Gold over $ 1,800 in Gold Trade TODAY

Gold over $ 1,800
22/08/2011 Gold Market

22/08/2011
Gold continues to rise unstoppable.
Gold is close to $ 1,900 per ounce.
On Monday, 22.08.2011, has reached the highest intraday record of all time of $ 1899.40, and 1318.62 Euros.

08/19/2011
Gold has been the third time in a week $ 1,800 per ounce.
On Friday, 19.08.2011, has reached the highest intraday record of all time of $ 1881.40 (1832.00 yesterday).

Gold continues to rise following the downgrade of U.S. debt by S & P.

11/08/2011
Gold prices have climbed to a record high of $ 1817.60 and 1280.41 euros on Thursday, 08.11.2011, after the credit rating agency Standard & Poor's decided to downgrade the sovereign debt the United States from AAA to AA +.

Asian markets and Australia on 23/08/2011
Hong Kong, the Hang Seng +0.92%
China, the CSI 300 +0,88%
Japan, the Nikkei 225 +1,22%
Australia, the ASX 200 +2,23%

European shares on 22/08/2011
+1.13% EuroStoxx
Germany: DAX -0.11% / +1.85% MDAX / +2.28% TecDAX
Spain: IBEX 35 +1,87%
England: FTSE 100 +1.08%
France: CAC 40 +1,14%
Italy: FTSE +1.78% MIB

The U.S. stock market on 8/22/2011
U.S.:
+0.34% DowJones
Nasdaq +0.15%
S & P 500 +0.03%

How to Invest in Gold Today after the Gold Price is high

Whenever we're invest and buying gold, the first rule we're must remember is dollar cost averaging -- putting a fixed amount of money towards gold every month regardless of the price. For the average investor, this technique spreads risk out over time and lessens the downside.Most money managers advocate anywhere from 3%-10% in gold. More bullish managers recommend an allocation as high as 20%.

Gold is very high custody, insurance against inflation, currency debasement, and global uncertainty. Here are 4 strategy we can used before invest GOLD. 

1.Only Buy GOLD BULLION or GOLD BARS

Only buy physical gold at various prices: Gold bullion/bars. After we're buying gold bullion,we can store gold in bank safety deposit boxes or at home. Buy gold bullion with avoid big premiums. We want to buy gold as close to the spot price as possible, or a 10% premium at most. The higher the premium, the higher the gold price will have to rise in order for we to get more profit.

2.ETFs

Gold exchange-traded funds are a popular route to have gold exposure in we're portfolio without the hassle of storing the physical metal. First, you can invest in one of three physically backed ETFs, which track gold's spot price.

3.ETNs

If we're want to get more risk, try exchange-traded notes, debt instruments that track an index. You give a bank money for an allotted amount of time and, upon maturity, the bank pays you a return based on the performance of what the ETN is based on, in this case the gold futures market.

4.Gold Miners

Gold miners are higher treacherous because they trade with the broader equity market. Some tips to consider when picking gold stocks are to find companies with strong production and reserve growth. Make sure they have good management and inventory supported by either buying smaller-cap companies or by maintaining consistent production.  

Do you want to Gold Investment? Select Gold Bars

Gold has become a very profitable investment today. In addition to jewelry, gold investment made ​​by most people around the world due to give more benefit than if the only saving money in the bank. 

A Gold Investment Advisors in Asia said that the yield advantage of savings through inflation is never so pretty much year after year the people's purchasing power fell. Though the intention was to save in order to use it gains the results are not great. 

He said if want to invest in gold is better to invest in Gold Bars. If we invest in gold in the form of gold jewelry was just a fashion trend or a fashion only. When new models come out the old jewelry to be sold, so no long-term investment where you should invest in gold it should be for a period of investment in the medium to long term. 

So the conclusion : gold investment is highly profitable TODAY.

The Price of Gold is once again Setting a Record High

The price of gold is once again setting a record high, with Washington's inability to reach agreement to curb debt and avoid a devastating declaration of insolvency of the state.

The price of gold has started the week in Asian markets nominal marking a new record surpassing $ 1,618 an ounce, while credit rating agencies warn of a possible cut in the rating "AAA" U.S..

The spot gold price has risen almost 14% so far this year.

All indications are that we will see an extension of the quantitative easing QE3, which translated into Spanish would delay the problem and the price of gold will continue to grow as international financial instability intensifying go.

The Analysts Revised upwards their Forecasts for the price of Gold

The six-monthly survey of financial analysts by Reuters shows expectations for increases in gold prices. According to respondents, the debt problems in developed countries and rising demand from emerging gold and silver, and the lax monetary policy of the Federal Reserve are the main causes of optimism for the price of gold.

