A square, 32.01-carat emerald-cut diamond that billionaire philanthropist Leonore Annenberg bought for her 90th birthday sold for $7.7 million at auction on Wednesday.
About the size of a walnut, the flawless,colourless diamond sits on a ring designed by Manhattan jeweller David Webb. It is flanked by two pear-shaped diamonds, one of them 1.61 carats and the other 1.51 carats.
The ring was offered for sale by Annenberg's estate. Christie's auction house did not identify the buyer, who bid by phone.
Annenberg died in March at the age of 91. She served as US chief of protocol during President Ronald Reagan's first term - a position that carried the rank of ambassador. Her husband, Walter Annenberg, a billionaire publisher and ambassador to Britain under President Richard Nixon, died in 2002.
The big diamond "combines the best of the four C's: top colour, perfect clarity,ideal cut and excellent weight," said Francois Curiel, international head of Christie's jewels.
With the "impeccable provenance of the Annenberg name, you have one of the finest gems to appear on the market for many years," he said.
Annenberg purchased the ring for herself to mark her 90th birthday, Christie's said. It was delivered by armed guards to her Rancho Mirage, California, home from the Beverly Hills jeweller's store, it said.
"She was thrilled whenever someone came by to admire it."
The ring's pre-sale estimate was $3 million to $5 million. The previous auction record for a 30-carat square cut flawless, colourless diamond was $3.1 million, set at Christie's in Geneva in May.
The record for any diamond or jewel at auction is $24.3 million for the 17th century cushion-shaped grayish-blue 35.56 carat Wittelsbach Diamond. It was sold at Christie's in December 2008, topping the previous record of $16.5 million for a 100-carat diamond sold in 1995 in Geneva.
In May, a rare 7.03-carat blue diamond sold at Sotheby's for $9.5 million - the highest price ever for a gem of its kind.
Wednesday, October 28, 2009
THE ORIENT EXPRESS TO ULTRA-LUXURY
In December, Christie's will auction off "the Vivid Pink," a bubble-gumcoloured five-carat diamond with an estimated value of US$5 million to $7 million (about 167 million baht to 234 million baht). But instead of scheduling the sale for New York or Geneva,the city chosen was Hong Kong.
Asia's role in the market for super highend luxury goods is mushrooming, reflecting an underlying shift in consumer spending power that has been creeping along for years,but which received a boost from the global economic crisis.
Christie's and its rival Sotheby's say that in the last few years Hong Kong has emerged as a top location for sales of expensive jewelry,gems and fine wines. Asians have also become major buyers of ultra-luxury goods at their auctions in London, New York and Geneva.
Christie's clear 101-carat Shizuka diamond,for instance, sold in Hong Kong for $6.2 million in May 2008. That sale, and the one coming on Dec 1 of its big pink diamond,"are both great examples showing how important this market has become at the very top end", said Vickie Sek, head of jewelry at Christie's Asia.
In another telling example, Rolls-Royce,which did not even have dealerships in Asia until 2003, immediately received 20 orders for its new $250,000 Ghost when it presented the car in Hong Kong last month - despite taxes that double the price.
More broadly, household spending in developing Asian nations is expected to increase as continued growth, rising populations and improving government health and retirement safety nets reduce the need for families to save.
At the same time, many of the world's economies are struggling to return to growth after the financial crisis. Russia and the Middle East are taking a hit from lower oil prices.And consumers in the world's traditional spending powerhouse, the United States, are weighed down by debt and expected to be much more cautious about opening their wallets for quite some time.
"The United States is in the early stages of a multi-year retrenchment," Stephen Roach,chairman of Morgan Stanley's Asia operations,said in a speech last week in Hong Kong.
The result is a gradual rebalancing in spending power toward emerging nations in Asia - and China, in particular.
Japan, mired in a long economic slump, is a big exception in the region. Recently Yohji Yamamoto, the Japanese clothing designer, filed for bankruptcy protection, and Gianni Versace, the Italian fashion brand, announced it would close its Japanese stores.
But China, the world's most populous nation, has already become the biggest global car market, having overtaken the United States earlier this year. And Credit Suisse forecast last month that China's share of global consumption would overtake that of the United States by 2020.
China's population of "high net worth individuals", those worth $1 million or more,surpassed that of Britain for the first time last year, according to an annual study published by Capgemini and Merrill Lynch in June.
North America, Japan and Germany together still accounted for 54% of the global total, but the authors of the report also predicted that the Asia-Pacific region would surpass North America by 2013. Last month, a list compiled by Hurun Report, a research and publishing company based in Shanghai, found that the number of known billionaires in China had grown to 130 from 101 in 2008.
