Jim Rogers says that although he doesn't think he's a gold bug, gold has been in a bull market since it hit its low in 2001. He says that he is currently holding gold and has been holding it for a long time. When told by the reporter that when adjusted for inflation silver peaked at over $800 per ounce before Columbus discovered the New World and around $100 per ounce in the early 1980s Rogers comments that not just silver but all commodities will be in a bubble before long:
"Silver is more attractive than many commodities. Silver is 70% below its all time high. There are not many things in the world you can say that about and if I had to buy any precious metal at the moment, I'd probably buy silver rather than gold. Gold's been making all time highs, silver's far, far below its all time high. Likewise palladium. Palladium is another that's far below its high. But I think think silver is more attractive than gold."
View Our Inflation-Adjusted Charts Article Here
Rogers then goes on to explain that silver has been used as money much more throughout history than gold has. He also notes that commodities will be hot for the next 10 or more years, and then stocks will be back.
The above is a complete summary. To hear the full conversation see the Youtube video below
Part 2 has Rogers commenting on governments printing too much money, gold being nowhere near its inflation-adjusted high, eventual currency collapses, US defaulting on its debts, and other economic issues. Interestingly, Rogers says his daughters will be given gold and silver for Christmas in 2009!
Watch Part 2 below
View Our Inflation-Adjusted Charts Article Here
Friday, November 20, 2009
Wednesday, November 18, 2009
1 Ounce Rhodium Bar Coming Soon!! (1 oz rhodium bar)
1 Ounce Rhodium Bar Coming Soon!! (1 oz rhodium bar)
That's right, folks, our friends over at Cohen Mint are planning to release a 1 oz rhodium bar within the next month!Cohen Mint is by far the front runner in the rhodium coin market. In fact, the company has no rivals. If you're looking to invest in rhodium you either invest in stocks of a nickel mining company that has palladium, platinum, and rhodium as by-products, or you invest in a company like Stillwater Palladium Mining or Impala Platinum which also pulls some rhodium out of the ground, but neither of which focuses on rhodium (note: I haven't researched how to invest in stock of companies that mine rhodium, so understand that there may be more ways than I mention).
But, in the spring of 2009 Cohen Mint started producing one gram rhodium coins! Now, we're going to get a quarter of 1 ounce rhodium coins and 1 ounce rhodium bars! Here are a few photos of the current 1 gram rhodium bullion coins.
Front of 1-Gram Rhodium Bullion Coin
Rear of One Gram Rhodium Coin
To read all about the 1 gram rhodium coins which
have been available most of 2009, click here.
have been available most of 2009, click here.
One Ounce Rhodium Bullion Bar
The proposed 1 ounce .999 rhodium bar looks like it will be pretty nice looking! I like the design and love that it will be double stamped. What I mean by this is that the sheet of rhodium will be stamped on the front, after which it will be stamped on the back. Some bullion bars are only stamped on one side and while they are worth the same (the weight of the metal, the back sides aren't shiny).
The new Cohen Mint 1 Ounce Rhodium bar will have a small stamp showing Eitan Cohen's design of a night on the horse. This is a good choice because it's the same design that's on the front of the one gram rhodium coins. As you can see in the photo the proposed stamp will also state the chemical symbol of rhodium, RH, "Cohen Mint," "1 OUNCE TROY," and "RHODIUM .999 FINE."
The rear of the coins take some styling from other bullion products, such as the Engelhard Silver Bars (see left). Engelhard has versions where the rear if the bullion bar has "ENGELHARD" imprinted into the bar. The angle of the writing is quite stylish. However, as you can see in the photo to the left, the bar has the rest of the bar stamped so that "ENGELHARD" is raised above the surface of the bar, similar to the date printed on the coins in your pocket. While this is more attractive, due to the intricate detail of the design, I'm expecting the marks will be recessed into the bar. But the Cohen Mint has surprised us in the past, so we'll see!
The 1/4 ounce rhodium bullion coin will look similar to the 1 gram rhodium bullion coin pictured above, however, since the coin is about seven times the weight it will have approximately twice the surface area of the 1 gram coins. To put this into perspective, if the one gram rhodium coin is a dime, the 1/4 ounce will be a quarter (no, that isn't the exact size, but similar).
And below you can see the proposed design. Very nice looking coins. We're hoping these will have less of a premium for fabrication costs because, it takes approximately as much work to make a 1 gram coin as it takes to make a quarter ounce rhodium coin or a 1 troy ounce rhodium bar.
1 oz Rhodium Bar Pricing
I haven't contacted Eitan Cohen about pricing. He is, as you can guess, a very busy man! When the 1 gram rhodium bullion coins came out they were priced at $90 when rhodium was around $1500. Now that rhodium is around $2300, the coins are selling for $125.
