US Scrap Gold prices down; Gold Futures at one month low

August 27, 2016 Posted by admin

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UNITED STATES August 25 2016 7:05 PM

NEW YORK (Scrap Register): United States scrap gold prices down on Wednesday, while gold futures prices at New York Mercantile Exchange log their lowest finish in about a month as investors hope for clarity this week on the near-term path for interest rates.

The major gold scrap commodities on the Scrap Register Price Index traded lower on Wednesday. The 9ct hallmarked gold scrap prices declined to $482.787 an ounce and 14ct hallmarked gold scrap prices dropped to $753.148 an ounce. The 18ct hallmarked gold scrap and 22ct hallmarked gold scrap prices also down at $965.574 ounce and $1179.288 an ounce respectively.

According to Scrap Register Price Index, the 9ct non-hallmarked gold scrap prices down to $456.657 an ounce and 14ct non-hallmarked gold scrap prices fell to $712.385 an ounce on Wednesday. The 18ct non-hallmarked gold scrap and 22ct non-hallmarked gold scrap prices are also traded lower at $913.314 an ounce and $1115.461 an ounce respectively.

The most active December gold contract on the COMEX division of the New York Mercantile Exchange settled down by $16.40 to $1,329.70 an ounce on Wednesday, marking the lowest settlement for the contract since July 26.

Market look for the U.S. central bank remains very data-dependent as it looks ahead to the final policy meetings of 2016, but thats done little to dissuade market speculation. A firmer dollar tends to make the gold priced in this currency less attractive to investors.

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UNITED STATES August 25 2016 7:05 PM

NEW YORK (Scrap Register): United States scrap gold prices down on Wednesday, while gold futures prices at New York Mercantile Exchange log their lowest finish in about a month as investors hope for clarity this week on the near-term path for interest rates.

The major gold scrap commodities on the Scrap Register Price Index traded lower on Wednesday. The 9ct hallmarked gold scrap prices declined to $482.787 an ounce and 14ct hallmarked gold scrap prices dropped to $753.148 an ounce. The 18ct hallmarked gold scrap and 22ct hallmarked gold scrap prices also down at $965.574 ounce and $1179.288 an ounce respectively.

According to Scrap Register Price Index, the 9ct non-hallmarked gold scrap prices down to $456.657 an ounce and 14ct non-hallmarked gold scrap prices fell to $712.385 an ounce on Wednesday. The 18ct non-hallmarked gold scrap and 22ct non-hallmarked gold scrap prices are also traded lower at $913.314 an ounce and $1115.461 an ounce respectively.

The most active December gold contract on the COMEX division of the New York Mercantile Exchange settled down by $16.40 to $1,329.70 an ounce on Wednesday, marking the lowest settlement for the contract since July 26.

Market look for the U.S. central bank remains very data-dependent as it looks ahead to the final policy meetings of 2016, but that’s done little to dissuade market speculation. A firmer dollar tends to make the gold priced in this currency less attractive to investors.

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Article source: http://www.metal.com/newscontent/98084_us-scrap-gold-prices-down-gold-futures-at-one-month-low

Price rally revives scrap recycling

August 26, 2016 Posted by admin

Pieces of gold jewellery that will be melted down and refined sit at the Baird Co Ltd precious metals refinery in London in this photo taken on Aug 3, 2016. Bloomberg

The surprising rebound in gold prices this year has given new life to unwanted jewellery, coins and trinkets — in the melting pot.

More than a third of the world’s bullion supply usually comes from recycled metal, but purchases at pawn shops and cash-for-gold companies had slowed during a three-year slump in the market.

That’s all changed. With prices headed for their biggest annual gain since 2010, more people are unloading old treasures, recyclers are expanding capacity and some jewellers are seeing their businesses transformed.

“We’re buying more gold than we’re selling now,” said Mark Williams, the owner of Farringdons Jewellery, a jeweller in the Hatton Gardens gold district of London. “When there is an increase in the gold price, and when that gets reported, people go digging in their cupboards and drawers and bring out all the little items they don’t want, and they bring it to us.”

Almost all the gold ever mined is still around in one form or another, so recycling everything from jewellery to electronic circuit boards has been a key source of supply.

Prices remain the biggest influence on the scrap industry. When bullion tumbled as much as 45% from a record in 2011, the amount melted at refineries fell, reaching an eight-year low in 2015, World Gold Council data showed.

But in the first six months of the year, recycling is up about 10% from the same period in 2015, heading for the first annual increase since 2009.

Prices have jumped 26% in 2016, touching a two-year high of $1,375.34 an ounce in July, and had their biggest first-half rally since 1974. Bullion traded at $1,338 yesterday.

Baird Co, which buys much of the UK’s scrap gold from collectors and pawn shops, is planning a 50% expansion at its 20-tonne-a-year refining plant, which is near the London 2012 Olympic village.

“We’ve un-mothballed parts of our plant,” Tony Dobra, an executive director, said as he stood among furnaces, vials of chemicals and shopping trolleys filled with gold at the plant.

“When prices were lower, we struggled to get enough material to meet demand. Now we’re seeing double the volume we did a year ago.”

There are some places where people are holding onto their old jewellery and trinkets.

In India, the world’s second-largest gold buyer, supply was reported flat as low demand meant there was little old jewellery being exchanged for new.

“Our business has been very, very slow,” V.K. Agarawal, a director at Shirpur Gold Refinery Ltd, said by phone from Mumbai. “We have not seen any scrap coming in the market.”

However, in Dubai, refiners say scrap material from India has been a lifeline. Their flows were hit last year when India offered tax-breaks for purifying dore, semi-refined material.

The tax breaks don’t apply to scrap, meaning it’s profitable to export to the city-state, where premiums are higher.

“The sustained rally in gold has helped scrap volumes immensely,” said Brad Yates, the head of trading for Dallas-based refiner Elemetal, where volumes are up 40% compared with a year ago.

“The physical game is all about supply right now.” 

Article source: http://www.bangkokpost.com/business/news/1069484/price-rally-revives-scrap-recycling

Gold’s revival forging new fortunes for pawn shops and scrap recyclers

August 24, 2016 Posted by admin

The surprising rebound in gold prices this year has given new life to unwanted jewellery, coins and trinkets – in the melting pot.

More than a third of the world’s bullion supply usually comes from recycled metal, but purchases at pawn shops and cash-for-gold companies had slowed during a three-year slump in the market. That’s all changed. With prices headed for their biggest annual gain since 2010, more people are unloading old treasures, recyclers are expanding capacity and some jewellers are seeing their businesses transformed.

“We’re buying more gold than we’re selling now,” said Mark Williams, the owner of Farringdons, a jeweller in the Hatton Gardens gold district of London. “When there is an increase in the gold price, and when that gets reported, people go digging in their cupboards and drawers and bring out all the little items they don’t want, and they bring it to us.”

Almost all the gold ever mined is still around in one form or another, so recycling everything from jewellery to electronic circuit boards has been a key source of supply. Prices remain the biggest influence on the scrap industry. When bullion tumbled as much as 45 per cent from a record in 2011, the amount melted at refineries fell, reaching an eight-year low in 2015, World Gold Council data show.

But in the first six months of the year, recycling is up about 10 per cent from the same period in 2015, heading for the first annual increase since 2009, Gold Council data show. Prices have jumped 26 per cent in 2016, touching a two-year high of $1,375.34 (U.S.) an ounce in July, and had their biggest first-half rally since 1974. Bullion traded at $1,338 on Tuesday.

Baird Co., which buys much of Britain’s scrap gold from collectors and pawn shops, is planning a 50-per-cent expansion at its 20-tonne-a-year refining plant.

“We’ve un-mothballed parts of our plant,” Tony Dobra, an executive director at Baird, said as he stood among furnaces, vials of chemicals and shopping trolleys filled with gold at the plant. “… We’re seeing double the volume we did a year ago.”

Gold prices have rebounded this year as the Federal Reserve refrained from increasing U.S. borrowing costs, and Japan and Europe embraced negative rates to spur growth. That’s sent more investors to buy bullion as an alternative asset, while geopolitical turmoil and financial market volatility boosted the appeal of the metal as a store of value.

A stronger U.S. dollar, used in most bullion transactions, has made selling gold more attractive in countries where currencies have weakened, including Britain, where voters in June elected to leave the European Union. That referendum pushed locally priced metal above £1,000 ($1,704) an ounce to the highest level in three years. In South Africa, one of the world’s top producers, prices touched an all-time high in the local currency in June.

Degussa Precious Metals Asia Pte Ltd., a major bar and coin dealer in Singapore, saw a 60-per-cent increase in scrap purchases from February to July. For European coin dealer CoinInvest.com, buybacks doubled as a share of sales since the so-called Brexit vote on June 23.

There are some places where people are holding onto their old jewellery and trinkets.

In India, the world’s second-largest gold buyer, supply was reported flat as low demand meant there was little old jewellery being exchanged for new.



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Article source: http://www.theglobeandmail.com/globe-investor/investment-ideas/golds-revival-forging-new-fortunes-for-pawn-shops-and-scrap-recyclers/article31517177/