To be sure, the shift in consumption and wealth is slow, and much will depend on how quickly Asian governments manage to improve social safety networks, stimulating domestic spending. Still, Asia has already seen a large rise in the number of individuals who can splash out in the auction halls of Christie's and Sotheby's.
Buyers at Sotheby's autumn sales in Hong Kong this month spent $7.9 million for fine wines - well above the $6.1 million estimate and above the $6.4 million raised at the Hong Kong spring sale. A painting by the Chinese master Sanyu comfortably beat estimates,
going for $4.7 million to a Chinese buyer
bidding by telephone.
And Sotheby's jewelry auction last Wednesday raised more than $32.6 million, up from just less than $20 million a year earlier. A 28.88-carat round brilliant-cut diamond fetched $4.7 million.
And a "fancy intense blue diamond" went for $5.6 million, just short of the record percarat price for a diamond of that type, drawing applause from those in the hall.
Though some prices remained below their pre-crisis peaks, the results bode well for sales at Christie's in December.
In the mid-1990s, Sotheby's jewelry auctions in Hong Kong raised only about 5% of its total in the jewelry category, said Terry Chu, deputy head of the jewelry department at Sotheby's in Asia.
In 2004, its Hong Kong jewelry auction raised $47 million, surpassing the Geneva auction for the first time. Since then, the Hong Kong auctions have represented about one-third of the total each year.
In December 2008, when the credit squeeze set off by the collapse of Lehman Brothers was at its most severe, Christie's raised $33.5 million at its jewelry sale in Hong Kong,more than at any of the other jewelry auctions it held elsewhere that season.
Asia's role in the market for super highend luxury goods is mushrooming, reflecting an underlying shift in consumer spending power that has been creeping along for years,but which received a boost from the global economic crisis.
Christie's and its rival Sotheby's say that in the last few years Hong Kong has emerged as a top location for sales of expensive jewelry,gems and fine wines. Asians have also become major buyers of ultra-luxury goods at their auctions in London, New York and Geneva.
Christie's clear 101-carat Shizuka diamond,for instance, sold in Hong Kong for $6.2 million in May 2008. That sale, and the one coming on Dec 1 of its big pink diamond,"are both great examples showing how important this market has become at the very top end", said Vickie Sek, head of jewelry at Christie's Asia.
In another telling example, Rolls-Royce,which did not even have dealerships in Asia until 2003, immediately received 20 orders for its new $250,000 Ghost when it presented the car in Hong Kong last month - despite taxes that double the price.
More broadly, household spending in developing Asian nations is expected to increase as continued growth, rising populations and improving government health and retirement safety nets reduce the need for families to save.
At the same time, many of the world's economies are struggling to return to growth after the financial crisis. Russia and the Middle East are taking a hit from lower oil prices.And consumers in the world's traditional spending powerhouse, the United States, are weighed down by debt and expected to be much more cautious about opening their wallets for quite some time.
"The United States is in the early stages of a multi-year retrenchment," Stephen Roach,chairman of Morgan Stanley's Asia operations,said in a speech last week in Hong Kong.
The result is a gradual rebalancing in spending power toward emerging nations in Asia - and China, in particular.
Japan, mired in a long economic slump, is a big exception in the region. Recently Yohji Yamamoto, the Japanese clothing designer, filed for bankruptcy protection, and Gianni Versace, the Italian fashion brand, announced it would close its Japanese stores.
But China, the world's most populous nation, has already become the biggest global car market, having overtaken the United States earlier this year. And Credit Suisse forecast last month that China's share of global consumption would overtake that of the United States by 2020.
China's population of "high net worth individuals", those worth $1 million or more,surpassed that of Britain for the first time last year, according to an annual study published by Capgemini and Merrill Lynch in June.
North America, Japan and Germany together still accounted for 54% of the global total, but the authors of the report also predicted that the Asia-Pacific region would surpass North America by 2013. Last month, a list compiled by Hurun Report, a research and publishing company based in Shanghai, found that the number of known billionaires in China had grown to 130 from 101 in 2008.
To be sure, the shift in consumption and wealth is slow, and much will depend on how quickly Asian governments manage to improve social safety networks, stimulating domestic spending. Still, Asia has already seen a large rise in the number of individuals who can splash out in the auction halls of Christie's and Sotheby's.
Buyers at Sotheby's autumn sales in Hong Kong this month spent $7.9 million for fine wines - well above the $6.1 million estimate and above the $6.4 million raised at the Hong Kong spring sale. A painting by the Chinese master Sanyu comfortably beat estimates,
going for $4.7 million to a Chinese buyer
bidding by telephone.
