Rising Gold Prices: Good Sign for the Economy?

October 29th, 2009

Gold has put down this week a huge price jump from $ 50 per troy ounce. But why? The demand from the jewelry industry has not increased in any case. A more likely explanation is that the market is still plagued by crisis fears – because if and gold always comes into play.

The stock markets may rise again, but overcame the Great Depression is therefore still a long shot. Like a raging epidemic further it travels: from the financial sector in the real economy, and finally (thanks to the hundreds of billions of comprehensive economic programs in the middle) into the public budgets.

Best evidence of the persistence of the crisis – and the crisis mentality – is is the sudden increase in the gold price. Out of the blue, the more expensive per ounce this week, at $ 50. So strong were the quotations for those critical early days, not risen, as Eastern Europe threatened a wave of Staatspleiten than the fate of the global economy seemed to hang by a thread.

The demand from the jewelry industry, it can hardly have been that triggered the recent run most precious metal. The Indian, Arabic and Turkish goldsmith hold back with purchases at the present price level. Now others are doing, namely, institutional and private investors looking for the famous safe harbor. Rumors going around of massive gold-orders by large hedge funds or Far Eastern central banks. A lot of hearsay, little more substantial.

Clearly, if price of ounces headed despite the economic Fast on the 1000-dollar mark, which says a lot about the state of the world. Nearly a year after the spectacular collapse of Lehman Brothers, the epitome of investment banking, is the distrust of the system is still great.

Gold is the mother of all the alternatives: the alternative to equities (which are notoriously volatile), bonds and notes (to be repaid, perhaps, perhaps not), the alternative to cash (whose value seems to be no longer receiving the first rule of central bankers. ) And on top of some will perhaps think that the fiscal demands, which will come as a result of record debt, well, let stand better with a few Krugerrands in the vaults.

Gold – the ultimate alternative – so long will be asked further, as holding that the concern that the global economic damage Subprime, Fannie Mae and Hypo Real Estate have done, to be addressed by official government tolerated inflation. So far, politicians and politicians have the money savers can not convince them that they can stop the printing presses in time. Thus gold is the currency of the distrust.

Gold price rises over $1,000

September 8th, 2009

Gold prices rose above $1,000 per ounce on Tuesday to its highest since March 2008 — suggesting investors are wary of the U.S. dollar’s weakness and expect international interest rates to remain low for some time.

Gold is typically bought as an alternative to the dollar among safe-haven assets favored by investors seeking to preserve capital. So its rise often correlates to a drop in the value of the American currency.

Some analysts have said the higher gold price reflects uncertainty across markets about how central banks will untangle themselves from global fiscal stimulus aimed at reviving economic growth, as well as dollar weakness.

Along with currencies, analysts were watching stock markets to gauge gold’s direction. A sell-off in equities on concerns about the economy could boost gold’s safe-haven appeal.

Gold Could Hit $1,200

There was scant hint of any spiraling wage concerns in the August nonfarm payrolls report released on Sept. 4, which accompanied news that the U.S. unemployment rate hit a 26-year high of 9.7%. In August, average hourly earnings of production and nonsupervisory workers on private nonfarm payrolls rose by 6¢, or 0.3%, to $18.65. Over the past 12 months, average hourly earnings have climbed 2.6%, while average weekly earnings have risen by only 0.8%, due to declines in the average workweek, according to the Bureau of Labor Statistics.

Gold as an investment

June 16th, 2009

Stimuli, risks, fluctuations, trends and observations

Gold has been ages since the asset itself. Whether you are a piece of jewelry or in times of crisis. Lasting beauty is associated with long-term impairment.

Gold as an asset has an ancient tradition. It has its foundation in the dual recognition that gold by its properties as a precious metal of both the ideal raw material for jewelry of lasting beauty, as well as the ideal and geringvolumige Keeper of lasting economic value. Gold has, especially in the minds of people who feel safe value. It is par for the crisis facility.

Fluctuations and a constant increase
Obviously, gold investment value as a considerable fluctuation. Fluctuations, which are not rare even in a short time twenty-twenty-five percent could. It is important however to bear in mind: gold is in the past ten years, with all variations seen steadily risen in value. It has retained its value, what of the currencies may not always say. And not only over the past decade, but even over centuries.

