to spark investor demand for precious metals, as gold is often bought as protection from price increases and currency devaluation.

However, the boost from China’s data was short-lived.

In other metals trading, copper for July delivery HGN11 -0.22%  dropped 13 cents, or 3.2%, to $3.91 a pound.

Platinum and palladium were also not immune, with July platinum PLN11 -1.18%  down $23.10, or 1.3%, to $1,777.80 an ounce. June palladium PAM11 -2.13%  declined $17.25, or 2.4%, to $715.40 an ounce.

The commodities downdraft also caught up with oil, which recently retreated 5.7%. Oil also added to its losses after a government inventories report showed a higher-than-expected increase for oil supplies.

Posted by Mike Gupton at 5:11 PM 0 Comments

Tuesday, May 10, 2011

Digging for value in gold, silver, commodities

SAN FRANCISCO (MarketWatch) — Gold and silver have lost some luster with investors; the price of oil and other natural resources is lower, and speculation in many agriculture sectors has dried up. So why are three veteran money managers who can put money anywhere still holding on to commodities?

Because they believe that emerging markets will live up to their promise. They’re convinced that the growth of the world’s nascent economies will create a bold new consumer class, whose desire for more and better will feed demand for raw materials, industrial and precious metals, and — perhaps most critically — food and water.

“The world is growing and using more commodities,” said Marshall Berol, co-manager with Malcolm Gissen of Encompass Fund ENCPX +0.62%  , which has been heavily invested in various resource stocks for several years.

“China, the Far East, the Middle East, India, Latin America, South America, Brazil, Argentina, Chile — these economies are growing,” Berol noted. “There are setbacks from time to time, but they’re growing, and as they grow, more people are employed, at better jobs; they have money and they want what we’re accustomed to in this country — houses and cars and cell phones and refrigerators.”

Berol is also a confirmed gold bug. “It’s going higher,” he predicted for gold. “It’s not at a top yet.”

Values and trades
Berol addressed his comments to MarketWatch’s Investing Insights live event held in San Francisco last month. The theme of the event was “Global Investing in a Post-Crisis World.” In addition to Berol, attendees heard views about precious metals and commodities from Michael Cuggino, manager of Permanent Portfolio PRPFX +0.58% , a mutual fund focused on capital preservation, and Cody Willard, principal of CL Willard Capital, who writes the Revolution Investing newsletter and an online blog called The Cody Word for MarketWatch.

Willard, the panel’s lone trader, differed with Berol and Cuggino on the bullish prospects for gold, silver and precious metals, but he shared their optimism about commodities.

“There’s a good trade — a good opportunity — where you can short gold and silver, and buy against that a basket of oil, cotton, corn, soybeans, anything you actually have to consume,” Willard said. “Because it’s the poor people who are driving commodities, and I don’t think they’re going to buy gold when they’ve having to figure out how to feed the kids.”

The event was held several weeks before both precious metals and commodities suffered a sharp blow. The wave of selling in early May could have been the result of speculators exiting with their profits after a mammoth rally. Or, more ominously, the downturn could reflect traders’ fundamental concerns that global economic health is weakening, which would curb demand for materials brought out of the ground, scarce or not.

Weathering storms
Yet big swings are to be expected with these investments. The panelists were well aware in April that prices for precious metals and commodities might have come too far, too fast. Indeed, over the following weeks investors in these alternative assets grappled with indications that U.S. economic growth is weaker than expected, and that soaring food and gasoline prices would quash demand — fears that ultimately did torpedo some of the momentum, especially for silver.

Berol and Cuggino acknowledged the potential for a correction in these markets at the April meeting, but noted that day-to-day or even quarter-to-quarter gyrations don’t concern them much. Instead, a long-term focus steers their portfolios through a sector’s booms and busts.

“We’re not looking to get in and out,” Berol said. “We’re looking for what is going to be worth more down the road.”

“I don’t get wrapped up in quarters,” Cuggino added. “You don’t have to worry about what the stock market is going to do every day, what’s the Fed’s going to do, what’s going to happen in the world.”

Cuggino’s mutual fund is unusual in that its constructed with an eye toward downside protection. Most of its assets are spread across gold, silver, natural resources stocks, Swiss francs and U.S. Treasurys.

“The way we go about the basic flaw in human nature of not being able to predict the future is by putting together a broad array of different asset classes in one portfolio that work at cross purposes,” Cuggino said.

The fund’s holdings individually might be highly risky, but together they work as a team to cover the bases and reduce overall portfolio volatility.

