KMG Gold Recycling USA, Ltd is a BBB Accredited Gold Buyer in Grand Forks, ND
KMG Gold Recycling USA KMG Gold Recycling Canada

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

Friday, June 28, 2013

More Gold Capitulations at Quarter-End The U.S. Comex gold futures touched a low of $1,196.10 on Thursday, and are heading towards a loss of over 24 percent for Q2. Since the recent FOMC meeting on 18-19 June, the gold futures have lost 12 percent, the S&P 500 index has dropped 2.8 percent while the Euro Stoxx 50 index has declined 3 percent.

The stocks and commodities markets have not only reacted negatively to a more definitive plan from the Fed to taper its bond purchases but also to the rising bond yields. The U.S. 10-year government bond yield has risen 63bp month-to-date to 2.477 percent. The S&P 500 index rebounded 1.58 percent while the Euro Stoxx 50 index surged 3 percent in the past two days. The Dollar Index finished at 82.902 on Thursday, down from 83.375 at the end of May.

Month-end Liquidation
A few factors have helped to push down the gold prices further this week. The latest catalyst came from the stronger U.S. data. The U.S. pending home sales surged 6.7 percent in May compared to a median forecast of 1 percent while the jobless claims fell 9,000 to 346,000 in the recent week. Institutional investors and traders are liquidating their gold positions for month-end and quarter-end window-dressing.

The gold prices have also followed the break-even inflation rate of the 10-year TIPs lower. The holdings in the largest gold ETF, GLD, is now below 1,000 metric tons, back to the level in early 2009. Continuous selling by the ETF investors and the large speculators has led to an oversold position in gold as measured by the RSI, which reached 13.7 on Thursday.

Longer-run Offsetting Factors
While the momentum for gold is clearly down and the investors are disillusioned, several factors can help to prop up the gold market in the second half of 2013 according to GFMS. The sovereign debt crisis in Europe and the U.S. may resurface later this year.

The U.S. economy may recover more slowly and cause the Fed to postpone the bond purchases tapering. The equity markets may hit a wall. The supply of gold will be cut as gold prices plunge below the cash costs. Also, the fabrication demand may rise as a result of the fall in gold prices.

What to Watch
We will watch the final June U.S. and China manufacturing ISM data and the E-17 unemployment rate on 1 July, the ECB's interest rates decision and press announcement on 4 July as well as the U.S. June non-farm payrolls and unemployment rate on 5 July.
Posted by Mike Gupton at 11:27 AM 0 Comments

Friday, June 21, 2013

Gold Plunged Below the April Trough after the June FOMC meeting After the June 18-19 FOMC meeting, the U.S. Fed has injected more fear than calm into the gold market. The U.S. Comex gold futures inched up 0.52 percent on Wednesday after the Fed has released its FOMC statement. On Thursday, the gold futures plunged as much as 7.18 percent to $1,275.40 before finishing the day at $1,286.20, the lowest level since September 2010.

During Asian Friday morning, the gold futures have rebounded slightly to around $1,290. Year-to-date, the gold futures have declined about 23 percent. The CRB Commodities Index also tumbled 2.91 percent on Thursday, the largest drop in two months.

The Dollar Index rebounded 1.62 percent in the past two days and ended at 81.915 on Thursday. The S&P 500 index and the Euro Stoxx 50 index fell close to 4 percent in two days in response to the FOMC meeting.

What's New from the Fed?
Ben Bernanke said that if the economy moves in line with the Fed's forecast, then the Fed thinks it is appropriate to reduce the pace of the bond purchases later in 2013. The Fed will continue to taper and finish the asset purchases by mid-2014, if the economy is performing as expected.

To actually taper the QE3, the Fed needs to be fairly confident that the Q4 GDP in the U.S. will reach 2.3 to 2.6 percent, and the unemployment rate to drop decidedly below 7.2 to 7.3 percent. The inflation rate is expected to stay well below the 2 percent target.

The U.S. has been growing at slightly above 2 percent in the first half of 2013 while the unemployment rate is currently at 7.6 percent. The Fed has implicitly set a new target of 7 percent unemployment rate to reduce the asset purchases. The Fed also revised down slightly the GDP growth and the unemployment rate for 2013.

Gold Sentiment Hammered Further
The stronger dollar, the rising U.S. bond yield, the weaker-than-expected China May flash manufacturing PMI, the general commodities sell-off, a subdue inflation rate, and the continued outflow from gold-backed ETPs have pushed down gold's sentiment further.

In Bloomberg's weekly survey, the number of gold bears reaches the highest since January 2010. In the next few days, the market will closely watch the actions of the physical buyers. According to Bloomberg, the gold-backed ETPs have dropped 525 metric tons year-to-date to 2,106 metric tons, compared to a rise of 275 metric tons last year.

As gold prices in China have dropped continuously in the past week, volume traded in the Shanghai Gold Exchange has climbed to a one-month high on Wednesday. The gold futures' RSI has plunged below 25, an oversold territory.

