Gold prices
Daily gold price in a range of currencies since January 2000
Download the Excel file of the charts and data - Updated weekly.
Monthly gold prices since 1971
Download the Excel file of the charts and data - Updated monthly.
Annual gold prices since 1900
Download the Excel file of the chart and data
Analysts’ forecasts
2008survey.pdf The annual LBMA survey of price predictions from a range of precious metal analysts and commentators.
Notes
The gold price used in the charts and statistics on this site is the London PM fix. This price is quoted in US dollars. Where the gold price is presented in currencies other than the US dollar, it is converted into the local currency unit using the foreign exchange rate closing price on the same day. For example, the London PM fix on 30th June 2008 was USD 930.25 and the closing price for one USD was GBP 0.503 . The gold price in pounds sterling (GBP) would therefore be calculated as £ 467.88.
Like all prices, the gold price reflects not only the inherent value of gold, but also the relative strength of the currency in which it is quoted. For example, the dollar price of gold may increase more in percentage terms than the sterling price of gold, to the extent that the change in price is a reflection of dollar weakness (in this case, against sterling) rather than an intrinsic change in gold market fundamentals. For this reason, our Investment Statistics contain charts showing an index of the gold price in US dollars and local currency units as well as the relevant US dollar / local currency unit exchange rate for countries other than the United States. In addition, our “G5” price index is an average (weighted by GDP) of the gold price in US dollars, Euros, Yen, Sterling and the Canadian dollar; this is calculated to compensate for changes in the gold price that are simply a reflection of one currency’s movement.
Public holidays in different countries do not always coincide and therefore the time series that are downloaded from our data providers may contain missing values for trading days in other countries. The approach taken in this regard is to replace the missing value with the most recent value.

golden gold

Gold Spot Price
Bid:$836.70
Ask:$837.20
Last Update:12:07 BST



Feature
Surging Gold ETF holds more metal than some Govts
14 Jan 2008
-By John Spence of Dow Jones Newswires
Imagine being forced to buy gold in such quantities that you run out of adequate space to warehouse all of it.

That's been the high-class challenge confronting the folks at StreetTracks Gold Shares (GLD), a wildly popular exchange-traded fund so awash in investor cash that its backers recently scrambled to find a bigger vault to accommodate their ever-growing horde of the precious metal, now valued at $18 billion.

Surging gold prices and ravenous investor demand have unleashed massive inflows at ETFs such as StreetTracks, whose booming holdings now surpass those owned by China and other sovereign nations. The stunning rally in precious metals appears to know no boundaries as gold futures continued an inexorable rise, with prices touching the vaunted mark of $900 an ounce on Friday for the first time.

Investors in StreetTracks Gold Shares have profited handsomely. The fund, shares of which represent fractional ownership of gold bars held in a vault, was a top performer in 2007 and it gained about 20% the past three months.

First listed in November 2004, StreetTracks Gold Shares has been one of the most successful ETF launches in the commodities boom of recent years. Now the nation's sixth-largest ETF in assets, the fund owes its riches not only to investor anxiety that pumps up gold but also to its relatively low cost structure and the convenient way it turns ordinary people into gold bugs.

"Gold ETFs have facilitated the entry of players who do short-term trading, which tends to add to the snowballing effect," said Jon Nadler, analyst at Kitco Bullion Dealers in Rouses Point , N.Y. The ETF lets the "man on the street" trade gold, he said.

ETFs are a kind of mutual fund that trades like a stock, allowing investors to pop in or out of them with ease throughout a single day's trading session.

Gold is traditionally seen as an inflation hedge and insurance against disaster, and some of the metal's bulls are calling for prices to hit $1,000 an ounce in 2008.

Still, gold prices are notoriously volatile and many have lost their shirts speculating on the yellow metal. Some financial advisers do however recommend keeping a small portion of a portfolio in gold, perhaps in the 5% neighborhood, as a hedge against inflation and for diversification purposes against stocks and bonds.

The lower fees charged by gold and mining ETFs in comparison to traditional mutual funds have only increased their allure. Gold funds provide what some consider a purer alternative to vehicles that specialize in mining stocks, which bear additional corporate risk and are often more volatile than gold prices themselves.

Top gold reserves: Nations and ETFs

Indeed, the total amount of gold held in the StreetTracks trust stood this week at 642 metric tons, according to the fund. (One metric ton is equivalent to 1,000 kilograms or about 2,205 pounds.) That's more than the gold reserves held by many national governments, including China, Russia, the European Central Bank and the Netherlands, according to data compiled by the World Gold Council, the trade group that sponsors StreetTracks Gold Shares.

To put that figure into perspective, about 3,400 metric tons of gold is sold each year for commercial production, mostly jewelry, and industrial uses.

