Tuesday’s unanimous agreement by the European Parliament’s Committee on Economic and Monetary Affairs (ECON) to allow central counterparties to accept gold as collateral, under the European Market Infrastructure Regulation (EMIR), is further recognition of gold’s growing relevance as a high quality liquid asset.

World Gold Council provides four reasons that make gold the perfect collateral:

1. Nil credit risk

Gold is having no credit risk especially as government bonds are losing their sheen in the wake of financial crises and facing downgrade possibilities. Real estate, currency, notes, bonds or bills; every collateral faces one or the other kind of value erosion. Gold is immune to such value fluctuations that damage growth and investments.

2. Transparency in pricing

Gold is arguably best in maintaining a transparent pricing system even as a majority of trading happens in the OTC market. Even there, the market makers are obliged to quote a two-way price in gold continuously throughout the day.

Further, the price of gold is fixed twice daily in London (the AM and PM fix) which forms the international benchmark.

3. Deep, liquid market

Gold market is having a deep pocket. At the end of 2010, above-the-ground gold stocks were estimated by GFMS at 166,600 tons. This figure, in 2010 value terms means a whopping $6.5 trillion. With this money half the debt of US could be paid off!

Of the $6.5 trillion worth of gold, about $2.5 trillion worth are carried by the private individuals, and official institutions in the form of coins and bars.

Between December 2010 and February 2010, IMF had sold 181 tons of gold in the OTC market creating nil ripples which is a testimony to the market’s appetite for the yellow metal.

4. Diverse holding pattern viability

Gold forms a class in itself as it is different from bonds and other financial assets in its diversity of holding. Investment is not the only option by which value accumulates in gold. “Over the past 5 years, 58% of gold demand came from jewellery sector, 30% from investment and 12% from technology…”, says World Gold Council.

Background

Market demand for gold to be used as a high quality liquid asset and as collateral has been building for some time. In late 2010, ICE Clear Europe, a leading European derivatives clearing house, became the first clearing house in Europe to accept gold as collateral.

In February 2011, JP Morgan became the first bank to accept gold bullion as collateral via its tri-party collateral management arm. Exchanges across the world, such as Chicago Mercantile Exchange, are now accepting gold as collateral for certain trades and London-based clearing house LCH Clearnet has said that it also plans to start accepting gold as collateral later this year, subject to regulatory approval.

As regulators, from G20 countries, demand that more OTC trading is cleared on exchanges and with the ongoing world economic difficulties further eroding the credit worthiness of other forms of collateral, World Gold Council expects to see increasing demand by clearing houses, exchanges and investment banks to use gold as collateral.

Gold is set to end the week again on top as the greenback dropped while euro zone debt worries continued to support it.

Silver is also heading for a higher finish this week as the dollar index gave up more ground on Friday, extending losses from the previous session.

Analysts said positive US economic reports and mounting worries about euro zone debt default, especially that of Greece’s prompted buying from investors.

Gold for June delivery rose $2.30 to $1,525.10 an ounce, while gold for August delivery advanced $2.20 to $1,525.90 an ounce. Gold touched a record around $1,575 in early May.

July silver rose for 35 cents to $37.69 an ounce after hitting a high around $38.

It had rallied to a two-week high at $38.84 on Thursday before hitting a low around

$36 as speculators booked profits. Silver struck record at $49.51 an ounce in April

The gold-silver ratio, used to measure how many ounces of silver can buy one ounce of gold, was at about 40 after falling to around 31 in late April, its weakest since early 1980s.

On Thursday, gold futures settled lower, snapping a four-session winning streak amid low volumes and some profit-taking.

Gold for June delivery lost $3.90, or 0.3%, to $1,522.80 an ounce on the Comex division of the New York Mercantile Exchange.

The many reasons to buy gold have been very well documented over the past few years. Most people are aware that the price has increased dramatically; they understand that gold offers great portfolio balance, protection against inflation and security against economic and political uncertainty.

What's less obvious is which forms and types of gold to invest in. Like any tangible asset you buy, it is the price you ease you can sell it for which will determine your profit. If you buy a piece of gold that no one wants then it doesn't matter how much the gold spot price has risen. Sovereign gold coins offer a number of compelling reasons to invest.

First of all, they've been around for hundreds of years so enjoy a very well established reputation and deep developed secondary trading market. This means they're easy to sell anywhere globally.

The very fact that there are a huge number in circulation throughout the years also means a buyer has a great choice when buying. This contrasts with another UK coin, the Britannia, which has only been around for 20 or so years. So buyers generally only have the choice of brand new coins.

As a relatively small coin, they offer the chance of owning a larger number and variety than 1oz coins. Variety and diversity are always good benefits when you're seeking a balanced gold portfolio.

Because you get roughly 4 Sovereigns to an ounce it is easy to liquidate the portfolio in smaller fractions. This increased divisibility offers the investor a high degree of flexibility with their gold coins. It is also easier to find buyers of coins worth £200 or so than £900.

A major selling point of Sovereign gold coins is their tax free status. As a 22 carat coin Sovereigns are classified as investment gold and so are VAT exempt. This contrasts to some other forms of gold such as jewellery and gold nuggets, and indeed other precious metals such as Silver and Platinum which all attract VAT of 20%.The real bonus with Sovereign coins is that they're also Capital Gains Tax free for UK residents.