Gold manageable quantity
The available quantity of gold is and will remain manageable in the long term. The actual quantities of gold are known, the expected flow rates for the coming years is no secret. So it can all assess for themselves how the development of the market to consider. Moreover, the central banks in recent months, tons of gold on the market have given.

Certificate or Real Gold
Gold certificates seem tempting. But: It has been like the cash – except paper – nothing in his hand. Paper but may once again be patient. This question each must decide for themselves. The garden, between Rose and elder, buried ingots help but no further. He is quick drittbegünstigend excavated and disappeared forever. The same applies to other hiding places in the home.

Problem: Security
What remains is to secure the safe custody of the Bank of confidence. Were it but to the great crash, so we should all expect that the banks for some time their operation would have to completely adjust. There would even be close to cash. Access to the gold would be lost. If the state banks to tap the fingers should be – to say, the vaults would be temporarily closed – would be the same problem.

Private ownership of gold was prohibited
There were countries where the private ownership of gold was forbidden. That was not only in the People’s Republic of China shall, or in the “Greater German Reich”, but even once, who would have thought, in the U.S.. Sure is a gold bar from a kilo or more for investment gold. Surely not a plant but is a gold coin, if they are “gehenkelt” and as jewelry may be worn. The artistic boundaries for the lady of the necklace are no limits. And even the Lord could be cultivated again for the traditional watch chain Annex I decide …

Gold in any denomination
Gold in any denomination: Big bars are purchasing undoubtedly cheaper. In an emergency they would be but little worth in goods meet daily needs in order to set. It would be a virtually unusable value. Small denominations – especially coins – are practically perfect – but also in the acquisition more expensive. And what amount, what proportion of assets you should invest in gold – which must now as at any time of the individual decide for themselves. In no case should you invest money in gold, which is in a very short time. Gold is a long-term investment.

Gold is not on the street corner to buy
And gold, you should not participate in any street corner to buy. For gold, there are well-known, tried and trusted institutions. Which would be a layman, but “Kruger Rand” in brass (gold) by a real asset value differ? Caution is also better than indulgence. The responsibility for his savings to pay any ultimate itself

Should I buy gold now?

June 14th, 2009

Account grant, cash or precious hoard it? The stern is the 25 answers to key questions about the financial crisis.
1. How safe is my money for a German bank?
As safe as in no other country in the world. The deposits are usually far beyond the legal requirements also protected. Moreover, the German financial system in recent decades as an unusually stable. Troubled banks were mostly from other institutions, such as the last SachsenLB by Landesbank Baden-Wuerttemberg. Or the owners are after money shot, as a few weeks ago, the Kreditanstalt für Wiederaufbau (KfW), the IKB with billions based. Pleitegegangen are only smaller private banks, such as BFI or Reith Inger, their investors, however, only partly been compensated.
2. Does the safety of the equipment differences between private banks, and savings Volksbanken?
Hardly. Since 1998, all banks in the EU member of the statutory compensation scheme contributions and must pay into a pot. In bankruptcy cases, the customers that 90 percent of their deposits back, up to 20,000 euros. The German private banks, there is also the Deposit Guarantee Fund in 1976 after the bankruptcy of Herstatt Bank was founded. The Fund ensures the de facto customer deposits to 100 percent. Note: Participation is voluntary, some 220 institutions are involved. A few small banks are not a member. Information about are available at the bank counter or online at deposit insurance. The savings banks and cooperative banks have their own protective devices and are also in crisis situations for each other one. Again, the client funds to 100 percent protected.
3. Up to what amount is my credit in Germany secured?
In a savings bank or cooperative bank is to secure virtually unlimited! Similarly, when private banks, the Savings Deposit Insurance Fund members. While the protection to 30 percent of liable capital of each bank is limited. In the case of Deutsche Bank, the security border but still at 7.6 billion euros – per customer. Even with a small bank with ten million euros are risk capital per customer than three million protected.

4. Foreign banks often offer higher interest rates. Is my money there as safe?

No. These institutions are mostly only the statutory compensation device. Here are the customers’ money only to 90 percent and up to a maximum of 20,000 euros protected. The savings would remain so for a Pleite at least ten percent loss sit.