For my prediction, I'm guessing the 1 ounce bars will be around $2900 with rhodium at the price its at today. I would say the 1/4 coins will be around $800. Now don't quote me or plan on these prices. These are my guesses and I wouldn't be shocked if I were off by as much as 20%.
UPDATE: the 1/4 ounce rhodium coins are selling for around $880 and the 1 ounce bars are $3300.
The new Cohen Mint 1 Ounce Rhodium bar will have a small stamp showing Eitan Cohen's design of a night on the horse. This is a good choice because it's the same design that's on the front of the one gram rhodium coins. As you can see in the photo the proposed stamp will also state the chemical symbol of rhodium, RH, "Cohen Mint," "1 OUNCE TROY," and "RHODIUM .999 FINE."
1 Ounce Rhodium Bullion Bar
The rear of the coins take some styling from other bullion products, such as the Engelhard Silver Bars (see left). Engelhard has versions where the rear if the bullion bar has "ENGELHARD" imprinted into the bar. The angle of the writing is quite stylish. However, as you can see in the photo to the left, the bar has the rest of the bar stamped so that "ENGELHARD" is raised above the surface of the bar, similar to the date printed on the coins in your pocket. While this is more attractive, due to the intricate detail of the design, I'm expecting the marks will be recessed into the bar. But the Cohen Mint has surprised us in the past, so we'll see!Quarter of 1 Ounce Rhodium Coin (1/4 oz Rhodium Coin)
When you hear the Cohen Mint is going to make a 1 ounce rhodium bullion bar, you're excited. But when you go the site, there's a surprise waiting for you: the Cohen Mint will also make a 1/4 ounce rhodium coin!The 1/4 ounce rhodium bullion coin will look similar to the 1 gram rhodium bullion coin pictured above, however, since the coin is about seven times the weight it will have approximately twice the surface area of the 1 gram coins. To put this into perspective, if the one gram rhodium coin is a dime, the 1/4 ounce will be a quarter (no, that isn't the exact size, but similar).
And below you can see the proposed design. Very nice looking coins. We're hoping these will have less of a premium for fabrication costs because, it takes approximately as much work to make a 1 gram coin as it takes to make a quarter ounce rhodium coin or a 1 troy ounce rhodium bar.
Quarter Ounce Rhodium Coin (1/4 oz Rhodium Coin)
1 oz Rhodium Bar Pricing
I haven't contacted Eitan Cohen about pricing. He is, as you can guess, a very busy man! When the 1 gram rhodium bullion coins came out they were priced at $90 when rhodium was around $1500. Now that rhodium is around $2300, the coins are selling for $125.For my prediction, I'm guessing the 1 ounce bars will be around $2900 with rhodium at the price its at today. I would say the 1/4 coins will be around $800. Now don't quote me or plan on these prices. These are my guesses and I wouldn't be shocked if I were off by as much as 20%.
UPDATE: the 1/4 ounce rhodium coins are selling for around $880 and the 1 ounce bars are $3300.
Tuesday, November 17, 2009
Article Summary: 'New Normal" for the Gold Price?
Over the past week or two I've been helping an exchange grad student at the local university summarize articles for his Literature Review class. Doing so, I realized that it's entirely possible to get a seven page article down to a few paragraphs. Therefore, for several reasons--to save you time of finding articles, to save you time reading articles, and to save you from reading my opinions only--I've decided to start summarizing a few others' articles to give you a different angle on things.
Peter Cooper, writing for Arabian Money, posted an article on November 4 commenting on the surging gold price. The article give his predictions, views, and even a bit of investment advice.
Cooper (2009) states that with gold standing at $1080 at the time of writing, another jump in the gold price seems almost certain. However, saying now that gold will jump to $2000 might be similar to the Kremlin declaring in July 2008, when oil was $147 per barrel, that oil would jump to the $200-250 range. Gold, though, is not just on a temporary spike as oil was. For this to be a spike we'd need to see $1500 gold, or higher.
Cooper (2009) notes how that at the time of writing the dollar was somewhat of a safe haven, along with gold. Also, "increasingly it looks as though silver is also being treated as precious metal again rather than an industrial commodity, offering an interesting leverage play on the rising gold price" (Cooper, 2009).
It still seems that gold won't be going much higher as long as we have a strong dollar, Cooper says. Cooper also mentions the possibility of a global currency and the uncertainty of the dollar's future. However, in times of uncertainty, gold and silver will retain their value.
Finally, Cooper notes that holding gold is more a wise investment than holding dollars. He also notes the fact that the India is purchasing a lot of gold from the IMF.
Cooper, Peter (2009). What is the 'New Normal' for the Gold Price? Arabian Money. http://news.goldseek.com/PeterCooper/1257344245.php.