As legal tender in the UK, the Government don't tax the movement of legal currency. This means that unlike some great foreign coins like the Krugerrand and Maple Leaf, investors get to keep 100% of their profits upon disposal rather than pay up to 28% to the tax man!

So the case for buying Sovereigns is strong, but you still need to ensure you're getting the best value for money. Almost always avoid buying proof Sovereigns if you're an investor. You can pay 15-30% premium over bullion coins and will likely receive a fraction of this benefit when you come to sell. You should only consider proof coins if you're paying close to the bullion price or if you're a collector. If you're considering choosing between full Sovereigns and half or quarter Sovereigns, then always go for a full Sovereign if you can afford it.

You'll likely pay a higher premium for the smaller fractional coins equating to less gold for your money. I also think there is less demand for the half and quarter Sovereigns as they really are very small coins. Conversely I think the £2 'double Sovereign' and £5 'quintuple Sovereign' represent good options.

Finally, you need to ensure you buy the right age of Sovereign. This rule is relatively simple. Right now brand new Sovereigns remain expensive in my opinion. While they are beautifully finished you can pay 5% or more on top of second hand prices. Like buying a car, that coin will not be the latest mint year within a year, so will represent bad value.

I don't see a huge difference in the various years of issue in second hand Sovereigns. In fact I see value in holding a nice mix of coins, whether they be Elizabethan, Edwardian, Georgian or Victorian. As long as the condition is decent, it can be beneficial and enjoyable to hold coins from a number of eras.

Some dealers may pay a little more for Edward VII Sovereigns purely because of his short stay on the throne but the difference is marginal.

Irrespective of age and risk-profile, one should have at least 10% allocation to gold. Gold is a precious metal and will always remain in short supply. If you are planning to invest in gold and looking for the best ways, here we will discuss the ways and conclude. These days gold as an asset class is famous rather than holding it in physical form. The main advantage of holding gold online is there is no scope for theft and depreciation.

We will look and compare at two options Gold ETFs and Gold Fund or Gold Fund of Funds (FoF):

* Gold FoF is a solution meant for investors who wish to invest in gold but do not have a Demat account. It aims to generate returns by investing in units of gold ETF. The minimum investment is Rs. 5,000 for onetime investors. There is an option to enroll for SIP and STP with a minimum commitment of six installments of Rs. 1,000 each. Investors are also not forced to buy one or half gram of gold and they can own fractions.

* Investors will invest in the scheme and the fund manager in turn will buy the units of gold ETF or shares of Gold Mining Companies. While in Gold ETFs, the investor need to have a Demat account and can buy and sell units, tracking the gold price live, on the stock exchange, just like they do with stocks.

* With Gold ETFs, Investors have the flexibility to sell/buy at market price of the gold ETF unit without a significant delay. While the fund manager takes the responsibility of transactions on your behalf in Gold Funds and entry and exit can be done at NAV at the end of the day.

* The annual charges of 1.5% are applicable on the investments in gold funds. You will get gold ETFs with lesser annual charges/TER. Though there is no entry load, exit load of 2% is applicable if withdrawn before 1 year in ETFs. These charges are not there on a gold Fund but brokerage charges are applicable. However, brokerage charges are lesser in amount compared to this 2%. In a bad year, if gold delivers single-digit returns then such costs appear as a drag on the fund returns. You cannot be an opportunist with a gold fund of fund the way you can with gold ETF.

* For small investor, Gold FoF is a better option provided he is an investor with a 'buy and hold' investment philosophy. But if he can negotiate with your broker for better brokerage rates and have large corpus to invest, gold ETFs can work in your favor.

There are over 30 mutual fund companies present in India and so far 10 mutual fund houses have come up with gold ETFs: Gold Benchmark Exchange Traded Scheme (Gold BeES), HDFC Gold ETF, ICICI Prudential Gold ETF, KOTAK GOLD ETF, Quantum Gold ETF, Reliance Gold ETF-Dividend Payout Option, Religare Gold ETF, SBI Gold Exchange Traded Scheme, UTI Gold ETF, Axis Gold ETF. And there are three Gold FoFs options available in India: Reliance Gold Fund, Kotak Gold Fund and Quantum Gold Saving Fund.

Global leader in gold production, China said its demand for the commodity is expected to exceed 700 metric tons in the next several years.

According to China National Gold Group Corporation, gold prices may stay at high levels in the coming months as investors seek a safe store of value amid slowing global economic recovery, a weaker dollar and geopolitical uncertainties.

China’s annual production of gold might hit 400 tons in the next three years, said CNGGC.

Chinese demand rose 21% to 571.5 tons last year, with gold jewelry demand totaling CNY270 billion in value.

China's gold output in the first three months of 2011 totalled 73.412 tonnes, up 4.63 pct from the same months of 2010.

A Chinese person now owns about 4 grams on average, from a little over one gram a few years ago, but it is still well below the world average, CNGGC.

In China, investment in gold bars increased 94% to 141.9 tons in 2010, while investment in gold coins was up 55% at 16.6 tons.

China's investment demand in the first three months of the year more than doubled to 90.9 tons, outpacing India's 85.6 tons, the World Gold Council said in a quarterly report.

China's gold reserves account for about 6% of total global reserves and its proven gold reserves reached 6,327 tons in 2009.

China's gold mineral reserves account for about 6% of the world's total, but the quality is lower than those found in South Africa, Russia and Australia

China is the world's biggest gold producer, having raised production every year since 2004. Last year, output was 340.880 tonnes, up 8.6 percent from 2009.