Because the StreetTracks reserve expanded faster than expected, its managers had to move the stores to a bigger vault about six months ago to make more room, says George Milling-Stanley, a spokesman for the gold council.

One share owned in the fund, trading on the NYSE Arca exchange, represents one-tenth of an ounce of gold held in a London vault in the custody of HSBC Bank. The ETF has an expense ratio of 0.4% vs. an average of 1.5% among precious-metals mutual funds, according to Morningstar Inc.

There are other ETFs listed in the U.S. and overseas that track gold or mining stocks, but StreetTracks Gold Shares are by far the largest in terms of their physical assets.

Got gold

The StreetTracks gold vault, located on the outskirts of London , is owned by HSBC and the gold ETF's share of the vault is sizable but "not quite as big as a cricket pitch." Milling-Stanley of the World Gold Council visits the vault twice a year for due diligence purposes. The cache is also weighed semiannually by the fund's independent auditor, Deloitte & Touche.

A spokeswoman for HSBC declined to provide vault details, citing security policies.

One of the reasons the gold ETF has been so popular with both individual and institutional investors is that it removes the work and costs of buying and storing the metal. Some observers think the ETF's ease of trading and liquidity are having a market impact and helping drive gold prices higher.

ETFs that hold physical gold have allowed pension funds and other institutions a vehicle to gain exposure to a metal they otherwise would be prohibited by charter from owning. This has created an entirely new body of demand for gold.

"We knew there was tremendous demand for gold in a tradable form, and the gold ETF's growth has been very impressive," said Anthony Rochte, senior managing director at State Street Global Advisors, the marketing agent for StreetTracks Gold Shares. "Gold was one of the most-requested asset classes for ETFs and it's popular because investors can trade gold on an exchange."

However, the sheer size of the gold ETF could end up being a double-edged sword. What happens if pension funds and trading desks decide to cash out profits and dump hundreds of tons of gold onto the market?

"The ETF could magnify the slide as much as it's impacted the rally, "Nadler said. "The gold ETF really hasn't been tested in a dramatic downward phase."

Still, some say claims that StreetTracks Gold Shares are single-handedly driving the metal's price higher are overblown. They note the gold market was rallying even before the ETF was launched, while it's difficult to measure its impact on prices.

"It's not correct to say gold's rise is solely due to the ETF," said Milling-Stanley, the World Gold Council official. He also pointed out there are other similarly structured gold ETFs listed on foreign exchanges.

Collectively, these ETFs hold roughly between 850 to 880 metric tons of gold. StreetTracks Gold Shares were listed in late 2004 and started the rush of assets into gold ETFs. Over the past three years global demand for gold has totaled about 10,000 metric tons, implying that gold ETFs accounted for less than 10% of demand during that period, according to Milling-Stanley.

Other precious-metals ETFs

StreetTracks Gold Shares is but the most prominent of several ETFs designed to track the metal, as well as shares of mining companies. Managed by Barclays Global Investors, the smaller iShares Comex Gold Trust (IGT.T) with about $1.6 billion in assets also invests in physical gold.

Other ETFs investing in precious metals and mining stocks include Market Vectors Gold Miners ETF (GDX), PowerShares DB Gold (DGL), SPDR S&P Metals & Mining (XME), iShares Silver Trust (SLV), PowerShares DB Precious Metals (DBP) and PowerShares DB Silver (DBS).

Some of these offerings are structured as trusts rather than "true" ETFs, meaning they're not registered as an investment company under the Investment Company Act of 1940.

Investors should be aware that the tax treatment on gains from physical metal isn't the same as with stocks.

The IRS treats physical gold as a "collectible," subject to a maximum tax rate of 28% if held for more than one year, compared with 15% for long-term gains on stocks. If a gold ETF is sold in less than a year, any gains are taxed as ordinary income. As always, investors are best served by consulting a tax adviser

Also, some ETFs that hold metal in a vault may sell gold to cover fees and expenses, so the amount of gold represented in a share may decrease over time.

