Recently in Precious Metals Category

QUESTION: Do UNALLOCATED metal assets held under the Perth Mint Certificate Program need to be reported on the IRS TDF90-22.1? I recently purchased your book "Reporting Foreign Financial Accounts" as well as the 2010 Update and searched both of them for an answer on this point, and have also searched your online Q&A looking for an answer, but I have not found one.

You have covered the ALLOCATED aspect of the Perth Mint Certificate Program and also the Perth Mint DEPOSITORY SERVICES (a completely different service, which operates like a private client bank account or stockbroking account, except with balances of precious metals in troy ounces---and IS reportable); however, the UNALLOCATED aspect of the Mint's Certificate Program appears to have not been addressed.

With the UNallocated Bullion program, one has title to precious metal deposited in an UNsegregated storage account, and is issued a Perth Mint Certificate. This is not a "managed fund"; it is simply a pool of unsegregated precious metal in which one purchases an interest.

The following description of the Certificate Program appears on the Perth Mint's website:

"With unallocated storage, also known as a metal account, clients purchase an interest in a pool of precious metal held by The Perth Mint. The Mint purchases an ounce of precious metal from the spot market for every unallocated ounce it sells to clients. Accordingly every unallocated ounce is 100% backed.

"The precious metal purchased by the Mint is recorded on its balance sheet as an asset and the unallocated amounts sold to clients are recorded as a liability.

"At purchase, clients only pay for the precious metal. There are no fabrication charges or storage fees, until clients elect to convert their unallocated into a specific coin or bar, which they can do at any time."

Since this question has not previously been specifically addressed or answered, I would really appreciate your view on the UNALLOCATED aspect of the Certificate Program in relation to the FBAR disclosure requirements.

Thus far this week has provided plenty of fuel for higher Gold prices as the economic climate in the European Union continues to drive savvy investors out of the traditional "fiat currencies" and in to "safer havens "especially gold as it has a history of performing better than most commodities in times of crisis. It has been reported that the European states have increased their already vast amounts of gold reserves and the IMF (International Monetary Fund) reported it had sold 18.5 tons of Gold bullion in March. As of this writing the price of Gold has breached the $1200.00 per ounce level as the U.S Dollar continues to ride twelve month high's ....yes indeed the inverse relationship appears to de-coupled...

This European Union continues to put out contradictory information that is as clear as "mud". European Central Bank Officials voted Thursday to keep the bank's key lending rate at 1%. The Euro regions fiscal crisis is threatening the bank's of Portugal, Spain, Italy, and the United Kingdom. Moody's Investors Services was quoted as saying
"Overall, moody's notes that each of these countries banking systems faces different challenges of different magnitudes, but warns that contagion risk could dilute these differences and impose very real, common threats on all of them"...

European Stocks sold-off for the third straight session sending the STAXX Europe 600 to a two month LOW on the continued concern of the Euro regions fiscal crisis will spread....

European Central Bank President Jean-Claude Trichet Is certainly not calming fears as he has resisted to take a solid stance to combat the Greek crisis. Trichet stated "The ECB didn't discuss buying government debt today and that Spain and Portugal didn't have the same challenges faced by Greece".... Then stated "Greece will not default".....
Trichet also stated that loans to Greece were "appropriate" ...

The 2010 gold price is forecast to reach USD1226 (historical peak) again in Q2 of 2010, and in the last quarter, gold is forecast to achieve a new all time high price between USD1300-1360.

Forecast: Q1: Price correction, Q2: Rally, Q3: Correction, Q4 Rally

How can you profit from trading spot gold?

1.) Spot gold trading is different from investing in physical gold, such as gold bars and gold coins. Investing in physical gold, you can only make profits when gold prices rise. While in spot gold trading you can profit when prices rise or fall.