Gold prices remained slightly up in Asian trade Thursday while silver hit a new high, mainly on Europe’s debt worries.

Gold for immediate delivery was seen trading at $1529.34 an ounce at 1.30 p.m Singapore time while silver was at $38.27 an ounce, highest in nearly two weeks.

Analysts said, gold and silver prices are likely to extend gains towards the weekend on lingering concerns over euro zone debt problems as continent’s policy options to avert a Greek debt default appeared to be dwindling.

Analysts added that this will spark fears of a chain reaction affecting other heavily indebted countries in the 17-nation currency bloc.

Bullion struck a record above $1,575 in early May. Silver touched a record at $US49.51 in late April before falling sharply on a broad sell-off in commodities

On Wednesday, gold futures rose slightly Wednesday as the dollar index was unmoved at 75.89 and oil prices rose.

On the comex division of the New York Mercantile Exchange gold added $1.80 to reach $1,525.10 per troy ounce.

AngloGold Ashanti Ltd. (ANG), the gold producer whose largest shareholder is billionaire John Paulson, said development of its key Colombia mine is delayed and will cost more than expected after it struggled to obtain permits.

First output at La Colosa will now be 2018 at the earliest, compared with earlier estimates of end-2016, Rafael Herz, chief executive officer of the company’s Colombia unit, said in an interview in Bogota. Costs will likely escalate to as high as $3.5 billion, from a previous forecast of $2.7 billion, he said.

The Johannesburg-based company is counting on projects such as La Colosa, which could double its output in the Americas, to compensate for aging mines in South Africa. Paulson’s $36 billion hedge fund boosted its stake in AngloGold last quarter to benefit from rising prices and potential for higher output.

“The project has suffered obstacles in the exploration phase that clearly has delayed the schedule,” Herz said. “Some critical decisions as to where we can do activities, what kind of permits do you need and how will they be obtained need to be clarified,” he said of current mining regulations in Colombia.

Exploration at the property resumed last year after being suspended in February 2008 amid government restrictions on use of forestland. This year, the company received permits to tap nearby water supplies instead of trucking water to the mine.

‘Most Significant Discovery’

Colosa is the “most significant” gold discovery worldwide in a decade, AngloGold CEO Mark Cutifani said in 2009. The project, which is a potential ‘company-maker’ according to Herz, may produce about 800,000 ounces of gold per year, or almost 20 percent of total output. Reserves at the site, located about 150 kilometers west of the capital, are about 12.3 million ounces.

“It’s a very interesting prospect since it’s so large,” Leon Esterhuizen, an equity analyst at RBC Capital Markets who rates the stock “outperform,” said in a telephone interview from London. AngloGold’s stock is “cheap” relative to prices for the metal, which reached a record this month, he said.

Gold has rallied 27 percent in 12 months and reached a record $1,577.4 an ounce on May 2. Immediate-delivery gold decreased 0.2 percent to $1,524.03 an ounce at 9:05 a.m. in Singapore, after rising to $1,527.75 yesterday, the highest level since May 4. Gold futures for June delivery were little changed at $1,523.60 an ounce.

Paulson’s fund is the largest shareholder in AngloGold, with a stake of about 11.8 percent, according to Bloomberg data. The hedge fund bought 97,540 American depositary receipts last quarter in Anglogold, South Africa’s biggest gold producer, and 2 million ADRs in Gold Fields Ltd., the country’s second-largest producer, according to data compiled by Bloomberg.

Soros Holdings

George Soros, the billionaire founder of Soros Fund Management LLC, sold most of his holdings in the bullion-backed SPDR Gold Trust in the first quarter, while buying shares of mining companies such as Goldcorp Inc.

Environmental regulation also stalled development of a $1 billion gold mining project by Greystar Resources Ltd., which in March withdrew permit applications for the Angostura project after environmental opposition. The government later said the company can’t build any project in a protected watershed area.

 

Cia. de Minas Buenaventura SA, Peru’s biggest precious-metals producer, said workers went on strike at its largest gold mine today seeking better pay.

Peru’s Labor Ministry declared the strike at the Orcopampa mine illegal and will broker talks between the company and labor officials this week, Chief Financial Officer Carlos Galvez said.

“The Orcopampa plant has completely halted,” Galvez said today in a telephone interview. “It’s a shame, because we were very, very close to reaching an agreement, with a difference of pennies.”

Miners in Peru, the world’s sixth-largest gold producer, plan a national strike May 30 to seek a bigger share of record earnings after both gold and copper rose to records. Copper has almost doubled in the past two years, while gold reached a record $1,577.40 an ounce on May 2.

Buenaventura’s American depositary receipts, each representing one ordinary share, gained for a seventh session, adding 50 cents, or 1.2 percent, to $41.70 in New York Stock Exchange composite trading. The share has gained 11 percent in the past month.

 

Gold fell as prices near the highest level in three weeks prompted some investors to lock in gains. Gold priced in euros rose to a record.

Immediate-delivery gold decreased as much as 0.3 percent to $1,522.82 an ounce before trading at $1,524.50 by 11:24 a.m. in Singapore, after rising to $1,527.75 yesterday, the highest level since May 4. Gold futures for June delivery were little changed at $1,524.40, while gold denominated in euros increased to an all-time high of 1,083.188 euros. Cash silver shed 0.4 percent to $36.515 following yesterday’s 4.6 percent rally.