golden gold

International Scenario: Gold
International bullion market was dominated by the official sector mainly by central banks in the last decade. The important factor on both the supply and demand sides was that mine production and demand for jewellery fabrication remained flat during 1990-2000 on an average at 2550 and 3250 tons respectively. Flat demand, declining prices along with institutional developments, had much to do with the changed attitude of central bankers particularly in Europe. The official sector sales, which amounted to 130 tons in 1994, progressively went up and recorded 470 tons in the year 2000. The official sector leasing, which was around 1,000 tons in 1991 went up to about 4,800 tons in the year 2000. Low inflation and soft interest rates have brought about a greater sensitivity among central banks regarding returns on their portfolios. The steady decline in gold prices few years before against the background of low inflation raised doubts on the importance of gold as a safe haven investment and hedge against inflation. Some central banks have resorted to offloading substantial quantities of gold, which they held as reserves.
Another significant development of the 1990’s was the spurt in central bank lending of the precious metal. Central banks are lending their idle stocks with a view to enhancing returns on reserves, which are bringing in good liquidity to the market to bridge the gap between supply and demand. A notable development in this regard is the signing of the Washington Agreement by some central banks in September 1999, which has placed an effective cap on such operations of central banks.
As a result of the clear trend that emerged in recent years of increased amount of central banks’ sales as well as lending, the official sector’s holdings as a percentage of total above-ground stocks fell from about 30 per cent in 1996 to 23 per cent in 2000. The central banks across the world were holding about 33,000 tons as at the end of 2000 as compared to about 36,000 tons at the beginning of 1991, which reflects substantial sale by many European central banks.
World Gold Production Pre-1840
Time
Annual Average Production*
Location
Sumer Civilization 3000 BC
.03 Moz.
Asia Minor/Africa
Egyptians 2000 BC
.10 - .13 Moz.
Africa/Saudi Arabia/Asia Minor/China
Roman Empire
.19 - .29 Moz.
Africa/Asia Minor/Spain/Portugal
500 - 1100
.06 - .10 Moz.
Africa/Germany/Austria/China
1100 - 1500
.10 - .16 Moz.
Africa (mainly Gold Coast)/China
1500 - 1600
.16 - .32 Moz.
Africa (Gold Coast)/China/South America**
1600 - 1700
.32 - .39 Moz.
Africa (Gold Coast)/China/South America
1700 - 1800
.48 - .80 Moz.
Africa (Gold Coast)/Brazil and other SouthAmerican countries/Russia
1800 - 1840
.80 - 1.61 Moz.
Africa (Gold Coast)/Brazil and other SouthAmerican countries/Russia
World Gold Production 1840-2000(in millions of troy ounces)