5. How safe are deposits with German subsidiaries of foreign banks?

Just as surely as in original German banks: Almost 60 subsidiaries of foreign institutions, from ABN Amro and Citibank on the SEB to Ziraat Bank International is a member of the German deposit insurance fund.

6. Which forms of investment is exactly the deposit guarantee now?

Protected funds in the checking account, time and savings facilities, and savings certificates, registered in the name of the client running. This protection is generally not for bonds or certificates, the bank has released (bearer bonds). In case of bankruptcy of the bank, the customer would have his claims during insolvency register.

7. What exactly can the banks actually entrusted with the money they make – and what not?

Greatly simplified: Allowed is everything that the commitments to customers are not endangered. The core task of banks is to provide money to their investors in loans to other customers to convert. Typically, the interest on loans is higher than on deposits. From this interest rate differential lives the bank. Since the term desires of savers and borrowers do not exactly match and sometimes could be a debtor, the bank needs a sufficient equity as a buffer against risk. How much equity should be at least, is the state requirement. With a part of that capital to speculate on the bank’s own account, such as shares, bonds, currencies or commodities. Is this proprietary successful, the Bank makes additional profits. If the speculation wrong, the losses can shrink the equity, and hence the scope for lending.

8. How safe are deposits with building societies?

As safe as other banks and savings banks – see answer to Question 1

9. How safe are money market funds?

Classic money market funds are excluded from the financial crisis is not affected. Problems have, however, those funds, in addition to the normal interest rate securities and asset-called securities, in the jargon ABS (Asset Backed Securities), bought to yield income. As in these papers also ABS resale of mortgage loans can be unsafe borrowers stuck, they have fallen in value. As a result, funds with ABS-upon share of the fund savers since the U.S. real estate crisis losses.

10. As pension funds are safe?

In general, bond funds invest in bonds, government and corporate bonds with high credit ratings. These installations are exempt from the financial crisis barely affected. However, the rating ( “Rating”) of certain debenture holders to be too optimistic. There are also pension funds, the ABS securities purchased. Because this is currently only for junk prices or not can be sold, some fund companies to return the shares set. Investors of such funds, therefore, not currently on their money. When the market calms down, the trading resumed, but possibly at lower levels.

11. Real estate funds are also affected by the crisis?

So far, almost exclusively in the U.S. homes lost value. Corrections are also present in other overheated markets such as Britain or Spain possible. Real estate investing, however, usually in the office buildings and commercial properties. Rents and assessments would then come under pressure if the price decline in the housing to a marked slowdown in America should lead.

12. What happens to the securities in my account, if my bank goes bankrupt?

All shares and bonds, which are not of the bankrupt bank themselves, would not be affected. Securities are provided by the bank only held in trust and custody, not to include in bankruptcy. If the regulator include a financial institution, a customer depot to another. This also applies to all investment fund shares. They form the Fund, the only custodian of the custodian. Although fund companies and / or their parent companies went bust, the fund’s shares owned by the customer, so before accessing the insolvency administrator fully protected.

13. It is now advisable to larger amounts of cash hoarding at home?

No. High amounts of money at home are far more uncertain than repealed in a savings account: The crime statistics that there were last year around 310,000 burglaries, more than 100,000 of them in apartments. And losing cash by the price increase steadily in value – most recently by around two percent per year.

14. What are the effects of the financial crisis for shareholders?

Holders of bank shares must be further price reductions and lower dividends expected. Even if a bank no losses in U.S. real estate lending has probably the last lucrative business with big loans to go back. Less need to worry shareholders in other industries do. The world economy is still intact. The profit expectations of firms are different than in 2000 – is not completely covered. Even a slowdown of the economy, for example due to higher lending rates for companies that do not justify clearance sale for shares. Totally excluded, the never. Recovers the psychology of panic in the form of the upper hand, it comes to the crash. One consolation: Stock prices have been falling after each course in the past 150 years recovered. Usually in less than ten years.

15. What stock markets are particularly vulnerable?

Those who have known before the U.S. credit crisis were relatively overpriced – and it until today. These include especially the Chinese, Japanese, and partly on the Indian stock market. Not exactly cheap are also American stocks, especially technology shares.