And Sotheby's jewelry auction last Wednesday raised more than $32.6 million, up from just less than $20 million a year earlier. A 28.88-carat round brilliant-cut diamond fetched $4.7 million.
And a "fancy intense blue diamond" went for $5.6 million, just short of the record percarat price for a diamond of that type, drawing applause from those in the hall.
Though some prices remained below their pre-crisis peaks, the results bode well for sales at Christie's in December.
In the mid-1990s, Sotheby's jewelry auctions in Hong Kong raised only about 5% of its total in the jewelry category, said Terry Chu, deputy head of the jewelry department at Sotheby's in Asia.
In 2004, its Hong Kong jewelry auction raised $47 million, surpassing the Geneva auction for the first time. Since then, the Hong Kong auctions have represented about one-third of the total each year.
In December 2008, when the credit squeeze set off by the collapse of Lehman Brothers was at its most severe, Christie's raised $33.5 million at its jewelry sale in Hong Kong,more than at any of the other jewelry auctions it held elsewhere that season.
Tuesday, October 20, 2009
NEW CONSTELLATION LIGHTS UP THE WATCH WORLD
"Omega!" Watch-lovers have been going haywire for the past few months as the Swiss watchmaker unveils its new designs for the luxury Constellation line.
The new Constellations bear a strong family resemblance to their ancestors. The Constellation star is at the six o'clock position on each one and famous claws still grip the casing but have been refined and updated. Their bracelets have the familiar horizontal links but the new Mono Rang bracelets, which feature butterfly clasps, have been re-engineered for maximum comfort.
The Constellation 09s also have some dazzling features that set them apart from their forebears. The striking dials, in silver, champagne, while-pearled mother-of-pearl, black and brown, are enhanced by a supernova pattern emanating from the Constellation star - a dramatic design feature which was first introduced in 2008's Constellation 160 Years model.
Their "Dauphine plume" hands are either rhodium-plated or made of 18 carat red or yellow gold and coated with phosphorescent Super-LumiNova.
All of the mechanical timepieces in the new-line come equipped with Omega's radical Co-Axial escapement, which increases accuracy over time and reduces the need for servicing of the mechanism. Every member of the redesigned family comes in five sizes - 24mm, 27mm, 31mm, 35mm and 38mm - and is water resistant to a depth of 100 metres.
There's no hesitation when it comes to naming the brightest stars among the new Constellations. Nothing out-glitters the jewelled watches of the Luxury Edition. that's thanks to the shimmer of the round diamonds whose seemingly random distribution in an intriguing "snow setting" elegantly respects the geometry of each jewelled component of every watch. The watches in the edition have identical dials; there are three distinct configurations of diamonds on their bracelets and cases.
The new Constellations bear a strong family resemblance to their ancestors. The Constellation star is at the six o'clock position on each one and famous claws still grip the casing but have been refined and updated. Their bracelets have the familiar horizontal links but the new Mono Rang bracelets, which feature butterfly clasps, have been re-engineered for maximum comfort.
The Constellation 09s also have some dazzling features that set them apart from their forebears. The striking dials, in silver, champagne, while-pearled mother-of-pearl, black and brown, are enhanced by a supernova pattern emanating from the Constellation star - a dramatic design feature which was first introduced in 2008's Constellation 160 Years model.
Their "Dauphine plume" hands are either rhodium-plated or made of 18 carat red or yellow gold and coated with phosphorescent Super-LumiNova.
All of the mechanical timepieces in the new-line come equipped with Omega's radical Co-Axial escapement, which increases accuracy over time and reduces the need for servicing of the mechanism. Every member of the redesigned family comes in five sizes - 24mm, 27mm, 31mm, 35mm and 38mm - and is water resistant to a depth of 100 metres.
There's no hesitation when it comes to naming the brightest stars among the new Constellations. Nothing out-glitters the jewelled watches of the Luxury Edition. that's thanks to the shimmer of the round diamonds whose seemingly random distribution in an intriguing "snow setting" elegantly respects the geometry of each jewelled component of every watch. The watches in the edition have identical dials; there are three distinct configurations of diamonds on their bracelets and cases.
Wednesday, October 14, 2009
Gold soars further as investors hedge against dollar, inflation
Gold advanced to a record for a second consecutive day as investors bought precious metals to hedge against a weaker dollar and faster inflation. Silver reached a 14-month high and platinum the most in 13 months.
The dollar index, a six-currency gauge of the dollar's value, slumped to the lowest level since August of last year on bets the Federal Reseve will trail other central banks in increasing borrowing costs.
Gold reached US$1,070.80 (Bt35,812) in London, while futures rose to $1,072 in New York as crude oil, used by some investors as an inflation guide, reached a one-year high. Taiwan's central bank said it might consider placing more of its reserves in gold.
"Most of the gold rally has been attributable to a weaker dollar," said Tobias Merath, head of commodity research at Credit Suisse Group in Zurich. "We are in uncharted territory. You still have robust investment flows and we think gold can easily reach $1,100 an ounce" this year, he said.
Immediate-delivery bullion added $1.15, or 0.1 per cent, to $1,065.45 an ounce by mid-morning local time. Spot prices have advanced 21 per cent this year and are heading for a ninth annual gain. December futures were 0.1 per cent higher at $1,066.40 an ounce on the New York Mercantile Exchange's Comex division.
"What's happening it that they are selling out of dollars and buying equities around the world, currencies and of course gold," said Mark Pervan, head of commodity research at ANZ Banking Group. "The dollar is being held hostage to increased rish appetite."
Taiwan may consider buying more gold, its central bank governor Perng Fai-nan told reporters in Taipei yesterday. The news helped boost bullion prices, Credit Suisse said in a note.
The dollar index slipped 0.5 per cent yesterday, taking its loss this year to 7 per cent. Oil futures gained as much as 1.4 per cent to $75.15 a barrel in New York and have soared 68 per cent this year.
"The all-night printing runs at the Treasury are chipping away at the dollar's ability to hold value compared to other currencies and commodities," Mike Sander, in Seattle, said on Tuesday. "With dollar weakness, inflation fears, a huge budget deficit, energy prices creeping up, metals such as gold, silver and copper will be pushed up in price."
US President Barack Obama has increased US marketable debt to a record as he borrows to reignite growth in the world's biggest economy. That's boosted speculation increased money supply will debase the currency and spur inflation.
The Federal Reserve has cut its main interest rate almost to zero and backed asset purchases and credit programmes to combat the recession. Chairman Ben Bernanke is leading plans to buy mortgage-backed securities, federal agency debt and treasuries.
"A weakening US dollar and easy liquidity conditions will mainly favour precious metals, and we expect prices of gold, silver and platinum all to register further gains over the next year," Morgan Stanley analysts said in a report yesterday.
Gold holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, were unchanged for a fourth day at 1,109.31 metric tonnes on Tuesday, according to the company's website. Assets in ETF Securities' exchange-traded products added 0.6 per cent to a record 8.493 million ounces on Tuesday, its website showed.
Silver jumped as much as 1.7 per cent to $18.085 an ounce, the highest since July of last year, and was last at $17.97. Platinum rose to a 13-month high of $1,365.50 an ounce before trading at $1,362 and palladium added 0.6 per cent to $330.60 an ounce.
The dollar index, a six-currency gauge of the dollar's value, slumped to the lowest level since August of last year on bets the Federal Reseve will trail other central banks in increasing borrowing costs.
Gold reached US$1,070.80 (Bt35,812) in London, while futures rose to $1,072 in New York as crude oil, used by some investors as an inflation guide, reached a one-year high. Taiwan's central bank said it might consider placing more of its reserves in gold.
"Most of the gold rally has been attributable to a weaker dollar," said Tobias Merath, head of commodity research at Credit Suisse Group in Zurich. "We are in uncharted territory. You still have robust investment flows and we think gold can easily reach $1,100 an ounce" this year, he said.
Immediate-delivery bullion added $1.15, or 0.1 per cent, to $1,065.45 an ounce by mid-morning local time. Spot prices have advanced 21 per cent this year and are heading for a ninth annual gain. December futures were 0.1 per cent higher at $1,066.40 an ounce on the New York Mercantile Exchange's Comex division.
"What's happening it that they are selling out of dollars and buying equities around the world, currencies and of course gold," said Mark Pervan, head of commodity research at ANZ Banking Group. "The dollar is being held hostage to increased rish appetite."
Taiwan may consider buying more gold, its central bank governor Perng Fai-nan told reporters in Taipei yesterday. The news helped boost bullion prices, Credit Suisse said in a note.
The dollar index slipped 0.5 per cent yesterday, taking its loss this year to 7 per cent. Oil futures gained as much as 1.4 per cent to $75.15 a barrel in New York and have soared 68 per cent this year.
"The all-night printing runs at the Treasury are chipping away at the dollar's ability to hold value compared to other currencies and commodities," Mike Sander, in Seattle, said on Tuesday. "With dollar weakness, inflation fears, a huge budget deficit, energy prices creeping up, metals such as gold, silver and copper will be pushed up in price."
US President Barack Obama has increased US marketable debt to a record as he borrows to reignite growth in the world's biggest economy. That's boosted speculation increased money supply will debase the currency and spur inflation.