Gold, in particular, is Cuggino’s insurance policy against what he views as the ill-effects of the Federal Reserve’s policy of low interest rates and easy money — a stance, he said, that is stoking inflation, debasing the value of the U.S. dollar and putting a high floor under gold.

GLD 147.96, +0.06, +0.04%

SLV 37.69, +0.17, +0.45%

“Where [the price of gold and commodities] goes from here, I think, given that scenario where interest rates continue to be very low to negative after inflation, potentially that’s traditionally a very bullish sign,” Cuggino said.

“You have demand picking up not only with emerging markets and more disposable income, but you have demand picking up on the investment side — whether that’s mutual funds, hedge funds, institutional investors, sovereign wealth funds or governments potentially,” he said.

“Last time I checked,” Cuggino added, “there wasn’t a huge increase in supply coming out of the ground. And with less confidence in paper money around the world, gold will take on a lot more importance as a store of value.”
Posted by Mike Gupton at 5:53 PM 0 Comments

Monday, May 09, 2011

Canada market up on commodities rebound

Canadian Markets. May 9, 2011, 5:33 p.m. EDT
SAN FRANCISCO (MarketWatch) — The Canadian market rose with all sectors closing up Monday, boosted by a recovery in commodity prices following last week’s selloff.

The S&P/TSX Composite Index CA:$ISPTX +0.82%  gained 111 points, or 0.8%, to close at 13,677.
The lightly weighted S&P/TSX Capped Health Care led the gains, rising 2.1% with shares of Valeant Pharmaceuticals International Inc. CA:VRX +2.82%  and SXC Health Solutions Corp. CA:SXC +2.38%  leading the charge.

The driver behind the rally, however, was the more heavily weighted indexes of commodities- and energy-based stocks. The S&P/TSX Capped Materials Index CA:TTMT +1.54% rose 1.5%, the S&P/TSX Capped Diversified Metals and Mining Index  CA:TTMN +1.44%  increased by 1.4% and the S&P/TSX Capped Energy Index /quotes/comstock/11t!i:itten CA:TTEN +0.93%  closed up 0.9%.

Gold for June delivery GCM11 +1.43%  advanced 0.8% to $1,503.20 an ounce, and silver for July delivery SIN11 +6.92% rallied 5.2% to $37.12 an ounce on the New York Mercantile Exchange. Copper for July delivery HGN11 +2.04%  rose 4 cents to close at $4.02 a pound.

Shares of First Quantum Minerals Ltd. CA:FM +3.06% added 3.1%, and shares of Barrick Gold Corp. CA:ABX +1.19% , Potash Corp. of Saskatchewan CA:POT +1.51% , Goldcorp Inc. CA:G +2.15% and Ivanhoe Mines Ltd. CA:IVN +5.74%  all showed gains.

Crude oil for June delivery CLM11 +5.59%  settled up $5.37, or 5.5%, to $102.55 a barrel on the Nymex.

The S&P/TSX Capped Consumer Discretionary Index CA:TTCD +0.66%  rose 0.7%, with shares of Forzani Group CA:FGL +49.06% jumping 49% after the company got a C$26.50-a-share buyout offer from Canadian Tire Corp. CA:CTC.A +2.73% .

Shares of Gildan Activewear Inc. CA:GIL +1.97%  rose 2%, and Tim Hortons Inc. CA:THI +1.11%  added 1.1%.

The S&P/TSX Consumer Staples Index also tacked on 0.7%, with shares of Viterra Inc. CA:VT +3.79%  rising 3.8% and Jean Coutu Group Inc. CA:PJC.A +1.29%  gaining 1.3%

In currency trading, the Canadian dollar rose against its U.S. counterpart USDCAD -0.2589% , with the greenback buying 96.17 Canadian cents, compared with 96.36 cents late Friday.

Posted by Mike Gupton at 4:41 PM 0 Comments

Monday, April 18, 2011

Can You Pass The 2011 Gold Quiz?

