Posts Tagged precious metals
Lots of individuals have made milestones in their life and have owned companies through promoting gold and silver. These two precious metals are in demand since they are employed mostly in producing jewelries of different types. there are also times in historical past of different nations where gold and silver as employed as their currencies and are employed to purchase fundamental demands along with other commodities for example shells, beads, elephant tusks, furs, skins, as well as livestock served as mediums of exchange.
When the economy just isn’t undertaking well, this is actually the suitable time to cope with silver bullion Vancouver customers and gold customers for the reason that prices at this period are incredibly higher; as a result simpler to create higher profits than promoting in ordinary days. This is also the time when gold in Vancouver also have higher prices. given that acquiring gold and silver bullions may be thought to be as an investment, being aware of the best way to offer these precious metals can make enhance his wealth.
Gold bullion comes within the kind of coins or bars ranging from 22 karats to 24 karats. The cost of gold bullion depends upon the quantity of gold it consists of. Additionally it is essential to examine the kind and excellent of gold. One particular ounce gold bullion coins may be sold effortlessly although individuals weighing somewhat under 1 ounce may be difficult to trade with customers. likewise, once the coin has been preserved it may be sold to higher prices. Scratches and wear and tear on the coin educes it value. Know the industry value of coins by undertaking research and usually appear for an truthful gold purchaser.
On the other hand, silver bullions, just like gold bullions can also be sold at higher prices in the event you know how to trade them. The very first factor to perform would be to weigh the silver you have and decide the industry value on the silver s you will not offer your possession at a lower cost. normally it really is far better to offer silver bullions at companies that specialize in weighing and getting silver as an alternative to promoting it at pawnshops. also, you can get higher prices in auction internet websites and in neighborhood jewelry shops.
When you are inspired by some great purpose, some extraordinary project, all your thoughts break their bonds; You mind transcends limitations, your consciousness expands in every direction, and you find yourself in a new, great and wonderful world.
Dormant forces, faculties and talents become alive, and you discover yourself to be a greater person by far than you ever dreamed yourself to be. – Patanjai (C.first to third Century B.C.)
We are in the midst of "…some extraordinary project" as we watch one of the biggest financial anomalies of all times unfold before our very eyes. there has been cautious optimism for precious metals for many months in spite of some drastic volatility. the one-year chart of the gold ETF (GLD) dramatically illustrates what’s been happening and how gold’s price has broken above its significant 200-day moving average.
This past week saw that optimism accelerate from cautious to bubbly as the US Federal Reserve vowed to keep rates at all-time low levels. according to Bloomberg,
Gold traders are bullish for a fourth consecutive week, betting that the Federal Reserve’s pledge to keep interest rates low until late 2014 will extend the metal’s best start to a year in more than three decades.
As one article, quoting UBS pointed out,
More accommodative policy is a very good foundation for gold to build on the next move higher. And as the Fed slowly becomes more open about the idea of further stimulus and as European QE remains a possibility, there are significant upside implications for gold.
How high will this current "wave" take gold and silver as well? Michael Pento, the President of Pento Portfolio Strategies LLC, recently predicted that gold is heading towards $2,200. if that happens, silver is likely to break above its old high of around $50-per-ounce. as the "tidal wave" in the pricing of gold and silver builds, the equities that mine and produce these metals will surge.
John Hathaway, C.F.a., the legendary Senior Managing Director & Portfolio Manager at Tocqueville Funds recently spoke out on this topic. Mr. Hathaway, who is a Portfolio Manager of the Tocqueville Gold Fund, Tocqueville Gold Partners and the gold equity strategy, has been involved in the precious metals markets for decades. In a recent interview Mr. Hathaway said this:
[We] still maintain, that gold mining equities represent a compelling investment strategy to participate in the secular bull market in gold bullion, and conversely, the secular bear market in paper currencies…We believe that the decline in both the metal and the shares has run its course. We also believe that this painful correction has set the stage for significant new highs in both the metal and the shares in 2012.
Which Stocks to own when Riding Gold’s Monster Wave Higher?
I’ve said it before and I’ll say it again, the gold royalty stocks are a less risky place to invest while hoping for some positive leverage.
Companies like Franco-Nevada Gold (FNV) fit this description perfectly. FNV operates as a gold-focused royalty and stream company with additional interests in platinum group metals, oil and gas, and other assets in the United States, Canada, and Mexico.
As of March 24, 2011, FNV held 206 mineral assets; 135 oil and gas assets; and another 157 undeveloped oil and gas agreements. It’s like owning a basket of precious metals and energy mineral rights. the company was incorporated in 2007 and is headquartered in Toronto, Canada with additional offices in Denver and Perth. Franco-Nevada has no debt, almost $372 million in total cash (most recent quarter) and over $185 million in levered free cash flow (trailing twelve months).
