Sell gold | Tuesday Turmoil? Stocks, Bonds, USDollar, Oil & Gold All Sold ...

Tuesday Turmoil? Stocks, Bonds, USDollar, Oil & Gold All Sold ...
First Four Kennedy Gold Coins Sell for $20K, PCGS Certifies First ...
Why You Should Ignore the Gold Sell Off - Daily Reckoning
Why Timothy Coles is Selling His $2 Million Gold Mine for Bitcoin
Miners sell gold on black market - NewsDay Zimbabwe

Tuesday Turmoil? Stocks, Bonds, USDollar, Oil & Gold All Sold ...

Posted: 12 Aug 2014 01:05 PM PDT

US equity futures started to slide once German confidence data hit early in the morning (and Treasuries rallied modestly) but as the US opened, the ubiquitous "markets are open and I must buy' rip hit... but didn't last. Stocks leaked lower but stopped as Europe closed (in a mirror of yesterday) but could not hold bounce gains as worries over Russia's convoy weighed on markets late on. The S&P and Dow end the day unch (Russell -0.5%, Trannies up 0.6%) on the week. As stocks old off, somewhat oddly, so did the US Dollar (on EUR strength - reptariation?), US Treasuries, gold and copper. 330RAMPCAPITAL turned up (well it is Tuesday), slammed VIX, and jammed stocks (except Russell) back to green (VWAP) but it didn't hold. S&P futures volume was over 40% below average.

Mirror of yesterday as stocks dumped early and stalled at the European close.. but headlines kept coming and pushed markets lower to the end of the day...

Machines were in charge today as normal with VWAP (blue line) resistance all day (suggesting institutional sell orders were waiting)...lower pane shows volumes massively below average this week

We bounced twice off last week's "NATO Threat" levels today...

Treasuries rallied off the German data but once US markets opened, selling began and kept going even as stocks sold off...

FX markets ended with the USD higher but the main action was selling from the German data that appeared all about EUR repatriation and derisking...

Commodities slipped lower overall (even as the USD strengthened) with gold back to unch on the week (and copper worst)

Notably Brent dropped to 2014 lows - dragging Brent-WTI back under $6...

Charts: Bloomberg

Bonus Chart: Ebola-trade favorite Tekmira dumped 20% on the day...

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First Four Kennedy Gold Coins Sell for $20K, PCGS Certifies First ...

Posted: 05 Aug 2014 06:58 PM PDT

Today was abuzz with stories about newly released Kennedy gold coins, the premium collectibles sold by the United States Mint to commemorate the 50th anniversary of the Kennedy half-dollar.

Nick Yadgarov, Callie Hohlfeld, Daniel Yadgarov

Nick Yadgarov, Callie Hohlfeld and Daniel Yadgarov of Los Angeles hold the first three 1964-2014 proof gold Kennedy half dollars sold at the ANA World's Fair of Money. (Photo by Donn Pearlman.)

Collectors spent a good deal of time waiting to place their order online and by phone, but many waited much longer to pick them up in person. No one had more patience than Nick Yadgarov, Callie Hohlfeld, Daniel Yadgarov and Rina Maya. They were the first people in the blocks-long line outside the Donald E. Stephens Convention Center, waiting 12 hours to buy dual-dated 1964-2014 Proof 50th Anniversary Kennedy Half-Dollar Gold Coins at the ANA 2014 Chicago World's Fair of Money.

Their fortitude paid off as they also enjoyed the windfall of owning the first PCGS-certified Kennedy gold coins. News accounts relay how the four accepted an offer of $20,000 for their coins, plus four more gold half-dollars as replacements.

First Chicago Kennedy Gold Coin PCGS PR70 DCAM

The first dual-dated proof gold Kennedy half dollar sold by the United States Mint at the 2014 Chicago ANA World's Fair of Money was graded PCGS PR70 Deep Cameo. (Photo by PCGS.)

PCGS graded the first six proof gold Kennedy half dollars sold by the United States Mint on opening day of the 2014 ANA World's Fair of Money. (Photo by PCGS.)

The Professional Coin Grading Service (www.PCGS.com) said that it certified the first half-dozen Kennedy gold coins sold at the show with the first four each graded PCGS PR70 DCAM, and the other two graded PCGS PR69 DCAM.

"It is really exciting to see so many collectors interested in purchasing these new coins," said Don Willis, President of PCGS, a division of Collectors Universe, Inc. (NASDAQ: CLCT). "PCGS is happy to have been selected to certify the very first six of the coins sold at the Chicago World's Fair of Money."

The ANA 2014 Chicago World's Fair of Money (www.WorldsFairOFMoney.com) will continue through to Saturday, Aug. 9. Each day at the money show the U.S. Mint will offer up to 500 of the gold Kennedy half-dollars.

They may also be purchased at United States Mint retail shops in Philadelphia, Denver and Washington, D.C., plus online at www.usmint.gov/catalog or by phone at 1-800-USA-MINT (872-6468). In-person purchases are limited to 1 coin with a 5-coin household ordering limit in place via online or phone orders. Containing 3/4 troy ounces of 24-karat gold, the special Kennedy coin is available for $1,240.

Why You Should Ignore the Gold Sell Off - Daily Reckoning

Posted: 06 Aug 2014 08:59 AM PDT

On July 13, gold was still around $1,340 per ounce. Since last Monday, gold has suffered a big drop, falling as low as $1,293 in a few days. Many blame the decline on hawkish comments from the Fed's Janet Yellen, who recently suggested the Fed could raise interest rates. "Higher interest rates would encourage investors to switch to assets that, unlike gold, pay interest," said the news service Reuters.

Following Thursday's news from the Ukraine, gold has rebounded from its low, but remains under $1,320 as of July 18. Rick Rule, Chairman of Sprott US Holdings Inc., recently said gold could fall back another 10% as a normal event in this market. I asked him whether this week's step down had altered his views on gold for 2014.

"I am very encouraged by the market action that we are seeing in both gold, and the gold equities."

Does the recent drop in the gold price affect your outlook for gold in 2014?

"No, not at all, Henry. You will recall that in our last interview, I suggested that gold and gold equities would grind higher after reaching a bottom, I believe, in July of last year. That is precisely what's happening. We're seeing higher highs and higher lows, but every new high requires a subsequent consolidation. You'll be up 10 or 12%, then off 8 or 9%. The 'backing and filling' that we are seeing right now is completely consistent with the behavior that we would expect to see coming out of a bear market bottom into a gradual recovery.

"I think this market is in good shape. It's healthy. These 'j-curve' advances are followed by appropriate declines on the backside. I am very encouraged by the market action that we are seeing in both gold, and the gold equities."

What do you make of Fed Chairman Janet Yellen's recent comments regarding raising interest rates? Are higher interest rates plausible?

"What Janet Yellen said was that the recovery was tepid at best – if we have a recovery at all. The political narrative dictates that low interest rates are needed in order to help the economy.

"My own belief is that interest rates will remain low in the next 18 months or 2 years, but for a different set of reasons. There isn't much private demand for loans, even at this low interest rate. But there is an implicit transfer of wealth from savers, who benefit from higher interest rates, to spenders. It's the spenders who are more numerous, which means that the government will look out for the spenders at the expense of the savers.

"Secondly, the extraordinary levels of Federal, State, and local debts would be difficult to service at higher interest rates. As a result, I think that the Fed will continue to do whatever it can in order to keep interest rates constrained for as long as possible. As long as the demand for debt from the private sector remains low – in other words, until the economy recovers — I believe you will see artificially low interest rates."

Recent reports show that big companies, like IBM, are probably issuing debt for the sole purpose of buying back their own shares. What do you make of this behavior? Is this the beginning of the end for low interest rates?

"Actually, I don't think so, because they don't need to borrow this money for their basic business. The biggest corporations in the United States have good balance sheets and are generating fairly substantial free cash flow. There is nowhere for them to re-deploy the money in their own businesses, because the economy is expanding slowly.

"At these interest rates – particularly if these companies can lock in these interest rates for long periods of time – debt is a cheaper form of capital than equity. In a slowly growing economy, the only way that these companies can increase earnings per share is to reduce the number of shares.

"What they are doing – buying back their own stock with borrowed money – is a normal response to the Fed's low interest rates. Right now, debt is much cheaper than equity in the long term.

"…the way I look at this nearly 'free' capital is ultimately good for gold."

"Of course, there is a downside. Companies like IBM are weakening their balance sheets, which were real fortresses against potential problems in the economy. When everyone does this, you are replacing more and more equity with debt. You are making the economy as a whole much more vulnerable going forward. That will become a concern for these companies in 18 months or two years from now."

If it is good for big companies, why not for everyone else? Do you think average investors should also try to benefit from these record low interest rates?

"In fact, I do. For an investor who has a stable financial situation, a 30-year fixed-rate mortgage for a house where they intend to live will probably begin to feel like free money once we are 3, 5, or maybe 10 years down the line. If you have the ability to borrow long-term capital at today's rates, and are able to service the debt – in other words, don't abuse it – this is probably a once-in-a-lifetime opportunity. After real inflation, the costs of this capital over the long term will likely be negative. That's very attractive!"

What do continued low interest rates mean for gold going forward?

"Ultimately, it's probably pretty good for gold. Right now, you are seeing gold being crowded out, because the returns from other assets such as stocks look more attractive.

"But the way I look at this nearly 'free' capital is ultimately good for gold. It weakens the medium of exchange, the US dollar, in which gold is denominated."

Regards,

Henry Bonner
for The Daily Reckoning

Ed. Note: If you didn't buy into gold back in 2001 when it hovered around $300 per ounce, don't worry. There is still plenty of upside for the yellow metal. And subscribers of the FREE Daily Resource Hunter email edition – where this interview was prominently featured – have unique access to a host of great reports on gold and other precious metals – including the very popular 5 Best Ways to Invest in Gold report. To gain access for yourself, be sure to sign up for the Daily Resource Hunter, for FREE, right here.