"Regardless of your score, I'm sure you'll agree with the ramifications each point makes for the gold market." ? CPM Group recently released its 2011 Gold Yearbook, an invaluable resource for us gold analysts. As mostly a reference book, even a gold enthusiast might find it dry reading—but I loved it and, as I studied it on a plane, I kept finding data that made me perk up. To have a little fun with it, I thought I'd summarize what I read in the form of a quiz. See how many you can get correct. Regardless of your score, I'm sure you'll agree with the ramifications each point makes for the gold market. I'll start off easy. . . 1. The main driver behind rising gold prices over the past decade: Increased jewelry demand in India; greater industrial uses of the metal; and investment demand. Worldwide investment demand for gold totaled 44 million ounces (Moz.) in 2010. Because of the growing demand by investors, prices have been forced upward. Five exchanges began trading gold contracts for the first time in 2010 and three more introduced mini contracts, collectively the largest number launched since the early '80s. There are now 24 gold vending machines in seven countries, with three more countries adding machines this year. Households in developing countries are now moving away from gold jewelry and buying coins and bars for their savings. I could go on, but suffice it to say that investment demand will continue to be very strong. 2. True or false: Recovery from gold scrap was lower in 2010 than 2009? Scrap rose three consecutive years in a row—until last year. Gold supply from scrap fell 2.1%, to 42.2 Moz. This is significant because gold prices were higher, which would normally increase the amount of scrap coming to market. One of the primary reasons scrap dropped is because investors are holding on to their metal, reportedly because they believe prices are headed higher. Isn't that one reason you're holding on to your bullion? 3. There are many reasons investors have been buying gold over the past 10 years, but what's the #1 reason? Safe-haven asset; gold coins and bars have become more intricate, widespread and beautiful; and supply and demand imbalance. Global fears increasingly led investors to purchase large volumes of gold in 2010 for safe-haven purposes, despite record price levels. High levels of investment buying are expected to continue in 2011 because virtually none of the economic, political and monetary concerns have been resolved. If you got all three answers correct, you're an investor who understands the basic reasons for owning gold and that those reasons are still in play. Now let's step it up a little. . . 4. Gold represented what percent of global financial assets at the end of 2010? 3.1%; 0.7%; 1.6%; and 2.4%. The estimated value of investor gold holdings stood at $1.5 trillion at the end of last year, about 0.7% of global financial assets. While up nine years in a row and triple what it represented in 2001, gold is still a miniscule portion of the world's private wealth. It represented 2.8% of global assets in 1980, four times what it does today. 5. How many central banks increased their gold holdings in 2010? 9; 12; 15; and 19. Russia, Thailand, Belarus, Bangladesh, Venezuela, Tajikistan, Ukraine, Jordan, Philippines, South Africa, Sri Lanka, Germany, Kazakhstan, Mexico, Greece, Pakistan, Belgium, Czech Republic and Malta = 19. Central banks, as a group, are expected to continue to be net buyers of gold for the foreseeable future. It's interesting that most purchases were from developing countries, unsurprising when you consider they've accumulated over $5 trillion in foreign exchange reserves just since 2002. 6. Compared to 2009, U.S. Mint gold coin sales in 2010 were: Down 12%; Up 8% Up 5%; and Up 3%. The U.S. Mint sold 1.43 Moz. last year, down 12% from the 1.62 Moz. sold in 2009. You might think this is negative until you realize that global coin sales rose 21% last year, reaching 6.3 Moz. Makes you wonder what other countries know that many North Americans don't. Supply problems continue to plague the U.S. Mint, evidenced by the fact that Buffalo sales were suspended for half the year. What happens when the greater population begins to clamor to buy gold? Bottleneck—meet desperation: 7. CPM estimates that the fiscal and monetary imbalances, especially in developed countries, could take how long to resolve? 1 year; Decades; 5 years; or 2 years? Rigid social contracts are so deeply ingrained, especially in the developed world, that it will take decades to resolve the monetary imbalances. This sobering fact means gold will likely be in a bull market for many years to come. There are very few options to deal with the overwhelming debt burden in most of these countries: Raise taxes, cut spending, increase growth or print money. Guess which one is most likely? Inflation from currency dilution is baked in the cake and will spur further gold demand and light a fire under the price. If you got these four questions correct, I think it means you're an astute investor who doesn't worry about day-to-day price fluctuations and instead focuses on owning enough ounces to protect your assets from the huge and intractable fiscal problems that still have to be faced. Now, here are some questions for those of you who love gold stocks: 8. What was the industry-average cash cost to produce 1 ounce of gold last year? $509; $498; $544; or $474? Cash costs have tripled since 2002 and rang in at $544 last year. They will certainly be higher again this year. In spite of higher costs for the producers, margins actually rose due to higher gold prices. Margins in 2010 averaged $680 and were only $114 as recently as 2002. We've got some of the most profitable companies in BIG GOLD, along with a number of producers that have big growth coming online over the next one and two years. Buy these stocks before that growth happens; if you shell out the bargain basement price of $79 now, I think your portfolio will be very happy when it comes time to renew. 9. The average grade of gold mined on a worldwide basis last year was how much? 5.11 grams/ton; 3.54 g/t; 2.96 g/t; or 1.83 g/t? The second lowest level on record—1.83 g/t—occurred in 2010. While not entirely negative because higher gold prices allow producers to go after lower-grade deposits, this leads to higher costs for both discovery and production. It is, undoubtedly, true, though, that one of the main reasons grades are lower is because the easy fruit has been picked in many regions around the world. This is bullish for those explorers that can find and develop higher-grade deposits and is where much of our speculative dollars should be focused. Our mining exploration advisory International Speculator tells you which companies are the best of the best, outperforming the S&P by 8.4 times last year. So, if you're not reading the International Speculator yet, you're missing out on some spectacular profits. 10. The most popular region for exploration spending is where? Latin America; Canada; Nevada; or China? Roughly 25% of all global exploration money is devoted to Latin America. The biggest beneficiaries are Peru, Mexico, Brazil, Chile and Argentina. If you're investing in gold and silver explorers, make sure you have exposure to this region, as odds are high there will be a number of major discoveries made here.
Posted by Mike Gupton at 6:57 PM 0 Comments

Friday, April 08, 2011

Will Silver Become Money Again like Gold?

"In the private and institutional domain, silver already is a wealth protector."

We have always referred to silver as the 'long shadow' of gold because its price moves with gold's. When the gold price rises, silver rises more. When the gold price falls, silver falls further but they move in sync. Why?

Silver saw a huge drop in demand as the photographic industry moved to digital. But then, new uses for silver in the medical field and in electronics developed and look as though they will eventually dwarf the peak photographic demand. But by moving as though riveted to the gold price, the silver price is not reflecting the movements one associates with a simple industrial commodity.

The Move Away from Money

"Official" silver selling by Russia, India and China appears to have (or is about to) come to a halt after many decades of selling the metal stockpiled as coinage that had ceased to be used as such. In this it has a common denominator with gold, in that central bankers are no longer selling these assets. But silver is not in demand by central banks, whereas their demand for gold is heavy and persistent. Will silver be treated as an important reserve asset again?

Since the full use of precious metals as coinage fell away in the first half of the last century, the disparity between the face value of money and its silver value parted ways dramatically. Governments and their central banks wanted an insignificant, inherent value for the coins, so that the face value, determined through government actions on the monetary front, would be the only value they had. Practical considerations require that there is a coinage element to money. Governments have used this 'fiat' system of money because of the advantage of being able to control the monetary system alone. It was accompanied by the breaking away from the real international values that precious metals will always have. Nowhere has the split between 'measure of value' and 'means of exchange' been more significant than in coinage. The central banks also gained full control the money supply, without fear of a judgment via a soaring gold price.

When gold and silver were money (in 1933, for instance) governments believed that an expansion of the money supply was sorely needed for the world to climb out of the depression. At that time, the only way to accomplish that was to increase the value of gold (silver followed) allowing for more dollars to be issued. To clarify, the dollar was devalued in terms of gold not the other way around. Gold was a cumbersome item at that time, because of the vast amounts of gold not held by the central bank. Hence the confiscation! Once the U.S. central bank had acquired sufficient volumes of gold and then devalued the dollar, the banking system was awash with dollars. Mr. Ben Bernanke has used a similar tactic to expand the U.S. (and global) money supply to fend off deflation. Because gold and silver cannot be released and captured at will, central banks found that their use as a 'means of exchange' was just too cumbersome.

Of course, the change to paper notes and to alloy coins destroyed the ability of money to be a measure of value. The value of money is now solely dependent on the citizens' trust in their government and central bankers.

We are not referring to inflationary aspects or to exchange rates here, but the extent of trust and faith in that money. Yes, exchange rates hopefully (provided there is no manipulation of exchange rates—which there is) will reflect falling values.

Real inflation (lower buying power of money not a number measured by government tools) will always be allowed by governments, despite central bank commitments to price stability.

The key to a healthy economy is that the man at ground level be able to sustain his way of life with the income he receives. If oil prices and food prices rise, he needs more income to sustain his way of life.

Real inflation or deflation not only relate to growth but the change in the money supply Any attempts to disguise inflation or money supply changes will work only temporarily until the economic realities of the economy shine through (such as now with low housing prices, high unemployment and seeming 'stagflation'). The governments of the world like to imply 'price stability' through the management of money supply but tools such as quantitative easing distort that in the attempt to use money supply to invigorate the economy. Simply put, they use inflating money supply to defeat deflation.

The disadvantage of gold and silver coinage is that their worth will always rise above their face value. If governments increase the money supply beyond growth, they would thus be giving citizens a protection against the debauching of money. This undermines central bank control of the economy and financial systems.