“The gold market received an early bout of profit-taking in Asia trade after a recent good run,” said Hwang Il Doo, Seoul-based senior trader with KEB Futures Co. “Gold has further to go as investors are still fidgety about what’s unfolding in Europe.”

European Central Bank leaders and European Union policy makers are clashing over how to prevent the currency region’s first default, after 256 billion euros ($360 billion) in bailouts to Greece, Ireland and Portugal failed to stop contagion from the debt crisis. The dollar rose 0.2 percent today against six major currencies after falling as much as 0.4 percent yesterday. Gold typically moves counter to the dollar.

Bullion advanced to a record $1,577.57 an ounce on May 2 as investors sought to protect their wealth against the prospect of accelerating inflation and currency debasement. Assets held in exchange-traded products, or ETPs, rose for a third day to 2,052.987 tons yesterday, showed data compiled by Bloomberg. Holdings reached a record 2,114.60 tons in December.

“Worries about Europe’s debt crisis and the firmer euro against the U.S. dollar were key supports,” Mark Pervan, head of commodity research with ANZ Banking Group Ltd., wrote in a note today. “Renewed interest in gold exchange-traded fund holdings should also be positive for prices.”

Immediate-delivery palladium was little changed at $737.25 an ounce, while platinum added 0.3 percent to $1,772.25 an ounce.

 

Greater Toronto Airports Authority plans to refinance C$500 million ($512 million) of debt in the next seven months as it seeks to cut borrowing costs amid investor concern that rising oil prices and increased competition will crimp revenue.

GTAA’s 10-year notes maturing Jan. 30 pay a 6.25 percent coupon, 95 basis points more than the last securities sold by the company in February. The planned transaction will be the airport operator’s only other debt sale this year because it has enough cash on hand to finance operations, Treasurer Todd McIntosh said.

The refinancing will be “most likely toward the end of the year,” McIntosh said in a telephone interview from Toronto. “You never like to scramble into the capital markets in the weeks before a bond maturity.”

GTAA debt has underperformed Bank of America Merrill Lynch’s Canadian Corporate Index since the start of the year. Yields on GTAA’s notes compared with Canadian government securities have widened by seven basis points to 124 basis points as of yesterday, while average spreads on the index narrowed by seven basis points to 128. The Bank of America Merrill Lynch index tracks 762 securities with a par value of C$309 billion, including 12 GTAA bonds.

The company operates Toronto’s Pearson International Airport, the biggest of the two passenger airfields that serve Canada’s most populous city and financial hub. Having completed a C$355 million terminal redevelopment last year, the company has no major expansion work planned until at least 2014, depending on how quickly passenger traffic climbs.

‘Pressure on Spreads’

GTAA’s sale of C$600 million in 5.3 percent 30-year bonds in February “put a little bit of pressure on spreads” by adding to the supply of bonds, said James Dutkiewicz, who manages the C$721 million Signature Canadian Bond Fund at CI Financial Corp. in Toronto.

Investors are also concerned about rising oil prices, which may lead airlines to boost air fares and curtail consumer demand, said Jason Parker, head of Canadian fixed income research at BMO Capital Markets in Toronto. Brent oil futures have gained about 18 percent this year through yesterday.

“Any time you have an increase in oil prices, investors get a little bit cautious,” Parker said. “Airline traffic is a discretionary expense and there is a strong relationship between airfares and demand.”

GTAA had long-term debt of C$7.37 billion as of March 31, up from C$7.3 billion three months earlier. The company’s debt is rated A by Standard & Poor’s and DBRS Ltd., and A2 by Moody’s Investors Service. All three ratings are investment grade.

Barrick Gold Sale

Elsewhere in credit markets, Barrick Gold Corp. sold $4 billion of debt in four maturities, according to Bloomberg data. The Toronto-based miner sold $700 million of three-year notes that were priced to yield 90 basis points than comparable government debt; $1.1 billion of five-year securities at a spread of 115 basis points; $1.35 billion of 10-year notes at 130 basis points more than benchmarks and $850 million of 30- year debt at a spread of 150 basis points.

Corporate bond yields fell to 3.78 percent yesterday, from 3.8 percent on May 23. Canadian corporate bonds have gained 2.32 percent since the start of the year, compared with a gain of 1.29 percent for Canadian government bonds, according to Bank of America Merrill Lynch data.

Government Bonds

Yields on five-year Government of Canada bonds were little changed at 2.42 percent yesterday. The difference between yields on five-year Canadian government bonds and U.S. Treasuries of the same maturity widened by two basis points to 65.

In the provincial bond market, relative yields widened to 54 basis points yesterday, from 53 on May 23. Yields fell to 3.22 percent from 3.25 percent. The securities have gained 1.51 percent this year.

Saskatchewan had its credit rating raised one level by S&P to AAA from AA+, which cited the western Canadian province’s “low and declining” debt. Saskatchewan’s “tax-supported” debt amounted to 39 percent of the province’s fiscal 2010 revenue, a figure that S&P said will probably drop to 35 percent in the next year. AAA is S&P’s highest rating.

Ontario sold C$110 million in floating-rate securities due June 2016. The coupon on the five-year floating rate notes will be set quarterly at 18 basis points greater than the Canadian Dealer Offered Rate, known as CDOR.