16. Government securities are safer than savings?

It depends on the states, the bond offering. Argentine government bonds, for example, also from German banks have been sold, three-quarters of its value lost. German Federal Securities, however, such as federal government bonds or Treasury Bills, is the epitome of safety. For interest and repayment of the Federal Republic is straight. Before the German government unable to pay would be expected in the vast majority of other countries in bankruptcy, banks, anyway. It can be said that federal securities safer than savings.

17. Does the financial crisis and the widespread retirement of the Germans – the life insurance?

Virtually none. Life lay extremely long-term client funds, required by law and supervised by the state, mostly in European bonds. A small portion is in equities, corporate investments and real estate investing. If it does actually cause permanent loss of value, is the little bonuses reduced.

18. How safe is the state-subsidized Riester pension?
Very safe. Theoretically, the safest is Riester Savings Fund – see question 12 In the case of the bankrupt investment company invested every cent belongs to the customer. The guarantee that at least the start of pension contributions are still present, only then could not be redeemed, if at the same time as all other Riester providers would be bankrupt. Riester pension insurance is just as stable as life insurance – see Question 17 Stay still Riester savings bank: they are only offered savings and Volksbanken, are equally protected as deposits – see Question 1

19. Does the crisis mean that the interest rates fall or rise?

Hard to say. The Fed last week because of the crisis in its key rate by half a percentage point to 4.75 percent. The European Central Bank had earlier this week announced an increase not completed their sentence, and at four per cent respectively. The interest on house builders in Germany have fallen slightly since July. On the other hand, companies must now pay more if they want to borrow money.

20. Decline in Germany, real estate prices?

No, Germany is one of the few real estate markets in which it has no overheating. For years, prices are stable here, but with regional variations. In the U.S., Britain or Spain, now the air escapes from the bladder.

21. Will it be harder now, a mortgage to get?

In Germany, because homeowners have their real estate buyers not usually purchased for speculative purposes. Banks do not have to fear for their loans and in the awarding of new loans on the brakes come. The from abroad coming trend towards 100-percent financing for buyers with no equity but should be stopped.

22. Should the taxpayer for the mismanagement of public banks pay?

No longer forced to because the so-called Gewährträgerhaftung was tipped by the EU. For Saxony, Rhineland and Westphalia too late: the end of 2005 pumped the country North Rhine-Westphalia almost one billion euros in the already schlingernde WestLB. Distributed in each of the cost of the approximately eight million tax-paying workers in NRW about 125 euros. Well had 230 Euro at the end of 2005, each of the 1.3 million working for the Saxony Landesbank berappen, totaling 300 million euros. With new losses would now be the savings banks and security institutions of the public banks step. The consequences for the citizens who are in euros and cents is difficult to quantify. To offset the losses, the savings would have to either the terms for their customers worse or sponsorship of culture, clubs and communities cut.

23. Will the financial crisis to the economic upswing in Germany kill?
No, but likely to weaken. If the United States following the financial crisis as an engine of global economic failure, then get in Germany sooner or later also the exporters of cars and machinery to be felt. Moreover, including the weak dollar to make.

24. Is it advisable that all savings and disband them to buy gold?

Only those who have a collapse of the global financial system is concerned, this should be done. Some banks and asset managers recommend up to ten percent of your portfolio in gold to invest, in order for times of crisis to be armed. Motto: When everything falls, gold rises in price. In the past five years he has more than doubled. Fans of the precious metal should be borne in mind: Gold raises no interest, and the safe custody in a safe costs money. For the sake of marketability should investors common coins such as the Kruger Rand (South Africa), Maple Leaf (Canada) or American Eagle (USA) choose.

25. What does the financial crisis for people who have no savings, but have debt?

Not too early to look. If the bankrupt bank, the customer is not going on his debts. Then the creditors in the bank queue and report their exposures. The receiver is the outstanding money to the debtors of the bank recover.

Gold against unemployment?

March 17th, 2009
With a shovel and sieve to millionaire: President Medvedev raises hopes for the American Dream and allows its citizens the gold mining. Given the crisis could be unemployed and pensioners could lost something.
President Dmitri Medvedev wants its citizens trial gold prospecting permit. “We should give it a try,” said the Kremlin chief and dismissed the government to grant the necessary permission for the mineral resources area of Magadan in the Far East of Russia to examine, reported the daily newspaper “Izvestia”. Officially, the state holds the monopoly in the gold mining.

Rising unemployment makes Russia to create. The Kremlin boss indicated that the number of unemployed in the country was a result of the financial crisis at six million.

Russia is one of the main support of the precious metal Nations worldwide. Gold enjoys in times of crisis, a strong demand. Even the little people is now at the big business mitverdienen.

Many of the unemployed and pensioners would be ready to dig for gold in the rivers to seven or former spoil heaps of gold deposits through, wrote “Izvestia”.

The catch: To permit could only be granted for parcels in which no significant occurrences are registered.

Gold is regarded as supposedly safe haven in times of crisis. Already in the last year had the unusual hobby on the Rhine is experiencing a boom.

Due to the strong price increases recreational miners tried their luck – with a low yield, however.

The global economic crisis had the price of gold recently over $ 1000 per ounce (31.1 grams) driven. On Monday, the cost of ounce of gold in London, $ 918.

Gold Investment Advice

March 17th, 2009
Gold glitters again – not only in the eyes of investors, but also in those of the manufacturer. Investment houses eagerly bring products to market, based on the safety needs of targeted investors. Often the name but promises more than he can keep – or the costs are significantly higher than for established products.
Trigger for a series of new offerings, the success of the Gold Fund, the money of investors in precious metal ingots invest. The largest, the SPDR Gold Trust, hoarding more than 1000 tons of gold and more than the Swiss central bank.

The SPDR fund is in Germany, however, not authorized for distribution, just as similar offers from Julius Baer and the Zürcher Kantonalbank. U.S. investors so far, therefore, access to the Xetra-Gold and Gold Bullion Securities (GBS) – with precious metals deposited bonds.

As the “golden solution” will be a few days since the fund-Promont Golden ProtectStar advertised. “Uncertainties in the capital markets demand a product that the security needs of the investors’ expectations,” as stated in a press release. Unlike the name at first glance suggests, makes the bulk of gold is not out of the portfolio – not more than ten percent of the fund may be used in documents such as Xetra-Gold or GBS invests his. The fund manager primarily uses interest rate on short-term investments. Further selection criteria are the impeccable creditworthiness of issuers and connect the Institute to a deposit insurance fund “, it says further. Low-risk investments mean low returns – and these are covered by the annual fee of up to 1.15 percent significantly diminished. This is a initial fee of up to five percent.

Already a few weeks longer at the start is Hansa Gold. For the Signal Iduna product advertises with the slogan “Gold in your portfolio. The first German gold fund.” The fund, however, must not exceed 30 percent of physical gold buying – allowed the German Investment Act does not. The rest of the money is flowing into other paper gold, silver certificates and government bonds. The management may also buy inflation-linked bonds.

The latest offer comes from Solit capital and is a closed fund. The money of the investors in gold and silver bullion and invested in the safe areas of the Zurich Freilager AG hoarded. The investors decide what proportion of gold and silver in the flow.

“Many brokers and clients have approached us that they have a gold independent investment bank want to hedge against systemic risk,” says CEO Robert Solit-Vitye. As head of the financial distribution VSP, he knows what customers needed. His partner at Solit Dümmlers is Karsten, CEO of the agent pools Netfonds. For the Gold & Silver Solit, they created a special issuing house. “It was important to us direct, absolute possession of the precious metals,” says Vitye. “Behind the Xetra-Gold is well-known houses are, ultimately, it is but a bearer bond, which an issuer risk.”

The detour via a closed-end funds, however, is not exactly cheap. Investors pay five percent premium, plus another 3.5 percent for sales and 1.5 percent for the fund concept. From 21,000 Euro from the outset will therefore only 19,000 euros in gold and silver. The annual burden amounts to 1.8 percent of the deposit value. About his participation before the expiry of three years, sold, once again pays three per cent fee.

“The Fund costs by purchasing more than benefit,” defends himself Vitye. “The fund will acquire the precious metals to interbank rates, investors will save up to twelve percent for gold and up to 40 percent for silver. When Silver is also the VAT, because we are the bars in the transit area of store.”

Nevertheless, a constant price of precious metals provided that melted 21,000 Euro investors capital after 20 years at around 13,200 euros. Xetra-Gold will cost in the year just 0.36 percent, the surcharge for buying and selling on the stock exchange does not exceed one percent. After 20 years, the cost advantage is more than a quarter of the deposit.

If the financial system will collapse over night, are probably neither gold nor Xetra Solit Gold & Silver is the best choice. Then may be lucky, who gold coins in small denominations under the pillow has.

Gold reached $1000 an ounce – what next?

March 11th, 2009
In times of deepest gold last recession promises safety. This is the current gold price can be seen, already used in the past few weeks massively increased. Now, the price for the precious metal on the mark of $ 1000 per ounce.
Precious metals analysts had already start to week on speculation, now it’s happened: The price of one ounce gold futures on the mark of $ 1000 per ounce reached. This corresponds to the record level of 793 euros converted. On Friday afternoon, gold prices climbed to the ounce (31.1 grams) briefly over 1000 $. Currently, the gold at USD 992.

In March 2008 was the first time on the Gold 1000 – $ brand increased. On 17 March 2008, the precious metal reached the previous record price in U.S. dollars of $ 1033.90. While the gold price in recent months because of the global recession continued to rise, that industrial metals demand due to the slump in value significantly.

Because of the rising price of gold is also in demand for jewelry fell significantly. The demand from investors has, however, overcompensated. Since 2000 the gold price on an annual vision always increased.

The rise in gold price is mainly a sign that many investors worldwide inflation rather than deflation fear. The large banks are currently the world’s massive amounts of money from what the textbook to a devaluation should lead. The director of the Hamburg World Economic Institute, Thomas Straubhaar, warned in an interview published on Friday in front of it. He constructed “with a monetary devaluation of five to ten percent per annum for the period after 2010,” he told the magazine “Focus”.

“Gold is currently the dominant theme of the investors in commodities,” said analysts from Barclays Capital. “The financial and economic crisis and massive Reflationierungspolitik of the governments and central banks allow investors regelrecht refuge in gold,” said Eugen Weinberg, commodities analyst at Commerzbank week. Especially striking is the strong interest in gold for investment purposes. These are primarily exchange-traded fund (ETF) popular. Rose alone in the past week, the stocks of the world’s largest and most popular gold ETF, the SPDR Gold Trust, 118 tons to almost 986 tonnes.

Demand unabated

“The demand for investment gold bars in Europe continues,” said Wolfgang Wrzesniok-Roßbach, Head of Marketing and Sales at Heraeus Precious Metals Dealer. “Our production is running bars for this reason further to maximum speed.” Thus, long lead times are still not ruled out. Also, coins are still massively in demand. To report mints worldwide by an unprecedented demand. Because the production of U.S. coins do not come after soft U.S. investors, among other things, after Australia.

But the central bank purchases, the value of their reserves to preserve, by market participants as a reason for rising prices mentioned. Sun announced on Tuesday the Russian central bank vice governor, Alexei Uljukajew, that his house had the gold content of the reserves increased, and 2008 would also put of 2009. Concrete figures he cited are not.

The high prices also call again speculators on the map. So climbed the speculative net long positions on the New York Commodity Exchange Comex in the week on the 10th February, to 163,622 contracts in 8000 and reached the highest level for six months.

In contrast, the record prices, demand in the jewelry industry massively burglarize. So has India, as normally the world’s largest importing country in February so far absolutely no gold was introduced as representatives of the Bombay Bullion Association announced. Already in January, while imports to 1.8 tonnes from 24 tonnes in the same month last year caved. The existing requirements may, according to the association representatives with full return to the old gold covered.

Analysts see continued high demand

But as long as the investment demand will jump into the breach, this is likely the price of gold is not a burden, analysts are convinced the bank. “Funds put huge sums of money in gold and buy at almost any level of support,” said Si Kannan, Vice President at Kotak Commodity Services in Mumbai. “Given the global uncertainty can be sure that gold’s upward march will continue.”

