GFMS

The Bullion Report : Gold vs. Silver – A.I. Stock Market Forum

Filed in Bank Gold, GFMS, Gold, Indonesian Gold, silver by on September 15, 2010 0 Comments

That is, one ounce of gold could be purchased for 15 or 16 times more silver. The total identifiable above ground stock of silver according to the GFMS was around 700 million ounces, while other outlets suggest nearly 2.2 billion ounces …

Continue Reading »

Gold recovers as central banks stock up | www.bullfax.com

Filed in Australian Gold, GFMS, Gold, Indonesian Gold by on September 14, 2010 0 Comments

Related. Gold gains as central banks stock up. The consultancy GFMS has forecast that central banks will be net buyers of bullion this year for the first time in two decades, marking a turnround in attitude towards gold …

Continue Reading »

U.S. Silver Eagle Sales Hit 24-Year Record

Filed in economy, GFMS, Gold, GOld juniors, lead, silver by on June 17, 2010 0 Comments
U.S. Silver Eagle Sales Hit 24-Year Record

Continuing financial uncertainty is quickly boosting silver’s appeal as a precious metal. And as a result, the white metal is rapidly the investment of choice for those who recognize its traditional role as a safe haven asset. GFMS Ltd. – the world’s leading authority on precious metal markets – reported that silver investment increased by a whopping 184% to 137 million ounces in 2009 compared to the previous year. This was the highest level in the past two decades. Sales of silver bullion coins increased by an impressive 21% to post a new record of 78.7 million ounces last year, mainly driven by a pop in retail demand in the United States. Of particular note, demand for the U.S. Silver Eagle bullion coin reached record highs in 2009, with 28.7 million Eagles sold. Take a look: For the month of May 2010, the U.S. Mint sold 3.6 million Silver Eagles — the highest monthly sales since 1986, worth approximately $67 million. May marks the third month so far in 2010 that Silver Eagle sales have topped 3 million units. Silver is quickly becoming the preferred investment to safeguard against a fragile global economy. And as investment demand continues to grow, silver prices will march higher. The time to invest in silver is now. Luke Burgess Editor, Wealth Daily U.S. Silver Eagle Sales Hit 24-Year Record originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

Continue Reading »

The Best Silver Stocks

The Best Silver Stocks

An unprecedented crisis in the silver market could easily hand you a long series of double… triple… even quadruple investment gains. Here’s how… You probably already know that every commodity fortune ever made was created by an imbalance of supply and demand. When the demand for a certain commodity is high and supplies are low, prices skyrocket. And investors holding the commodity in question get rich. This is exactly what has happened in the case of many natural resources just in the past decade alone: Crude oil shot up 620% in 6 years Gold is now up over 380% since 2001 Natural gas soared more than 550% in 4 years Uranium spiked 830% in 4 years Copper increased nearly 530% in 7 years Palladium more than tripled in 3 years Platinum prices grew 430% in 6 years As demand grew and supplies dwindled, the prices for these natural resources ballooned in value. But none of these commodities experienced the supply/demand crisis that silver is currently facing. Take a moment to chew on this… According to GFMS Limited — the world’s leading authority on precious metals markets— the total amount of above-ground silver supplies dropped by 86% last year. This left the world with just about 20 million ounces of silver reserves. At the same time, the world demands about 2.5 million ounces of silver per day. That means the entire global supply of above-ground silver could be completely wiped out in just eight days! Fortunately, silver production companies have been able to keep up with demand— but just barely… Last year, silver miners were only able to increase production by just over 3%. And for the past 10 years, there has been no surplus in silver supplies. This extremely tight supply/demand dynamic of the silver market has been terrific for investors that own the physical metal. Silver prices have increased nearly 350% since 2002. But shareholders of the companies that pull the silver out of the ground have done even better. Here are three recent… Silver stocks beating the markets Silver Wheaton Corp. (NYSE: SLW) Silver Wheaton is the largest precious metals streaming company in the world. The company has thirteen long-term silver purchase agreements and two long-term precious metal purchase agreements. These agreements allow the company to purchase all or a portion of the silver production at a low fixed cost from high-quality mines located in Mexico, the United States, Greece, Sweden, Peru, Chile, Argentina, and Portugal. For 2010, Silver Wheaton expects to produce 22.2 million ounces of silver and 20,000 ounces of gold, for a total production of 23.5 million ounces of silver-equivalent. By 2013, annual production is expected to increase significantly to 38 million ounces of silver and 59,000 ounces of gold, for total production of over 40 million silver-equivalent ounces. Pan American Silver Corp. (NASDAQ: PAAS) Pan American Silver is the second largest primary silver producer in the world. The company owns and operates eight silver mines and four development projects in Peru, Mexico, Bolivia, and Argentina. Pan American’s growth strategy …