About 7.9 million passengers travelled through Pearson in the first three months of 2011, a 5.1 percent increase over the same period in 2010, GTAA said May 18. U.S. and international passengers accounted for almost two-thirds of Pearson’s traffic.

Billy Bishop

Investors will be watching for signs that the Billy Bishop island airport -- which Air Canada (AC/A) started serving May 1 -- is cutting into domestic passenger traffic at Pearson, said Robert Follis, head of corporate bond research at Scotia Capital in Toronto.

Air Canada competitor Porter Airlines, which flies exclusively out of the downtown airport, said May 4 that miles flown by paying passengers rose 26 percent in April compared with the same month last year. Most of the cities Porter serves are in Canada, though it also flies to U.S. destinations such as Chicago and Newark, New Jersey.

“Every time someone flies Porter, it means one less domestic customer for Air Canada out of Pearson,” said Follis. “It’s not a credit mover, it won’t affect Pearson’s cross- border traffic in a huge way, but it is something to watch.”

GTAA had C$173.1 million of cash and C$43.2 million of accounts receivables as of March 31. That’s sufficient to fund the company’s capital expenditures, which will probably average C$180 million annually until at least 2013, McIntosh said.

“Some of our money in the bank will go toward partial repayment” of the 6.25 percent bond, McIntosh said. “We will need to refinance the bulk of the issue.”

Lower Coupon

GTAA’s 5.3 percent bonds, due in February 2041, were priced to yield 146 basis points more than comparable federal benchmarks. The sale was completed after the company redeemed C$325 million of its 5.89 percent notes due in December 2013. While the early redemption triggered costs of C$27.6 million, GTAA expects the lower coupon will more than make up for the one-time expense.

By 2013, borrowers in Canada could pay as much as 1 percentage point more than they do now, McIntosh said.

“If there’s a normal economic recovery and we’re not in a recession, I think you are looking at rates of 100 basis points higher in a couple of years on the longer end of the yield curve,” he said. “Even credit spreads have been grinding in tighter in the last little while, so there’s the possibility of seeing a widening in credit spreads as well.”

Airport Expansion

GTAA plans to take on more debt after 2014 as a planned expansion, which includes building a new runway and a new pier, resumes, McIntosh said. By then, the company may borrow C$400 million to C$500 million annually “at the peak of construction,” he said.

Investor appetite for Canadian corporate bonds continues to be strong, McIntosh said, adding that he doesn’t expect the trend to change in the coming months.

“My sense is that the market is in good shape and demand is still there,” McIntosh said. “You always get little blips as the market digests new issuance, but in general the paper is well received.”

 

 

A Patek Philippe 18-karat-gold minute-repeater has an estimate of $200,000 to $400,000.

A 20-karat-gold Vacheron Constatin, with an estimate range of $250,000 to $500,000, will be sold at Christie's Important Watches sale on June 15.

Time is money for watch collectors as unique pieces from the collection of U.S. car manufacturer James Ward Packard (1863-1928) head for the auction block at Christie’s International next month.

Kept for 60 years in a bank vault, the four timepieces have a presale estimate of $454,000 to $906,000. The group will star in Christie’s Important Watches sale on June 15, expected to tally as much as $8.5 million.

A founder of Packard Motor Car Co. in 1902, Packard was “the godfather of watch collectors,” said Sam Hines, head of watches for Christie’s Americas and Asia. He “had watches customized for him by the brands.”

A 20-karat-gold Vacheron Constantin has Packard’s signature Art Nouveau monogram in blue enamel and a presale estimate of $250,000 to $500,000. Made in 1919. it strikes every hour and every quarter.

Handwritten operating instruction that accompany the watch might have been written by Packard, Hines said.

The second highlight of the group is a previously unrecorded 18-karat gold minute-repeater that Packard commissioned from Patek Philippe in 1918. Its estimate is $200,000 to $400,000. One of 17 watches the Swiss firm made specifically for Packard, this minute-repeater has a power reserve and an unusual Murat-style case.

The remaining pieces are two 19th-century pocket watches that belonged to Packard’s father, Warren Packard, and were made by American Watch Co.

The Patek Philippe comes with an original box, original certificate, a spare crystal and two spare main springs, Hines said. All four pieces are being sold by Packard’s descendants.

“The watches have all the attributes the market is looking for today,” Hines said, listing the brand, complications, condition, provenance and completeness.

“When the watch carries all of those, there’re a lot of potential collectors who might want them,” he said.

 

 

Immediate-delivery gold rose $2.55, or 0.2 percent, to $1,519.57 an ounce by 8:53 a.m. in London. Gold for June delivery was 0.2 percent higher at $1,519.10 an ounce on the Comex in New York.

Gold futures rose to a three-week high as concern mounted that Europe’s sovereign-debt crisis will escalate, and the dollar drop’s spurred demand for the metal as an alternative asset. Silver jumped 3.5 percent.

The greenback fell for the first time in three sessions against a basket of major currencies. The Greek government endorsed an accelerated asset-sale plan and 6 billion euros ($8.4 billion) of budget cuts to win extra aid. Gold priced in euros climbed to a record for the second straight day.

“People see the whipsaw in the currency market, and they want to buy gold and call it a day,” said Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago.

Gold futures for June delivery gained $7.90, or 0.5 percent, to settle at $1,523.30 an ounce at 1:41 p.m. on the Comex in New York, the highest closing price for a most-active contract since May 3.