More than half of respondents expect the gold price remains above $ 1,500 a troy ounce at the end of 2011. In a similar survey in January, financial analysts were less optimistic, with only one in five predicting a price above $ 1,500.

It is not surprising that most analysts will drag the market development of gold, precious metals, or look as monetary metals, are still unknown to many conventional investors. After a generation without paying attention or understand or follow them carefully or have the necessary knowledge and models to value them. Their forecasts, but forecasts are a commentary on the present. The majority of the big financial houses do not even have specialists dedicated to this sector.

A few voices like James Turk, Jim Rogers and Marc Faber, they have matched their predictions and are betting on gold since before the start of their current upward cycle in 1999. Many who have been more prescient about the price of gold and silver meet in August in London for the GATA conference. They explain the journey that still lies ahead for the price of gold and why gold is far from being in a bubble.

In 2010, for the first time in two decades, the world's central banks became net buyers of gold. 2011 is on track to double those flows net of accumulation, with purchases like the Bank of Mexico. According to the World Gold Council (WGC), between 2008 and 2011 the central banks added more than 900 tons of gold reserves.

Gold edged super higher in Asian trade

Gold edged super higher in Asian trade Friday plus feasible to stop on the superior part for the week, analysts said.Gold for instant birth was seen trading at $1531.04 an ounce at 1.30 p.m Singapore duration whereas US gold for Grand rescue was seen trading at $1,531.54 an ounce on the comex cleavage of Nymex.

Analysts said the jaundiced metal is credible to raise more while the age regardless bulletins of an improved US dutys material that might jab gold’s unscathed haven beseech.

The US Labour realm testament exonerate vocation relate that is prospective to read betterment in the toil emporium furthermore advance optimism on likelihoods for the creation's largest thrift.

Flaw Argent was banal at $36.40, on trend for a 7.2-percent weekly rise, it pick week because termination of Might.

Meanwhile, Holdings in the SPDR Gold Rely, the universe’s largest gold-backed bandy-traded deposit, remained unchanged at 1,205.809 tonnes, their lowest ago mid-June.

Holdings in the iShares Tableware Coalition , the environment’s biggest tableware ETF, dropped to 9,532.4 tonnes, the lowest hence Sept. 22, 2010.

On Thursday, gold comings extended obtains for a third directly term on Thursday as investors appeared vacillating ahead the U.S. unemployment arrays owing Friday.

Gold for Stately shipment blush $1.40 to finalize at $1,530.60 an ounce on the Comex rupture of the Unfamiliar York Mercantile Trade.

It is the initial compensation beyond $1,530 whereas June 22. September tableware through at $36.54 an ounce, up 62 cents, moreover Copper for September shipment added 11 cents to regulate at $4.44 a hammer.

Record gold prices

Record gold prices fuelled by economic uncertainty and now political instability are driving production, development and exploration to new levels and the entire spectrum of the gold sector will be represented at the two day event.

It has been a remarkable 12 months since the last conference. When that event fnished on March 16, 2010 the gold price had closed the previous evening at $US1,105/oz. At the time the industry was heralding a great age and nothing that the gold price has done since then has dispelled that belief.

Gold reached a 2010 low of $US1,090/oz a few weeks after the conference but since then has broken all records put before it, reaching a new all-time high of $US1,444.40/oz on March 7. Gold equities have followed suit. The ASX’s largest gold company, Newcrest Mining Ltd wen from a May 2010 low of $30.38 share to a high of $43.41 in No vember. Australia’s other producers have followed suit, and there is plenty of them. The last 12 months have seen eight Australian miners pour gold for the frst time as the junio market takes advantage of the favourable price environmen and investor sentiment for precious metals.

While new faces have arrived on the list of Australian gold producers, thanks to a rash of M&A activity, others have disappeared. Newcrest’s $9.5 billion acquisition of the country’s second biggest gold miner, Lihir Gold Ltd, was just one of several multi-billion dollar gold deals put together last year.

In November, Kingsgate Consolidated NL announced a $376 million takeover of South Australian producer Dominion Mining Ltd and followed it up with the acquisition of South American focused explorer Laguna Resources Ltd. One of the rising stars of the Australian gold industry, Avoca Resources Ltd, also changed its guise after announcing a merger with TSX-listed Anatolia Minerals Development Ltd to create Alacer Gold Corp.

On the international front the majors continued to reap the benefts of escalating prices. The world’s biggest gold miner, Barrick Gold Corp, announced its December quarterly results on February 21, proving just how proftable the gold industry can be. Quarterly net income was a record $US896 million ($US0.90/share) adjusted net income rose 57% to $US947 million ($0.95/share) compared to $US604 million ($0.61/share) in the corresponding 2009 period. Full year production was 7.77 moz at lower total, and net cash costs of $US457/oz and $US341/oz, respectively.

But what does the future hold? A poll of 65 analysts conducted by Reuters in January found a median 2011 gold price forecast of $US1,450/oz an ounce, 18% higher than 2010’s average London Bullion Market Association (LBMA) gold fx of $US1,225.60/oz. The forecast is also just above last year’s record high of $1,430.95/oz and clearly out strips an average forecast of $US1,228/oz returned by a similar poll conducted last July.

The Largest Jewelry Market in the World

The largest jewelry market in the world is India, where consumption has fluctuated roughly between 500 and 600 tonnes a year over the past decade, depending on the price. It is said that Indians hold about 15,000 tonnes of gold, mainly in the form of jewelry. A sizable portion of the demand in India comes from rural parts, where jewelry is foremost a saving instrument.

China has recently moved into second place globally in terms of gold jewelry consumption,after recent growth lifted demand in 2007 to just over 300 tonnes. In contrast, the recent economic and financial crises in the United States, on top of structural change, have meant poor demand for luxury products like jewelry, pushing the United States to third place as demand fell to only about 260 tonnes in 2007. The remaining two in the top five consumers are Turkey and Saudi Arabia. In Turkey, the earthquake of 1999 and the banking crisis of 2001 had adversely impacted domestic demand till 2002. Recovery of the Turkish lira, along with far greater economic and financial stability, has since aided the revival of demand.

If we review global ranking in terms of where the jewelry is produced, the top two stay unchanged,but Turkey moves up to third place while Italy claims fourth. The latter used to be number two, but structural change and market share loss (mostly to Turkey and south-east Asian countries) for its exports in the United States have seriously undermined its output. Fifth place again goes to Saudi Arabia.

Jewelry consumption is critical to the overall gold market as it is the single largest physical user of the yellow metal, typically accounting for about two-thirds of the total demand for gold. Despite this fact, jewelry often plays second fiddle to investment (and on occasion other elements of supply and demand) as the most important determinant of the gold price due to its price sensitivity. Jewelry is best seen as a price taker rather than a price maker, tending to expand or contract depending on the price of gold and therefore acting as a “cushion” for the other supply and demand variables.

Fine Jewelry and Costume Jewelry

In recent years, the lines have blurred between what is considered fine jewelry and costume jewelry. In the past, something like a gold pendant, for example, would be featured only with a gold chain. In today’s more informal times, however, the piece could be found on a leather or silk cord.

This process has been extended further by recently high prices such that a predominantly steel or brass item might carry a small gold accent, weighing a fraction of a gram.A common theme to Western markets is the shift from plain gold to pieces with stones and the move to branded or high-fashion designs. All these carry much higher markups over the value of contained gold, and this is important as the trend for sales in terms of total value, number of pieces,or weight of pure gold can go in opposite directions. 

These trends are also spreading to developing world markets, in particular China where 18-karat gold is gaining market share.These trends are also important as, in industrialized markets, consumers within the overall jewelry segment devote ever more expenditure proportionately to other materials, such as diamonds, or to the perceived value of design and branding, all of which cuts the amount of money being spent on gold. In addition, all jewelry has been losing market share to other discretionary areas, such as foreign vacations or technology goods (such as cell phones), both of which typically enjoy far greater advertising budgets. This has culminated in the weight of gold sold in jewelry form declining steadily in the industrialized world over the past decade or so.

Gold in Jewelry

The use of gold in jewelry can take many forms but, for the purpose of statistics, it is typically measured only when in “karat” form. This specifically excludes an article of costume jewelry made from, say, brass to which a gold plating has been applied. A karat is a measure of purity of gold,defined as parts per 24. Some jewelry, such as that in China, exists in 24-karat form (essentially pure gold), but the highest caratage typically sold is 22-karat (the norm in India) as other metals such as copper and silver are added to bring sufficient strength to the alloy. Just beneath that sits 21-karat, the norm for many Middle East markets. Purchase of these high-karat grades is often motivated by investment considerations. For this to work, the pieces can carry only a small amount of labor or markup over the value of the contained metal.

