Ed Moy, chief market strategist at Valaurum, pointed out that with premiums people are already paying US$2,000 to US$2,100 for an ounce of gold.
The gold price is back above the US$1,800 per ounce mark, but many market watchers are still waiting to see if it will return to the heights it reached last summer.
Speaking to the Investing News Network, Ed Moy, chief market strategist at Valaurum, said he expects the yellow metal to end up somewhere between US$2,000 and US$2,100 by the end of the year.
Moy, who was director of the US Mint from 2006 to 2011, explained that there’s a big disconnect right now between the price of gold and demand for physical gold.
Investing in physical gold is often oversimplified, and the misconceptions can begin with pricing.
A spot price by definition is the cost of immediate delivery, and is a way to gauge the legitimacy of an ask or retail price. A retail price is an amount that includes a markup, or premium. Unfortunately, it’s not until they conduct their first purchase that some investors realize that gold spot prices are not what one actually pays for physical gold.
In addition to premiums, there are numerous other expenses investors should be prepared to pay when purchasing pure gold, including shipping, handling and insurance. There may also be processing fees to own the yellow metal or fees for small lot purchases. In some instances, prices may be higher for individuals who choose to pay with a credit card. Then again, gold prices are sometimes lower for those purchasing larger quantities.
Last week’s top-gaining stocks on the TSX were Black Iron, Loncor Resources, Mountain Province Diamonds, Forsys Metals and UEX.
The S&P/TSX Composite Index (INDEXTSI:OSPTX) opened lower last Friday (April 30) and was trading at 19,157.23 by midday. It closed at 19,099.49.
The index was pushed down as oil prices fell on the back of demand concerns.
On Friday, all eyes were on palladium prices, which hit U$3,000 per ounce for the first time. Meanwhile, gold eased and silver was flat as the US dollar gained.
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The future of the Australian diamond sector is now heavily reliant on exploration, with firms vying to make another large discovery.
Click here to read part one of this article, which covers t
he closure of the Argyle diamond mine.
When the mining equipment permanently shut down at Western Australia’s Argyle mine in November 2020, the country’s diamond sector entered a transitional period.
As the world’s fourth largest diamond-producing asset shuttered, domestic output of the gems instantly declined by as much as 90 percent.
The future of the Australian diamond-mining sector is now heavily reliant on exploration, with several companies vying to discover another formidable source of rare diamonds.