Continue Reading »

Silver May Outperform Gold

Silver May Outperform Gold

Filed under: Forecasts , Market Matters , Commodities Gold has been moving higher as a safe haven against paper currencies. Its recent move is propelled by the crisis in Europe. There is serious concern whether eurozone countries will be able to manage their sovereign debt. In addition, there has been strong buying by SPDR gold backed funds and individual investors. Silver, unlike gold, is primarily an industrial metal with 40% of production going into TVs, batteries, mirrors and DVDs. GFMS tracks silver. Here are some of their statistics and projections. . Continue reading Silver May Outperform Gold Silver May Outperform Gold originally appeared on BloggingStocks on Tue, 01 Jun 2010 14:00:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

Continue Reading »

John Lothian Newsletter Metals Edition: May 27, 2010 – Why I Don't …

Filed in GFMS, Gold, Indonesian Gold, silver by on May 27, 2010 0 Comments

Government sales of silver down 50% in 2009 – GFMS Mineweb Identifiable bullion stocks increased during the year – mainly those being held for investors http://jlne.ws/cUl8pr. Silver May Outperform Gold Prices on Economic Growth, …

Continue Reading »

GFMS Ltd.: Gold Bull Run Over

In an incredible statement, consultancy firm GFMS Ltd. announced in a press release that the gold bull run was over, and it’ll probably play out over the next year or so. Of course that’s cowardly in itself, as they give themselves enormous wiggle room if gold keeps on going up in price to say it’s taking some time to wind down. In the press release, GFMS chairman chairman Philip Klapwijk said

Continue Reading »

Follow the (Gold) Money

Wow! Did you notice? The IMF didn’t get any bids for its latest offer to auction 191.3 tonnes of the remaining gold that it wants to sell. Apparently the Central Banks of the world have shown a distinct lack of interest in the proposed bullion sale. Gold game-over, correct? Not exactly. Recall that India bought 200 tonnes of gold late in 2009 along with Sri Lanka and Mauritius; each of which also bought small amounts at the same auction. The IMF sale is purportedly based on the IMF’s desire to raise funds to help poor countries. I’ll leave a discussion of that ill-conceived notion for discussion at another time. The fact remains that the gold is for sale and apparently no buyers are willing to step-up and be counted. At least, not publicly counted. Wonder why? There are probably as many excuses as there are potential buyers. One Philip Klapwijk, executive chairman of GFMS, the London-based precious metals advisor, thinks the IMF’s decision underlines a general lack of buying interest now that gold exceeds $1100 per troy ounce. After noting the publicity that India, in particular, received as a result of their purchase last year, it’s quite possible that other potential buyers simply don’t want to risk any adverse publicity. China has been reported to be buying gold for quite some time as well as encouraging its citizens to also accumulate gold. It appears that China’s purchases thus far are from local mines within the country. One would think, therefore, that China would be a prime potential buyer for the IMF sale. Could it be that China doesn’t want to rock the US dollar-weakness boat? If China stepped up to the plate, the interpretation could be made that China had lost confidence in their US Treasury holdings. Possibly. It has been widely reported that Russia has also been accumulating gold and, therefore, presents a highly potential IMF-sale buyer. Russia doesn’t have the same US dollar exposure as does China, so their reluctance to step-forward is not immediately obvious. Still another potential deal-killer is the outright disclosures themselves. Prior IMF sales have included specifics including the name of the buyer, the quantity purchased and the price paid. Gold is extremely volatile. Should the price decrease after such a purchase, the buying entity could then be ridiculed for having over-paid. Recall the ridicule still being heaped, rightly so, on PM Gordon Brown who, while still Chancellor of the Exchequer of Great Britain, managed to sell Britain’s gold stash at the very bottom of the market? You have to admit it takes real talent to be that stupid. For at least the last two (2) decades, approximately 400 tonnes per year have been sold by central banks. Presuming this year will be no exception, an additional 191.3 tonnes on top …

Continue Reading »