Why Timothy Coles is Selling His $2 Million Gold Mine for Bitcoin

Posted: 27 Jul 2014 04:30 AM PDT

Timothy Coles is the man behind the profitable gold mine in the Yukon city of Dawson currently for sale for just over 3,200 BTC on luxury marketplace BitPremier.

With more than 30 years of experience in the gold mining industry, Coles brings a unique perspective to digital currency and the concepts that underly the technology. He sees bitcoin as a one-of-a-kind type of asset.

Coles told CoinDesk that he first learned about bitcoin while wintering in the Philippines. Casual research grew into more active investigation, leading to discussions about how bitcoin might fit into plans to sell off his gold interests in the Yukon.

With the mine now for sale on the luxury exchange, Coles is optimistic about bitcoin's prospects, saying:

"I believe bitcoin has nowhere to go but up. In the long run, it's just going to get stronger and stronger and stronger."

He added that although he currently owns no bitcoin, he sees a future in it should the BitPremier sale succeed. While he has no active plans to invest were he to enter the market, Coles expressed an openness to invest in the broader bitcoin industry, including the mining sector.

The mine is currently on sale for $2m and reportedly generates $1m in annual revenue.

Bitcoin vs gold

When discussing the similarities and differences between gold and bitcoin, Coles cited the fact that the prices in digital currency markets are set by supply and demand.

By comparison, gold is subject to geopolitical pressures that have, in his eyes, made it a less attractive option over the years:

"The people that have the bitcoin are the ones that can drive the price up, or drive it down, depending on what ups. Whereas gold, the people that have the gold are really at the mercy of politicians, financial institutions, London fixes that we really know nothing about. People that have gold really have no control over the direction that goes."

He went on to suggest that these influences could one day take a toll on bitcoin. However, he said that the decentralized nature of digital currency technology makes it "less susceptible to manipulation compared to gold".

Coles added that the price of bitcoin went too high too quickly, resulting in an equally swift correction. In the months since – which has seen a raft of both positive and negative news for bitcoin – the price, he said, has risen on the merits of its strength rather than pure hype or speculation.

Bitcoin needs education

One of the key problem areas of bitcoin, Coles said, is a lack of education among the broader public. This is due to the novel characteristics of bitcoin that make it not quite a currency, commodity or property. Instead, it lies somewhere in the middle.

As a result, Coles reckoned, bitcoin's success – and its price – hinges on whether or not more people learn about how it works, how they can acquire it and, most importantly, how they can use it.

He explained:

"I believe that bitcoin needs some advertising the world over to learn more about what it's all about. Nine out of 10 people I talk to have heard of bitcoin, but they don't know about it, they don't understand and they don't want to because it's out of their realm of understanding."

Pointing back to the topic of political impact on bitcoin, having an environment in which more people understand how to use digital currency – and do so – could enable the bitcoin market to operate without manipulative influence from the outside.

More gold plans ahead

While citing problems in the global gold market, Coles said that after the sale of his mining interest in the Yukon he'd stay on the lookout for new opportunities. Issues aside, he said that he makes a "good living" in the gold market, joking that the industry was "spoiled" in 2012 and 2013, when gold prices surged above $1,700 an ounce.

He explained:

"I would still always keep my eyes open for opportunities in gold mining. It's something that's in your blood."

As outlined in the BitPremier advertisement, Coles is offering to help provide logistical and managerial support to a potential owner. The sale actually has two components: Canyon Creek, a developed, three-mile property with drilling and exploration already conducted on the plot, and an existing lease in the Bonanza Creek region.

Coles explained the real prize in the sale are his interests on Bonanza Creek, a waterway in the Yukon made famous for the abundance of gold discovered in the region. He suggested they are the heart of something that offers "big potential" to interested investors.

Image via Shutterstock

bitpremier gold mine mining

Miners sell gold on black market - NewsDay Zimbabwe

Posted: 22 Jul 2014 12:22 AM PDT

A SMALL-SCALE mining association in Shurugwi has revealed that most of its members were selling their gold on the black market as Fidelity Printers was failing to offer competitive prices.

STEPHEN CHADENGA

Fidelity Printers is a subsidiary of the Reserve Bank of Zimbabwe (RBZ) and the only institution allowed to purchase and process gold in the country.

Shurugwi Small-scale Miners Association chairperson Isaac Chivendera said the official market was failing to offer competitive prices hence most of his association's members had turned to the underground market.

"It's an unfortunate scenario, but the situation on the ground is that most of the gold from our miners is finding its way across the Limpopo where prices are lucrative," Chivendera said at a provincial environmental indaba held in Shurugwi.

Chivendera urged Fidelity Printers to address the problem of low prices.

"They [Fidelity Printers] should cure the problem and not the symptoms," he added.

The Parliamentary Portfolio Committee on Mines and Energy recently heard that the country was losing millions of dollars' worth of gold to South African buyers who offer small-scale miners higher prices.

In 2013, gold production by small-scale miners fell to 959 kilogrammes from a peak of 17 tonnes in 2004, an indication that most of the yellow metal could be finding its way onto the black market.

An estimated 1,5 million panners, popularly known as amakorokoza and over 30 000 registered small-scale miners engage in gold mining.