GOLD & SILVER PRICES OVER THE WEEKEND

The gold prices look very favourable this weekend.If you have been eyeing to buy, this is the time to buy.

What has happened for the last 60 days?

There is the scenario.

What do you think? I would say that it is a good time to buy.

Gold Becomes a Tier 1 Asset Class for Banks

 Despite what the Main Stream Media (MSM) or "Financial Pundits" tell you, the gold bull market is far from over. In fact, it is just starting, in our opinion. While the misdirected financial world tell you that gold is in a bubble and it has burst, the central bankers and government organizations all know it is far from over. In fact, gold is moving towards the banking system and not away from it. We all know that many central banks are now net buyers of gold and their holdings are increasing as their need to diversify away from risky assets and foreign bonds only grows.

Central banks around the world are continuing to stock up on gold. We can now add Kazakhstan's central bank to the grow list of bankers wanting to hold gold as a part of their currency reserve. The Kazakh central bank intends to have 20% of reserves in gold, this is up from the current 14-15% currently held. They plan to purchase 20 tonnes of gold this year, mostly from local producers. They also mentioned a few weeks ago that they would cut their Euro holding to 25 % from 30%. We can also add Kazakhstan to the growing number of central bankers which are building up gold holdings including China, Russia, Mexico, Colombia and South Korea.

The price of gold is now hitting all time highs in India, one of the biggest buyers of gold around the world. Prices have reached an all-time high of $544.74 US (Rs 30420) per 10 grams. With a slowing economy and low demand for the Indian rupee, it has been losing value lately and still remains weak. However, gold demand is still robust even at these elevated prices as investors in India still consider gold a safe haven as it counters the effects of inflation and exchange rate fluctuations.

Over the past five years, gold has provided Indian investors with a 27.19% annualized return versus a pathetic 2.67% in the equity market. This trend and move to gold has only grown in the last year. Gold assets under management by funds have increased almost 100% $1.83 billion by April 2012, last year the value was $981 million. In 2011, the gold ETFs in India saw a net inflow of $725 million. For thousands of years the Indian culture has had an affinity for gold, and that will never change, and neither will their demand for physical at elevated prices. Why? Indians understand that gold is money and a true form of saving. It's the only way to protect assets and wealth from government theft, something the West is still learning.

Even the good ol' USSA is starting to recognize gold as a tier one asset class. The Federal Deposit Insurance Corporation (FDIC) just issued a notice regarding a new policy proposal on how banks should revise the measurement of risk-weighted assets by implementing changes made by the Basel Committee on Banking Supervision (BCBS) to international regulatory capital standards and by implementing aspects of the Dodd-Frank Act.

How about Silver Prices?

The silver prices are now below USD30/oz. That's very cheap...

Good video to watch : 

SILVER - I'M BUYING THE INVERSE HEAD & SHOULDERS - MIKE MALONEY

GOLD WILL RUN TO $1950?

The prediction from Wealth Daily is $1950/oz. Is it still worth to buy?

What is the price now?

At the point of typing this article, this is the price. (Most updated prices is shown on the right hand side of this blog.)

Can New Investor still gain?

Should the prediction is right and you will be buying gold at around USD1657.60/oz (if you buy now, that is), you will gain USD292.40/oz. How much gain is that?

The gain is 17.6% within 5 months.

How much is the gain per annum? Can you annualised it?

The gain / return is 17.6% / 5 months * 12 months = 42% per annum. That will be very very good indeed. Don't you agree?

An except from Wealth Daily article :

Appetite for Diversification

It's really no surprise banks are buying gold like it's going out of style.

After South Korea bought 25 tons of the metal for the first time in 13 years, just to diversify from the dollar, it's likely other central banks in that region will follow.

Buying gold not only helps countries protect their wealth; it's the best way for them to prepare for a gold mania that could make the 1970s look like “child's play,” says Franco-Nevada Chairman Pierre Lassonde.

“In 1980, the only players, or the dominant players, were the Americans. Today the dominant players are China and India; 58% of all the gold sold this year will be sold in these two countries. When we reach that mania phase… it will truly make your head spin.”

How to buy gold bar?

More Articles

CITIZANS BANKED ON GOLD IN MYANMAR'S TROUBLED ECONOMY ~ ROB BRYAN (AFP)

The article is somehow a little bit blur. My apologies for my inexperience in handling the blog. You can click on each page to read the enlarged version. To go back, press <-- button. The content of the article is eye-opening for all of us. Read the 4 pages article and you will know why people keep gold instead of piles of money.

Full article can be sighted at http://bit.ly/fk5MUH. No changes has been made to the article with the exceptions of the highlighted wordings.

Have fun browsing.

CHINA BUYING GOLD IN 2011

Points from the article :

1. Gold ownership was banned in China from 1945 until 2003
2. In 2009, the Chinese government issues permits to import gold into the country
3. All the banks are now allowed to distribute gold and slowly
4. China's development began with the export of cheap parts sub-contracted out of the developed world, then moved onto exports of their own. With this development comes a new middle class of hard working people saving up to 40 % of their income in the banks.
5. The government has realized that China, as a whole, will benefit from its citizens Buying Gold and owning it, as well as the central bank, the People's Bank of China. Hence, they are actively encouraging the Chinese people to Buy Gold, as are the banks.
6. The China government published two years ago that the People's Bank of China had added 400 tonnes to its reserves.
7. China is the world's No.1 Gold Mining producer
8. They buy local gold production from local producers ‘off' market, acquiring domestic Gold Mining output without alerting the international bullion market to the purchases.

Original source

via Public Gold