Hunter Wise Commodities: Chinese copper hoarding pushes copper into global spotlight

Posted on February 14, 2012 by rsainteractive

At Hunter Wise Commodities, we firmly believe that China is a significant global precious metals epicenter. In recent months, China has stockpiled gold in record amounts for central bank reserves – as well as for gifts and festivities related to the Lunar New Year.

Now China appears to be hoarding copper in record numbers. According to Forbes, China imported 413,964 tons of copper in the month of January, up 13.6% from the same time last year.

Because of the Lunar New Year, there were even four fewer working days in China this January compared with the previous year. Therefore, copper imports greatly exceeded Chinese consensus estimates.

Forbes reported that a record 508,942 tons were imported to China in December – an incredible 47.7% increase from the previous year.

However, Chinese copper consumption is predicted to be lower this year than in the past two years. This year growth is expected to be about 6 percent, compared with 8.5 percent in 2011 and 11.5 percent in 2010.

Why is Chinese copper consumption sliding while imports increase? Construction and appliance manufacturing are facing challenges due in part to a slowing Chinese economy. Some researchers predict that copper consumption will be at its weakest level in China since 2006.

That begs the question as to why Chinese are buying copper in hoards. A limited worldwide copper supply accounts for some of copper’s appeal – as well as a vacillating metal price which makes it affordable to purchase when the metal is lower. Also, Chinese central banks are moving away from paper-based assets by adding copper to their arsenal of safe-haven precious metals.

With China increasing its copper stores – and prices for the precious metal looking bullish for 2012 – Hunter Wise Commodities emphasizes the importance of investing in copper now. A wholesale dealer such as Hunter Wise Commodities can guide and mentor investors as they invest in copper as independent retailers. Hunter Wise offers invaluable customer service including state-of-the-art office software support.

About Hunter Wise Commodities
Hunter Wise Commodities, LLC is an affiliate of Hunter Wise Financial Group, LLC. The wholesale dealer specializes in the purchase and sale of precious metals such as gold, silver, platinum, palladium and copper. The company’s corporate headquarters are in Las Vegas, Nev., with additional offices in Irvine, Calif., and London, England. For more information about the company, visit http://www.hwcom.com/.

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Gold mining becoming more obscure practice, feeding ravenous demand for gold

Posted on January 17, 2012 by rsainteractive

Gold mining opportunities are becoming scarcer – which is one key reason that Hunter Wise Commodities believes that the price of gold will continue to rise in 2012.

It’s no secret in the investment world that the easy gold has already been discovered – and large gold supplies are becoming rarer by the day. It is also becoming more arduous to extract gold deposits from the ground.

Obtaining gold mining permits is also challenging and time consuming, and skilled geologists are becoming more expensive and harder to come by. Mine building and production can cost as much as $3-$5 billion. In addition, it can take up to 10 years from the initial discovery of gold to transition a gold mine into production.

This means that it’s no simple undertaking to extract large quantities of new gold – making the gold that has already been recovered all the more valuable to investors.

Until recently, South Africa was the world’s top gold-mining producer, according to Forbes. Now, production there has been cut in half. China has now taken over as the world’s top mining producer. North America contains the world’s safest mines, but output is now at just 78 percent of 2002 levels.

The quality of gold ore mined is also declining quickly, meaning that more digging is needed to produce each ounce.

Gold mining stock investors face other problems, which make mining a volatile endeavor – such as populist governments stealing their assets. Other threats include environmental activism backed by charities like Greenpeace, Friends of the Earth and American Oxfam. Today’s green-conscious politics do not support upturning five mountains to drill 450 tonnes of gold.

Hunter Wise recognizes that the decrease in mining production contributes to gold bullion’s bullish forecast. We advise investors to contact our wholesale metal dealership for more information about striking while the iron is hot to become independent precious metal retailers.

About Hunter Wise Commodities

Hunter Wise Commodities, LLC is an affiliate of Hunter Wise Financial Group, LLC. The wholesale dealer specializes in the purchase and sale of precious metals such as gold, silver, platinum, palladium and copper. The company’s corporate headquarters are in Las Vegas, Nev., with additional offices in Irvine, Calif., and London, England. For more information about the company, visit http://www.hwcom.com/

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Intensifying Chinese gold demand boosts gold price outlook across the globe

Posted on January 17, 2012 by rsainteractive

If there’s one thing we’re sure of at Hunter Wise Commodities, it’s that commodity prices are notoriously difficult to predict.

However, the start of 2012 cast a glow on gold, with prices hitting a four-week high Jan. 11 at $1,644 an ounce.

Among the major factors fueling the recent rally is Chinese demand for physical metal. According to Forbes, Chinese gold demand hit a record in November. About 102.2 tons of gold were delivered to mainland China that month.

A good deal of buying anticipation is influenced by the Chinese Lunar New Year, which occurs on Jan. 23. As the most significant traditional festival for the Chinese around the world, it is common for family and friends to exchange gifts made of gold.

This practice leads to increased jewelry buying in China. Retail jewelry chains are spreading to smaller cities to meet the growing demand. As the incomes of Chinese citizens rise, the middle class will expand, creating a significant market for gold.

Also importantly, Chinese central banks are snapping up gold.

The People’s Bank of China is tightening its hold on the local gold market, and urging further gold buying. The Chinese central banks truly seem to believe that no asset is safe in current economic conditions and that the logical choice to hedge risks is to possess gold.

According to MarketWatch, the Chinese government currently holds 1,054 tons of gold — or about 1.8% of its foreign reserves — which experts at the World Gold Council consider a very low number. The news source says Chinese gold consumption has doubled over the last decade to about 20 percent of total yearly production.

No matter what you think of gold, the truth is that if China continues to accumulate gold at its current pace, then prices are bound to rise again for a 12th straight year of gains. Let us not forget that gold was one of the best performing assets of 2011.

The physical commodity experts at Hunter Wise Commodities believe that China’s influence will remain a significant factor for the precious metals market. We’ve said it before, and we’ll say it again: at its current rate, gold is likely to break $2,000 an ounce sometime in 2012. It’s a good time to become an independent gold dealer with Hunter Wise.

About Hunter Wise Commodities

Hunter Wise Commodities, LLC is an affiliate of Hunter Wise Financial Group, LLC. The wholesale dealer specializes in the purchase and sale of precious metals such as gold, silver, platinum, palladium and copper. The company’s corporate headquarters are in Las Vegas, Nev., with additional offices in Irvine, Calif., and London, England. For more information about the company, visit http://www.hwcom.com/.

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Hunter Wise Commodities: Central Banks move boosts global financial system, including precious metal market

Posted on December 1, 2011 by rsainteractive

A coordinated effort by world central banks jolted the entire financial system Nov. 30.

The U.S. Federal Reserve, headed by Chairman Ben Bernanke, vowed lower pricing on existing temporary U.S. dollar liquidity swamp arrangements by 50 basis points. Therefore, the new rate will be the U.S. dollar overnight index swap (OIS) rate plus 50 basis points, according to Forbes.

The Bank of Canada, Bank of England, Bank of Japan, European Central Bank and Swiss National Bank each rallied behind the Federal Reserve’s move – and agreed to provide more liquidity of their own.

China also contributed, cutting the reserve requirement ratio for its banks, with the hope of providing a jolt to its economy.

Before the central banks’ announcement, precious metal prices were already trading at steady levels – rendering the gold, silver, platinum and palladium markets bullish. The news on Nov. 30 gave the precious metals market an added push.

On Nov. 30, spot gold was at $1,745.40 an ounce. Silver hit $32.86, platinum reached $1,556.10 and palladium climbed to $612.85. Stock markets around the world also rallied to hit new records, with the Dow Jones industrial average gaining 490 points in its best day since March 2009.