The Federal Reserve has cut its main interest rate almost to zero and backed asset purchases and credit programmes to combat the recession. Chairman Ben Bernanke is leading plans to buy mortgage-backed securities, federal agency debt and treasuries.
"A weakening US dollar and easy liquidity conditions will mainly favour precious metals, and we expect prices of gold, silver and platinum all to register further gains over the next year," Morgan Stanley analysts said in a report yesterday.
Gold holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, were unchanged for a fourth day at 1,109.31 metric tonnes on Tuesday, according to the company's website. Assets in ETF Securities' exchange-traded products added 0.6 per cent to a record 8.493 million ounces on Tuesday, its website showed.
Silver jumped as much as 1.7 per cent to $18.085 an ounce, the highest since July of last year, and was last at $17.97. Platinum rose to a 13-month high of $1,365.50 an ounce before trading at $1,362 and palladium added 0.6 per cent to $330.60 an ounce.
Sunday, October 11, 2009
New one baht-weight gold contract could spur trade
The futures industry club will propose a new one baht-weight (15.16 gramme)gold futures contract to help attract retail investors interested in the gold market.
Kampanart Lohachareonvanich, the chairman of the Association of Securities Companies, said that reducing the nominal value of gold futures contracts would help reduce the entry costs for investors and increase trading liquidity on the Thailand Futures Exchange.
The current size of gold futures contracts traded on the TFEX is 50 bahtweight, a size set quite high compared with other derivatives markets worldwide.The contract size was set high in part to placate local gold retailers, who were concerned that the launch of gold futures earlier this year would draw investors away from the physical market in favour of derivatives.
Mr Kampanart noted that in India,contract sizes were only eight grammes,or little more than half of one bahtweight of gold.
He noted that India's futures market also offered currency futures for US dollars and rupees.
The TFEX and the Securities and Exchange Commission also want to introduce currency futures in the local market.But plans have been delayed amid concerns by the Bank of Thailand that such derivatives could be abused to speculate against the baht.
"India is not concerned about speculation because it limits currency futures trading to domestic investors only," Mr Kampanart said."The SEC is considering using the same principle for the Thai market and will propose a plan to the central bank."
He said currency futures would be useful for Thailand given the economy's heavy reliance on international trade.Futures contracts would be a key tool for importers and exporters to hedge against currency risk.
Kampanart Lohachareonvanich, the chairman of the Association of Securities Companies, said that reducing the nominal value of gold futures contracts would help reduce the entry costs for investors and increase trading liquidity on the Thailand Futures Exchange.
The current size of gold futures contracts traded on the TFEX is 50 bahtweight, a size set quite high compared with other derivatives markets worldwide.The contract size was set high in part to placate local gold retailers, who were concerned that the launch of gold futures earlier this year would draw investors away from the physical market in favour of derivatives.
Mr Kampanart noted that in India,contract sizes were only eight grammes,or little more than half of one bahtweight of gold.
He noted that India's futures market also offered currency futures for US dollars and rupees.
The TFEX and the Securities and Exchange Commission also want to introduce currency futures in the local market.But plans have been delayed amid concerns by the Bank of Thailand that such derivatives could be abused to speculate against the baht.
"India is not concerned about speculation because it limits currency futures trading to domestic investors only," Mr Kampanart said."The SEC is considering using the same principle for the Thai market and will propose a plan to the central bank."
He said currency futures would be useful for Thailand given the economy's heavy reliance on international trade.Futures contracts would be a key tool for importers and exporters to hedge against currency risk.
Wednesday, October 7, 2009
Gold's rise finds tepid response
Gold consumers across Asia greeted bullion's run to a record high cautiously yesterday, with a few moving to cash in gains but the majority opting to wait for the rest of a rally they believe has only just begun.
In contrast to a second day of busy trade on global gold markets, the scene at shops and jewellery merchants from Sydney to Hong Kong to Mumbai was marked by a distinct lack of occasion,suggesting that the wave of retail scrap selling that greeted gold's record run in March 2008 may not be quick to recur.
"Today's been like any other day,"said David Carr, of KJC Coins Australia in Sydney, which deals in precious metal coins and bars."No one's coming in to sell gold because the price jumped overnight, it's more wait and see, business as usual."
The Australian outback gold mining town of Kalgoorlie, home to a nearly Times Square-sized electronic ticker tape broadcasting up-to-the-minute bullion prices, also was quiet.
"There's nothing going on that's out of the ordinary," said John Horner, editor of the Kalgoorlie Miner newspaper.Profit taking - read selling - replaced gold purchases that in New York and across Europe on Tuesday had swept spot bullion more than $10 above its previous March 2008 peak, and carried through yesterday to a record $1,048.20 an ounce.