Led by another legend in the precious metals world, Chairman Pierre Lassonde who was President of Newmont Mining Corporation (NEM) from 2002 to 2006 and prior to that from 1982 to 2002 was a co-founder and co-CEO of the original Franco-Nevada. Mr. Lassonde is past chairman and a current director of the World Gold Council, author of "the Gold Book" and has served on many mining boards and industry committees. the rest of the Franco-Nevada story and their profile is best learned by going to their website.
FNV’s stock price has been catching up with its "cousin" and another smart way to ride the gold wave. I’m referring to Royal Gold inc. (RGLD). like FNV, RGLD is selling for around 30 times forward earnings, and that should tell us of the potential upside for net earnings.
RGLD’s latest year-over-year quarterly earnings growth was a powerful 90% and their operating margin (also known as "net profit margin") is north of 58%. They concentrate on the acquisition and management of precious metal royalties. RGLD owns royalty interests in various producing, development, evaluation, and exploration stage projects that explore for gold, silver, copper, lead, and zinc metals, so they are more focused on the metals sector.
On Friday January 27th, RGLD moved up 1.89% while its "cousin" FNV stock price was up 1.51%. if you want a fascinating education into the business model and operations of RGLD click on this link.
Royal Gold’s site also explains,
Another interest similar to a royalty is known as a metal stream. This product allows for a smaller front end payment, but requires that payments be made as metal is delivered to Royal Gold over the life of a mine. In either case, Royal Gold does not have to contribute to the operating or capital costs at the mine after the initial payment is made.
A friend recently asked me which of these royalty-stream companies I would prefer. With typical Yogi Berra specificity I answered, "Both of them at the same time even." indeed I do, and I accumulate more on pullbacks.
On the other end of the "risk spectrum" for riding gold’s move higher are the "junior" explorers and producers. To spread the risk out you may want to consider the Market Vectors Junior Gold Miners index ETF (GDXJ).
The fund normally invests at least 80% of total assets in securities that comprise the index. the index tracks the overall performance of foreign and domestic publicly traded companies of small- and medium-capitalization that are involved primarily in the mining for gold and/or silver. In the past the index has included companies like Allied Nevada Gold Corp. (ANV). It engages in the evaluation, acquisition, exploration, and advancement of gold exploration and development projects in the state of Nevada, and you can view their website here.
On January 25th ANV released their Preliminary 2011 Operating Results and 2012 Operating Guidance With Gold Production Expected to Double in 2012. It isn’t rocket science to see how a rising gold price benefits this story.
Is it time to get into gold junior mining plays? Some analysts and gold commentators are saying "yes" in a cautious and selective way, like the following article. It might be more prudent to invest in the mid-cap precious metals stories like Hecla Mining (HL) or proven money-makers like my long-time favorite Alexco Resources (AXU).
There’s still money to be made in proven producers like Yamana Gold (AUY) and take-over candidates like Kinross Gold (KGC) and Agnico-Eagle Mines (AEM). these have far less risk than the juniors with plenty of upside potential.
If you’re looking to ride the "wave" higher in "the poor man’s gold", aka silver, consider another royalty-stream company that dominates that space—Silver Wheaton (SLW). Their story is quite compelling.
If you’re looking for a silver-producer that knows how to make profits and produce in resource-rich areas of the world like China, check out Silvercorp (SVM). It has no debt, $177 million in total cash and is trading at a little more than 12 times forward earnings. plus it’s currently yielding a 1.2% dividend.
If gold smashes through the $2,000 an ounce overhead barrier and silver follows suit, can you imagine how much profit is going to made in the companies mentioned in this article? It staggers the imagination.
Things can go wrong (just study the Kinross Gold news stories of the past two months or Silvercorp’s problems about 5 months ago), and that’s why we need to diversify – and set mental stop losses.
But you’re going to have some big winners too. Recently I sold half my position in Pretium Resources (PVG) at around $16.20. I bought it late last year for under $9 an ounce, so I felt good about taking half off the table and letting the rest "ride". It won’t be the only winner in the months ahead, that’s for sure.
Additional disclosure: I’m also long PVG.
This is a story about the deal that wasn’t. It’s been a roller-coaster twenty four hours in the history of two of Russia’s biggest precious metals companies.
Rumours began to circulate on Thursday that Polymetal International and Polyus Gold were about to merge.
The new company would become the biggest gold and silver company in Russia, and one of the biggest in the world.
As soon as the news began to spread, the share prices of both companies began to plummet. Polyus Gold fell ten points, and Polymetal by four.
Both companies have very high profile shareholders, Alexander Mamut owns just over 10% of Polymetal, and billionaire Michael Prokhorov has almost 40% of Polyus Gold.
Analysts say there was a lot of sense in the merger of the two entities making a new company with capitalisation of 20 billion dollars.
“In terms of reserves it would be perhaps among the top three, because Polyus Gold has a huge reserves base, so from the point of view of scale it makes sense. And, of course, for the bigger company it makes it easier to borrow money in the market, it makes easier to do M&A both in Russia and globally and also investor appeal is much higher for bigger companies”, saysmetals and mining analyst Aleksandr Morozov at UBS.
