09/25/09 Paris, France
“Gold is rising because the post-Breton Woods exchange rate system doesn’t work,” Eric Roseman, our colleague over at the Commodity Trend Alert, matter-of-factly declares. “More than ever, governments are piling up debts, as a result of bailing-out their respective banking systems. There is a price to pay for this profligate spending. And gold sniffs trouble.”
It’s true; gold has become noticeably less unpopular during the last few months. It is still not as popular an investment as, say, AIG or the shares of almost any other incompetent financial institution. But some investors have actually begun to admit that they’ve purchased some gold.
A couple of the most conspicuous gold-buyers – the Chinese government and hedge fund manager, John Paulson – represent quintessential examples of the “new” gold buyer. This new type of buyer does not also buy ammunition, bottled water and Lynyrd Skynyrd tank tops. Nor does this new gold buyer spend Saturday nights sipping Gallo Hearty Burgundy in his La-Z-Boy, while flipping through binders full of Walking Liberty gold coins.
These new gold buyers do not LOVE gold nearly as much as they FEAR paper. But they are buying aggressively nonetheless…and leaving their tracks everywhere.
Earlier this year, for example, Paulson & Co., the hedge-fund firm run by billionaire John Paulson, became the largest holder of the SPDR Gold Trust (NYSE: GLD), an ETF that buys gold bullion. The New York-based firm owned 8.7 percent of the fund, as of March 31. Paulson has also taken very large stakes in several gold mining companies – in particular Gold Fields Ltd., Kinross Gold Corp. and AngloGold Ashanti Ltd.
Paulson has lots of company among mom and pop investors who are allocating some of their capital to gold. As the nearby chart illustrates quite clearly, the SPDR Gold Trust ETF has been accumulating ever-rising quantities of gold bullion – all in response to investor demand.
Although this chart is a bit dated, the trend it illustrates remains firmly entrenched. As of September 21, this ETF controlled 1,563 tonnes of gold, making it the world’s fifth individual holder of gold. The Swiss central bank, by comparison, holds only a little more than 1,000 tonnes of gold.
Meanwhile, the Chinese doubled their official gold holdings last year, and have been making a lot of headlines with some very public gripes about the dollar. A couple weeks ago, Cheng Siwei, former vice chairman of the Standing Committee of the Chinese Communist Party, complained, “If [the Fed] keeps printing money to buy bonds, it will lead to inflation, and after a year or two, the dollar will fall hard. Most of our [Chinese] foreign reserves are in U.S. bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen and other currencies…Gold is definitely an alternative.”
No wonder rumors were running rampant last week that the 403 tonnes of gold the IMF is selling will land in a Chinese vault.
Interestingly, while investment demand for gold inexorably rises, mined production of gold inexorably declines. Apparently, the folks who coax this precious metal from the earth can’t coax as much of it as they might like.
According to Grant’s Interest Rate Observer (citing statistics from the World Gold Council), worldwide gold production has dipped over the last seven years. Gold production since 2002 has declined from 2,590 metric tons to 2,486 metric tons through June 30.
These divergent trends – demand up and supply down – do not guarantee a rising gold price, but they do suggest that a rising gold price may become the path of least resistance.
Obviously, substantial above-ground supplies of gold – in bank vaults, around fingers, in belly buttons, etc. – will find its way into the gold market if/as/when prices rise. Nevertheless, a powerful inflationary trend would produce enough investment demand for gold to easily absorb all sources of supply…and ALSO push the gold price higher.
“There is a growing distrust of paper currencies amid a deluge of massive government deficits since late 2008,” Roseman concludes. “The dollar might be the biggest drunk at the bar, but the euro and other currencies are also drinking their way to devaluation against gold.”
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Dear Sir
Our company Gege Mining LTD procures various scrap metals,gold dust and diamond from local miners and sells to buyers overseas. At the moment we have 475 kilos of gold dust.scrap metals,diamonds ready for sell. Our price is $19,500 per 1 kilo, based on 23 carats of Ghana best quality gold. Our gold is 23+ carats and of origin in Ghana[west africa] . Please note that our gold is not for sale on 100% credit. Buyer will negotiate with owners of the gold on the purchasing and payment terms, Do your best and get back soon, if you have buyer.