The issue of scrap supply in the gold market - generated largely from the resale of jewellery to merchants - has taken on greater importance in recent years, as the advent of physically backed Exchange Traded Funds (ETFs) attracts new investors.
The biggest such fund now holds more than 1,000 tonnes of gold, equivalent to the world's fifth-largest central bank,and analysts had said that only the flow of scrap material into the market had prevented gold from soaring much sooner, much higher.
While there was some evidence of retail sales, it wasn't overwhelming.
"It is simple, buy low and sell high I am making a 10% profit already so I am selling," said Nguyen Duc Hung while waiting to sell five taels of gold at a shop on Hanoi's Ha Trung street. Vietnam is Asia's second-biggest gold buyer.
To date, there have been no reports of gold hoarders burying stashes in secret spots as was the case in 1980, when gold zoomed above $800 an ounce for the first time, or about double today's level when adjusted for inflation.
"Both buyers and sellers are coming to the shop today, they are more or less evenly balanced," said Osamu Ikeda,general manager at Tanaka Kikinzoku Kogyo, Japan's top bullion retailer.
Rival Tokuriki Honten Co Ltd saw a similar scene."There are no queues outside our shops," said general manager Fumio Yamamoto."For the Japanese,the (yen-based) price is too high to buy,but too low to sell."
One of the biggest reasons Asian consumers may not be rushing to sell is that gold's record high is limited to those trading in the US dollar, whose steady decline since March has been the biggest factor in bullion's rise.
In the Australian dollar, gold prices are down 20% since March; in the yen,they're still far from their peaks.
The next focus for the market will be India, where consumer demand typically peaks next week for the Dhanteras and Diwali festivals, and the strong rupee kept the local price of gold under the psychological level of 16,000 rupees ($342) per 10 grams.
"Buying was very strong in the last couple of weeks, but it has been affected now even though the rupee has given a good cap to local prices," said Pinakin Vyas, assistant vice president, treasury at IndusInd Bank, a private bank in Mumbai that imports gold to sell to local traders and jewellers.
"Investors will not buy at these levels though need-based buying from jewellers will continue. People will wait for some time and then come back to the market."
In contrast to a second day of busy trade on global gold markets, the scene at shops and jewellery merchants from Sydney to Hong Kong to Mumbai was marked by a distinct lack of occasion,suggesting that the wave of retail scrap selling that greeted gold's record run in March 2008 may not be quick to recur.
"Today's been like any other day,"said David Carr, of KJC Coins Australia in Sydney, which deals in precious metal coins and bars."No one's coming in to sell gold because the price jumped overnight, it's more wait and see, business as usual."
The Australian outback gold mining town of Kalgoorlie, home to a nearly Times Square-sized electronic ticker tape broadcasting up-to-the-minute bullion prices, also was quiet.
"There's nothing going on that's out of the ordinary," said John Horner, editor of the Kalgoorlie Miner newspaper.Profit taking - read selling - replaced gold purchases that in New York and across Europe on Tuesday had swept spot bullion more than $10 above its previous March 2008 peak, and carried through yesterday to a record $1,048.20 an ounce.
The issue of scrap supply in the gold market - generated largely from the resale of jewellery to merchants - has taken on greater importance in recent years, as the advent of physically backed Exchange Traded Funds (ETFs) attracts new investors.
The biggest such fund now holds more than 1,000 tonnes of gold, equivalent to the world's fifth-largest central bank,and analysts had said that only the flow of scrap material into the market had prevented gold from soaring much sooner, much higher.
While there was some evidence of retail sales, it wasn't overwhelming.
"It is simple, buy low and sell high I am making a 10% profit already so I am selling," said Nguyen Duc Hung while waiting to sell five taels of gold at a shop on Hanoi's Ha Trung street. Vietnam is Asia's second-biggest gold buyer.
To date, there have been no reports of gold hoarders burying stashes in secret spots as was the case in 1980, when gold zoomed above $800 an ounce for the first time, or about double today's level when adjusted for inflation.
"Both buyers and sellers are coming to the shop today, they are more or less evenly balanced," said Osamu Ikeda,general manager at Tanaka Kikinzoku Kogyo, Japan's top bullion retailer.
Rival Tokuriki Honten Co Ltd saw a similar scene."There are no queues outside our shops," said general manager Fumio Yamamoto."For the Japanese,the (yen-based) price is too high to buy,but too low to sell."
One of the biggest reasons Asian consumers may not be rushing to sell is that gold's record high is limited to those trading in the US dollar, whose steady decline since March has been the biggest factor in bullion's rise.
In the Australian dollar, gold prices are down 20% since March; in the yen,they're still far from their peaks.
The next focus for the market will be India, where consumer demand typically peaks next week for the Dhanteras and Diwali festivals, and the strong rupee kept the local price of gold under the psychological level of 16,000 rupees ($342) per 10 grams.
"Buying was very strong in the last couple of weeks, but it has been affected now even though the rupee has given a good cap to local prices," said Pinakin Vyas, assistant vice president, treasury at IndusInd Bank, a private bank in Mumbai that imports gold to sell to local traders and jewellers.
"Investors will not buy at these levels though need-based buying from jewellers will continue. People will wait for some time and then come back to the market."
Not enough for everyone
Now that gold has climbed to a record high of US$1,048 (Bt35,100) per ounce, many people are clamouring for this barbarian metal.
Obviously, gold is a natural hedge against the wobbling US dollar and also future inflation. As the US continues to pile up debt and the Federal Reserve cranks up its printing machine, investors have turned to gold as a protector of their wealth.
But the question is whether there is enough of the precious metal out there to go around, assuming we all want a gold coin or two.
Jeff Clark, senior editor of Caseyกฆs Gold & Resource Report, in its September 25 edition said there would not be enough gold to satisfy demand for everyone on the planet.
According to the US Census Bureau, there are 6.78 billion Earthlings. Meanwhile, the CPM Group, a highly respected industry organisation, estimates there are 4.8 billion ounces of above-ground gold in the world. And this includes jewellery, electronics and dental,กจ he said.
So even if everyone around the world volunteered to have their chain, cross or tooth melted into a coin, weกฆre already short. Those towards the end of the line are out of luck.กจ
The gold supply out there is very limited indeed. Of all the physical metal ever mined:
Some 2.1 billion ounces, or 43 per cent, are found in jewellery and decorative and religious items.
Private stock กV gold already held by private parties กV accounts for 1.1 billion ounces.
Official reserves (central banks, International Monetary Fund, etc) stand at 1 billion ounces.
Industrial use accounts for 530 million ounces.
So for the general public, there is very little gold available for purchase in coin form.
After all, youกฆre not selling any of your gold, and neither are many banks or institutions. Most everyone is buying,กจ Clark said.
So for those who donกฆt yet have a gold coin (or you greedy investors who want more than one), this pretty much leaves us with mine production and scrap sources.
It is forecast that total new supply in 2009 will be around 122 million ounces. Only a small percentage of this is made into gold coins and bars, but if all of it were, it would amount to less than two one-hundredths of an ounce, or about half a gram, for every man, woman and child on Earth this year.
Obviously, gold is a natural hedge against the wobbling US dollar and also future inflation. As the US continues to pile up debt and the Federal Reserve cranks up its printing machine, investors have turned to gold as a protector of their wealth.
But the question is whether there is enough of the precious metal out there to go around, assuming we all want a gold coin or two.
Jeff Clark, senior editor of Caseyกฆs Gold & Resource Report, in its September 25 edition said there would not be enough gold to satisfy demand for everyone on the planet.
According to the US Census Bureau, there are 6.78 billion Earthlings. Meanwhile, the CPM Group, a highly respected industry organisation, estimates there are 4.8 billion ounces of above-ground gold in the world. And this includes jewellery, electronics and dental,กจ he said.
So even if everyone around the world volunteered to have their chain, cross or tooth melted into a coin, weกฆre already short. Those towards the end of the line are out of luck.กจ
The gold supply out there is very limited indeed. Of all the physical metal ever mined:
Some 2.1 billion ounces, or 43 per cent, are found in jewellery and decorative and religious items.
Private stock กV gold already held by private parties กV accounts for 1.1 billion ounces.
Official reserves (central banks, International Monetary Fund, etc) stand at 1 billion ounces.
Industrial use accounts for 530 million ounces.
So for the general public, there is very little gold available for purchase in coin form.
After all, youกฆre not selling any of your gold, and neither are many banks or institutions. Most everyone is buying,กจ Clark said.
So for those who donกฆt yet have a gold coin (or you greedy investors who want more than one), this pretty much leaves us with mine production and scrap sources.
It is forecast that total new supply in 2009 will be around 122 million ounces. Only a small percentage of this is made into gold coins and bars, but if all of it were, it would amount to less than two one-hundredths of an ounce, or about half a gram, for every man, woman and child on Earth this year.
GOLD HITS ALL-TIME HIGH
Gold climbed to a record US$1,048 (Bt35,100) per ounce yesterday as the US dollar weakened and higher commodity prices spurred demand for precious metals as a hedge against inflation.
The Dollar Index fell for a fourth day, while crude-oil futures advanced to more than $70 a barrel for a third day. When gold passed $1,000 in February, sales of scrap metal sent prices down as much as 16 per cent in less than two months.