The main driver for the purchase of the remaining types of gold jewelry is adornment or fashion.Within this, the next major grade is 18-karat jewelry, the norm in areas such as southern Europe.This is the standard typically used in high-quality pieces, especially those carrying precious stones such as diamonds, because at this concentration of gold, the alloy is sufficiently hard to hold stones and color on an effectively permanent basis. This is also the grade at which “white gold” appears gold to which a silver-colored metal such as palladium or nickel has been added in sufficient quantity to mask the yellow of the pure gold and render the piece “white” (industry jargon for silver colored). Beneath that is 14-karat gold, the last grade commercially available in which the majority of the alloy is gold; 8, 9, and 10 karat follow. These qualities are the various norms in northern Europe and North America, and in some markets, the United Kingdom, for example, there is legislation to enforce these standards.

Jewelry Dominating Old Scrap

With jewelry dominating old scrap, it should come as little surprise that volumes should be greatest in those countries making or buying jewelry. Volumes also tend to be greater in the developing world as pieces there typically have lower markups over the price of the contained gold and as a result of the unsentimental investment motive behind initial purchase. Such pieces are also more likely to be plain, in other words not carry precious or semiprecious stones and be of higher caratage. In industrialized markets, jewelry is more likely to carry stones and be of medium/lower caratage, be branded, and be bought as a gift for adornment—which will lower the propensity for remelt—and the consequent high markups over the contained gold mean a profit can rarely be made. Nonetheless, scrap can still prove significant through the liquidation of poorly selling merchandise or through the previously noted selling of stylistically dated pieces.

Generally, scrap is reused in the markets in which it is generated. However, during times of peak supply (such as after Egypt’s currency crisis), amounts surplus to local industry requirements would invariably be exported, often to the major Swiss refineries, where the metal reenters the supply

chain.

Gold Once Presided as the Dominant Asset in the Reserves of Central Banks

For governments, gold once presided as the dominant asset in the reserves of central banks (commonly referred to as the official sector) and against which all paper currencies were backed. However, with the suspension of the gold standard in 1932 and later dismantling of the Bretton Woods System in the early 1970s, gold’s link to the dollar and the majority of world currencies was severed and the metal’s price was allowed to float freely and be determined by the market. The metal still plays valuable roles for central banks, however, such as reserve diversification, instilling public confidence in the central bank, and economic security. It can also generate income through the lending of its bullion.

As of the end of 2007, total official sector gold holdings stood at just under 30,000 tonnes. The largest holdings are in the Western world, with the United States, Germany, France, Italy, and Switzerland making up the top five and mostly for whom gold is far larger in value than other currency reserves. Japan, China, and Taiwan come in respectively at numbers six, eight, and ten, but the value of their gold holdings is tiny compared to their other reserves.

The official sector has been a net supplier of gold to the market for nearly two decades, providing as much as 18% of total annual supply. The bulk of recent sales has come from European banks. These disposals have been conducted under the Central Bank Gold Agreement, which became effective in September 1999 and was renewed in 2004. A key reason behind these five-year agreements was to add an element of certainty to the market. Purchases by central banks have occurred in recent years, such as those by Russia and China but to date their scale remains limited.

ABOVEGROUND STOCKS

In addition to newly mined metal, gold can also be sourced from aboveground stocks, either through the recycling of fabricated products (see section that follows on scrap) or the mobilization of bullion stocks. The latter comprises central bank sales (see following); disinvestment by individuals (covered in the section on investment); and advance sales—the hedging described previously—by mining companies. During the past decade, supply from aboveground stocks has typically accounted for about a third of annual supply.

GFMS estimates put aboveground stocks of gold at the end of 2007 at 161,000 tonnes (the equivalent of over 60 years of current mine production) [1]. It is the sheer scale of these aboveground stocks that sets the yellow metal apart from other commodities. The reason for this buildup is primarily the virtual indestructibility of the metal—almost all of the gold mined throughout history still exists in some form. The metal’s durability also allowed gold to become a highly suitable store of value and form of money over the ages, for individuals and state bodies.

The composition of aboveground stocks is also important because it determines the speed and likelihood of the return of the metal to the marketplace. Gold as bullion (usually in bar form) typically comes back the most readily, and stocks in this form stood at about 55,500 tonnes. Just over half of this bullion is held by central banks and other official sector bodies, with the balance being held by private individuals and institutions. More, however, just over half of the total, is held as jewelry items. Lastly, about 19,000 tonnes have been absorbed by other types of fabrication (such as electronics), the least likely area to get recycled back into the market. Just under 4,000 tonnes cannot be accounted for and can be considered irretrievably lost or as true consumption. This would include manufactured items containing gold that have gone to landfill, any metal lost at sea, and so forth.