2.) Keys to successful spot gold trading:

a.) Learn and understand what spot gold trading is all about: you can place long positions if you think gold price is rising, or short positions when you think price may fall.

b.) Spot gold trading involves margin trading, and offers a normal leverage of 70:1. And with most online trading platforms, each USD 1 rise in spot gold price, it gives you USD100 profits.

c.) Never use more than 1/3 of your account to trade. As you need plenty of margins to maintain your open positions. (Play safe)

d.) Conduct detailed research and analysis - technical and fundamentals. Technical (charting) analysis is a great way to predict gold price movements both short-term and long-term. Most analysis gives you indications of what the upper levels (resistance prices) and lower levels (support prices) are for the trading day. You can make profits from trading within the specified range.

Fundamental analysis is also important, as macro economic news, key economic indicators often affect the gold price trends.

e.) Read forecasts on gold prices. Many analysts give good predictions of how the overall trend will look like. So you can avoid buying when price is too high, and shorting when price is already at day low price. It is actually not difficult to work out the trading range, as the charting tools are very smart these days.

April saw the price of gold hit a Sterling and Euro record. While the GBP754 (or 865 Euros) per troy ounce stat still remains 5% below the all time US dollar record, this was nonetheless excellent news for the British investors.

Compare the GBP754/ounce price tag with the price of GBP562 per ounce, as gold stood back in August 2009 and it means that holders of the previous metal have seen the value of their gold soar 34% in value in less than a year.

It's widely thought that the fact that gold is maintaining such a high price per ounce, despite the fact that the US dollar is making a notable recovery, indicates a growing number of people viewing gold as a 'safe investment,' in light of inconsistent currencies and the still prevalent economic uncertainty globally.

Gold is also proving a popular investment for those who, in times of US dollar instability, might have invested in Euros, Pounds Sterling or even Yen. As these currencies also continue to perform inconsistently, following the recent global recession, investors are increasingly turning to gold bullion, which has proven a more sound investment in recent years.

World Gold Council and ICBC Enter Into Strategic Partnership to Promote China's Gold Market

BEIJING, April 1, 2010 - World Gold Council ("WGC") and Industrial and Commercial Bank of China ("ICBC") have signed a memorandum of understanding (MOU) for strategic cooperation within China's gold market. This agreement will enhance the exchange of market information between WGC and ICBC to promote domestic demand for gold, encourage investment into China's gold market, as well as jointly develop and market new gold investment products within the country.

Under the terms of the MOU, WGC and ICBC will share their resources and international gold market data to provide personnel training, research, and product development, as well as trade analysis. ICBC will also offer integrated services in gold investment and trading through its investment channels and client resources.

Both parties will explore and jointly develop new gold investment products tailored to the Chinese market, and conduct surveys and studies on the domestic retail gold investment market, facilitating financial innovation and product diversity. In addition, WGC and ICBC Precious Metals Business Department(s) will set up an ICBC/WGC Gold Business Strategy Board to discuss and plan strategies for their cooperation, as well as an Action Team to oversee the implementation of the decisions and initiatives adopted by the Strategic Group.

Aram Shishmanian, CEO of World Gold Council, commented at the MOU signing ceremony in Beijing:

"WGC will continue to develop strategic partnerships in China, in order to provide a stable and sustainable service to Chinese gold investors, and therefore help them achieve wealth preservation."

ICBC is the largest commercial bank in China and also the largest bank by market value and the most profitable commercial bank in the world. By the end of 2009, ICBC had 16,224 offices both in China and abroad, offering a wide range of quality financial products and services to 212 million individual customers and 3.63 million corporate clients around the world. WGC is the gold industry's key market development body and, as such, works with multiple partners and to promote the use of gold in all its forms. As a leading country in gold production and gold consumption, China is one of the most important strategic markets for WGC. The alliance between two major players, WGC and ICBC, will not only enable ICBC to better integrate in the domestic and foreign precious metals market but also stimulate the development of the gold market in China.

Privacy, Asset Protection and greater freedom of movement are just some of the qualities that lure investors offshore.

Some people are happy to have their money safely locked away, an insurance policy against volatile stock markets, currency fluctuations and avaricious authorities. Others see investing offshore as a way of maximizing their return, in other words they want to see the investment pay for itself.

