Update on Gold and Silver Premiums


 

Gold Survival Gold Article Updates:

May 2, 2013


This week:

  • How Much Further Could Gold in NZD Fall?
  • Buy Gold NOW
  • 90% Haircut for Bank of Cyprus Depositors?
  • Fed “Steady as She Goes Matey”


Silver but especially gold have been in steady uptrends since the bounce from the lows of just over 2 weeks ago. We’re not certain that the uptrend will continue in a straight line. What had been long term support will likely be quite a tough level to break through. i.e. support becomes resistance in technical analysis parlance. So odds are that $1800-$1850 will be a tough nut to crack. We could potentially see prices head back down to retest the lows soon (Note: operative word = could).

NZD Gold Chart


Could gold prices go even lower than this?

Falling Gold PricesBut could gold prices fall even lower? In this week’s feature article we give our thoughts on this matter along with some possible price levels to consider. Plus we look further at the whole premiums for physical versus paper price and what they could do in relation to each other. A bit of an impossible thing to predict really but hey, we don’t mind some egg on our faces.

How Much Further Could Gold in NZD Fall?


The other article this week is also related to this topic of high demand and increasing premiums.

You’ve no doubt read plenty in the past week and a half about the tremendous rush for physical gold and silver since the price fell. We too last week wrote about how there was a disconnect between prices for physical gold and silver versus the quoted paper prices.

Since then premiums above spot price on the likes of Canadian Silver Maples have risen even further. We’ve read reports of queues outside bullion dealers across the globe and we too were the busiest we’d ever been on the days following the price plunge. 

Buy Gold NOWBut the following article is a bit different, in that Jeff Clark of Casey Research has gotten some reports from the wholesale side of the precious metals market to see if there was much selling going on there.  We’re possibly not as convinced as what Jeff Clark is but this is still a must read article.

Buy Gold NOW

90% Haircut Possible for Bank of Cyprus Depositors?

For all the coverage that Cyprus got, the news of a couple days ago as to just how much of a haircut the depositors at one of its failed banks may get has gone completely under the radar.

The current numbers are 37.5% turned into shares, another 22.5% held as a buffer to possibly be turned into shares (a.k.a. a haircut) and then a further 30% “temporarily” frozen. We wonder whether the temporarily frozen will become permanently frozen which would equate to a 90% loss. Ouch.  

A further reminder if ever one was needed as to why not to entrust all your savings to a bank.

Fed “Steady as She Goes Matey”

The US Federal Reserve announcement overnight was that they will continue “buying bonds at a monthly pace of $85 billion, until the outlook for the labor market has improved substantially“. And they will “hold the target interest rate near zero as long as unemployment remains above 6.5 percent and the outlook for inflation doesn’t exceed 2.5 percent“. Although perhaps what alarmed some was the comment that the Fed will be ready to change the pace of purchases as “the outlook for the labor market or inflation changes.

So effectively they said that they will hold the course and will change policy if conditions improve or deteriorate markedly. 

We’ve seen some comments from those (who misguidedly in our opinion) thought the Fed will wind back their “stimulus” (aka currency debasement) late this year, that they believe this won’t happen so soon now. (Quite how they believe this can happen without causing an absolute collapse in the US economy we have yet to work out.)

Anyway it’s quite convenient we’d say, that now the gold price has dropped off markedly, the Fed can tweak its rhetoric from maybe having to ease up in the last minutes, to now be able to keep the foot on the currency creation pedal for longer. And given the current lows with little risk of sending the canary in the coalmine that is gold onto new highs.


Update on Premiums

The premiums on Canadian Silver Maple coins have increased again on what they were a week ago. American Silver Eagles also remain at high premium. Perth Mint products have seen rises in the past week for the first time. PAMP gold bar premiums over spot have increased about 1% but interestingly silver has not. Some local gold products have also increased percentage wise but not by much.

(See this week’s feature article if you need to know what exactly a “premium” is)

Local gold and silver are where you get the most metal for your buck but if you prefer the likes of the widely traded Canadian Silver Maple, todays price for 500 of them is $17585 fully insured and delivered to your door via FedEx.


1. Email: orders@goldsurvivalguide.co.nz

2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)

3. or Online order form with indicative pricing 



Have a golden week!

Glenn (and David)

goldsurvivalguide.co.nz

Ph: 0800 888 465
From outside NZ: +64 9 281 3898
email: orders@goldsurvivalguide.co.nz

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This Weeks Articles

 

 

Buy Gold NOW
Buy Gold NOW2013-04-30 20:19:25-04

You’ve no doubt read plenty in the past week and a half about the tremendous rush for physical gold and silver since the price fell. We too last week wrote about how there was a disconnect between prices for physical gold and silver versus the quoted paper prices. Since then premiums above spot price on […]
read more…

How Much Further Could Gold in NZD Fall?
Falling Gold Prices2013-05-01 20:31:46-04

For buyers of gold and silver things have gotten a bit more complicated of late. In what was often already a confusing market, there’s an extra question to ask now. It’s not just what will the spot price of gold and silver do, but also what will the premium above spot that the wholesalers charge […]
read more…

 

 

The Legal stuff – Disclaimer:


We are not financial advisors, accountants or lawyers. Any information we provide is not intended as investment or financial advice. It is merely information based upon our own experiences. The information we discuss is of a general nature and should merely be used as a place to start your own research and you definitely should conduct your own due diligence. You should seek professional investment or financial advice before making any decisions.

Today’s Spot Prices

Spot Gold
NZ $1718/oz
US $1457.38/oz

Spot Silver
NZ $27.87/oz
NZ $896/kg
US $23.64/oz
US $760.08/kg

7 Reasons to Buy Gold & Silver via GoldSurvivalGuideToday’s Prices to Buy

1oz NZ 99.99% pure gold bar

1oz NZ Gold Ingot
 

$1786.72

1kg NZ 99.9% pure silver bar

1 Kilo NZ Silver Bar
 

$985.60
(price is per kilo)

$967.68
(price is per kilo only for orders of $50,000 or more)

 

 

 

 

1oz PAMP Suisse 99.99% pure gold bar

PAMP Gold

$1840.31

1kg PAMP 99.9% pure silver barPAMP Silver 

 

 


$1035.60

1oz Canadian Gold Maple 99.99% pure gold coin
Gold Maple


$1846.85
1oz Canadian Silver Maple 99.99% pure silver coin (Minimum order size tube of 25 coins)



Silver Maple



Silver Box

Tube of 25 $905.75
 
Monster Box 500 x 1oz $17585
(delivered and insured)
 

 

 

 

 

 


 


Buy Discounted NZ Mint Gold Kiwi and Silver Fern coins
Buy direct from the mint but at cheaper prices using our discount code GSG001.
Click here for more info


Note:
– Prices are excluding delivery
– 1 Troy ounce = 31.1 grams
– 1 Kg = 32.15 Troy ounces
– Request special pricing for larger orders such as monster box of Canadian maple silver coins
– Lower pricing for local gold orders of 10 to 29ozs and best pricing for 30 ozs or more.
– Foreign currency options available so you can purchase from USD, AUD, EURO, GBP
Note: Your funds are deposited into our suppliers bank account only. We receive a finders fee direct from them only.




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Our Mission
1. To demystify the concept of protecting and increasing ones wealth through owning gold and silver in the current turbulent economic environment.

2. To simplify the process of purchasing physical gold and silver bullion in NZ – particularly for first time buyers.

 

 

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One thought on “Update on Gold and Silver Premiums

  1. Pingback: Gold Prices | Gold Investing Guide The RBNZ joins the Currency Wars

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