What to Watch Next Week
Apart from watching the physical demand response, we will also watch Germany's June IFO business climate index on 24 June, the June U.S. consumer confidence index and the May U.S. new home sales on 25 June as well as the June Germany unemployment change, the May CPI and the industrial production in Japan on 27 June.
Posted by Mike Gupton at 10:00 AM 0 Comments

Wednesday, June 19, 2013

Will the Fed Calm or Ignite More Fear for the Gold Investors? The U.S. Comex gold futures dropped 1.49 percent in the past two days while the S&P 500 index jumped 1.54 percent and the Euro Stoxx 50 Index rose 1.26 percent. At 2.185 percent, the U.S. 10-year government bond yield is trading only 5 basis points below its recent high of 2.23 percent.

Year-to-date, the gold futures have corrected 18.43 percent to $1,367 while the CRB Commodities Index dropped 2.91 percent and the Dollar Index rose 1.06 percent.

Data before the Fed Meeting
The U.S. CPI rose 0.1 percent in May compared to the expected 0.2 percent. Year-on-year, the CPI rose 1.4 percent compared to 1.1 percent in April. The core inflation rate rose 0.2 percent as expected. An inflation rate of lower than two percent gives the Fed more room to continue with the monetary stimulus.

The May U.S. housing starts also rose less than forecasted at a yearly rate of 914,000.

Investors Positioning
After jumping 17.48 percent in the previous week, the net non-commercial combined positions in gold declined 7.13 percent during the week of 11 June to 60,227 contracts. In the past twelve months, the level has declined 56 percent as the developed market equities have risen 22 percent. According to Barclays, the net redemptions from gold-backed ETFs have slowed, with an outflow of 15 tonnes in the first half of June compared to 48 tonnes in the first half of May.

The cash-negative gold positions have also fallen to fewer than 70 tonnes. On the contrary, investors in China continue to see gold as a store of value, boding well for the launch of the first two yuan-denominated gold ETFs to be listed on the Shanghai Stock Exchange.

Reading the Fed
According to a Bloomberg survey on 7 June, the Fed will likely trim the QE by $20 billion to $65 billion as soon as the October meeting.

For the Fed's meeting, the investors will watch out for the conditions under which the bond purchases will be reduced, the Fed's outlook for the interest rates as well as the Fed's projections of the inflation and the unemployment rate.
Posted by Mike Gupton at 11:10 AM 0 Comments

Wednesday, May 01, 2013

Could the Central Bank Actions Change the Gold-Backed ETP Outflows? The U.S. Comex gold futures fell $122.70 and 7.69 percent in April, representing the largest sell-off in gold since December 2011 when the gold futures fell over $200 intra-month. The gold futures dropped 12.16 percent year-to-date after a bull-run for twelve consecutive years as the prices surged from $279 at the end of 2001 to $1,675.80 at the end of 2012.

Year-to-date, the Dollar Index rose 2.48 percent, the S&P 500 index surged 12.02 percent, the Euro Stoxx 50 index rose 2.89 percent while the CRB Commodity index dropped 2.33 percent.

Mixed Global Economic Data
Global economic news has been mixed at best. In the U.S., the April consumer confidence index jumped unexpectedly to 68.1 while the S&P/Case-Shiller housing index rose 9.3 percent year-on-year in February.

Despite the housing improvement, the manufacturing remains an area of concern as seen in the recent lower-than-expected April Chicago purchasing manager index. In April, China's manufacturing PMI expanded at 50.6 compared to 50.9 in March, indicating that the expansion is slowing down.

While the April jobless rate in Germany was unchanged at 5.4 percent, the Euro-area unemployment rate inched up to 12.1 percent and the youth unemployment rate reached 24 percent. The 11 percent rebound in the gold futures from the 15 April's trough probably reflects the expectations that the U.S. Fed will maintain its bond purchase program while the ECB will cut rates further given the worsening economic data.

Continued ETP Outflows
Gold investors are keenly watching the direction of the gold-backed ETP holdings, which fell 174 metric tons or 7.1 percent in April to 2,275.84 metric tons according to Bloomberg. The SPDR gold holdings fell to a 43-month low to 1,078.54 tons at the end of April. Deutsche Bank estimated that institutions, which hold close to 50 percent of SPDR, may further sell down 5 million ounces of gold in Q2.

