European Gold Buying “Remarkable”

Here’s National Numismatics’ Tom Cloud with a quick dealer-level view of gold and silver:

DollarCollapse: Hey Tom, it’s been an eventful few weeks. Precious metals pierced your worse-case downside targets and then bounced a bit. What’s going on out there?

Tom Cloud: Once gold broke the $1,320 it didn’t stop till $1,180, which I did not think it would do. It went all the way down to our long-term support line. Looking forward, July is usually a neutral month and August is when things pick up. Gold and silver usually make about 2/3 of their profits during the last four months of the year, but this time gold should start moving in July because the correction was so severe. The worst-case scenario is that it bounces off of $1,180 again, but it looks very oversold at these levels; the charts have turned extremely bullish.

DC: How tight are supplies?

TC: For gold, there’s pretty good availability right now. We’ve got some gold coins that can lock in and ship today.

DC: Silver premiums remain high though. What’s different about that market?

TC: When silver goes down the costs of buying and producing it make the premium go up in percentage terms. They usually change the premiums every two or three months. So the high premiums can be explained in part by the continued shortage of popular coins and in part by unchanging production costs.

DC: So silver supplies remain tight?

TC: May broke all records for silver eagle sales, and you’re still looking at 2-4 week delays for eagles, maple leafs and even buffaloes. Comex silver bars are really hard to get. Johnson Matthey is six weeks behind. In normal times, it would take 3-5 days for delivery. The Royal Canadian Mint is keeping up, though, so we can get those bars.

DC: What about the recent central bank gold buying?

TC: The bounce was facilitated by a 580-ton purchase by European central banks on Friday. The rumor is that they’re going to buy another 500 next week. There’s only 2200 tons a year mined on average, so that would be remarkable.

Source: http://www.financialsense.com/contributors/john-rubino/european-central-bank-gold-buying-remarkable

Seven Ways to Tell If Your Gold is Counterfeit

By Peter Krauth, Global Resources Specialist, Money Morning

I had just finished a walking tour of the Royal Canadian Mint when I saw it. Right there, out in the open, was a 400-ounce bar of pure gold.

It was chained to a display table and kept safe by an armed guard. At the time, in 2005, the bar was worth $220,000. Continue reading

How to Buy Gold Bullion

Gold bullion is gold produced for retail sale without a monetary value in a currency (for example, the US American Eagle Gold Coin has a $50 US currency value). The Royal Canadian Mint, Credit Suisse, PAMP Suisse and Perth Mint are the largest distributors of gold bars around the world and many prefer buying gold bars rather than gold coins.  This preference of buying gold bars rather than gold coins is because the premiums are lower compared to Government-issued gold coins. This article will cover my preferences on how to buy gold bullion.

Common sizes for gold bars: 1 gram gold bar (0.03215 troy ounces) – 2.5 gram gold bar – 5 gram gold bar – 10 gram gold bar – 20 gram gold bar – 100 gram gold bar – (3.215 troy ounces) – 1 oz gold bar (31.1034768 grams) – 10 oz gold bar – kilo gold bar (32.15 troy ounces) – 100 troy ounce – 400 troy ounce

How to Buy Gold Bars

I would highly recommend buying gold bars from Royal Canadian Mint, Credit Suisse, PAMP Suisse and Perth Mint as they are the most well known mints in the world. It is very important to remember at some point you will be selling your gold. You don’t want someone questioning the authenticity of your gold when you go to sell. I don’t know a single dealer who would pass up on buying gold bars minted by the above-mentioned mints. I am NOT saying other Mints’ gold bars have something wrong with them or are flawed; I would just advise buying from the most well-known Mints. There are many other companies producing gold bars. They are honest and you may not have any trouble selling the bars. If you do deviate from the above listed Mints be sure it’s a widely recognized name.

I wouldn’t recommend deviating from these lists:

The smaller the gold bar you purchase, the more money over spot (premium) you’re going to pay. 1 gram gold bars tend to carry a high premium over spot and I would not recommend buying many of these bars. If you’re looking for “barter gold” as many people have stated, 1 gram bars are great to have, but don’t buy 10 oz. worth of these bars. You’ll be spending way to much money over spot. The reason is that the cost for a 1 gram gold bar is higher is due to its production cost. Refiners are not ripping you off charging a high price for no reason; it is much more costly to produce these bars. I know the Canadian Royal Mint makes a 1/20th oz gold coin. I have heard from people in the industry they have a 30%+ reject rate when making these. Bars this small are difficult to produce and the fabrication costs will rise. It’s also simple math: you can make a 1 oz. gold bar 31.10 grams or produce 31 – 1 gram gold bars. Which do you think is going to cost more money to produce? You also have to seal 31 bars instead of just one. All the costs add up to a higher price you’re paying for the fractional gold bars and coin.

The 1 oz. gold bar is the most widely produced of all. They are quite easy to buy and sell and are easily transportable. I would also recommend only buying gold bars packaged in a sealed assay card. I truly believe Perth Mint has one of the best in the industry using CertiCard (link: http://www.certilinesecurity.com/certicards.htm). If the seal on a Perth Mint gold bar is broken it can’t be fixed (I have confirmed this myself). So you will know the bar has remained sealed since it left the mint.

I have not heard of anyone making fake gold bars and passing them off to the public, and the fear of this ocurring is low. If you purchase from the local or widely known online dealers the odds of this happening are very close to zero. Remember: it’s important to buy and sell from trusted dealers, and if it seems too good to be true, well, it probably is.

I personally would recommend spending a bit more money and buying a gold coin produced by a government mint as they can easily be tested for size and weight. The chances of a counterfeit gold coin passing simple testing are 0%. No one can make a counterfeit gold coin that perfectly fits weight and size. But if you have your heart set on buying gold bars please consider the advice above, and happy investing!

Reputable Gold Dealers

Buy Gold With a Credit Card

How to Buy Gold Coins

Goldshark