But, this marriage was not to be. Both companies have come to flatly deny any suggestion they are getting together. it took them more than a day, and some cynics have suggested the rumour was a ploy to see how the market would react.
“There has been much talk recently about major Russian companies merging. in December, for instance, one of the top managers of Evraz talked about a possible merger with Severstal. on the one hand such mergers can bring a considerable synergy effect, on the other hand the shareholders are unlikely to go for it as it will mean the loss of control over the companies,” said Pavel Emeliantsev from Investcafe.
There are pros and cons for each one of these metals. Gold being the most used and the most popular of all the precious metals comes in several versions. You can get a gold ring in 10-karat, 14-karat, 18-karat and even in 24-karat gold which is pure gold. of course, the higher the karats the more expensive it will be. On the other hand platinum comes as is.
One advantage that gold has over platinum is the color choices. You can buy mens rings or any other type of gold jewelry in yellow, white and gold colors. there is even a pink and green color that you can get gold in. You do not have this choice with platinum, because platinum only comes in the white color. this is not much of a problem today since more and more people are choosing white color men’s rings over gold or yellow color rings.
If you want a longer lasting ring and don’t mind paying a bit more for it, then you should consider going for platinum. this metal is the most valuable metal of all the metals and it’s white color makes for a very attractive ring color especially for men’s wedding bands. Being that platinum is a pure metal, you usually see these types of rings more on the expensive side.
Both rings are durable, but platinum is a more durable metal than gold. Out of the two platinum weighs almost as twice as much as gold does. a common downside for both metals is that they scratch very easily. this means that you will have to maintain your ring more often than if you had a ring made out of a metal such as titanium or tungsten.
Another advantage that platinum has over gold is the fact that it is hypoallergenic. this means that it is not known to cause allergies or irritations to the skin as opposed to gold and silver which is known to cause these types of conditions on those who are allergic to them.
As far as price goes you are going to pay much less for a ring made out of gold than you would for a ring made out of platinum. Out of all the precious metals, platinum is the most expensive due to the fact that it’s so pure, durable, and resilient. if you want a ring in the white color but don’t want to pay the hefty price for it then consider buying white gold. The white will eventually tarnish over time but this can be remedied by taking it to a jeweler who can buff it and bring back it’s finish to it’s original shiny state.
Both metals have it’s pros and cons, but ultimately it is a decision made by you. many men will have their own opinions as to wether they want lightweight or heavy rings. it also depends on each man’s personality. One thing for sure is that rings made out of one of these two metals are beautiful and stylish.
A common, but often misused phrase for coin dealers is coin collectors. It’s common for individuals that are interested in selling their coins to do a search using the keywords “coin collectors,” when in reality, what most individuals are in search of are coin dealers to whom they can sell their old, rare, gold or silver coins for top value. In this article, we’ll differentiate between the two and also provide some helpful tips on how to receive more when you sell your coins.
In the coin and precious metals industries, the term “coin collectors” is meant to describe those individuals that primarily buy and sell coins as a hobby. these individuals are not coin dealers. Coin dealers are typically defined as those individuals who work in the coin industry as a profession, and that are in the business of buying and selling coins for a profit.
This distinction; however, doesn’t mean that coin dealers aren’t also coin collectors. In fact, many coin dealers are some of the most avid coin collectors that you’ll find. the difference is that these individuals found an opportunity to turn their passion into a business, where they’re able to buy and sell coins as not only a hobby, but also as a career.
The distinction between these terms is relevant, as many individuals that are new to the industry, or that received coins from an inheritance or an estate go in search of coin collectors. however, the most practical person to seek is a coin dealer, who specializes in purchasing and selling all types of coins. While it’s possible to sell coins to collectors, it can be difficult to find a collector that is interested in the specific coins that you have available for sale. whereas, a dealer can be located relatively easily by doing an internet search in your general vicinity. they are also much more likely to have a broader interest, which means that you have a higher likelihood of selling your entire coin collection to a coin dealer.
When attempting to locate a coin dealer, it’s important that you do your due diligence to make sure that you’ve identified a reputable business. Online reviews or testimonials from previous customers can be a good place to see how previous customers rate the coin dealer that you’re considering. furthermore, you can check other third party sources, such as the better Business Bureau to check the company’s standing and to see if they have any outstanding claims made against them by third parties.
Not only do you have access to coin dealers in your surrounding area, but many well established dealers also have a website through which you can buy and sell coins. this is a great option for individuals located in rural areas or if you’re not satisfied with your local coin dealerships. not only can you send your coins through the mail for top dollar, but you can also, in many cases, receive a partial reimbursement for your shipping fees. this oftentimes beats conducting business locally, as you never have to leave the comfort of your home.
So the next time that you find yourself interested in buying or selling coins, consider contacting coin dealers rather than coin collectors. After all, coin collectors buy and sell their coins through coin dealers, which in effect, gives you indirect access to these individuals. considering the popularity of coins, and the high price of precious metals at this time, there may be no better time than now to sell your coins to a coin dealer.
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