You have or are thinking about opening an offshore bank account – how can you make your money work for you?

*Disclaimer*
Not all of these options will suit every investor – and remember that every great investment will be balanced by risk. If you are prepared to take the risk and have some idea about what to do with your money – here are some options I would definitely recommend.

Gold – In addition to being one of best financial reserves you can get, gold can actually increase in value during a bear market. If you had bought an ounce of gold in 2003 you would by now have nearly tripled your investment in only 6 years!!! Gold has its own intrinsic value unlike paper monies which can fluctuate wildly, especially in economic downturns when countries ‘compete’ to devalue their own currencies. Imagine having your very own offshore gold ‘plan b’ stored in a safe deposit box, anonymously, out of reach of creditors, greedy lawyers, the taxman and anyone else with a covetous eye on your assets. Best of all its value is quietly multiplying…

Certificates of Deposit – Rather than let your offshore assets sit idly by while inflation gobbles them up, invest in a certificate of deposit. Ranging from a couple of months to several years, these will pay you interest, usually based on a fixed annual rate. Sometimes you can get much better interest rates in a different country – this is one of the primary reasons for moving offshore – but remember to do your research beforehand. There have been countless cases of scams where investors were promised fantasy interest rates and ended up losing everything to a ponzi scheme. Part and parcel of ‘soft-touch’ regulation in tax havens is that you will come across schemes like these. The best method of research is to ask other banks who have had contact with the institution to give their professional opinion. Always remember the maxim – ‘if its sounds to good to be true, it probably is’. A bank offering interest rates of 10% when the benchmark is set at 2% is either a fraud or in serious financial trouble.

Tax-Free Trading - Once you have invested in an offshore bank account, think about expanding further and trading stocks. Most banks and brokerages will charge you for opening an anonymous investment account, but some might even do it for free! From a trading account you can buy and sell shares in all the major markets- anonymously- and since your account is offshore your gains are also tax free! Fees will vary greatly depending on the brokerage, but the best ones will give you an online platform so you can manage all your trades from the comfort of your own home, and with low overheads they can afford to charge nominal premiums on each trade.

Exotic Investments – Exotic investments are usually more risky than average, and may consist of financial instruments such as sovereign & corporate debt, high-yield investment schemes and other investments which are outside of your domestic reach. The best bet here is to find a broker you can trust to advise you in this area. If you are willing to accept a high degree of risk, exotic investments may just be for you, since in return for high risk the results can be spectacular.

Are you ready to take a giant step forward, and start making your money work for you?

Click to get started with Anonymous Offshore Investing

Investors in gold are demanding “unprecedented” amounts of bullion bars and coins and moving them into their own vaults as fears about the health of the global financial system deepen. Industry executives and bankers at the London Bullion Market Association annual meeting said the extent of the move into physical gold was unseen and driven by the very rich.

Continue reading: Wealthy Investors Hoard Bullion

After four months of a resilient uptrend in the Gold market, it appears traders are beginning to feel the pressure to take profits. I believe Gold traders are keeping a close eye on the recent turmoil in the Stock Market and it brings back memories of the mass Metals liquidation to cover margins in their Stock portfolios. Despite a very weak U.S. Dollar, Geopolitical tension, and the signs of a weakening economy, it is my belief the gold trading community is content to take profits. After all, the Holiday markets are just around the corner.

Much has been made recently about gold's use as a hedge against poor stock market returns. Unfortunately, this strategy has some holes in it. While it is true that gold tends to perform in the opposite direction as stocks during secular markets, it tends to perform similarly to stocks during shorter cyclical time periods.

U.S. Global Investors Resources and Gold Funds Win 2007 Lipper Fund Awards

SAN ANTONIO--(BUSINESS WIRE)--The World Precious Minerals Fund, managed by U.S. Global Investors Inc. (Nasdaq:GROW), is the 2007 winner of the Lipper Fund Award in the Best Gold-Oriented Fund category.