Best of the Week
Most Popular
1. Trumponomics Stock Market 2018 - The Manchurian President (1/2) - Nadeem_Walayat
2.Yield Curve Inversion a Remarkably Accurate Warning Indicator For Economic & Market Peril - Dan_Amerman
3.China is Now Officially at War With the US and Japan - Graham_Summers
4.Markets Pay Attention Moment - China’s Bubble Economy Ripe for Bursting - 16th Jul 18 - Plunger
5.Stock Market Longer-Term Charts Show Incredible Potential - Chris_Vermeulen
6.U.S. Stock Market Cycles Update - Jim_Curry
7.Another Stock Market Drop Next Week? - Brad_Gudgeon
8.The Death of the US Real Estate Dream - Harry_Dent
9.Gold Market Signal vs. Noise - Jordan_Roy_Byrne
10.The Fonzie–Ponzi Theory of Government Debt: An Update - F_F_Wiley
Last 7 days
Impulse Moves in the Currencies - 15th Aug 19
Best Merlin UK Theme Park Summer Holiday 2018 - Thorpe, Alton Towers, LegoLand or Chessington? - 15th Aug 19
The Essence of Writing an Essay that Must be Understood - 15th Aug 19
Is Solar Energy Rising From The Ashes Again? - 15th Aug 19
A Bullish Bond Argument That Hides in Plain Sight - 15th Aug 19
Jim Rogers on Gold, Silver, Bitcoin and Blockchain’s “Spectacular Future” - 15th Aug 19
A Depressed Economy And A Silver Boom - 15th Aug 19
Moving Averages Help You Define Market Trend – Here’s How - 14th Aug 18
It's Time for A New Economic Strategy in Turkey - 14th Aug 18
Gold Price to Plunge Below $1000 - Key Factors for Gold & Silver Investors - 14th Aug 18
Dow Stock Market Trend Forecast 2018 - Video - 13th Aug 18
Stock Market Downtrend to Continue? - 13th Aug 18
More Signs That the Stock Market Will Rally Until 2019 - 13th Aug 18
New Stock Market Correction Underway - 13th Aug 18
Talk Cold Turkey Economic Crisis - 13th Aug 18
Which UK Best Theme Park - Alton Towers vs Thorpe Park vs Lego Land vs Chessington World - 12th Aug 18
USD is Rising. What this Means for Currencies and Stocks - 12th Aug 18
Hardest US Housing Market Places to Live - Look Out Middle Class - 12th Aug 18
America’s Suburbs Are Making a Comeback - 12th Aug 18
Stock Market US Presidential Cycle, Seasonal Analysis and Economy - Video - 12th Aug 18
Yield Curve Inversion and the Stock Market - Video - 11th Aug 18
Land Rover Discovery Sport 1st Dealer Oil Change Service - What to Expect - 11th Aug 18
How to Setup Webinars and Use Them to Overcome the Barriers in E-Learning - 11th Aug 18
Big US Stocks’ Q2’18 Fundamentals - 11th Aug 18
Dow Stock Market Trend Forecast 2018 - 10th Aug 18
SPX Testing Its First Support Level - 10th Aug 18
Dreaming of a "Comfortable Retirement" on a Public Pension? - 10th Aug 18
The Forrest Gump of All Future Democrat Election Losses - 10th Aug 18
More Uncertainty as Stocks Got Closer to January Record High - 10th Aug 18
Gold and Silver Kill Zone - 9th Aug 18
Even More Cracks in the Gold Dam - 9th Aug 18
Ignore the Stock Market “midterm election year”, Which is “supposed” to be Weak - 9th Aug 18
Stock Market Trend and Volatility Analysis - Video - 9th Aug 18
Tips on Maximizing Small Serviced Offices Space - 9th Aug 18
VIX’s Collapse is Bullish for VIX and the Stock Market - 9th Aug 18
Vestles Platform Offers Several Key Trading Tools - 8th Aug 18
US Stock Markets Higher Until November 2018 - Part 2 - 8th Aug 18
US Stock Markets Higher Until November 2018 - Part 1 - 8th Aug 18
Stock Market US Presidential Cycle and Seasonal Analysis - 8th Aug 18
Is the Stock Market Correction Over? - 7th Aug 18
Yield Curve Inversion and the Stock Market - 7th Aug 18
Stock Market Elliott Wave Analysis and Forecast - Video - 7th Aug 18
Trade War! Win the Economic Hostilities Against the Chinese - 7th Aug 18
Technical Analyst Sees Silver as 'Oversold' - 7th Aug 18
Alex Jones Banned! Will Unapproved Opinions Be Censored Off the Internet? - 7th Aug 18
Gold and Silver Stocks On the Verge of the Next Major Decline - 7th Aug 18
First Time Buyers Need to ‘boost the affordability’ of Their Move Alone  - 7th Aug 18
Long Term Care Homes as an Investment are Heating Up! - 7th Aug 18
The Exponential Inflationary Stocks Bull Market - Video - 6th Aug 18
Land Rover Discovery Sport Oil Change Service Dash Warning Message - 6th Aug 18
Restructuring of Western Economic Power - 6th Aug 18
Stock Market Trend and Volatility Analysis - 6th Aug 18
Stock Market and Economy False Narratives That are Just Wrong - 6th Aug 18
VPN – Is It Worth It? - 6th Aug 18
All You Need to Know About Umbrella Companies - 6th Aug 18
Why China Lost the Trade War Before it Even Began - SSEC Stocks Index - Video - 5th Aug 18
Dow Stock Market Elliott Wave Analysis - 5th Aug 18
Iran's Rial Currency Is In A Death Spiral, Again - 5th Aug 18
IMF Produces Another Bogus Venezuela Inflation Forecast - 5th Aug 18
Gold & Silver Precious Metals Monthly Charts - 5th Aug 18
Time to Position for a Decade-Long Bull Market in Natural Resources - 5th Aug 18