"We're seeing no selling," Frederic Panizzutti, senior vice president of refiner MKS Finance, said in Ho Chi Minh City.
"I would not be surprised to see $1,100 by the end of the year."
Gold for immediate delivery rose as much as $6.33, or 0.6 per cent, to $1,048.43 an ounce in London and recently traded at $1,043.43. Spot prices are up 18 per cent this year, heading for a ninth consecutive advance. Gold for December delivery jumped as much as $10, or 1 per cent, to a record $1,049.70 an ounce on the Comex Division of the New York Mercantile Exchange and was at $1,044 early yesterday morning.
Palladium rose as much as 2.3 per cent to $315 an ounce, its highest since August 14, 2008.
"There's talk of inflation re-emerging and continuing weakness in the US dollar, which suggests the gold price may well continue to climb higher," said William Seddon, who helps manage $300 |million at White Funds Management in Sydney.
Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by the metal, increased 1.53 tonnes to 1,098.07 tonnes yesterday, the company's website showed.
In Thailand, Gold Traders Association president Jitti Tangsithpakdi said due to yesterday's historic high for gold prices, local gold-bar prices rose between Bt250 and Bt400 to Bt16,350 per baht weight for buying and Bt16,450 for selling, while gold ornaments were quoted at Bt16,115.08 for buying and Bt16,850 for selling.
He believes the jumps were due mainly to speculation amid a weakened dollar and said the global price would likely surge to $1,060 an ounce.
Jitti said the stronger baht was making local gold prices increase at a slower pace. Yesterday, the baht reached 33.35 to the dollar. If the currency weakens, the local gold-bar price could surpass Bt17,000 per baht weight.
YLG Bullion International chairman Pawan Nawawat-tanasub believes the resistance level of global gold has now shifted to $1,050 an ounce, with $1,033 a short-term strong support level.
She said gold prices had risen above the fundamental level, as the price at gold mines was only $750.
"It's highly possible that gold prices will rise to $1,100 by year-end, but the rally will come mainly from short-term speculation in hedge funds," Pawan said.
She said due to fundamental factors, she felt gold prices were unlikely to hit $2,000 $1,500 or even $1,200 as |forecast by some Western economists.
The Dollar Index fell for a fourth day, while crude-oil futures advanced to more than $70 a barrel for a third day. When gold passed $1,000 in February, sales of scrap metal sent prices down as much as 16 per cent in less than two months.
"We're seeing no selling," Frederic Panizzutti, senior vice president of refiner MKS Finance, said in Ho Chi Minh City.
"I would not be surprised to see $1,100 by the end of the year."
Gold for immediate delivery rose as much as $6.33, or 0.6 per cent, to $1,048.43 an ounce in London and recently traded at $1,043.43. Spot prices are up 18 per cent this year, heading for a ninth consecutive advance. Gold for December delivery jumped as much as $10, or 1 per cent, to a record $1,049.70 an ounce on the Comex Division of the New York Mercantile Exchange and was at $1,044 early yesterday morning.
Palladium rose as much as 2.3 per cent to $315 an ounce, its highest since August 14, 2008.
"There's talk of inflation re-emerging and continuing weakness in the US dollar, which suggests the gold price may well continue to climb higher," said William Seddon, who helps manage $300 |million at White Funds Management in Sydney.
Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by the metal, increased 1.53 tonnes to 1,098.07 tonnes yesterday, the company's website showed.
In Thailand, Gold Traders Association president Jitti Tangsithpakdi said due to yesterday's historic high for gold prices, local gold-bar prices rose between Bt250 and Bt400 to Bt16,350 per baht weight for buying and Bt16,450 for selling, while gold ornaments were quoted at Bt16,115.08 for buying and Bt16,850 for selling.
He believes the jumps were due mainly to speculation amid a weakened dollar and said the global price would likely surge to $1,060 an ounce.
Jitti said the stronger baht was making local gold prices increase at a slower pace. Yesterday, the baht reached 33.35 to the dollar. If the currency weakens, the local gold-bar price could surpass Bt17,000 per baht weight.
YLG Bullion International chairman Pawan Nawawat-tanasub believes the resistance level of global gold has now shifted to $1,050 an ounce, with $1,033 a short-term strong support level.
She said gold prices had risen above the fundamental level, as the price at gold mines was only $750.
"It's highly possible that gold prices will rise to $1,100 by year-end, but the rally will come mainly from short-term speculation in hedge funds," Pawan said.
She said due to fundamental factors, she felt gold prices were unlikely to hit $2,000 $1,500 or even $1,200 as |forecast by some Western economists.
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