Gold's London AM fix this morning was USD 1,658.00, EUR
1,255.02, and GBP 1,047.91 per ounce.
Friday's AM fix was USD 1,651.00, EUR 1,246.04 and GBP
1,040.85 per ounce.
Gold rose 1.23% in New York on Friday and closed at
$1,666.22/oz. Gold rose sharply at the open in Asia before
determined selling at the $1,670/oz level saw gold fall. Weakness
continued at the open in Europe which has gold now trading at $
Cross Currency Table - (Bloomberg)
Gold prices pushed higher in Asia at the open Monday as the
dollar fell near a 2 week low, which supported bullion's safe
Bullion futures saw their greatest advance in 4 weeks on March
23 with many investors believing that gold demand will continue
as an alternative to the weak dollar. Market participants will
watch the pending US Home Sales for February today.
This morning German business sentiment surprised markets as it
rose for the 5th month in a row in March, showing that Europe's
largest economy continues to outpace other euro zone members
struggling with the sovereign debt crisis.
The Munich-based IFO think tank said on Monday its business
climate index, based on a monthly survey of some 7,000 companies,
rose to 109.8 in March from a revised 109.7 in February.
Although German manufacturing contracted this year, the
closely-watched IFO index blew away expectations for a steady
reading and climbed to its highest level since July 2011.
1 Kilo Tungsten Filled Gold Bar Found in UK
What appears to be a tungsten filled gold bar has been found -
this time in the UK. It is believed that a scrap dealer bought
the Metalor 1 kilo gold bar of 99.98% purity from a member of the
Tungsten Filled Gold Bar
Metalor are a leading international gold refiner and bar
manufacturer, headquartered in Zurich. The bar appears to have
been tampered with and may have had holes drilled into it or
melted out and then had tungsten rods inserted or tungsten poured
into the holes.
Tungsten is a metal with a similar density to gold but which
bullion dealers and experts in physical bullion can easily
It follows an
incident of a tungsten filled gold bar (500
originating from an unnamed bank being found by Heraeus in
Germany two years ago and there have been rumours of tungsten
filled gold bars in Asia, China and in
There was also an unverified report in 2009 that the Chinese
received a fake shipment of gold that, in fact, was tungsten. The
bars have led to much speculation regarding the possibility that
some of the gold bars making up central bank gold reserves may
not be investment grade gold bullion.
Presidential candidate, Ron Paul has raised the question as to
whether the gold bars in Fort Knox are authentic and even asked
whether some of the US gold reserves have been secretly sold off
and asked questions regarding the authenticity of the US gold
reserves gold bars.
UK, there have been doubts about the quality of
Britain's paltry remaining gold stock
as some of the gold bars are reportedly cracked, have
fissures and are 'beginning to crumble'. The
Bank of England
have denied suggestions that the gold may have been
'adulterated', and insisted that most of the hoard is in 'mint
that this latest discovery is bearish for the gold market
as uncertainty will put off prospective investors and buyers. We
believe this is incorrect and that the discovery is in fact
bullish for the market.
If there are many fake or forged gold bars in the bullion
market then there is even less supply of physical bullion then
had hither to been assumed.
Also, it is important to remember that tungsten filled gold
bars still have value as tungsten is a rare and expensive metal.
Many of MF Global's clients who lost their entire gold investment
(every cent) would wish that they had owned gold bars - even if
some or all of them had been adulterated with tungsten.
Uncertainty regarding the provenance of gold bars will lead to
gold buyers becoming more diligent in their purchases. It will
add to the existing trend of moving away from ETFs and other
large institutional vehicles where audit and authenticity of gold
bars is an issue - not to mention significant counter party
Australian 1 oz Nugget from Perth Mint
It will likely lead to further demand for bullion coins and
gold sovereigns as 1 ounce formats (and 0.2354 ounce coins) are
uneconomical and nearly impossible to forge and forgeries are
very easily detected. It will also lead to further demand for
storage of small coins and bars in allocated accounts in
The incident shows the importance of dealing with reputable
and trusted experts in physical bullion coins and bars and with
dealing with counter parties who take these issues seriously.