Plad /Oz
£738.50
Plat /Oz
£662.39
Silver /Oz
£12.42
Gold /g
£31.16

Goldknox News

Silver Prices Rice, Report Confirms

The price of silver has risen thanks to the instability of the US economy and “better-than-expected European bond auctions”, according to Silver Investing News.
It revealed that by end of business last Friday, silver prices stood at $30.25 per ounce (approximately £19.77), up $0.28 on previous figures. This was the first time since December 2011 that it had exceeded the $30 mark.
What’s more, the website revealed that silver appears to be in a “steady and promising two-week uptrend”; given that at its lowest point in December, prices stood at $26.16 per ounce (£17.10). This has prompted some industry experts to urge investors to take the plunge and procure some silver for their portfolio.
A report from Silver Investing News explained why silver is expected to remain popular in 2012 and why it makes such a good investment. Cited by Marketwatch.com, it read: “Silver is a commodity in surplus and there is little indication that will change anytime soon.” The Silver Institute has also cited the metal as “indispensable”, thanks to both its uses in an industrial setting and a personal setting.
However Silver Investing News also revealed that as the Eurozone crisis deepens and has an impact upon the value of the US dollar, this could have a negative effect on silver prices; putting “downward pressure” on them.

Record Price Levels For Gold This Year

The gold market is to experience record prices this year, with the London Bullion Market Association (LBMA) predicting it will reach over $2,000 per troy ounce.
This equates to roughly £1,300 and would represent a record high, Ft.com revealed, also stating that the predictions “highlight the almost undimmed bullishness about gold among precious metal analysts and traders, despite a punishing price fall in recent months.”
It was back in September 2011 that the last record high for gold prices was set, with the price per-troy-ounce standing at $1,920 (£1,245). However this looks set to be beaten soon and according to the LBMA, could get as high as $2,055 (£1,330) when people start investing in gold more regularly.
The LBMA’s predictions came in the form of its January report, which also gave an idea of how 2011 had gone for the gold industry. It read: “Looking back on the results of the 2011 forecast, the average forecasts by analysts were met with mixed success.
“Although they correctly predicted the upward price direction for both gold and silver, actually average prices in 2011 outturned $115 and $5 higher respectively than they had forecast.”
The body added on LBMA.org.uk that some 26 contributors added to the reports’ findings; providing their thoughts on the “high, low and average price for 2012 for gold, silver platinum and palladium”.

US bullion coins attract eagle-eyed investors

Gold and silver bullion coins produced by the United States Mint have been a hit with investors, early sales figures suggest.

Opening sales for the 2012-dated American Gold and Silver Eagle bullion coins have exceed the majority of those of last year. Silver in particular did well with those thanks to some dramatic price cuts, with all but two silver products outperforming 2010′s sales, says CoinUpdate.com.

Investing in silver and gold has long been a worthy investment, but only “authorised purchasers”, whom are selected by the US Mint, are entitled to buy the precious bullion first. Only then can the coins be distributed to secondary dealers and the broader public.

Orders for the one ounce silver bullion coins began the new year at 3,197,000, which rose to 3,372,000 by January 4th when factoring in sales from the remaining 2011 coins, reports SilverCoinsToday.com.

“The top seller on the collector front was the 2011-W Uncirculated Silver Eagle,” the site revealed. “4,941 orders were added to its total, bringing it to 230,343. The boost was likely due to the silver coin’s lower price of $45.95 (£29.51).”

On the gold front, authorised purchasers ordered 37,500 ounces worth of American Gold Eagles on opening day, rising to 45,500 ounces by January 4th. These figures account for a mixture of weights including one ounce coins, half ounce, quarter ounce and tenth ounce coins.

2012 set to be a golden year

Analysts believe that gold prices could continue to rise in 2012, Investors Wire UK reports.

Investing in gold at this time of year is considered practically a tradition (remember the Three Wise Men?) and it is seen as one of the safest investments of the moment. Fortunately, it would appear that the factors which pushed the price up are not likely to change in 2012.

For British investors, The Telegraph writes, the price of gold has consistently risen since 2005. Demand for the precious metal from Asia, compounded with the Euro crisis and threat of a ‘double dip’ recession means that the price could hold.

The World Gold Council’s figures show gold is worth $1,596 per troy ounce, but analyst Richard Davies from BlackRock Commodities Income investment trust believes that that figure could reach $2,000 next year.

Talking to the newspaper, Angelos Damaskos, chief executive of Sector Investment Managers said: “The gold price is primarily supported by investment demand. Investors looks to gold as a safe haven and the limited supply of the metal could push prices to very high levels in 2012, potentially exceeding $2,000 in the next six months.”

Agreeing with that, John Person, president of NationalFutures.com told Market Watch that he believes the price could increase further around the time of the US presidential election debates in late October, peaking possibly at $2,200 – $2,400. He’s quick to add, however, in his opinion they’re unlikely to stay at that price for long.

Be cautious of speculative investors, warns expert

With so many firms operating in the precious metals sector, investors need to be extremely cautious when distinguishing between genuine investment companies and those that merely speculate on market conditions.

That’s according to Jordan Roy-Byrne, a Chartered Market Technician and author of The Daily Gold website. In a MarketOracle.co.uk article, he claimed that those wishing to make money investing in gold or silver need to be particular about which company they choose to helm their investment.

Roy-Byrne says that a worthwhile investment firm will be one with experience, as well as one which is making money and has foresight about the precious metals market.

“Though the sector itself is risky, there are still numerous companies that can be defined as an investment. An investment is something which you receive a return on your money and a return of your money,” he says.

“Therefore we are looking for companies that are making money and have the reasonable ability to grow cash flow and earnings.”

Those new to the industry may find that siding with online companies gives them the best chance of getting a return on their cash. This is because they are likely to spread the gold investment across a range of market listings making the venture less risky.

He says that investors shouldn’t be disheartened that prices fluctuate, because this is natural and it will highlight the difference between a legitimate investment firm and one that makes empty promises based on speculation.

“The real professionals were cautious this year,” revealed Roy-Byrne, who was also cited by Minyanville.com. “They held high cash positions and focused most of their risk-capital on investments and not speculations.”

He concluded: “Your investments should earn you a return of your money and a return on your money. Whether that is 80 per cent or 50 per cent of your portfolio depends on your risk tolerance, time horizon and other factors.”