So not surprisingly, we see no sign of silver being treated as money by central banks anywhere. But at a retail level, silver is being bought increasingly as a 'measure of value', protecting the individual's wealth as paper currencies are unable to do at the moment.

The History and Present of Silver as Money

In the past, silver has been used as coinage. Until the middle of the last century, most countries used silver in coins. Well before the U.S.A. and the I.M.F. cut the link between money and gold, silver was replaced with alloys in coinage. Take a look at the small change in your pocket and you will see a silver lookalikes. The human view of money is still that coins should look valuable, even if we are fooled by the alloy lookalikes. And that's the point. Will we as gullible humans believe that the money in our pocket has value?

We have to qualify the answer to that question by saying subject to economic conditions, yes. When you have nothing, bartering with anything for something is the simplest of monetary systems. When you are in the mainstream economically and economic growth is good, we are inclined to accept mainstream money in any form governments want us to. It makes trading easy. Take a look back at the years from 1985 until 2007 and you see a developed world growing steadily, happily and confidently. Money was trusted in any form it took because the system benefitted everybody. It's only when the person you are dealing with refuses to accept it as money that it then fails. Far from being global, like gold and silver have been throughout history, national money is valuable only locally, where it is legislated as the only acceptable means of exchange.

Imagine if I turned up at a shop and handed over a few hundred dongs (from Vietnam) or a few trillion Zimbabwean dollars, (Aah, that's no longer money even in Zimbabwe), what would your shopkeeper say? It is this parochial nature of fiat money that will be its eventual downfall. Once the Yuan is a global reserve currency from a growing country with a massive presence, we will be able to choose between the Yuan and the U.S. dollar. Then what?

Take a silver eagle and offer it to a Chinese person—he will accept it readily. Even while the South African rand is only useable in South Africa, the South African gold 1 ounce Krugerrand is exchangeable anywhere (at a price of $1,420 not its face value of 14.70 U.S. cents (1/10,000 times face value).

Silver, throughout history has been accepted as money anywhere in the world. While central banks and governments refuse to allow its use as money inside their economies, they have not taken away from its value as a currency. Silver remains a form of unrecognized money even in the hands of people who have not used is as money for many generations.

Even today, when the fiat money systems are decaying, a trickle of people is protecting their wealth by selling their paper money for solid silver and gold. We are at the start of a trend that is inexorable. Even central banks have started buying gold and have ceased selling it. The trickle will become a flow. But silver is not yet in the same category as gold, as money (yet) in 'official circles'. It will have to follow the path blazed by gold, but not until gold is seen to be visibly used in the global money systems, will silver stage a comeback. Even then, it will always be a junior partner to gold. After all, its price is so low and the quantities available for this role so small, that it is too far away from being as practical a measure of value as gold is now. But imagine if it was priced at $200 an ounce, then its credibility as money would be legitimate. If one could have a ration of one ounce of gold to 50 ounces of silver, then investors would be comfortable treating silver as money.

But in the private and institutional domain, silver is already a protector of wealth. This should be the focal point of its use. The investing world, regarding both silver and gold as a protector of wealth, can no longer be ignored. It is a fact through its performance all over the world. So, can governments harness this present reality? Will they? We are of the opinion that they won't until they have to!
Posted by Mike Gupton at 6:05 PM 0 Comments

Saturday, March 19, 2011

World-Renowned Bullion Products and an Accredited ISO 9001 Gold and Silver Refinery Facility

The Royal Canadian Mint's bullion products are universal symbols of innovation, ingenuity and excellence. At the heart of our distinctive line of bullion products is our collection of Maple Leaf bullion coins in gold, silver, platinum and palladium - all guaranteed by the Government of Canada for weight and purity.

The Royal Canadian Mint also operates one of the most technically advanced and respected gold and silver refineries in the world. Our accredited ISO 9001 facility offers a variety of client services.

World Firsts. World Records.

To reach new heights of achievement for expertise, craftsmanship and can-do spirit, the Mint crafted the world's first 100-kg, 99999 pure gold bullion coin with a face value of $1 million. This coin was later recognized by Guinness World Records to be the world's largest gold coin.

Purchasing Bullion | Bullion Products | Refinery Services

Wondering how to purchase bullion?
How to purchase bullion

Our bullion products can be purchased through banks, coin dealers, foreign currency exchange offices, and brokerage houses worldwide. Choosing your best purchasing avenue is a personal decision. Here are some points to consider prior to selling or buying bullion:

•Are you dealing with a reputable vendor/advisor that understands the bullion market?
•Is the vendor/advisor well established with a history of satisfied clients?
•Have you remembered the importance of looking at more than one vendor/advisor to get competitive quotes?
•What policies are in place to ensure your satisfaction for buying or selling bullion?