Yours truly.
richard kuma
+233247034574
We are leading notable gold dust seller in West Africa Ghana,we are looking for buyer who are serious and have own refinery,to have a deal with them .We have already 120 kg for sale in Holland .if interested kindly contact us by email for more details .
Daer sir/madam.
TO whom it may concern.
i am marketing for local miners union here in sierra loene.
presentily we have Gold dust/bar & rough diamopnds at an attractive price.
plaese if interested you can contact me
through [ibturay123@gmail.com]
best whishes
Ibrahim.
Dear Sir/madam,
We the principal sellers are pleased to make this offer of AU Metal Gold/ Dust under the penalty of perjury and with full corporate and legal responsibility to the following terms and conditions.
1. Product : AU Metal (Gold)
2. Origin : Ghana West Africa
3. Type : Alluvial4
. Purity : 92.7% or above
5.Carats: 22 or above
6.Quantity: 150 kilos
PROCEDURES:
Buyer or representative of the buyer is suppose to come down to (Accra-Ghana) for the inspection and random sampling of our Gold Dust. or make planes for the goods to be shipment to he/she destination.
We look forward to establishing a long lasting business relationship with you.
Mrs Aicha Ouedraogo
E-mail:mrs.ouedraogoaicha@gmail.com
Dear Sir/Madam
we have 89kilos of Gold dust and 5,530carats of Diamonds for sale, if you are interested .
Awaiting to hear from you.
Momoh Johnson
E-mail momoh_johnson@yahoo.com
We the above are into raw gold dust,bars and ingot for sale, we do have over 360kg of gold in stock now, 23karat+,96.65% purity,our price is reasonable, if you are interested in buying or be our investors partner kindly get in touch via skype kayman34 for more information, please we need only serious buyer.God bless.
Dear Sir/ Madam,
We are owner & direct seller of Gold Dust,Gold Bar, Diamond,Copper
Cathode,Used Rail,HMS1.HMS1&2,Iron Ore,Urea and Cement in small and large
quantities.
We are searching for customers /representatives who can help us
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Please,If you are interested in transacting business with us kindly
contact us via our email address
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Your sincerely,
Alonso Emilio
+44(0)7045785930
Skype:metalscrapexportersinc
Yahoo Messenger:metalscrapexportersincorperated
Dear Sir,
We are small scale mining company based in Tarkwa western region Ghana west
Africa we have Au gold dust and gold bars to sale to any interested buyer on
good price upon your interest to purchase our product do not hesitate to contact us
( koffenancyakato2004@gmail.com ) Below is our price per 1kg.
$24,000 USD
QUANTITY: 150KG
QUALITY: 23+ CARAT the Price $24,000 USD PER KILO
PURITY: 99+
Best Regards
Mr. Koffe & Nancy Akato,
gold sellers.
Dear Sir,
We are small scale mining company based in Tarkwa western region Ghana west
Africa we have Au gold dust and gold bars to sale to any interested buyer on
good price upon your interest to purchase our product do not hesitate to contact us
( koffenancyakato2004@yahoo.co.jp ) Below is our price per 1kg.
$24,000 USD
QUANTITY: 150KG
QUALITY: 23+ CARAT the Price $24,000 USD PER KILO
PURITY: 99+
Best Regards
Mr. Koffe & Nancy Akato,
gold sellers.
We the principal sellers,and Gold mining reresentatives, we are pleased to make this offer of AU Metal Gold/ Dust under the penalty of perjury and with full corporate and legal responsibility to the following terms and conditions.
1. Product : AU Metal (Gold)
2. Origin : Burina Faso West Africa
3. Type : Alluvial
. Purity : 92% or above
5.Carats: 22 or above
6.Quantity: 1000 kilos
PROCEDURES:
Buyer or representative of the buyer is suppose to come down to (Burkina Faso) for the inspection and sampling of our Gold Dust. or negotiate for the gold’s shipment to he/she destination.
