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Gold Net Australia Online Magazine
TO READ ARCHIVED MAGAZINES CLICK HERE
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GOLD COMMENT - HOME PAGE
GOLD COMMENT - JULY 2005 |
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This will be the first of a monthly series of Gold comments which will give the reader a brief update of the gold world globally.
Essentially, we will provide a brief resume of global events orientated more towards gold trading and bullion sales - than towards prospecting.
GOLD TRADING
The demand for gold rose sharply in the first quarter of 2005... In fact it rose 26% in the first 3 months of 2005. That makes you wonder why the gold price is not rising as well...That is another subject for another time. Suffice to say that inevitable the gold price has to rise due to global demand.
Some central banks have this year brought gold reserves onto the open market, and this has to a degree satisfied risal global demand.
Enquiry through the Gold Net Web site has risen sharply this year for gold bullion, and our sales have doubled in this area...
From 1 to 10 ounces, our sales have been substantial this year.
The future of gold and the global gold price must rise in the near future. Consumption of gold globally is rising above production rates.
With countries such as India (a major user of gold) and China emerging economically and with populations exceeding 1 billion people each, the gold price will inevitably rise. Some experts indicate that the gold price may reach US$600 per ounce within 2 years.
Gold Net expects gold to rise and to rise substantially, but to predict a price - we are not prepared to make such assessments.
It would be reasonable to say that old established markets for gold e.g. Europe (-6%) and USA (+3%) have remained stagnant - while emerging nations - regions are booming in consumption of gold.
China is emerging as a major gold player. Consumption of gold internally exceeds 300 tons - with gold production being 200 tons per annum. China is now the 4th largest producer in the world.
India's consumption of gold is generally estimated at around 700 MT per annum. The true figure is difficult to estimate due to smuggled gold entering the country. It is estimated that over 100 tons is smuggled into the country yearly.
GOLD PRICE FIXING
Many people think that the gold price is fixed in London twice daily by the London Metals Exchange. This is not true. The gold price is fixed in London BUT it is arrived at in the following manner.
As of 5th May 2004, the London morning and afternoon gold price fixing no longer takes place at the offices of NM Rothschild & Sons Limited, and is conducted over the telephone. Current members of the fix are Bank of Nova Scotia–ScotiaMocatta, Barclays Bank Plc, Deutsche Bank AG, HSBC Bank USA, NA and Société Générale. The chairmanship of the Gold Fixing rotates annually amongst its members. Any other market participant wishing to trade on the fix is required to do so through one of these five dealers.
The price of gold is fixed twice daily in London by the five members of the London gold pool, all members of the London Bullion Market Association. The fixes start at 10.30 a.m., and 3.00 p.m. London time. See web site: Gold Fixing
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| CONVERSION RATES |
| To Convert From |
To |
Multiply By |
| Troy ounces |
Grammes |
31.1035 |
| Million ounces |
Tonnes |
31.1035 |
| Grammes |
Troy ounces |
0.0321507 |
| Kilogrammes |
Troy ounces |
32.1507 |
| Tonnes |
Troy ounces |
32,150.7 |
| Kilogrammes |
Tolas |
85.755 |
| Kilogrammes |
Taels |
26.7172 |
| Kilogrammes |
Bahts |
68.41 |
| Troy ounces |
Grains |
480 |
| Troy ounces |
Avoirdupois ounces |
1.09714 |
| Troy ounces |
Pennyweights |
20 |
| Avoirdupois ounces |
Troy ounces |
0.911458 |
| Short ton |
Metric tonne |
0.9072 |
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