Gold One Climbs By Most Since July In Johannesburg As Bcx To Buy

How to Buy Gold

Gold One advanced as much as 47 percent, the biggest gain since July 23. BCX Gold gave notice of a compulsory acquisition at 30 Australian cents a share (27 U.S. cents), according to a statement on the Johannesburg stock exchange. Thats a premium to the closing price on Friday of 1.77 rand (17 U.S. cents). Gold One, based in Sydney, rose 38 percent to 2.44 rand by 12:16 p.m. in Johannesburg, valuing it at 3.5 billion rand. The shareholders of the company have the right to object, with the result of that process expected on about Jan. visit

Gold: Time to buy now?

Such a gap between the cost to produce gold and the price is a pretty big incentive to up the production. All else being equal, prices should eventually move toward the marginal cost of production as supply increases. This is especially true for gold, since unlike other commodities, nearly all the gold that has been produced is still in circulation and potentially available for sale. Currency hedge Investors often offer two other explanations for their interest in gold. The first is that gold makes for a good hedge against currency fluctuations. Except that a recent study found that the change in the real price of gold seems to be largely independent of the change in currency values. In other words, it's not a good hedge of currency risk. Bear markets The same study also looked at whether gold serves as a safe haven during bear markets. The researchers found that gold fell in 17 percent of the months that stocks fell. visit

Gold ends with a gain as traders mull Fed comments

Gold doesn't move in tandem with other assets, so it can serve as a good diversifier in an investment portfolio. Some financial advisers recommend keeping up to 5 percent of your portfolio in gold to help stem portfolio volatility. There are many ways to buy gold. The real deal. Gold bars and coins are the best option for those who want to keep their gold close at hand. visit

Plus: Coach is back in the game. But golds price gains over the last two sessions, in the face of news indicating that a QE taper may come sooner rather than later, may mean that the metal has finally priced in such an event, said Brien Lundin, editor of Gold Newsletter. In short, we may have run out of sellers. And with the bearish side of the boat so overcrowded, the gold market appears primed for a significant short-covering rebound, he said. News that Richard Fisher , president of the Dallas Federal Reserve Bank, backed tapering the central banks QE program at the earliest opportunity, emerged after the close of gold trading on Comex. Prices for February gold in electronic trading climbed above the settlement price shortly after to $1,236.30 an ounce. /quotes/zigman/9159480/realtime GCG4 1,239.80, +10.80, +0.88% Gold for February delivery Bullard also indicated that the Fed could pause tapering if inflation falls indicating they havent forgotten their dual mandate, said Colin Cieszynski, senior market analyst at CMC Markets. They wont taper at any cost and wont let deflation take hold. Fishers comments, along with Lackers and Bullards, are the last official comments from the central bank until after its Dec. 17-18 policy committee meeting. visit

Ignore the "buy gold now" crowd

Longer term investors might want to bulk up on the metal because there are no signs that appetite for gold from consumers in Asia has waned. At the same time, supplies from gold mines remains tight. Nichols from American Precious Metals Advisors believes that gold prices over the next three to five years could surpass the 2011 highs. He stressed, however, that gold buyers need to be patient. "It's not clear we will have a quick turnaround," he said. Gold buyers sell as quickly as they buy Gold got a boost last week after Fed chairman Ben Bernanke said U.S. visit