The euro climbed to $1.3457, from $1.3315 Nov. 29. The only stumble came from the weakened U.S. dollar index.

Hunter Wise Commodities believes the effort to provide more global liquidity should provide temporary relief to the euro zone debt crisis by allowing financial institutions easier access to funding.

The physical commodity wholesale dealer believes that because of the extreme financial volatility in the euro zone, the precious metals will continue to be in high demand. Precious metals have gained the reputation among investors as safe-haven assets in uncertain financial times.

About Hunter Wise Commodities

Hunter Wise Commodities, LLC is an affiliate of Hunter Wise Financial Group, LLC. The wholesale dealer specializes in the purchase and sale of precious metals such as gold, silver, platinum, palladium and copper. The company’s corporate headquarters are in Las Vegas, Nev., with additional offices in Irvine, Calif., and London, England. For more information about the company, visit http://www.hwcom.com/.

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Gold prices climb to $1,800 per ounce, marking consummate precious metal investing time

Posted on November 14, 2011 by rsainteractive

Gold prices have enjoyed a rising trend recently, hitting a seven-week high on Nov. 8 of almost $1,800 an ounce.This is thanks to a weaker U.S. dollar and increased safe-haven buying.

On Nov. 8, gold added $8.10 to settle at $1,799.20 an ounce at the Comex division of the New York Mercantile Exchange. According to The Street, the precious metal traded as high as $1,804.40 and as low as $1,785.10 an ounce while the spot price slid $11.

Silver prices rallied 32 cents to $35.15 an ounce. The U.S. dollar index was down 0.53% at $76.60.

Investors rushed to add gold to their portfolios as Italy’s Parliament voted for 2010 budget items. Italy has dominated market news with the announcement that Prime Minister Silvio Berlusconi would resign after passing austerity measures. Italy’s news has eliminated some uncertainty surrounding the Italian economy, benefiting the euro and gold. Potential stability – mixed with a dose of fear – is a perfect storm for gold to thrive.

The physical commodity experts at Hunter Wise Commodities believe that eurozone political tensions remain an important factor for the precious metals market. Hunter Wise predicts that at its current rate, gold will break $2,000 an ounce in the first fiscal quarter of 2012.

With the forecast for precious metals looking so bright, Hunter Wise advises investors to become independent dealers with its precious metals wholesale firm today.

To join Hunter Wise as an independent precious metal dealer, visit www.hwcom.com.

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Hunter Wise Commodities: Precious metal prices gain luster from Occupy Wall Street movement

Posted on November 3, 2011 by rsainteractive

Las Vegas – Over 70 major U.S. cities have now been affected by the Occupy Wall Street movement – which involves demonstrations and protests against corporate greed in the financial sector.

Canadian-based Adbusters Media Foundation has backed the protests, which are based in the Wall Street financial district of New York City at Zuccotti Park. Protests began Sept. 17 and have continued through October. Now the Occupy Wall Street movement has spread to over 900 cities worldwide.

The movement came about with protesters demanding social and economic equality. They don posters and clothing with the words, “We are the 99 percent,” which is a reference to the income breakdown in the United States. The top 1 percent of the population controls about 40 percent of the wealth, according to Occupy Wall Street organizers – who claim to be the voice for the other 99 percent of citizens.

No direct correlation can be made between precious metal prices and the Occupy Wall Street movement, but Hunter Wise Commodities believes that the movement could be affecting rising gold, silver, platinum and palladium prices.

With the nation trillions of dollars in debt – the state of the U.S. dollar is already compromised. Unemployment is high, jobs are scarce and morale surrounding the economy is low. The Occupy Wall Street movement adds fuel to the weakened morale.

Hunter Wise believes the volatile economy has strongly contributed to investors placing more of their assets in save haven precious metals. As of Oct. 26, spot metal prices had all risen. Prices were $1,722.70 an ounce for gold, $33.45 an ounce for silver, $1,593.90 an ounce for platinum and $647 an ounce for palladium.

To join Hunter Wise as an independent precious metal dealer, visit www.hwcom.com.