The metal has gained 28 percent in the past year, climbing to a record $1,557.40 on May 2. Gold in euros reached an all- time high of 1,082.69 today.

“People view gold as a store of value and an alternative to the dollar,” said Jeff Sherman, who helps manage $11 billion at DoubleLine Capital LP in New York. “We are still long on gold.”

‘Bullish’ Goldman

Goldman Sachs Group Inc. (GS), after recommending selling commodities last month, said it is turning “more bullish” on raw materials.

“There’s a move in commodities across the board,” said Klopfenstein at Lind-Waldock. “Gold and silver are getting well-bid.”

Silver futures for July delivery rose $1.224 to $36.128 an ounce. The price has tumbled 28 percent from a 31-year high of $49.845 on April 25.

Silver has been “very volatile,” Sherman of DoubleLine said. He said that he bet on a price decline in the high $30s.

“People have not stepped back,” Sherman said. “We think that the low $30s is probably the fair value.”

 

Gold and oil closed for the week on a higher note Friday amid disappointing US economic reports and lingering concerns over euro zone debt worries.

The precious yellow metal took advantage after Fitch downgraded Greece’s rating and also on IMF calls to Europe urging them to agree to more comprehensive measures to tackle the debt crisis.

Analysts also attributed gold’s advances to World Gold Council’s comment in which it said demand had jumped 11 percent in the first quarter compared to January through March 2010.

Spot gold added $21.60 to reach $1,514 per troy ounce while US June gold futures settled up $16.50 at $1,508.90 an ounce, after trading between $1,486.40 and $1,515.80, which marked a one-week high.

The glittering metal is up 1.5 per cent for the week. it is still 4 per cent lower after rallying to a lifetime high near $1,575 an ounce in early May.

Silver was up 0.6 per cent at $35.16, but remained down 30 per cent from the record $49.51 hit on April 28.

Oil prices also climbed towards the end of trading here to finish higher for the week. The main West Texas Intermediate (WTI) contract, light sweet crude for July, closed at $99.49 a barrel on the New York Mercantile Exchange.

London's Brent North Sea crude for delivery in July settled 97 cents higher at $112.39.

Early in the session crude prices were under pressure after Germany, Europe's biggest economy, said it saw economic growth slowing, said Andy Lipow at Lipow Oil Associates.

Analysts said weaker-than-expected data on US manufacturing and housing shook confidence in the recovery outlook for the largest economy, the world's biggest oil-consumer, pushing prices lower.

With overseas exchange-traded products becoming a big hit in China, the Shanghai Gold Exchange has in its burner, a plan to start gold exchange-traded funds.

This proposal, if it ever witnesses the daylight, would curtail the flow of money being routed to overseas exchange-traded products.

Currently, majority of Chinese investors buy physical gold or invest in gold futures on the Shanghai Gold Exchange or the Shanghai Futures Exchange when it comes to gold investment. They also invest money in funds floated by companies like Lion Fund Management Co; an investment firm that recently said it raised more than $483 million for China’s first gold fund to be invested in overseas exchange-traded products.

The proposed fund is intended to tap rising gold investment demand in China-- currently the world’s biggest investment market for gold.

But, in China, the central bank controls gold and certain procedures are involved in launching new exchange products, reports Bloomberg.

The discussions involving Shanghai Gold Exchange officials with regulators in this regard are progressing and no time-table has been set for the launch of ETF.

China is the world’s largest market for gold coins and bars.

With the Bernanke sponsored $600bn QE2 life support expiring in June, analysts feel that gold as an asset class would be less attractive!

This is surprising as investors hold the notion that the termination of QE2 would add to the global uncertainty there by driving up gold prices further. Extrapolative predictions by some analysts pegged gold prices to touch $2000.

But according to a recent report in the Financial Times, the withdrawal of QE 2 would bring about a condition which may prompt Ben Bernanke to raise the interest rates! This would make other asset classes like bonds to look more attractive, the FT report argues.

This can make a dent on gold prices and can take it downward to as low as $1400. At that point, the commodity is supposed to find a support level. Robust demand from growth markets like India and China would continue to propel gold, analysts believe. The gold rally, thus would take some much-needed rest.

Foreseeing this, several investors have given up their investments in gold to the tune of 2.5m ounces through ETFs in January and February. Several hedge funds have also offloaded their physical gold assets in the market.

Legendary investor George Soros is one of the investors who has been speaking about the gold bubble waiting to pop. He had recently given up his 99% stakes in SPDR Gold Fund.

But certain investors long on gold are supposed to hold their positions. John Paulson, for instance, has retained his $4.4bn assets in SPDR Gold Shares exchange-traded funds.

GFMS, the precious metal consultancy is also bullish on gold in the long term and are of the opinion that gold would rally past $1600 this year itself.

When it comes to silver prices, being an industrial commodity, the anticipated surge in bank rates would take silver down. Companies may stop borrowing funds and would halt expansion or scale-ups denting demand for white metal.

The QE2, which has brought down dollar, would however strengthen the reserve currency on the scheme’s expiry. This would weigh on the commodity prices and the perceived commodity rally may slow down.

The equity markets are also expected to take a beating and Forbes Blog entry by Heather Struck quoting a Bloomberg Poll suggests that S&P 500 index would fall.

Canadian international gold producer Eldorado Gold Corporation recently completed the implementation of its SAP Business All-in-One system in the four mines it operates in China and in its Beijing head office. The company’s Chinese mines include Jinfeng, Eastern Dragon, White Mountain and Tianjianshan.

SAP partner Illumiti was tasked with delivering the project, having successfully implemented SAP Business All-in-One for Eldorado Gold’s corporate headquarters in Canada as well as its operations in Turkey. Illumiti applied the system blueprint previously developed for Eldorado Gold using its SAP-certified “Accelerated ERP for Mining” solution. Illumiti worked with IMG China as its local partner, bringing the system into live operation in two stages, on April 4th and May 2nd, 2011.

The live system supports financial management, control and materials management for all implemented sites, as well as maintenance, human resources management and payroll for all operational mines. It was implemented on-time and under budget at all locations within a 6.5-month time frame.

Long Trinh, Operations Controller, Eldorado Gold Corporation, China said: “With their experienced and skilled staff Illumiti was able to provide invaluable guidance to the local consulting team in rolling out the Eldorado Gold company template. They kept the project on schedule and when big or small issues arose they provided technical and business knowledge to quickly resolve the issues.”

Now that the system is live, Eldorado Gold China expects to see benefits from integrated and consistent business processes throughout the organization. They also expect to benefit from being able to satisfy Chinese local and central reporting requirements as well as being able to comply with IFRS reporting standards.

Comex gold and silver futures prices closed modestly lower Thursday, as the crude oil futures market saw moderate selling pressure. However, losses in the precious metals were limited as the U.S. dollar index sold off Thursday, amid some weaker U.S. economic data. June gold last traded down $2.70 an ounce at $1,493.10. Spot gold last traded down $3.90 an ounce at $1,493.50. July Comex silver last traded down $0.172 at $34.925 an ounce.

Crude oil prices backed off Thursday after scoring solid gains Wednesday. Crude prices are presently hovering around $99.00 a barrel. Crude oil has been and will continue to be the leader in the raw commodity market sector. If crude prices can hold above $100.00 a barrel, then the commodity sector would see that as a bullish underlying factor due to inflation concerns.

The U.S. dollar index came under selling pressure Thursday amid a batch of mostly weak U.S. economic data that included home sales, leading economic indicators and a Philadelphia Fed survey. Those three weaker-than-expected reports trumped a weekly jobless claims report that did show less claims than last week. The dollar index bulls are fading again. A resumption of the downtrend in the dollar index would be bullish for the precious metals and most other commodity markets.

The London P.M. gold fixing $1,493.00 versus the previous P.M. fixing of $1,496.50.

Technically, June gold futures closed near mid-range Thursday. Price action the past two weeks has been sideways and choppy, in a consolidation mode. Gold bulls still have the overall near-term and longer-term technical advantage. The bears can argue prices have been trending lower for nearly three weeks, from the all-time high of $1,577.40. Bulls' next near-term upside technical objective is to produce a close above solid technical resistance at last week's high of $1,526.80. Bears' next near-term downside price objective is closing prices below solid technical support at the May low of $1,462.50. First resistance is seen at $1,500.00 and then at this week's high of $1,504.30. First support is seen at Thursday's low of $1,485.80 and then at last week's low of $1,477.60. Wyckoff's Market Rating: 6.5.

July silver futures prices closed near mid-range. While near-term chart damage has occurred in silver recently, the market has at least temporarily stabilized as trading has been choppy and sideways the past week. The next downside price breakout objective for the bears is closing prices below solid technical support at the May low of $32.30. Bulls' next upside price objective is producing a close above solid technical resistance at $37.00 an ounce. First resistance is seen at Thursday's high of $35.75 and then at $36.00. Next support is seen at Thursday's low of $34.525 and then at $34.00. Wyckoff's Market Rating: 5.0.

July N.Y. copper closed down 580 points at 404.70 cents Thursday. Prices closed nearer the session low. Copper was pressured by lower crude oil prices and some weak U.S. economic data Thursday. Copper bulls and bears are on a level near-term technical playing field. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 420.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at this week's low of 394.65 cents. First resistance is seen at 407.50 cents and then at 410.00 cents. First support is seen at 402.30 cents and then at 400.00 cents. Wyckoff's Market Rating: 5.0.

Gold rebounded in Asian trade Friday while silver remained steady on disappointed US economic reports.

Gold for immediate delivery was seen trading at $1495.64 an ounce at 1.30 p.m Singapore time while US gold futures for June delivery was at $1,495.87 an ounce on the comx division of Nymex.

Silver on the other hand remained steadied as it is struggling to sustain early gains following a drop in exchange-traded fund holdings.

Holdings in the world's largest silver-backed exchange-traded fund, iShares Silver Trust, fell to 10,203.73 tonnes by May 19, from 10,446.43 tonnes on May 18.

Analysts said the yellow metal was supported by Fed moves to keep monetary policy eased for a while longer after the release of weak economic data.

Lingering euro zone debt worries and a soft dollar also boosted gold’s appeal as a safe haven asset, analysts added.

The dollar struggled to regain ground on Friday as tepid U.S. economic data prompted investors to favor higher yielding currencies like the euro while a sluggish Wall Street session weighed on stocks.

On Thursday, Gold and silver futures settled lower, squandering some of the advances made in the previous session.

Gold for June delivery declined $3.40, or 0.2%, to $1,492.40 an ounce on the Comex division of the New York Mercantile Exchange. July silver was off 17 cents, or 0.5%, to $34.93 a ounce.