Peter Cooper, writing for Arabian Money, posted an article on November 4 commenting on the surging gold price. The article give his predictions, views, and even a bit of investment advice.
Cooper (2009) states that with gold standing at $1080 at the time of writing, another jump in the gold price seems almost certain. However, saying now that gold will jump to $2000 might be similar to the Kremlin declaring in July 2008, when oil was $147 per barrel, that oil would jump to the $200-250 range. Gold, though, is not just on a temporary spike as oil was. For this to be a spike we'd need to see $1500 gold, or higher.
Cooper (2009) notes how that at the time of writing the dollar was somewhat of a safe haven, along with gold. Also, "increasingly it looks as though silver is also being treated as precious metal again rather than an industrial commodity, offering an interesting leverage play on the rising gold price" (Cooper, 2009).
It still seems that gold won't be going much higher as long as we have a strong dollar, Cooper says. Cooper also mentions the possibility of a global currency and the uncertainty of the dollar's future. However, in times of uncertainty, gold and silver will retain their value.
Finally, Cooper notes that holding gold is more a wise investment than holding dollars. He also notes the fact that the India is purchasing a lot of gold from the IMF.
Cooper, Peter (2009). What is the 'New Normal' for the Gold Price? Arabian Money. http://news.goldseek.com/PeterCooper/1257344245.php.
Saturday, November 14, 2009
Article Summary: $1160 is Gold's Next Target
For several reasons--to save you time of finding articles, to save time reading articles, and to save you from reading my opinions only--I've decided to start summarizing a few others' articles to give you a different angle on things. I will do this from time to time.
Daryl Guppy (5 Nov 2009) claims that the sudden rise in the gold price has been influence by the Indian Central Bank buying gold from the International Monetary Fund. He notes that many gold bugs seem to think gold will hit $2000. However, the four factors that influence the price of gold may not actually influence the price as much as gold bugs think it will.
1. Fear. Gold reached $1000 in March 2008 when the market was collapsing and then reached it again in September 2009 after the global market had recovered. This proves that fear is not as huge a factor as it may seem.
2. US Dollar Strength. The dollar began falling in March 2009, however gold also fell from $1000 to $850 at the same time; and then it rose back over $1000. Not much of a correlation.
3. Central Banks. The Indian buying pushed gold to its current all time high. However, transfering the gold from the IMF to central banks doesn't affect supply and demand, therefor any affect on the gold price will be short-lived.
4. Jewelry. Indians only buy gold around holidays. Also, jewelry demand is only steadily increasing worldwide, as it always has. This increase is not enough to affect gold's sudden jumps and retreats.
Guppy (2009) next states that gold has reached it's first plateau of $1080. Next it will be $1160, and then $1240. However, he also says that if China announces that they won't start buying from the IMF, gold could retreat to $1000; but if they announce they will start buying, gold could hit $1160.
Guppy states that the way money is made in the gold market deals with "suppliers of pick sand shovels, or steel for the mine pit heads and food for the miners that go on to build solid and sustainable businesses" and that profits would be in mining companies.
Guppy, Daryl (5 Nov 2009). $1160 is Gold's Next Target Level: Charts. CNBC. http://www.cnbc.com/id/33632775.
Daryl Guppy (5 Nov 2009) claims that the sudden rise in the gold price has been influence by the Indian Central Bank buying gold from the International Monetary Fund. He notes that many gold bugs seem to think gold will hit $2000. However, the four factors that influence the price of gold may not actually influence the price as much as gold bugs think it will.
1. Fear. Gold reached $1000 in March 2008 when the market was collapsing and then reached it again in September 2009 after the global market had recovered. This proves that fear is not as huge a factor as it may seem.
2. US Dollar Strength. The dollar began falling in March 2009, however gold also fell from $1000 to $850 at the same time; and then it rose back over $1000. Not much of a correlation.
3. Central Banks. The Indian buying pushed gold to its current all time high. However, transfering the gold from the IMF to central banks doesn't affect supply and demand, therefor any affect on the gold price will be short-lived.
4. Jewelry. Indians only buy gold around holidays. Also, jewelry demand is only steadily increasing worldwide, as it always has. This increase is not enough to affect gold's sudden jumps and retreats.
Guppy (2009) next states that gold has reached it's first plateau of $1080. Next it will be $1160, and then $1240. However, he also says that if China announces that they won't start buying from the IMF, gold could retreat to $1000; but if they announce they will start buying, gold could hit $1160.
Guppy states that the way money is made in the gold market deals with "suppliers of pick sand shovels, or steel for the mine pit heads and food for the miners that go on to build solid and sustainable businesses" and that profits would be in mining companies.
Guppy, Daryl (5 Nov 2009). $1160 is Gold's Next Target Level: Charts. CNBC. http://www.cnbc.com/id/33632775.
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