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Hunter Wise Commodities: Limited world gold supply ensures thriving gold commodity market

Posted on October 10, 2011 by rsainteractive

With gold’s recent market fluctuations, many investors who are bearish about the precious metal have argued against its staying power. Hunter Wise Commodities, a commodities wholesale dealer based in Las Vegas, believes otherwise. We feel that gold’s general upward trend will continue.

Why does Hunter Wise have confidence in gold? First, because it is so rare. According to Resource Investor, as of 2011, the amount of gold ever mined in the world is 172,000 tons. Combining all the gold ever mined in the world would barely fill up four Olympic-size swimming pools.

What makes gold even more rare is that its supply is limited. Resource Investor reports that the gold supply grows at less than 2 percent per year. The amount of “new” gold being mined from the ground is less than 3,000 tons annually. In 2010, there were 2,450 tons extracted. It takes, on average, about three to five years to explore and extract gold from a new mine.

When demand outweighs supply as in gold’s case, a metal will remain rare, precious and coveted as a safe-haven investment.

Another common argument against gold’s resilience is that it has no utility. However, the experts at Hunter Wise Commodities understand that gold is actually highly utilized in the industrial sector, securing its place as a sought-after metal. Over 12 percent of gold is used by the industrial sector – and gold is one of the world’s best conductors of heat and electricity.

Gold will also always be a popular jewelry item. Over 51 percent of gold is used in jewelry production, according to Resource Investor.

Hunter Wise Commodities believes the gold markets will receive a major boost when Indian wedding season begins in October. India accounts for about 25 percent of global demand for gold, importing about 1,000 tons of gold each year. Most of this gold is used to make jewelry.

An additional reason gold reigns supreme is that central banks view it as a valuable monetary asset. Central banks possess over 20 percent of the global supply of gold, according to The World Gold Council. Currently, the United States, Germany and the International Monetary Fund hold the most gold bullion in the world.

The statistics support gold’s allure. The World Gold Council reports that the lustrous metal has been one of the best-performing assets in 2011 – and over the past five years. The precious metal is up 15 percent year-to-date.

With gold’s enduring strength, Hunter Wise Commodities encourages investors to consider becoming independent precious metal dealers by opening an account with its wholesale company.

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Gold sales in India could increase by 25 percent during festival season

Posted on September 2, 2011 by rsainteractive

During the months of October and November, India bursts with excitement and energy. India’s annual festival season brings daily celebrations, and shopping discounts abound in the country’s colorful markets. This is a time when buyers are generous with their pocketbooks.

With gold’s recent rally as a highly demanded safe-haven asset, sales of the precious metal are expected to surge as much as 25 percent during this year’s festival season, according to Bloomberg News.

Industry experts predict that purchases of gold jewelry, coins, bars and medallions may rise to 250 metric tons by Nov. 30, compared with about 200 tons last year. It is considered favorable and a sign of good fortune to purchase gold during Indian religious festivals.

In all, Indian gold consumption rose to a record 963.1 tons last year, driving imports to the highest level ever at 958 tons, according to the World Gold Council.

Hunter Wise Commodities, a physical commodity wholesale dealer specializing in precious metals, believes gold imports to India could reach a record 1,000 tons this year. People seek an investment which offers protection against inflation and the volatility that continues to plague global stock markets.

Gold rose to a record high of $1,913.50 in Mumbai on Aug. 23, and even though the precious metal has experienced slight dips recently, it has steadied to around $1,800 an ounce. Hunter Wise Commodities believes gold may reach $2,000 by the end of the year.

As Europe’s sovereign-debt crisis continues — and concerns over U.S. debt mount — gold bullion heads for its 11th annual gain.

Hunter Wise Commodities has tracked gold’s performance closely as it booms in India and across the globe. The Las Vegas-based precious metal wholesale dealer recommends that individuals interested in becoming independent precious metal dealer enter the market now. Gold, silver, palladium, platinum and copper are available for independent dealers who open trading accounts with Hunter Wise.