Silver traded higher for part of the floor session but got derailed by the day's disappointing macroeconomic reports.

Soros Fund Management LLC, the billionaire investor George Soro’s investment concern, has sold 99% of its holding in the bullion-based SPDR Gold Trust along with 100% shares in the iShares Gold Trust.

This is in addition to his stake sales in NovaGold Resources Inc. and Kinross Gold Corp, said a report in Bloomberg.

Soros is a world-renowned investor whose high-class wizardry and understanding of markets is matched only by his appetite for and manifestation of profits.

But the move by Soros has not spooked the markets.

In fact, gold halted its decline and gained hours after Soros sale hit the markets signaling the markets still trace the fundamentals.

Asian stocks and commodities declined for the day and this has reportedly resulted in the advance of gold by 0.4 percent to $1,495.22 an ounce at 11:54 a.m. in Mumbai.

The decision by Paulson & Co. to prevail with 31.5 million shares in the SPDR Gold Trust and to enhance holdings in mining companies including Barrick Gold Corp. and Gold Fields Ltd, also gave markets the necessary confidence, it is believed.

The uninspiring US housing data and weak industrial production data has added uncertainty to the markets. The crisis in Europe, especially the Greek scenario has also contributed to uncertainty in markets.

Sales of gold coins have also gone up with US Mint selling 85000 ounces of American Eagle Coins since May 1 as S&P GSCI Index of 24 raw materials dropped 9.9 percent.

Meanwhile there were recent reports that speculators have exited bullish positions in US futures and options metals markets. As of May 10, long positions have been cut, according to news reports.

His interest in this precious metal started oddly back in 1975 in Cobar, a mining and railway terminal town in New South Wales, Australia. Together with some other colleagues, author Lawrence Akakpo was waiting at the shaft collar for the cage to go underground on his 4PM to midnight shift at Cobar Mines Proprietary Ltd, NSW, Australia, when he saw a torn-out piece of glossy white paper being blown towards his direction.

He picked it up and surprisingly read the heading: Properties and Uses of Gold. As he read it, he realised how ignorant he was about the metal except for the traditional uses: jewellery, trophies, ornaments, artefacts, and coins. This led to his insatiable desire to know more about the yellow metal that resulted in the book The Metal Gold: Properties, World Production Statistics: BC 3900-AD 2009, Units of Measurements & Trading and The Uses

Gold even when its prices rally or not, still intrigues the investor and the average consumer. Analysts may hate it, investor may dump it but the charm of gold endures even as others in the precious metals group such as platinum, palladium and diamond strive to gather the attention of consumers.

As Lawrence Akakpo writes in the introduction of his book," Gold is loved by most people of the world as the ultimate wealth, but hated by a few. Why should anyone hate a metal for the abuses of its perpetuated by fellow humans?

With a comprehensive presentation, replete with photographs and figures, readers will definitely find this a great resource and reference material. He researched on the properties, world production statistics, and uses of the metal. He also included the recent discoveries from the continuous and on-going studies conducted everywhere. He presents facts and information without delving into technical details, unless necessary, so that ordinary people would also find this interesting to read and understandable.

"I hope that, this little contribution from me will strengthen knowledge, admiration and respect for the metal, strengthen its uses in solutions of many of humans’ intractable problems and at the same time reveal some of its pitfalls, resulting mainly from humanity’s general insatiable appetite for greed, selfishness and brutality to satisfy the greed," shares the author.

This book is enrolled in Xlibris’ Bookstore Returnability Program, which gives booksellers the convenient option of returning excess stocks through Gardners Wholesale and Ingram Distribution.

Lawrence Akakpo was born in Ghana and educated in Opoku Ware Secondary School, Kumasi, Ghana; Kwame Nkrumah University of Science and Technology, Kumasi; Camborne School of Mines (Exeter University) in Camborne-Redruth, Cornwall, UK, where he graduated in mining engineering and was also awarded Master of Philosophy (MPhil) degree for his research, design and consultancy work for State Gold Mining Corporation of Ghana in the same institution. He further studied Education in the then Thames Polytechnic, now Greenwich University, London.

He taught mathematics and physics at Presbyterian Secondary School, then at Odumasi, Krobo (now in Legon) in Ghana.

He further taught mathematics and physics in Suhum Secondary Technical School, Suhum; and taught mathematics at Kibi Women’s Teacher Training College, Kibi. He resigned from the teaching field to take up appointment in the mining industry in late 1969. He was employed by State Gold Mining Corporation, Ghana; and worked and researched for Prestea Goldfields Ltd., Prestea. He also had mining experience in Cobar Mines Proprietary Ltd in New South Wales, Australia, and South Crofty Tin Mine, Pool, Redruth, Cornwall in England.

He worked with Derby Luminescent Ltd., a specialist chemical company in Enfield, North London, in the 1980s after leaving the mining industry. He was finally employed by Haringey Education Services of Haringey Council, London, as Mathematics and Information Technology lecturer/tutor for fourteen years before he retired from active teaching profession in December 2004. He is currently researching for two-volume book on Ghana’s gold industry titled An Anatomy of Ghana’s Gold Industry – The Facts, The Figures and the Myths. Volume 1: Ashanti Goldfield Company is nearly finished for proof reading and publication; Volume 2: The General Gold Mining Industry (Including the Other Gold Mines) is more than 50% finished.