This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gold Prices Rise on Jobs Miss; Silver at 31-Year High

Gold's safe haven thesis made a modest comeback as investors worried about continuing conflict in Libya and further downgrades of Greece and Portugal's debt.

"Nothing particularly new [has] happened," says Will Rhind, head of US operations for ETF Securities, "but there is increased tension throughout the world and that is causing people to look at gold as a safe haven object."

ETF Securities' gold and silver exchange traded funds, the smallest of the physically backed ETFs, ETFS Physical Gold (SGOL) and ETFS Physical Silver (SIVR) hold 899,620 and 18.3 million ounces, respectively.

There were also reports that gold demand in China was skyrocketing. Mineweb reported that China's English Language TV station said gold demand is going 'through the roof.' The country consumed 579.5 tons, or 18.5 million ounces, in 2010, according to the World Gold Council, and there have been rumors that China's central bank has been buying.

Nigel Moffatt, head of Treasury at Gold Corp, owner of the Perth Mint, says there is enormous demand coming from China currently. "China is ... the world's number one producer ... 340 tons of gold a year but you don't see any of that coming out of China but you see a lot of gold going into China."

"It's my belief that at this point and time what you are finding is that the Chinese central bank is probably picking up the bulk of Chinese gold that is being produced and that the imported gold is ... going into individual or commercial demand." The Perth Mint sells 20% of its production into China, unchanged from 2010.

China is unlikely to publicize if it is buying a lot of gold for fear of boosting the gold price. Over six years, the People's Bank of China stealthily increased their holdings to 1,054 tons and only announced it when they were done buying for the short term.

Gold mining stocks, a risky but profitable way to buy gold, were rising. Kinross Gold (KGC - Get Report) was adding 2.61% to $15.74 while Goldcorp (GG - Get Report) was up 2% to $49.53.

Other gold stocks, Agnico-Eagle (AEM - Get Report) and Eldorado Gold (EGO - Get Report) were trading at $65.19 and $16, respectively.


More on Gold
Gold Price News
How to Invest in Gold

-- Written by Alix Steel in New York.

>To contact the writer of this article, click here: Alix Steel.

>To follow the writer on Twitter, go to http://twitter.com/adsteel.

>To submit a news tip, send an email to: tips@thestreet.com.
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
KGC $2.27 0.00%
AEM $28.43 0.00%
EGO $4.09 0.00%
GG $16.18 0.00%
SGOL $113.98 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs