investing in gold?

sabretoothtigger

Some report from today

PRECIOUS-Gold eases for 4th day as investors exit bullion funds
* Gold extends 3-day drop as investors stay on sidelines * Holdings of no. 1 gold fund drop by another 3 tonnes * Wage talks restart in strike-hit S.African platinum sector (Updates prices, adds comment) By Jan Harvey LONDON, April 22 (Reuters) - Gold extended losses for a fourth straight day on Tuesday as outflows from physical gold funds pointed to weak investment appetite, though a retreat in the dollar took some pressure off prices. The metal hit its lowest since early April at $1,281.40 an ounce on Monday, after peaking above $1,330 a week before on concerns over Ukraine. Though East-West tensions remain high, gold is no longer benefiting. Spot gold XAU= was down 0.1 percent at $1,287.50 an ounce at 1400 GMT, while U.S. gold futures GCv1 for June delivery were down 60 cents an ounce at $1,287.90. "Traders seem to have given up on gold as a provider of safe haven at the moment," Saxo Bank's head of commodity research Ole Hansen said. "Instead the focus remain firmly on the United States, where earnings and economic data continue to indicate interest rates will rise sooner rather than later. "Hedge funds cut their net-long position back to February levels and total ETP holdings have dropped to a new 2009 low. So with the U.S. healing, Chinese demand questionable and investment demand not showing signs of picking up, gold is back on the defensive." The dollar drifted down 0.1 percent against a basket of currencies in early trade, surrendering gains that earlier took it to a three-week high. Since gold is priced in dollars, a weaker currency can flatter the gold price. FRX/ The SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, reported another drop in holdings on Monday, of 3 tonnes to 792.14 tonnes. GOL/ETF Last week alone, outflows from the fund totalled 9.3 tonnes, erasing all the gains made in the year. Traders said persistent outflows from the top ETF could make any gains hard to hold. "Holdings of gold-based exchange-traded products fell yesterday to their lowest level since 2010," Deutsche Bank said in a note. "This news has spooked some short-term holders of the metal, as many had thought the significant unwinding that characterised 2013 had come to an end." <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC-2014 metal returns: http://link.reuters.com/cag37s GRAPHIC-2014 commod returns: http://link.reuters.com/reb25t GRAPHIC-Gold/USD correlation: http://r.reuters.com/ryx52s ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> ASIAN DEMAND SOFT Demand was soft overnight in Asia, precious metals house MKS said in a note on Tuesday, a day after gold's discount to spot prices on the Shanghai Gold Exchange widened to $6 an ounce. "Shanghai were sellers once again with the Shanghai Gold Exchange (arbitrage) remaining in discount and drawing out sellers," it said. "Any unfavourable developments between Russia and Ukraine still have the potential to propel gold and silver higher as safe havens are sought, but with headlines on this front diminishing and tensions seeming to ease, the metals look to remain heavy in the short term." Among other precious metals, silver XAG= was up 0.1 percent at $19.41 an ounce. Spot platinum XPT= was up 0.4 percent at $1,398.25 an ounce, while spot palladium XPD= was up 0.8 percent at $782.55 an ounce. Chief executives of the world's top platinum producers were to meet the leaders of the AMCU union on Tuesday for wage talks, seeking to end the longest and most costly strike at South Africa's mines in living memory.

Mostly its tail wagging dog stuff. The gov says something so gold price drops some, you can consider that reasonable or short term noise as gold is not one nations determination.
At present USA rules economic policy, news, markets, rates, etc while maintaining the worlds largest ongoing debt, in theory thats a weakness :money:


If apple made phones same as now but we all decided they werent worth paying extra for. The company would go broke, they still made a good phone but it wasnt needed or wanted.
The gold price can go down now for years, it does depend if anyone wants it enough or needs even. Nobody needs a luxury item surely and if its a minority interested or theres cheaper alternatives then its easy to spend too much research, developing then producing a product. A mine can take maybe 10 years to fully realise

This company appears cheap, valued at 2 years earnings. I guess they could fail anyway, especially on poor, worsening demand

Anglo Asian increases gold output in Azerbaijan
BAKU, April 22 (Reuters) - Azerbaijan's main gold producer said it had increased output by 32 percent in the first quarter of 2014 and set a target of 62,000 to 67,000 ounces for the year, up as much as 28.7 percent from production in 2013. London-listed Anglo Asian Mining Plc AAZ.L said on Tuesday it had raised production at Azerbaijan's main mine, Gedabek, to 11,312 ounces in January-March 2014 from 8,585 ounces in the same period last year. "Our revised 2014 gold production target of between 62,000 ounces and 67,000 ounces represents an increase on 2013 production of 52,068 ounces of gold and highlights our commitment to achieving production growth over the coming year," Anglo Asian Chief Executive Officer Reza Vaziri said in a statement. Its 2013 output rose from 50,025 ounces in 2012, but the company said it missed its target last year due to unexpected weather conditions and processing issues. It did not disclose the target, though a source there last year mentioned a figure of 80,000 ounces. Gold is produced at Gedabek and other Azeri mines under a production venture with Anglo Asian, in which the government owns 49 percent. Anglo Asian began production at Gedabek, 350 km west of the capital Baku, in July 2009 and plans to extract a total of 22 tonnes of gold from the mine. It produced 1,095 tonnes of ore at the Gosha mine, 50 km from Gedabek, in the first quarter of this year, sending 250 tonnes to Gedabek for processing. It expects to mine 58,000 tonnes of ore at Gosha this year. The company said gold sales in the first quarter of this year totalled 10,403 ounces at an average price of $1,303 per ounce. The company commissioned an agitation leaching plant at Gedabek in June 2013 and installed a Knelson concentrator in March this year, hoping to isolate copper sulphides that were found to have restricted gold recoveries in the leach tanks in 2013. "Early results have shown enhanced gold recovery from high-copper sulphide ore along with reduced cyanide consumption," CEO Vaziri said. Overall, Anglo Asian, which is controlled by R.V. Investment Group Services, plans to develop seven mines in western Azerbaijan with estimated gold reserves of 430 tonnes.

planteria

i have some Silver Coins but don't own any Physical Gold at all.
do people here, in this thread? if so, what do you choose to buy?