The commodity funds also saw a large net outflow of $7 billion in Q1 according to Barclays. While such outflow may seem to reflect global economic weakness, gold was the single asset dragging down the aggregate with $9.2 billion of net gold funds outflow in Q1. This Wednesday's FOMC meeting and this Thursday's ECB announcements will give further clues to gold investors which way they should go.
Posted by Mike Gupton at 8:31 AM 0 Comments

Friday, April 26, 2013

Sell in May and Miss a Chance to Buy Gold Stocks Cheap, Warns Bob Moriarty  What is up—the Dow Jones Industrial Average and Standard & Poor's 500—will come down and what is down—gold equities—will go up fast, predicts the ultimate contrarian investor, Bob Moriarty. In this interview with The Gold Report, the president of 321 Gold proclaims that while all gold stocks are cheap right now, he has some favorites that he expects to jump when the junior market turns. Those who turn their back on the market over the summer just might lose their best chance to get in at historic lows.
- JT Long of The Gold Report

Posted by Mike Gupton at 4:40 PM 0 Comments

Friday, April 26, 2013

The Hunger for (Cheaper) Gold Continues Unabated The U.S. Comex gold futures surged 4.76 percent to $1,462.0 on Thursday, about 6.6 percent below the closing level of 11 April before the rout occurred. During Asian Friday morning, the gold futures reached as high as 1,484.80.

Gold prices have recovered roughly half of what they lost. The Dollar Index barely budged this week and ended at 82.744 on Thursday. The S&P 500 index, the Euro Stoxx 50 index and the CRB Commodity Index rebounded 1.92 percent, 5.02 percent and 1.39 percent respectively this week.

Lining up to Buy Gold
After gold has fallen into a bear market on 12 April, physical demand has soared. According to Bloomberg, the U.S. Mint sold 196,500 ounces of gold coins this month through 24 April, more than three times the volume in March. Demand for gold is un-abating at both the U.S. Mint and the U.K.'s Royal Mint. The physical gold sold to India exceeded its highest record by 20 percent, reported by Standard Chartered.

The gold premiums in Hong Kong and Singapore reached $3 an ounce, an eighteenth-month high. The World Gold Council in the Far East remarked that the Asian's hunger for the cheaper gold has exceeded the expectation of global investors. In the past ten days in the Shanghai Gold Exchange, the daily volume of the benchmark contract was more than four times of the 2012's daily average. Before the latest rout in gold, Russia's central bank boosted gold by 4.7 metric tons in March while Kazakhstan bought 1.2 tons.

The emerging countries' central banks will likely take advantage of the gold price plunge to continue to add to gold, which is seen as an alternative currency and an inflation hedge. Bloomberg reported that hedge fund managers turned into buyers and net added gold for two consecutive weeks. As the global economic data have turned softer recently, central banks such as the ECB are likely to continue to ease rather than terminate the ease prematurely.

What to Monitor Next Week
Lots of events to watch next week including the April Germany unemployment change on 29 April, the U.S. April consumer confidence index on 30 April, the U.S. FOMC meeting decision and the April U.S. ISM manufacturing index on 1 May, the ECB interest rate decision on 2 May and the U.S. April non-farm payrolls on 2 May.
Posted by Mike Gupton at 8:57 AM 0 Comments

Wednesday, April 24, 2013

Is EUROPE Running Out Of Investment Gold Bars ? There an oddity about GOLD at the moment with phenomenal physical demand in Asia, US and Europe, while the actual spot prices languishes. We have written before about the strange disconnect between paper and physical demand - with the former bearish yet the latter bullish - but rarely has there been such a clear divergence.

Over the last few days on we have many run stories about this ... Dubai running short of physical, US Mint selling out of smaller denomination bars, coins and bars flying off the shelves in India and China and queues outside leading gold sellers such as Degussa in Germany. The effect has been a massive drawdown in physical metal which has, by and large, caught the gold refineries and some stockists by surprise. It seems that the current buying in Europe is a delayed response to the Cyprus crisis, prompted by the price correction.

Quite evidently it has been the sharp sell off on the gold futures (COMEX) a week ago that precipitated the price decline and drew out the physical buyers. While there remains stock of the traded inter-market London 'good delivery' bars weighing in at 400 ounces each (with a purity of 99.5%+), these would set an investor back about $570,000 each. However, for investment sized bars the market is drying up rapidly. Amongst the coins, the maples and Krugerrand are moving fast with premiums having just doubled and now typically trading at about 8% over the spot price. Meanwhile the wait for new 9999 kilobars from the refineries (cost about $48,000 each) would entail a wait of over 1 month - there are however some modest stocks of second-hand kilobars.

While much of the buying in Europe has centered on Germany and Switzerland, there are also encouraging signs of good interest from UK retail investors who seem to be awakening to the notion of having gold in their savings. Google searches for the keyword "gold price" is rising to near record levels confirming what we are seeing in the markets (see below).

Google Gold Price

So, what does this tell us about gold ? To us, this is firstly a clear signal that the price correction has sparked latent interest for those who have wanted to enter the market - the current price represents an excellent entry point. Secondly, the fact that investors are going for physical over paper gold extends the argument that investors are increasingly wary of financial institutions, just as they are of the debasement of currencies.

In 2008 and 2010 the physical markets dried up and deliveries were extended out to about 2 or 3 months at the retail level - if the current buying persists there is every reason to expect a recurrence... or worse.
Posted by Mike Gupton at 9:11 AM 0 Comments