Market Oracle FREE Newsletter

Trading Any Market

Welsh Gold Being Hyped Due To Harry Meghan Royal Wedding?

Commodities / Gold and Silver 2018 May 19, 2018 - 03:49 PM GMT

By: GoldCore

Commodities

– Welsh gold and the misconceptions surrounding it – GoldCore speak to China Central Television (CCTV)
– Welsh gold mired in misconceptions, namely that it is ‘rarest’ and most ‘sought after’ gold in world
– Investors to be reminded that all mined gold is rare and homogenous
– Nothing chemically different between Welsh gold and that mined elsewhere
– Investors led to believe Welsh gold is more valuable, despite lack of authenticity in some Welsh gold products
– Peak gold: We tell Beijing’s largest TV network that Welsh gold is limited but so too is gold everywhere


Editor: Mark O’Byrne

Video Source: CCTV via YouTube

Is ‘Welsh gold’ more valuable than gold mined from anywhere else? Some believe it is. Others believe this is just hype ahead of the big day for Harry and Meghan.

Since 1923 various members of the British Royal family have chosen to use Welsh gold in their wedding rings. Famous wearers include Queen Elizabeth II, her daughter Princess Anne, Princess Diana and the Duchess of Cambridge.

This, combined with the fact that there is no active Welsh gold mine today confers on “Welsh gold” a certain exclusivity.

The prices charged for Welsh gold very much play on this desire for it to be seen as the ‘rarest’ and most ‘sought after’ gold in the world.

In reality the rarest thing about it is the lack of Welsh gold in the jewellery and other items claiming to be “Welsh gold”.  Welsh gold jewellery made today is likely to contain far less than 1% of the exclusive metal. The rest of the piece will be made up of gold from elsewhere.

Such little gold is used in the items of jewellery that the main jeweller in Welsh gold will not even say how much is in each piece. Speaking to the BBC in 2011, Ben Roberts MD of Clogau Gold said:

“The precise amount is a common question but one that we try not to stipulate because it puts us on the hook to continue using the same percentage and it’s one which might be subject to change in the future depending on supplies (although at present we have no plans to change the mix).”

Gold has many uses. For some it is for wedding rings, for others it is the backbone of internet technology, for millions it is financial insurance and a store of value. Each industry impacts the other as they clearly affect demand and supply. Very rarely does one industry claim to play the role for another.

Except in the case of Welsh gold.

As a result of both the 2011 and upcoming Royal Weddings there have been several reports regarding Welsh gold and its value.  Welsh gold is not for the exclusive use of the royals. There is now jewellery to buy with the ‘Welsh gold’ label. Promising the wearer that they are adorned by the ‘Gold of Royalty’.

Many make it sound as though Welsh gold is a sure fire investment, even more so than ‘normal’ gold. This is misleading.