For more information on how to become an independent dealer with Hunter Wise, go to http://www.hwcom.com.

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Hunter Wise Commodities: Though U.S. adds jobs, economy remains sluggish, ideal for safe-haven metal investing

Posted on August 8, 2011 by rsainteractive

On Thursday, Aug. 4, the Dow Jones Industrial Average fell 512 points, its biggest drop since Dec. 1, 2008, causing shock and panic among investors.

According to Bloomberg Financial News, Standard & Poor’s 500-stock index fell two points, or 0.1%, to 1198, led lower by financial and tech stocks. The technology-oriented NASDAQ Composite Index lost 12 points, or 0.5%, to 2544.

Then on Friday, Aug. 5, U.S. stocks opened higher than expected because of a report indicating the addition of 117,000 jobs in July, more than economists were expecting.

In conjunction with the report’s release, the unemployment rate dropped to 9.1%, easing some fears that a recession may be around the corner.

“We’ve seen a drop in consumer spending, a slowing manufacturing sector and overall sluggish economic growth. Even though jobs have been added, stocks are hardly recovering. The economy is far from thriving,” said Ed Martin, CEO of Hunter Wise Commodities. “People are afraid of the economic situation, and want to ensure their investments have minimal risks. That’s why they’re turning to bullion.”

Along with escalating debt in the United States, debt is spreading in Europe. An earlier bailout of Greece now appears insufficient, and debt is spreading to Italy and Spain. There are growing concerns about European banks having invested significantly in the debt of countries with big fiscal problems.

These combined global factors influenced gold to hit a record high of $1,684.90 per ounce on Aug. 4.

Hunter Wise Commodities offers a full range of precious metal investments — including gold, silver, platinum, palladium and copper – for independent metal dealers to trade.

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Gold rises above $1,600, making gold jewelry increasingly valuable

Posted on August 5, 2011 by rsainteractive

With gold at a record high of over $1,600 an ounce, gold jewelry has become a valuable resource for financially-stressed Americans.

U.S. debt concerns have contributed to gold’s recent leap. The same financial concerns are prompting Americans to think twice about pieces of gold jewelry they aren’t wearing. A record number of people are taking their gold pieces to goldsmith shops and pawn shops for appraisal, both in person and online.

Two to four pieces of jewelry can garner $1,500 to $2,000, which is enough to cover a significant expense. However, the weight and karat of the gold determine its exact value.

According to a July 20 CNN Money article, 10-karat gold means that it contains 42% gold content and 58% other metals. Fourteen-karat gold is 58% pure gold. About 75% of the content of 18-karat jewelry is gold.

The article said that a 14-karat gold piece of jewelry weighing about an ounce would be worth $928 — or 58% of $1,600 — the current market value. From there, a seller could expect an offer of around 60-80% of that price, or $550 to $750.

The Better Business Bureau’s website recommends that consumers keep the following in mind when considering cashing in on their gold:

• Weight of the jewelry. Jewelers measure gold by the Troy ounce. Some dealers use pennyweights to measure Troy ounces, and others use grams. People should be aware of how their jewelry is being measured to ensure prices are fair.

• Karats of the jewelry. All jewelry sold in the U.S. must be defined by karat fineness. Fourteen karats means jewelry is 14 parts gold and 10 parts other metals — or about 58% gold. Most jewelry ranges between 10 and 18 karats. Jewelry of different karats should be weighed separately. The Better Business Bureau warns against dealers who weigh all jewelry together and give the lowest karat value.

• Current price of gold. Check out the fair market value before completing your deal. While people can make some money selling their gold jewelry, there is greater opportunity to capitalize on the thriving gold market by entering into business as a precious metals dealer.

Hunter Wise Commodities, LLC, is a physical commodity wholesale dealer based in Las Vegas. Independent dealers who operate under Hunter Wise are able to trade with precious metals including gold, silver, palladium, platinum and copper.

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