Prices of gold and silver bullion products are based on international market rates which vary daily, as well as supply and demand. Be prepared for a reasonable premium to be charged over the daily spot quotations to cover manufacturing, transportation and distribution costs.

Purchasing Bullion | Bullion Products | Refinery Services

Universally recognized for quality and purity
Gold and other bullion products from the Royal Canadian Mint are universally recognized for their quality and purity. The Mint refines and produces Maple Leaf bullion coins, gold kilo bars, trade bars and gold wafers - all struck with their weight and purity. Our bullion coins are also recognized as legal tender in Canada.

Our Gold Maple Leaf coins are the world's most popular pure gold coin. Since their introduction in 1979, over 20 million troy ounces have been sold. As the first bullion coin to achieve the heightened standard of 9999 fine, the Gold Maple Leaf is available in five weights from one-twentieth of an ounce to one troy ounce. Also of special interest are the one ounce gold bullion coins celebrating the Vancouver 2010 Olympic Winter Games and our 99999 Gold Maple Leaf.

Encouraged by the success of the Gold Maple Leaf, the Mint introduced Silver Maple Leaf Coins in 1988. The Silver Maple Leaf is minted with one troy ounce of 9999 fine silver. The coin has a face value of $5, the highest face value of any comparable silver bullion coin. Also of special interest are the one ounce silver bullion coins celebrating the Vancouver 2010 Olympic Winter Games.

Introduced by popular demand in 1988 are the Mint's one troy ounce Platinum Maple Leaf coins with a face value of $50.

Introduced in 2005 the Palladium Maple Leaf coins with a face value of $50. This popular one troy ounce coin is made with 9995 pure palladium.

Purchasing Bullion | Bullion Products | Refinery Services
Posted by Mike Gupton at 5:34 PM 0 Comments

Thursday, March 10, 2011

GoldCore Comments On Silver Shortages And A Possible Price "Tipping Point"
Submitted by Tyler Durden on 01/18/2011 15:22 -0500

Our friends at GoldCore have summarized recent shortages in the silver market and provide some observations on what this could mean for future silver prices. Curiously, the lack of inventory has happened even as the spot price of silver has consistently declined over the past week (if nominally the decline has been very modest). Just as curiously after the US Mint reported a massive surge in buying, the number of January sales has been fixed flat at 3,407,000, where it was a week ago, and indicates that either buying interest has ceased overnight (unlikely), that the mint is not updating its numbers (likely), or, worse, that the Mint has now stopped selling any form of silver for reasons unknown. Although at the end of the day the only question worth asking is whether JPM feels lucky (again): as we posted last week, the firm has received "grandfathering" protection from position limits, arguably the biggest reason for the recent drop in the precious metal price.

From GoldCore:

Silver Bar Shortages to Lead to Price “Tipping Point”?

Gold is mixed while silver is higher in all currencies today, especially in the weaker US dollar. European sovereign bond yields are higher and the UK 10-year has risen to 3.66% and is close to breaking out after inflation figures surprised the majority of analysts who remain complacent about inflation.

Gold is currently trading at $1,370.75/oz, €1,022.11/oz and £856.57/oz.

click for full size

Equities in Asia were higher as are those in Europe so far today. US equity index futures are mixed with Apple leading to weakness in the Nasdaq; the S&P 500 is flat.


Silver is currently trading $28.81/oz, €21.48/oz and £18.01/oz.

Reports of shortages of silver bullion continue to grow. While there are no widespread shortages in this area and dealers with extensive supplier networks (mints and large refiners) are not experiencing difficulties sourcing bullion inventory, it would be wise to keep an eye on this.

click for full size

Silver in USD – 35 Years – (Weekly). Click for full size

Reuters reported shortages of 1 kilo gold bars in Asia last week. Sprott Asset Management reported that it was experiencing difficulty sourcing 1,000 oz silver bars. Sprott said they were concerned about the “illiquidity in the physical silver market" and said delays in being able to source physical silver highlights the “disconnect that exists between the paper and physical markets for silver."

Zero Hedge reported that Bullion Vault, the digital gold provider, had run out physical silver inventories in Germany (and possibly elsewhere) and was advising clients to buy silver from other sources.

Zero Hedge also reported yesterday that some smaller bullion dealers in the UK were having difficulty sourcing all silver bars and had delayed delivery of silver bars (including 1 kilo silver bars) until February.