Follow the (Gold) Money

Wow! Did you notice? The IMF didn’t get any bids for its latest offer to auction 191.3 tonnes of the remaining gold that it wants to sell. Apparently the Central Banks of the world have shown a distinct lack of interest in the proposed bullion sale. Gold game-over, correct? Not exactly. Recall that India bought 200 tonnes of gold late in 2009 along with Sri Lanka and Mauritius; each of which also bought small amounts at the same auction. The IMF sale is purportedly based on the IMF’s desire to raise funds to help poor countries. I’ll leave a discussion of that ill-conceived notion for discussion at another time. The fact remains that the gold is for sale and apparently no buyers are willing to step-up and be counted. At least, not publicly counted. Wonder why? There are probably as many excuses as there are potential buyers. One Philip Klapwijk, executive chairman of GFMS, the London-based precious metals advisor, thinks the IMF’s decision underlines a general lack of buying interest now that gold exceeds $1100 per troy ounce. After noting the publicity that India, in particular, received as a result of their purchase last year, it’s quite possible that other potential buyers simply don’t want to risk any adverse publicity. China has been reported to be buying gold for quite some time as well as encouraging its citizens to also accumulate gold. It appears that China’s purchases thus far are from local mines within the country. One would think, therefore, that China would be a prime potential buyer for the IMF sale. Could it be that China doesn’t want to rock the US dollar-weakness boat? If China stepped up to the …

Continue Reading »

China Remains World’s #1 Gold Producer

Filed in China Gold, GFMS, Gold, Gold Demand, Gold Market, Gold Producers by on February 4, 2010 0 Comments

The China Gold Association reported that domestic gold output increased 11.3% to a record of 312 tonnes last year, clinching the county’s position as world’s largest gold producer for the third year in a row. China’s booming gold industry reported 138 billion yuan (US$20 billion) of gross industrial output value in 2009 — an increase of 19%, compared to the previous year. Nearly 60% of China’s gold output last year came from the five producing province: Shandong, Henan, Jiangxi, Fujian, and Yunnan. The ten largest gold firms produced 149 tonnes— 47.3%— of the country’s total output. China had more than 700 gold producers in 2009, down from more than 1,200 firms in 2002 as the industry consolidated. The China Gold Association gave no figures for domestic gold demand. However, metals consultancy group GFMS said last month that it expects China to overtake India as the world’s largest gold consumer in 2009. Total Chinese demand is forecast to reach 432 tonnes as investors defy record bullion prices. Luke Burgess Editor, Wealth Daily Investment Director, Hard Money Millionaire China Remains World’s #1 Gold Producer originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

Continue Reading »

Gold Mining Production Costs

Gold Mining Production Costs

Even at $1,200 an ounce, gold is still one of the safest investments you can make. That’s because, unlike 99.9% of other investment vehicles, gold has an intrinsic and universal value that has supported a strong market price throughout human history. And now we have even more reason to remain confident in gold as a safe investment, thanks to a surge in mining production costs that may help buoy gold prices for decades to come. It all starts with the… Rising Production Costs of Gold Mining for gold is often romanticized as an adventurous, sometimes dangerous, way to get rich real quick. But as a business, it’s very difficult to make a profit. And the real danger is financial. Gold production is a very energy- and labor-intensive process, making it very expensive to operate a gold mine… especially now. Over the past few years, rising energy and labor prices have forced global gold production costs to increase quite dramatically. Advertisement The Most Profitable Physical Gold Investment EVER! Don’t settle for only 100% of your gold profits anymore. There’s a brand new investment vehicle that allows you to DOUBLE your profits from gold! And with gold prices expected to skyrocket as high as $5,000 an ounce, this could be the safest and most profitable investment of a lifetime. To learn more about this incredible opportunity, just click here . In 2000, Barrick Gold (NYSE: ABX ) was producing gold for $145 an ounce (inflation adjusted = $185/oz). During the first three quarters of 2009, the company’s total cash cost were $463 an ounce— a 215% increase. According to GFMS, a world authority on gold markets, Barrick’s current production costs are about average. Data from GFMS shows world gold production costs for the first half of 2009 averaged $457/oz. This average cost is down from $623/ounce in the third quarter of 2008. Gold production costs swelled over 150% in five years between 2003 and 2008. And due to recent increases in energy and labor prices in the second half of 2009, experts estimate global gold production costs may average up to $500 an ounce for the year. Take a look: In the long-run, the average gold production cost must increase. The most easily accessible and cheapest gold resources will always be developed and exploited first. As these resources are diminished, producers will be forced to develop the next cheapest gold resources in line. The ever-increasing nature of the cost of production may help support a growing valuation floor above $500 for gold prices. And it’s one of the reasons that I think… Gold Has the Best Worst-Case Scenario The price of gold should always find price support near the average global cost of mine production. That’s because if the cost of production significantly exceeds the value of the yield, operators will likely halt output until market conditions improve. It’s simply a matter of economics. This halt will decrease the total supply of new mine production. And this decrease may ultimately help buoy gold prices to varying degrees depending on demand. So if the average global cost to produce gold is $500 an ounce, I think gold’s ultimate valuation floor may be near that level. Conclusion Indeed, a near 60% decline to $500 could…

Continue Reading »