1840-1850
1851-1875
1876-1900
1901-1925
1926-1950
1951-1975
1976-2000
Australia
0.0
51.7
39.7
54.5
22.9
22.4
122.1
Canada
0.0
2.2
4.8
21.2
85.1
87.8
93.7
South Africa
0.0
0.0
20.7
178.4
292.3
582.0
488.9
Russia/Former USSR
7.5
22.6
29.1
24.6
73.2
134.9
137.7
USA
5.2
58.4
51.0
93.9
66.8
40.4
155.7
All Other Countries
5.2
19.1
37.0
104.9
159.9
117.9
456.2
World Total
17.9
154.0
182.3
477.5
700.2
985.4
1454.35
SOURCE: GOLD FIELDS MINERAL SERVICES LTD.COPYRIGHT GOLD FIELDS MINERAL SERVICES LTD.
GOLD DEMAND IN KEY MARKETS WORLDWIDE(in thousands of troy ounces)
(In millions of troy ounces)
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
India
8.36
14.61
13.03
13.34
15.34
16.30
23.69
26.20
26.97
27.50
Pakistan
N/A
N/A
N/A
N/A
1.39
1.73
2.63
3.16
3.92
3.83
Greater China*
12.11
16.00
13.50
13.95
13.74
12.04
13.08
10.11
11.04
10.59
Japan
7.75
6.53
7.57
7.35
8.75
4.89
3.44
3.55
3.92
3.15
South Korea
1.80
2.36
2.89
3.41
3.89
4.03
3.68
-5.22
3.81
3.87
Southeast Asia
7.38
7.48
8.06
9.80
10.44
10.60
6.56
1.66
8.54
8.59
Saudi Arabia
5.50
7.23
6.43
5.59
6.21
5.94
6.40
6.70
6.41
7.11
Gulf States
N/A
3.26
2.65
2.83
3.36
3.79
4.57
4.64
4.65
5.07
Egypt
N/A
N/A
N/A
N/A
2.15
2.43
3.14
3.36
4.01
3.85
Turkey
3.60
4.12
5.14
2.60
4.48
4.92
6.49
5.53
4.47
6.66
USA
8.50
9.08
9.84
9.66
10.12
10.66
11.64
13.77
14.78
12.46
Brazil
1.13
1.32
1.67
1.61
1.74
1.90
1.86
2.06
1.83
1.93
Mexico
0.96
1.06
1.35
1.51
1.00
1.32
1.58
1.77
2.24
2.58
Italy
4.42
4.26
3.63
3.73
3.54
3.39
3.56
3.61
3.04
2.50
France
1.30
1.35
1.57
1.43
1.62
1.53
1.59
1.91
1.98
1.82
Germany
2.62
3.29
2.79
1.99
1.83
1.74
1.68
1.68
1.66
1.62
UK
1.29
1.11
1.06
1.32
1.49
1.51
1.89
2.15
2.07
2.09
*Greater China includes China, Taiwan, and Hong Kong.
SOURCE: WORLD GOLD COUNCIL, GOLD DEMAND TRENDS, FEBRUARY 1996, FEBRUARY 1998, AND FEBRUARY 2001.
Major Trading Centers of The World
Ø London Gold Market
Ø Hong Kong Gold Market
Ø New York Gold Market
Ø Zurich Gold Market
London Gold Market
London is a major market for gold since the late 17th century. The oldest member of the market, Scotia-Mocatta, was founded in 1671 by Moses Mocatta. Several other members trace their origins to the 19th century, including N.M. Rothschild, where the daily London gold fixing prices still offer a daily bench-mark for the price, while London remains a prime trading forum and the essential clearinghouse for global dealing, with delivery of metal in London (known as loco London). In this role it has a unique asset and ally in the Bank of England, which has itself been the crossroads for gold for three centuries and has more in-house expertise about Gold than any other central bank. The London Bullion Market Association (LBMA) represents the interests of the wholesale bullion market, which comprises 10 market-making members, 44 ordinary members and 24 international associates. The LBMA also controls the Good Delivery List of refiners whose bars are accepted on the London market, and publishes monthly the clearing turnover of its market-making members.
Hong-Kong Gold Market
Hong Kong gold market fits into the time zone between the largest two Gold Markets in the world, New York and London. It is eight hours ahead of London and thirteen hours ahead of New York.
London 3 a.m. Hong Kong 10 a.m. New York 10 p.m.
Major Gold Markets are closed between 2:30 a.m. and 3 p.m., Hong Kong time. If any significant newsbreak occurs during this period, international investors may take the advantage of the news by trading through Hong Kong Gold Market.
New York Gold Market
New York has only come into its own as a gold market in 1974 when Americans were once again permitted to buy and sell gold freely for the first time since 1933. In the intervening years the gold business had been strictly licensed through a handful of banks, such as Republic National Bank of New York and Rhode Island Hospital Trust National Bank, which supplied gold to authorised jewellery and industrial fabricators. The concept of futures application to gold came only in the 1970s, initially at the Winnipeg Commodity Exchange in Canada, but then on COMEX (Commodity Exchange Inc.) in New York and at the Chicago Board of Trade and the Chicago Mercantile Exchange from 1975. They brought a completely new dimension to gold trading, but ultimately it was COMEX which set the pace, so that today it is COMEX (now a division of NYMEX) that is the heart of America’s gold market in parallel with COMEX as the great terminal market, however, an increasing amount of gold trading is done outside the exchange by market makers in spot, forward and over the counter options. So COMEX remains supreme in terms of a formal market with its transactions closely recorded and observed by analysts.
Zurich Gold Market
Switzerland has been at the heart of the gold business as a center for physical gold wholesaling, for gold investment in private banks and for refining. Swiss Bank Corporation was a buyer at the third London gold fixing after its inauguration in 1919.
Swiss Bank Corporation, the country’s central bank, holds the sixth largest official stock and has a long history as a strong ally of gold. Much has changed in the 1990s, the main Swiss banks have moved much of their gold trading from Zurich to London, the private banks no longer recommend gold as 10% of any portfolio and even the Swiss National Bank is selling its gold since May 2000.
When the era of high inflation and gold investment was over, Gold production in South Africa and the old Soviet Union was declining, while major new output came from Australia, the United States, Latin America and southeast Asia and did not flow naturally to Switzerland. Going into the new millennium, the Swiss gold market was a shadow of its former self, even though it retained an important role in the physical bullion trade.
Major Participants in the World Market
Bullion bank plays a crucial role in the international market. They act as buyers, sellers, stockholders, and distributors of gold. They actively quote two-way prices, provide credit for all bullion banking transactions, trade finance for consumers, project financing, day-to-day hedging facilities for producers.
Following Banks are the members of International Bullion Trading Community
ABN-Amro,
AIG International,
Barclays Bank,
Chase Manhattan,
Citibank,
Commerz bank,
CSFB,
Deutsche Bank,
Dresdner Bank,
Goldman Sachs,
HSBC,
J P Morgan,
MacQuarie Bank,
Mitsubishi,
Mitsui,
MKS,
Morgan,
Stanley,
N M Rothschild,
Phibro Bullion,
Prudential-Bache,
Rabobank,
Scotia Mocatta,
Societe Generale,
Standard Bank,
Sumitomo,
UBS,
West LB.