As an additional driver called Frank Schallenberger, commodity expert LBBW that the production of gold mines is likely to decrease in 2009 again. In addition, the sales program of the Swiss central bank’s provision, which in the past decade an average of 150 tonnes per year on the market. The sales program of the Banque de France runs from.

Monument Mining plans first gold production in August 2009

March 8th, 2009
The market has announced the recent production of Monument Mining Limited, with a significant price gain appreciated. The stock in trade yesterday appealed again to 11 percent. Thanks to lower production costs in Malaysia Monument beckon with gold prices at current high levels of profit margins.
The crisis makes good management certainly the difference. The Canadian Monument Mining Limited is continuing on its way to the gold production on the Selinsing project in Malaysia continued unperturbed, although in December last year, an approved credit line in excess of 10 million CAD from investors due to lack of liquidity was withdrawn. According to the latest report, the company plans already in May this year, the mining order in August with a simple gold production to begin. In order to save investment costs will initially be produced only gold that has gravity separation can be obtained. For the first cash flow is then already in December of the second stage of production, including chemical leaching of ground ore can be realized. For the achievement of the first production stage, the company estimated investment of 7.6 million CAD. News monument still has cash in the amount of 11.4 million CAD.

CEO Robert Baldock has over the years, very quickly turning the lever. Until December last year, he could assume that the company to build the full production and to reach break even for another 10 million CAD in the form of cheap credit would be available. Instead of following the retreat of investors long after alternative financing sources in the capital to seek, has, with its CEO Baldock mine engineers simply the mine plan and in particular the dismantling planning modified, so that the company gradually and without any additional capital to the destination. If the plan succeeds, the shareholders may be doubly pleased because they are not – such as through the subsequent exchange of a loan against shares – will be further diluted.

Differently from the original plan is now at the beginning of the only high-level production from ore veins visible on the surface removed. The gold contents and metallurgy of this material allow for the grinding of a gold extraction by virtue of gravity separation. This procedure also former manager at the Selinsing property and used as, inter alia, significant wash tailings (tailings) left behind, still significant residual amounts of gold contained. Monument wants to wash these mountains anyway later in the production and contribute to chemical leaching, the residual gold win. The material from the (old) will be washing mountains at full production to provide the mill feed to homogenize.

Selinsing The mine currently has a indicated resource of 3.63 million tonnes with a gold content of 1.76 g / t. This is equivalent to 205,000 ounces of contained gold. With a targeted production rates from an average of 40,000 ounces, these deposits for five years. At today’s gold price of approximately USD 940 would Monument Mining 600 USD net profit because the profits from the production for the first five years are exempt. In October 2008, another monument to calculate the total cost of production can be. With an estimated production cost 341 USD, the Company has a very attractive margin and with a rising gold prices, this leverage benefit. In an initial Jahresprodukton of 40,000 ounces of gold would Monument in 2010 with a profit margin of 24 million USD flirt. With approximately 155 million currently outstanding shares and an estimated overall business costs in the amount of approximately 3 million U.S. dollars, would Monument a profit of 21 million USD, or about 0135 USD per share, ie approximately 0.10 EUR. The stock is currently at approximately 0175 EUR traded and has substantial potential course.

Gold 2,300 USD in 2010?

March 8th, 2009
Only five months recession lie before us and the gold rose to USD 2,300 / oz if under Ralph Aldis, a fund manager at U.S. Global Investors Inc. is
On Wednesday was Ralph Aldis of U.S. Global Investors in Cape Town during the Indaba, the largest of the African Mining Conference on Gold and the gold price were interviewed. He said: “A rise in the gold price to U.S. $ 2,300 per ounce would be I am not surprised!”

The portfolio manager of the fund provider U.S. Global Investors Inc., said: “Taking the history as a yardstick, then the recession should only last for five months! During the last 15 years the gold price had the greatest extremes when he behaved inversely to the dollar and brought people to the gold in their portfolios to pack. ”

The signals are on green to gold in the portfolio, especially if the price is again something back to form. Long term, gold remains a safe haven at any time. Especially before us is inflation, generated by the totally ran out of money supply expansion, forcing the people formally to invest in physical gold and gold shares. The same goes for silver.

Aldis is also a short summary of what he believes happened so far and where his optimism regarding a period of only five recession comes.