This comes at a time when the US Mint has reported huge demand in the first two weeks of January for their very popular US Silver Eagle 1 oz bullion coins.

click for full size

Click for full size

At about $33, €25 or £20 a coin, collectors and those seeking financial insurance have been buying silver in very significant quantities. The 2011 minted coins were first issued on January 3 and in just the first two weeks, 3.5 million coins were sold, according to numismatic web site Coin News.

In January 2009, the silver coins first topped the 3 million sales mark, with record sales totaling 3.59 million for the entire month.

If sales continue at these levels, that record should be surpassed this week. The all time monthly record of 4.26 million silver coins, which was set last November, is clearly in sight.

A recent report by analyst Adrian Douglas of GATA warns of forthcoming shortages of gold and silver bullion coins and bars, and that a “tipping point” will soon be reached that could lead to a COMEX default and a short squeeze which leads to much higher prices. Douglas himself has shown in Le Metropole Café how Comex silver inventories are shrinking and are not far from ten year lows.

The “bear raids” by the large concentrated shorts being investigated by the CFTC, are only leading to increased physical off-take. Indeed, the selling raids may be leading some participants on the COMEX (including large hedge funds) to take delivery or sell futures and buy bullion in allocated accounts.

None of the factors, in and of themselves, suggest that widespread shortages of silver (or gold) bullion are imminent in the immediate future. However, much circumstantial evidence suggests, especially the bona fide reports of difficulty in sourcing large silver bars, that the supply and demand balance in the silver market is very tight.

The more than 80% increase in the silver price seen in 2010 is not leading to an increased supply of silver but rather to a continuing and possibly increasing demand.

This is not surprising as silver is a byproduct of base metals and therefore its price increase will not have led to any material increase in silver mine production. This fact is known by most buyers of silver coins and bars and many of them continue to hold and add to their silver holdings in anticipation of much higher prices.

Silver at $50 per ounce and the 1980 adjusted for inflation price of $130 per ounce are conservative estimates for some silver enthusiasts. They have been proved right in recent years and the extremely delicate supply and demand equation in silver could see them proved right again in the coming months.

Since 2003, GoldCore have written research articles pointing out that the very small size of the silver bullion market would likely see its inflation adjusted high of $130/oz reached in the long term.

Interestingly, were gold to reach its adjusted for inflation 1980 price of $2,300 per ounce, and silver revert to its long term gold/silver ratio of 15:1 (geologically there are 15 parts of silver to every one part of gold in the Earth’s crust) then silver would reach over $150 per ounce.

While this seems über bullish to those who know little about the silver market, some silver enthusiasts - and there are many - believe that in time, silver will be valued at the same price as gold as huge quantities of silver have been used up in industrial applications since the Industrial Revolution of the 19th Century and throughout the 20th Century and into this millenium.

In these unprecedented financial and economic times, it is important to have a long term perspective.

KMG Gold Recycling saw a glut in the silver market in Decmber 2010. "We couldn't sell our silver to the secondary refineries." Said KMG president Michael Gupton, "We had to shop it around. That doesn't seem like a shortage of silver to me, that sounds like media manipulation".

Posted by Mike Gupton at 5:15 PM 0 Comments

Saturday, February 05, 2011

Ways to Make Money by Selling Scrap Metals Online to Metal Buyers

Selling unwanted jewellery and other objects made from precious metals has become a great way of making quick money. Online traders cut cost and trading is made easy.

KMG is willing to buy scrap gold, silver, platinum, broken jewellery and used silver for cash.. Recycling precious metals, such as cash for, gold, silver, platinum palladium and iridium are bountiful, as precious metals are in demand.

Where to Sell Unwanted Jewellery
The added advantage of selling precious metals to KMG is that the high street pawnbroker cannot compete since the middleman is cut out. This saves the customer money. Furthermore, the online trader can match or exceed any offer the high street pawnbroker or jeweller is willing to pay.

It doesn’t matter if the jewellery is broken or if the ornament has lost its lustre. Metal traders are interested only in the purity of the metal. Precious metals can be found in the most unexpected objects. Examples may be:
• Jewellery such as chains, bracelets, charms and rings
• Watches
• Coins
• Cufflinks, pins and broaches
• Dental crowns
• Cups, tankards and trophies
• Pens
• Cigarette lighters
• Cigarette cases
• Electronic products
• Picture frames
• Mustard pots
• Teapots
• Pens
• Candlesticks
• Cigarette lighters
• Salt and pepper pots
• Golf tees
• Letter openers
• Wire
• Precious metal foil
Watch out for fake or costume jewellery, which will yield no value.

