Examining the Gold ETFs, Gold Reaches New Highs

With gold continuing its run, there's been plenty of gold appearances in the mainstream press. But the more interesting discussions usually happen elsewhere. Here's a few noteworthy blog posts and articles related to gold.

One thousand tonnes in the trust!

The SPDR Gold Shares ETF continued its rapid inventory growth and surpassed one thousand tonnes this week. An astounding 229 tonnes have been added so far during 2009.

Where do all the gold etfs get their bullion from?

While many mainstream news reports were quick to highlight the one thousand tonne level, others started raising questions. In an atmosphere of gold scarcity, where are the Gold ETFs getting the gold for their massive daily additions?

Ten Reasons to Avoid the Gold ETF

Elaborating on the above, an article that will make you seriously reconsider any investments in Gold ETFs.

Gold Around the Globe: Setting Records

While gold in US Dollars is still laboring below its all time high reached last March, gold in other major currencies has been setting new all time highs.

Gold Coin Shortage and Sales Trends, Dollar-Gold Relationship

With gold fluctuating around the $900 level, let's take a look at some thought provoking gold and silver related stories from various blogs and news sites.

Jim Rogers Interview

Incredibly, he claims that there is no shortage of gold and silver coins.

What happened was all the dealers went and bought huge silver supplies back when silver was at $20 and now their stuck and they don’t want to take a loss and so they are telling people they don’t have coins. I promise you sir if you offer $25 for silver coins you’d get all you wanted. There is no shortage."

He goes on to say the same thing about gold coins.

Gold Coin Shortage Likely To Become Chronic

And here's the more popular conclusion- Yes, there is a gold coin shortage. This is supported by anecdotal evidence, gold coin rationing by world mints, and high prices paid for physical gold and silver in liquid markets.

APMEX Gold and Silver Sales Data

Some first hand sales data from precious metals dealer APMEX. From 2007 to 2008 the number of orders for gold increased 262% and the number of orders for silver increased 358%.

With economy tanking, 'liberty' coins made of silver are paying off

Remember the Liberty Dollar? It seems that in commerce, most vendors are more than happy to take them in lieu of paper money.

Where Do You Keep Your Gold?

If you are hoarding physical gold, where do you keep it? Here's an examination of the pros and cons of various methods of gold storage.

Dollar Gold Correlation

Briefly the US Dollar and Gold had a price correlation of 100%, taking into consideration the prior 15 trading days. The odd correlation has recently reversed sharply.

Source for GLD Gold, SLV Silver Exceeds Capacity, Fort Knox Gold Audit

As gold turns lower on reports of a "turning point" for the entire global economy, let's take a look at some thought provoking gold, silver, and precious metals related stories from other news sites and blogs. This round up includes stories on the Gold ETF and Silver ETF, a call for a return to the gold standard, Fort Knox, and prospecting for gold.

Where does the Gold ETF get its gold?

As the SPDR Gold Shares ETF marked a series of succesive all time highs for tonnes in the trust, many people started asking questions about where the gold was coming from. Here's the answer.

SLV exceeds its silver storage capacity

Discussed in the Got Gold Report, the holdings for the iShares Silver Trust SLV have exceed the storage space allowed under its custodian agreement as the holdings reached another new high.

Russia backs return to Gold Standard to solve financial crisis

Following China's call for a new world currency, Russia suggests that gold should be included in the basket-weighting.

Is there any gold inside Fort Knox?

It's been decades since an independent audit of the reported $137 billion in gold stockpiled in Fort Knox has been independently audited. Ron Paul is pursuing a Bill to conduct an independent audit of the entire Federal Reserve System. Separately, GATA plans to file Freedom of Information requests for full disclosure of US gold ownership and trading activities.

The Great Credit Contraction

Trace Mayer, J.D. announces the availability of The Great Credit Contraction, which is a foundational document for much of the writing on his site Run to Gold.

New Gold Rush

Believe it or not, people are making money prospecting for gold in California. One prospector claims to have made $10,000 during one good day.

Letseng Mine Produces 18th Largest Diamond

Letseng Mine in Lesotho, operated by London-based Gem Diamonds Limited, was the source of a recently announced 494-carat diamond discovery, which makes it the 18th largest diamond ever found. The newly recovered diamond has not yet been named, but that will probably occur after the stone is examined in Antwerp to determine its quality.

The Letseng Mine has become famous for its large diamonds, in particular three of the world’s twenty largest diamonds. A 603-carat diamond, named Lesotho Promise, was recovered from the Letseng Mine In August of last year and is currently the 15th largest rough diamond ever found. The Lesotho Promise sold in October 2006 for $12.4 million. The average value per carat of production from the Letseng Mine is nearly 20 times the industry production average.

The Letseng Mine includes production from two kimberlites (main and satellite), that are estimated to contain $4.7 billion in recoverable resources. Gem Diamonds Ltd. operates this exceptionally productive diamond mine and has 70 percent ownership with the Kingdom of Lesotho owning the remaining 30 percent.

Gem Diamonds Ltd. has aggressively purchased exiting diamond mines and then rehabilitates the operations. Earlier this year, the company bought the Gope deposit in Botswana and BDI Mining in Indonesia. It still has an open bid for Australian-based Kimberley Diamond Company and owns projects in Congo, Angola, and the Central African Republic. Almost all of the company’s revenues come from the Letseng Mine, purchased in June 2006, which is one of only a few revenue-producing projects thus far.

The newly discovered 494-carat diamond is insured for $15 million until its true value can be determined. The diamond will be sold in Antwerp, using the tender sales approach, since that marketing strategy was so successful for the Lesotho Promise a year ago.

The Letseng Mine certainly makes the headlines with its large diamond discoveries and Gem Diamonds Ltd. hopes it will be the cornerstone of its business plan to become one of the leading diamond producing companies in the world.

Check out other articles about the Letseng Mine and its exceptional diamonds.

China Drives Diamond Demand Growth

De Beers marketing and increased Western influence in China is proving to be a boon for the diamond industry. Traditionally, diamond rings had no place in the wedding culture in China but that has changed.

Chinese diamond jewelry purchases are projected to grow 12 percent this year from almost $2 billion in 2006 sales. In the first half of 2007, China’s diamond imports tripled and with diamond wedding rings representing about a third of diamond purchases, that means many brides in China are now wearing diamond rings.

Hong Kong set the stage for China thirst for diamonds. The influx of money into Hong Kong in recent decades created a passion for luxury goods. The top luxury brands set their stakes in Hong Kong years ago and the marketing focus on those brands has resulted in higher priced jewelry purchases. Because prices in Hong Kong are 20 to 40 percent lower than on the mainland, much of China’s luxury shopping was done in Hong Kong but the trend is changing. Now that mainland Chinese shoppers are brand savvy, they are demanding and getting higher-end retailers closer to home. Diamond shoppers in China got good news last year with the value-added tax reduction on imported diamonds.

The enormous population in China coupled with the thriving economy translates into a massive potential for diamond purchases. More grooms will be learning about diamonds online so they can make find the best diamond for their intended brides. Marilyn Monroe’s “Diamonds are a Girls Best Friend” is taking on new meaning for millions for jewelry shoppers in China.