Since 1945, recessions lasted an average of 10 months and the longest about 18 months. If we now assume that the current recession began in early 2008, we have already 13 months behind us and a maximum of only 5 months ahead of us. Although the company back its workforce, the banks are likely out for the summer again with lending and begin the infrastructure and support programs of the governments their effect.

He further states that it is not the demand for raw materials would be so massively caved but the non-availability of Kreditakkreditiven to the charges about to be shipped.

Literally said Ralph Aldis “The dramatic correction of the raw material has a 20-year commodity cycle is not destroyed but merely delayed.”

The world got a lot of stimuli, including seasonal cycles. Gold demand is rising steadily since August 2008, both privately as well as by massive purchases by the major ETF’s (Exchange Traded Funds) as the ZKB, Barclays or I-Shares.

The trigger of the credit crisis was the bankruptcy of Lehman Brothers. Then froze the credit market and the interbank trading and the overall markets collapsed. So if the story is right, then to summer, the worst was over and we all return to the sun’s face appear. Would have been nice!

Is silver better than gold?

March 7th, 2009

“Teocuitlatl” was gold in the Aztec, which is in the imagination world of South American natives to the “elimination of the gods” should act. Gold has always set the imagination of the people suggested: it was at the Aztec, the Pharaohs or Audrey Hepburn in “Breakfast at Tiffany’s.” To provide the media currently in headlines about the rise of gold. Alone since the beginning of the year until Tuesday (February 17, 2009), the yellow metal by 11.3 percent to 968 U.S. dollars increased and thus contributes to the mark of 1,000 U.S. dollars per ounce (31.1 grams) to. For comparison, a year ago quoted gold at the 900 U.S. dollars, 5 years ago, yet at just 400th
Only comparatively few myths contrast to silver, with a price of 13.90 U.S. dollars per ounce on 17 February seems quite dull. Yet this precious metal could be an interesting investment alternative. Because silver has since the beginning of the year with an increase of 28.8 percent increased significantly more than gold.

The ratio is what counts

This could be the so-called gold / silver ratio be a reason. So fluctuated especially in the 19th Century, the price ratio of gold to silver 1:10 p.m. to 1:20 p.m.. Since silver in the earth about 17.5 times more likely to occur than the higher value of precious metals, this variation is obvious. They were up in the 70s of the 20th Century with gold and silver currencies hedged. Since these so-called gold or Bimetallstandards have been abolished, mainly behaves less like a silver currency, and more like a commodity. To commute the gold / silver ratio is now at much higher margins, and on Tuesday was nearly 1:70. A year ago, the ratio remains at about 1:53 and it was five years ago at 1:63.

Consequently, it appears that the gold / silver ratio in recent years to have deteriorated. Has silver potential in the order backlog compared to gold? For risk-taking investors, according to rising silver prices expected, it could be the Silver Wave XXL Call DB17YH by the X-markets team at Deutsche Bank attractive. Because the derivative is a good four levers of equipment, thus the Wave XXL roughly four times faster than rises or falls of the silver price. If the price of the precious metal, however, the mark (stop loss) from U.S. $ 11.55 or falls below, the derivative and the residual ausgestoppt disbursed.

For a continuation of the previous bull market, for the two metals could persistently gloomy economic outlook, as well as talk the gigantic economic programs in the U.S., Germany and elsewhere to be brought forward. Because these programs must have a substantial increase in government debt to be financed, at least in the long run lead to higher inflation should lead. This could have a positive effect on the development of the silver price impact.

Since the beginning of the year were silver, and the U.S. dollar growth

Conversely, the Wave XXL Put DB16ZX with a leverage of just four for investors that a falling price of silver expected. Because the derivative defines the value when the price of silver there. If the Wave XXL but the mark (stop loss) from U.S. $ 16.50 or touched, it will be the derivative and the residual ausgestoppt the investor paid. Investors should note, however, that both currency derivatives are not protected. Because in the past was a rising silver price, often with a falling U.S. dollars combined. But since the beginning of the year were both silver as well as the U.S. dollar growth.

The information contained in this document does not constitute investment advice dar. The performance of the past is not a reliable indicator of future performance.