Friday, April 4, 2008

24k Pure Gold Jewelry

In order to save money, some jewelers hollow out gold rings and other pieces of jewelry. The result is jewelry that is less durable and less valuable. No matter how or where a person buys their jewelry from, they need to make sure that the piece is real. Buy only from sellers and jewelers that are trusted and well known. A price based solely on gram weight does not reflect the work that has gone into the piece. It's important to remember that each piece of gold jewelry is unique and, if cared for properly, can last a lifetime.

While gold itself does not tarnish, these alloying metals can sometimes cause a piece to darken with time, or leave a dark residue on the skin. In Europe, gold is marked with a number indicating the gold content as parts per thousand; ie., 18K gold, which is 75% pure gold, is stamped 750. The gold necklace, however, seems to hold its own as an elegant, sought-after piece of jewelry. It is often thought by jewelers today that pure gold is too soft to be made into jewelry, and so to strengthen it, they combine it with other metals. During the 1870?s Queen Victoria had such a strong fascination and interest for exotic sterling silver pieces she is credited for having changed the direction of sterling silver jewelry styling. Rare sterling silver pieces are prized by collectors and often fetch prices in excess of $750,000.

Gold filled is designated by the karat measure of the gold layer followed by the proportion of the gold layer to the entire piece. For example, 12/20 gold-filled has a layer of 12 k gold that is 1/20th (or 5%) of the total thickness of the metal. When a piece of jewelry is stamped with a quality mark, law requires that it be stamped with a hallmark or trademark as well. In the United States, 14-karat gold is used most commonly for jewelry. Using 24K as a basis, the karats signify what proportion of pure gold to alloy is in the piece. It is approximately 40% pure gold.

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Thursday, April 3, 2008

Gold Investing Holds Strong

Long-term investors are losing money. But not in gold. Those who bought stocks in early 2007 and selling now are suffering heavy losses. Gold Investments continue to see gold reaching at least $1,200 per ounce in 2008.

Further strength in sterling gold and parity with the euro in the next 2 to 3 years seems likely as the UK economy is beset with many of the same fundamental weaknesses that afflict the U.S. Many analysts suggest bullion could rise even further in the future, as more people rush into buying it. Though the price may retreat in the short-term due to profit taking. Analysts expect the interest rate cut will be larger than the previous ones and is likely to further depress the already weak US currency.

There was further dollar strength yesterday and the usual first day of quarter equity bounce saw further selling pressure on gold which fell as low as $870 prior to recovering later in the New York session. The close below $905 is negative from a technical point of view for gold?s short term prospects and may result in the need for some more consolidation.

Investors need to place their money in a real inflation hedge, and that is gold. The CDP is an investor coalition that requests information on corporate risks and opportunities associated with climate change from more than 2,000 companies globally. Of the 204 insurance groups that were asked to fill out the survey in 2006, four were Canadian property and casualty companies or brokers (four life insurance companies were also polled). These investors can now get regular income by renting their shares to FIIs and other investors who short sell shares in the stock market. Short selling refers to selling shares without having possession of the same.

When you see prices rise with things like gold and oil, it's not so much that the value goes up, it's that the value of the dollar is in the tank because the Federal Reserve (which is no more Federal than Federal Express) pumps truck loads of money into the economy to do things like fight wars, make home loans easier than they should and so on. By printing so much money, it just makes it worth less or should I say worthless. The broker also slashed his price target to $23 from $26. Technical indicators for the stock are neutral but slightly deteriorating. Some ETFs have positioned themselves to profit when prices of the investments they track fall. Or investors can use traditional ETFs as short-sale candidates.

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Tuesday, April 1, 2008

Current Gold Prices

Yesterday oil surged $4.68 on inventory data. Gold fell 40 cents to close at $948.80 an ounce. Wall Street received economic data prior to the opening bell that was better-than-expected but also signaled trouble ahead for the economy. The Commerce Department said personal spending increased by a meager 0.1% in February -- the worst performance in 17 months. The dollar edged higher, but hovered not far from record lows against the euro, after the US data showed that the inflation pressures were tamed in February - affirming expectations of further interest rate cuts by the Federal Reserve to boost a weakening economy. However, the weakness in the dollar is still exhausted, and with interest rates expected to fall further, the outlook for medium-term to long-term still looks bullish for gold.

The U.K.'s Office of National Statistics said today that its index of services rose 0.6% in January, with the growth mainly due to a significant increase in distribution. Another report released by the agency showed that fourth quarter productivity increased by 1.7% from the year-ago period. There can be a percentage of any commodity price.

Some due to geopolitical tensions or supply issues, but values are magnified by price increases due to monetary inflation. Historically, gold backed currencies prevented rapid expansion of fiat currency, thereby creating price stability. The main reason for this trend has been due to the weakening of the dollar value in the foreign market. Therefore, investors and central bank looked to gold as a safe haven of investment.

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Monday, March 31, 2008

Why Gold Prices are Fluctuating

Expect higher silver and gold prices next week. The volatility of gold prices has increased three-fold in the last year. This means I can buy one third the amount of gold to realize my profit objective or meet my stop-loss. Gold prices have gone up not due to high demand, but because of other economic factors, including weakness of the dollar, rising price of oil and speculation. Sales have definitely been impacted.

When that happened gold prices unexpectedly collapsed 100 dollars in 3 days. The reason was that investors in the metal were disappointed and the markets were actually looking for a 100 basis points cut. That means the 20 percent increase in international gold prices translates to a much smaller increase in the value of your necklace. The markup is less significant overseas, where many people do consider gold jewelry an investment. After oil and gold prices reached new highs, or the peak of their cycles, investors shifted to commodities because their prices are seen to be in the middle of their cycle. In short, these products have the potential to rise further.

Gold prices started rising two years back and gradually people have accepted high prices. In the last six months the price of gold increased more than 50 per cent, so whoever bought gold before that gained from the price increase. Gold: Gold prices soared to a record high $1,007.40 per ounce on Friday as the dollar slumped to record lows versus the euro. Gold has risen by about 17 percent so far this year, underscored also by supply problems in South Africa, the world's largest producer. The question that arises now: What will be the outlook for gold prices? When the US Fed cut the rate by 75 basis points, it was expected that the market would move up.

The recent run-up in gold prices, to more than $1,000 an ounce, coincided with unhappy times in the stock market. StreetTracks Gold Trust, an exchange-traded fund that tracks the price of gold, is up 42 percent in the last 12 months.

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