Things to Consider Before Proceeding to Take Cash for Precious Metals
• Obtaining a second opinion from a pawnshop or other specialist on the object's value, prior to dispatching the items means the customer can make informed decisions and understand that they are recieving the best payout when recycling KMG. 
• Check out the reputation of the precious metal trader before dispatching the items. Reading customers’ forums is a good indicator of a particular firm’s reputation.
• Items will be valued on the quality of the object, not its ornamental value. If the object is an antique, getting it valued by an auctioneer or antique specialist is the better option
• The precious metal will be valued on its trading price on a particular day, and prices will fluctuate.

For more information on how to get the most for your precious metals visit:
Posted by Mike Gupton at 12:00 AM 0 Comments

Friday, February 04, 2011

Is it Time to Sell Gold and Silver ?

In the last days we have seen the gold price hit $1,324 and yesterday spring to $1,355, (KMG Gold London Fix Prices), leaving it in a neutral zone technically speaking. More than 10% of the gold ETF, SPDR in the States has been sold as well as around 10% of the ishares Silver Trust. Investors need to know, “is this the time they should be selling their gold and silver investments?” Traders will look solely at the short-term charts, medium-term investors at the medium –term fundamentals and long-term investors before this checked to see if this was a sufficient correction to disinvest and when will be the right time to re-enter the market. With so much emotion creeping into these decisions, investors need to sweep that away and coldly assess the individual investment situation within their own investment criteria. We will stand back further and look only at, “Is it time to sell Gold & Silver” and leave you to make up your own minds.

Technical picture

In the dollar the gold price has moved into ‘neutral’ territory having halted the downward movement as it hit support between $1,324 and $1,330 after which it bounced to $1,355. The Fix in London was at $1,347.50 up almost $20 from yesterday afternoon’s Fix of $1,328.

Many of you will feel that the dollar gold price is what defines gold’s movements, but we would caution investors who think this way. Gold has fallen back from its recent peak of $1,425 to $1,324. Take a look at the euro price of gold. It has pulled back from its peak of €1,065 and fell back to €962, almost the same amount of fall. And yet we have seen the euro jumping back from its recent low of $1.32 to stand over $1.38 a 4% move. This complicates matters because if you see the relationship of gold reflecting the strength or weakness of the dollar, you would have been wrong-footed. After all, a 4% move in the $ gold price is $65 move from the recent peak.

Recently, the euro weakened, because of the sovereign debt crisis, more rapidly than the dollar fell. Now the euro is recovering because the EU leaders are supposed to come out with a plan that will remove the fear of a euro collapse, in March. With politics playing games with the raising of the borrowing limits of the U.S. fear is growing that confidence in the dollar is going to press it lower against the euro. So you, the investor, have to decide which is the currency that most accurately reflects the demand and supply factors dictating the gold price or which is the one through which to invest to maximize profits? We have our own opinion for sure.

The Fundamental picture

- The gold market has changed its shape since the last century, when it was at the mercy of the developed world’s central banks. Since the beginning of this century, the world’s central banks have completed the gold sales they had planned to make and halted this policy and that of accelerating the production of gold.

- We have seen the jewelry market recover recently in the developed world.

- We are seeing the rise of persistent Asian demand.

- Investment demand in the developed world looks undecided as to whether to invest more or to divest believing gold has had its day. On the other side of investment demand for gold, there is a school that is selling from the gold ETF’ and buying physical gold, to hold overseas.

- We are seeing producers just manage to replace the ounces they have mined with new discoveries, but at such a slow pace that, at best, we expect little to no growth in newly mined supplies, despite the rising gold price.

- In the silver market there is a far greater scope for newly mined supplies, except for those that come as a by-product of base metal production.

- There is also a far greater scope to reclaim silver. However, most new uses of silver do consume the silver used and are not reclaimable.

- Investment demand for silver tends to be more institutional despite silver being the ‘poor man’s’ gold.

- Asian demand for silver is growing as it is the next best investment to gold, so they believe.

However, the silver price moves with the gold price, with more extreme swings either way.

It’s a matter of Perspective

This makes it even more complicated for the investor, for Asian investors buy silver and gold for very different reasons than investors watching the level of interest rates in the U.S.A. The difficult task ahead of investors is to give the correct weighting to the different parts of global gold and silver markets: -

- How far will the east dominate gold & silver prices?

- To what extent will the developed world’s events dictate the direction of the precious metal prices?

- Will an economic recovery in the West lead to more or less demand for the precious metals?

- What are the different characteristics of global investors when it comes to buying and selling?

- What is the future of currencies and their values against gold?

- What effect will the shift in power from West to East have on the precious metals going forward?
Posted by Mike Gupton at 3:23 PM 0 Comments