Producer Hedging

A hedge is a transaction that acts to manage the risk of adverse price movements in an asset such as gold. Gold producers typically enter into hedging contracts for one of three reasons. The first is in order to secure a forward premium in price. The second reason is to seek to protect revenues against falling gold prices, while the third is as part of the terms of a financing package. The simplest method of hedging is the forward sale, whereby a producer enters into a contract in which it can receive a fixed payment for a certain amount of gold at a predetermined date in the future. Regardless of any price movement between entering into the contract and its expiration, the producer will realize this guaranteed price on delivery.

There are three main parties involved in a basic gold hedge contract: the producer; the bullion bank, which acts as the producer’s dealer; and a central bank. To place a hedge, the producer advises its dealer that it wishes to forward sell, for example, 1 tonne of metal. The dealer then immediately borrows this amount from a central bank (paying a leasing fee), which it immediately sells into the spot market, agreeing to return the 1 tonne by a certain date. The proceeds from this sale are then placed in a high-yielding cash account (subtracting the dealer’s fee and the leasing fee on the borrowed gold), usually generating a premium for the producer. The producer is obliged to return 1 tonne of gold to the bullion bank by the preagreed date. At the time of implementation, the action of the bullion bank of borrowing gold and selling it into the spot market increases the supply of gold to the market. However, when the gold is returned, usually by delivering mine production from the producer’s account, supply reaching the market is correspondingly constrained. Hedging activity therefore represents an acceleration of supply to the market, but the overall balance of supply and demand is maintained over the lifetime of the transaction.

Hedging and de-hedging activities are thus important in the wider gold market. To give a historical perspective, the 1990s were largely characterized by unrelenting downward pressure on the gold price, which led to steadily increasing levels of hedging undertaken by producers who were seeking revenue protection from further declines. In 1995, hedging had a particularly noticeable impact, reaching 475 tonnes and thus accounting for about 13% of total supply. By September 1999,however, the gold price had made an abrupt change of direction and started to climb. Many hedged producers were caught off-guard and were unable to take advantage of soaring spot prices. On the back of this crisis, the year 2000 was the first year since the late 1970s when the global producer hedge book did not expand. There has since been a protracted period of de-hedging, in which producers have both delivered into and also prematurely closed out their hedge contracts. This is accomplished either by bullion purchases from the market, delivered to the bullion bank,or through delivering their own production into contracts before they mature. De-hedging posted a record level of 447 tonnes in 2007, representing just over 11% of total gold demand. Expectations for higher gold prices and investors’ associated anti-hedging sentiment were the chief reasons for this.

It can be seen that, pre-1999, producer hedging activity was a significant supply component in the gold market, whereas post-1999, hedging activity became a significant demand component of the market. Today, many more exotic and complex financial derivatives and option structures exist, in addition to the humble forward sale, through which producers can hedge. The effect of these more complicated contracts is, however, ultimately the same: hedging activity by gold producers affects the timing of mine supply reaching the market.

Recycling Precious Metals

The Challenges in Recycling Precious Metals from WEEE.There are several stages involved in the recycling of WEEE , and the overall recovery rate will depend on the efficiency and effectiveness of each stage. The high precious metal yields achieved in the recovery stage, if state-of-the-art technologies are used, are insignificant if only a low proportion of WEE is collected or there is a large loss of gold in the dismantling and pre-processing stages. Today, less than 20% of the gold recycling potential is being realised from European WEEE due to the inefficiencies of the initial stages of the process chain.

The collection stage is the weakest part of the chain. There is still a long way to go in Europe, and in many other countries, in organising efficient collection. Governments have a major part to play here and must take this aspect seriously.

The biggest loss factor currently is that much WEEE is exported to countries in Asia and Africa, for example, for treatment or just for discarding. Such scrap is usually treated by low-tech ‘backyard’ recycling methods that have dramatic environment and health impacts on workers and local communities. Moreover, treatments are highly inefficient in terms of metals recovery,often focusing on ‘cherry-picking’ a few valuable metals; even for gold, yields are often lower than 25%.

Supply and Demand for Gold

Meet the supply and demand for gold by e-reycling.The electronic use of gold at around 300tpa amounts to about 12% of the total annual mine production of gold. Its efficient recovery from electronic scrap (WEEE) therefore represents a substantial potential recycling resource. 

If we take the case of mobile hones, for example, global sales of 1,300 million in 2008 equates to about 31 tonnes of gold, 325t of silver, 12t of palladium and 12,000t of copper. With batteries, an additional 4,600t of cobalt can be added.

Taking cumulative sales of mobiles up to 2008,this increases to 170t of gold, 1,800t of silver and 70t of palladium. If we add the sales of PCs and laptops, these potential supplies of precious metals equate to a significant proportion of total mine production: 4% for gold, 3% for silver,16% for palladium, 20% for cobalt and <1% for copper. For the broader electronics market, the market supply is more substantial.