We look forward to establishing a long lasting business relationship with you.
Mr William Wilson
E-mail:ww000000ww3@ymail.com
Sir / Madam
We are notable manufacturing and sells village representative for COTTON, we have any quantity needed, we therefore invite company or individuals for the end of the year give away price and sells, if you are interested reply us.
Mr.Musa Ebrahim
E-mail: musa.ebrahim@rocketmail.com
I am in possession to suply alluvial Gold dust of 22,80 carats which I want to sale on the international market.
Being a little small scale miner in the field, I seek for a buyer or person likely to receive the product and to find a purchaser.
Initially, I intend to offer a quantity for a first transaction then the remaining will follow gradually.
The selling price is very interesting, if you are interested, contact me.
Regards.
Mr. Mohammed Mosa
mohammed_mosa2004@yahoo.es
Dear Sir,
I would be very grateful if you have interest to buy gold dust from our company. I have available 500 kilograms looking for buyers and at every month I will also supply 100 kilos.
The price is 20,000 US Dolla/rs and purity is 93.7%.
The payment is cash / Bank draft, t/t.
Please you may contact on +233 243438409
Thanks.
We are Royal Procurement Limited Ghana. We can offer you the following HMS 1&2 and Rail Scrap (R50-R65) Heavy Melting Steel scrap cleaned standards Monthly basis.
{1}. HMS 1&2 Heavy Melting Steel scrap cleaned
{2}. Rail Scrap (R50-R65)
We are looking for buyers on a long term basis.
Availability: 30,000MT can be supplied on a Monthly basis.
We are ready to establish regular and transparent business relationship with you
Kind regards,
Mr. Alidu Issah
Managing Director,
Royal Procurement Limited,
No 12, Zero street, Ghawe,
P.O.Box 27 , Ghawe Accra-Ghana.
Tel: +233-27-2180975
+233-24-7934887
Email Address: royalprocurement@royal.net
Dear Sir,
Thanks for the mail.
Its my plesure to welcome you or your buyer to Ghana for business transactions.
I would like to invite you or your buyer to Ghana for business which
your commission would be 5% if you are not the end buyer.
DETAILS:
AU GOLD DUST / DORE BARS
QTY: 600KGS
PRICE: $18,000
CARAT : 22.78
PURITY: 96%
TERMS: YOU OR YOUR BUYER WILL HAVE TO VISIT ME IN GHANA FOR OUR FIRST
BUSINESS TRANSACTIONS. VISA TO GHANA WOULD BE ARRANGE FOR YOU OR YOUR
BUYER.
Skpye: metalsgh
Mob: +233-27-2085118
Email me: metalsgh@gmail.com
Ghana.
Regards,
Joe Adu.
Ghana
Happy New Year
Am a mandate to legitimate company here in Ghana that are registered with PMMC , Please if you need Gold Dust or Dimo do not fail to contact me as soon as possible.
My Best Regards
Ojes Etadafe
email: goldminersgh0@gmail.com
DEAR SIR/MADAM
WE ARE LOCAL MINER HERE IN SIERRA LEONE, BUT PRESENTLY DOING OUR MINING IN THE PROVINCES. WE HAVE DIFFERENT MINING AREA IN THE VILLAGE, WE DEAL IN GOLD DUST AND DIAMOND. WE HAVE 5-10 KILO OF REAL GOLD DUST BUT IF YOU NEED MORE THAN THAT AMOUNT WE CAN TAKE FROM THE OTHER MINERS TO COMPLETE THE QUANTITY YOU NEED. THE GOLD IS NOT IN ANY SECURITY AGENCY OR IN THE BANK, THE GOLD IS A COMMUNITY GOLD, IT IS WITH THE ELDERS I MEAN THE CHIEF IN THE VILLAGE. HERE IS MY EMAIL ADDRESS abdulmuhsin_bah@yahoo.com
SKYPE hozgold
THANKS FOR YOUR ATTENTION
MR. Bah