After studying the commodities markets over the last 7-8 years, gold in particular has never shown it’s slowing or decline either in value or in production regardless of weak or strong currency. As a former trader, I have seen a rise into the number of investors purchasing gold on the market for the benefit of financial gain or security. <br/><br/>However, as the cost of gold soars (thanks to the weak dollar), many traders feel the cost of gold could rise above the $1200 mark within the first two quarters of 2008. What traders are unaware of though are the potential risks of gold being bought and sold privately or “off the market” and with a discount. The private trade of gold has always been a huge business and probably a lot more valuable and successful than trading gold on the markets.<br/><br/> After studying “off the market trading” of gold over the last 3 years, the discounts are incredible compared to on the market trading. Discounts usually range between 3% and 12% depending on quantity. The cost for export, security and storage is usually at the sellers cost which gives the buyer another financial advantage. <br/><br/>Over the last 12 months alone, I have investigated several large transactions that all lead back to one individual. This individual purchases gold at the discount, even if it needs re-smelting and holds it on behalf of clients. His clients are mainly royals and super rich individuals all of whom are from either Saudi Arabia or the neighbouring GE states. <br/><br/>Rumours that have been circulating the private gold market over the last year indicate that “Maktari” or better known as the "gold hand" is purchasing excessive amounts of gold bullion and storing it throughout Europe in private vaults on behalf of his clients. This gold will eventually get put into the system to trade at the full market price. Maktari may be looking to purchase extremely large quantities of gold from the trading markets at full cost. Why? This will allow him and his investors to reap the rewards when the price of gold shoots up thanks to the shortage they may cause and the weak dollar. <br/><br/>This will only mean that his intentions of putting more back onto the market than what he originally purchased where correct and may prove disastrous for all traders and investors out there as a sudden sharp rise of gold, regardless of the weak dollar may drop the gold price by at least $100 per troy ounce the same week. That in turn could affect every other precious metal price or even the whole commodity trading floor.<br/><br/> Maktari and his investors will be the only ones to benefit immensely from this tragic action rumour says will happen shortly in 2008. Maktari could influence the price of gold should he have the go ahead from his investors and the for-seen price of gold may all be proven wrong thanks to just one man.
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