Jewellery is for romance, not for investment

Currently Welsh gold is predominantly used in jewellery and other artisan items. A premium is placed on the items because of the provenance of less than 1% of the total gold use in the piece.

Jewellery is a product and it is not an investment. As we have explained before it is not a good investment:

It is estimated that the markup on a diamond wedding and engagement ring is between 300% and 1000%, with a tendency towards the lower end of the scale. The chances of us seeing this back are unlikely in the extreme as a buyer will only take into account the components of the jewellery rather than the purchase price.

This should be considered when buying any piece of jewellery that you are hoping will make a good return. It should particularly be remembered if you’re considering a piece of jewellery containing a small amount of Welsh gold. At the end of the day, no one will care where the gold came from. They just want to know it is gold, as we explained to CCTV earlier this month:

‘Welsh gold sells very well in a jewellery level. But when we look at it in terms of investment ultimately Welsh gold is gold…chemically it is no different that has perhaps been mined in China, South Africa and so on. It is a nice premium to put on something but if you were to take it to a refinery and get it melted down it would be considered no different [to gold from elsewhere] and so you would receive the spot price that day.’ 

Why is the gold considered to be rare? Because the gold used in Welsh gold jewellery today comes from mines that are no longer in use.   It is not because it is different to any other mined gold. It is not purer than other jewellery and it has no evidence of being a better investment than any other item or gold for investment. This means that is as rare as the gold that has been mined for thousands of years around the globe and continues to be today.

Today, gold is rarer than it has ever been.

‘Gold is a finite asset. It cannot be reproduced at the rate that we create money and no-one has discovered the art of alchemy. Gold will run out. We are now at a point known as Peak Gold. We are discovering and mining less and less gold in order to meet demand.’

Don’t invest in gold because of its provenance, invest in gold because it is gold

Welsh gold is a great thing for the British Isles to have. It has a long history and its connections with the Royal family certainly makes it feel very special. However, it is a romantic notion that its provenance makes it more valuable.

If you wish to hold gold as part of a balanced portfolio then buy investment grade gold, for example a bullion bar or sovereign coin. Do not think that an item of jewlery (no matter its history) will afford you the same protection and return on investment.

When you buy gold bullion for your portfolio ensure it is of a purity not less than 995 thousandths or 99.5% pure. It must be in the form of a bar, or of a wafer, of a weight accepted by the bullion markets. The bullion must be immoveable and stored with a secure third party. It cannot be taken possession of. Ensure it is stored in allocated and segregated storage.

The purity is important here, unlike with Welsh gold jewellery you must know how much gold is in the bar. Do not be dismissed by the seller to be told that ‘we try not to stipulate’ how much gold is in the bar ‘because it puts us on the hook’. This is not good enough for an investment product.

Buy your gold from a trusted dealer, long established dealer and own gold in the safest way possible – allocated and segregated. With investment grade 0.9999 pure gold, there will be no quibbles regarding its price should you wish to sell it in the future and it will always be liquid. Something which cannot be guaranteed with jewellery, Welsh or not.

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA AM)

17 May: USD 1,288.85, GBP 952.07 & EUR 1,090.50 per ounce
16 May: USD 1,291.75, GBP 958.61 & EUR 1,093.60 per ounce
15 May: USD 1,310.05, GBP 966.42 & EUR 1,098.35 per ounce
14 May: USD 1,320.70, GBP 972.30 & EUR 1,101.86 per ounce
11 May: USD 1,324.80, GBP 978.23 & EUR 1,110.45 per ounce
10 May: USD 1,314.80, GBP 969.27 & EUR 1,106.80 per ounce

Silver Prices (LBMA)

17 May: USD 16.39, GBP 12.14 & EUR 13.90 per ounce
16 May: USD 16.26, GBP 12.07 & EUR 13.79 per ounce
15 May: USD 16.41, GBP 12.12 & EUR 13.77 per ounce
14 May: USD 16.65, GBP 12.25 & EUR 13.89 per ounce
11 May: USD 16.76, GBP 12.35 & EUR 14.04 per ounce
10 May: USD 16.60, GBP 12.24 & EUR 13.97 per ounce

Mark O'Byrne

Executive Director

This update can be found on the GoldCore blog here.

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W http://www.goldcore.com/uk/

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information containd in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules