Thursday, January 20, 2011

Eldora Gold Resources News-gold's Insurance Cost Index Explained

Eldora Gold Resources News-By Brad Zigler. We've expounded on the option market insurance model in this column before. In their most basic utility, options offer investors protection from catastrophic changes in asset values, just like homeowners, automobile and gulp! life insurance contracts.
And just like other insurance markets, option prices are determined in part by the issuers' perception of risk. When the odds of a payout increase because of increased fire hazards, a poor driving record, disease or wobbly asset values the cost of protection rises.

For years now, professional traders have gauged risk in the investment market by metering the volatility assumptions embedded in option prices. The Volatility Index (VIX) measures the expected variance in the stock market over the ensuing 30 days by extracting the implied volatility of near-term options on the SPDR Depository Receipts (SPY).

Eldora Gold Resources News-More recently, the VIX concept has been translated to the oil and gold market. The CBOE Gold Volatility Index (GVZ) has been tracking risk expectations in the gold market by distilling the "IV" ("implied volatility") SPDR Gold Shares Trust (GLD) options for the past couple of years.
Presently, GVZ pegs the annualized volatility of the gold market at 20 percent. Is that high or low? Well, it's certainly higher than it was. Last month, anyway. Back in September, when gold was reaching new nominal highs, GLD volatility dipped as low as 16.7 percent.

The implication? Back then, option traders were pricing contracts with the expectation that gold prices proxied by GLD would likely vary up or down 1.4 percent (16.7 percent divided by 12 months) over a 30-day period.

When GVZ aka volatility is high, writing (selling) naked options and credit spreads are more likely to make money. When GVZ is low, debit spreads and naked option purchases are favored.
Relatively speaking, buying GLD options would have been the play in mid-September. If you were exceptionally prescient, you would have bought calls for a month-long, $130-an-ounce ride up Bullion Mountain.

GVZ peaked at 22.6 percent along with gold prices on Oct. 14. GVZ then signaled a heightened risk of change in gold's price trend. Now GVZ's falling along with gold prices, indicating a certain market complacency with the trend.

The Gold Insurance Cost Index measures the risk of price trend changes as well and, as you can see from the chart below, pretty much tracks alongside GVZ. The insurance index is derived by comparing GLD option premiums to SPY contract costs. Each day, puts with at least eight weeks til expiration and each 10 percent out of the money are ratioed: the GLD put premium in the numerator and the SPY premium down below. The daily change in the resulting percentage is then indexed to a base level. In the chart below, the starting date is arbitrarily set as July 23.

Eldora Gold Resources News - The essential difference between the two metrics is volatility itself. The insurance index is more sensitive and generally renders its peak and trough signals a day or two sooner than GVZ. Time can be a great advantage to a trader or a hedging investor giving insurance index followers a bit of a jump on GVZ watchers.

Of course, tracking GVZ is easy. No calculation is required. Its value can be pulled up in real time along with any other market quote.

Which indicator you choose to follow is purely a matter of personal preference. Disclosure: No position
About the author: Hard Assets Investor Hardassetsinvestor.com (http://hardassetsinvestor.com/) is a Van Eck Associates-sponsored, research oriented Web site devoted to sharing ideas about hard assets investing.

Tuesday, January 4, 2011

Eldora Gold Resources News - Correction in Precious Metals Likely to Set Stage for Further Run Ups

Eldora Gold Resources Canada News - China is the world's largest producer of gold, but it has plenty of other precious metals and rare minerals as well. Some in the world are already worried about so much power concentrated in one place.

A Bloomberg Report this week stated that silver exports from China, one of the world's largest, may drop about 40 percent this year as domestic demand from industry and investors climbs. China is the third-largest producer after Peru and Mexico. It is expected that reduced exports will boost prices. Industrial applications for silver, including electrical conductors and batteries, represent about half global demand.

Beware of Gold Scams

When the U.S. dollar falls in value, the price of gold and silver can usually be expected to rise. And with the dollar in free-fall as it is at the time of this writing, the trend is proceeding true to form, with gold just recently blowing past $800 an ounce. But when the gold and silver markets turn bullish and enthusiasm among investors accordingly rises, watch out! Amid every new "gold rush," you can also expect a fresh assortment of corresponding scams to appear. The last major bull market for gold and silver, the 1970's, saw scam artists abound; and this time around – especially with the proliferation of the Internet – will likely be more of the same.
And although much more elaborate safeguards are doubtless in place today, the ingenuity of the modern scam artist should in no way be taken lightly or scoffed at. As the epidemic of identity theft continues to teach us, the more restrictive the means of security taken, the more ingenious the hackers, crooks, and scammers show themselves to be. Eldora Gold Resources gold investment information to avoid gold scams investing.
The best scams, by their very nature, are likely to seem to be good ideas, great opportunities, and pushed by exceedingly polished and professional-looking and sounding individuals. After all, would you really seriously consider buying gold through a website in which the text resembled one of those "You've just won the Foreign Lottery!" spam emails, where every other word is misspelled and the punctuation so bad that even a five-year-old would think it utterly ridiculous? Of course you wouldn't. It actually takes surprisingly little money to put up a very clean, very professional, and very bogus site for the sole purpose of extracting funds from unsuspecting would-be investors. By staying alert and using just a reasonable amount of common sense, you should be able to avoid these pitfalls without too much difficulty. Eldora Gold Resources gold investment information to avoid gold scams investing.
One of the more common schemes that you may run into (either by website or an unsolicited phone call) is the offer to sell you an amount of gold and store it for you as well – for an additional contracted fee, of course. And because taking physical delivery of and storing gold bullion – especially large quantities of it – can be a major undertaking itself, the arrangement would seem to the inexperienced investor to not only be convenient but also prudent. But alas, the gold – if it's even actually purchased for the investor in the first place – and the investors' money disappear into thin air, likely never to be seen or heard from again.Eldora Gold Resources gold investment information to avoid gold scams investing.
How can you protect yourself? Simply make certain that the entity you're doing business with has a long and verifiable track record of buying and selling gold. Your safest bet would be to deal only with a well-established Wall Street firm that's thoroughly regulated and insured. One of the best ways to do this is to check that the company is a member of the Industry Council for Tangible Assets, or ICTA. Most of the leading gold dealers belong to this organization. And although in no way a regulatory body itself, ICTA can verify a dealer's membership history, which can help you to establish their claims of longevity. Also, inquire with the Better Business Bureau (BBB) about any reported grievances against the company and the manner in which they were handled.

Eldora Gold Resources News - Willow Creek Signs LOI to Acquire Historic Gold Property in Prestigious Walker Lane, Nevada

Eldora Gold Resources Canada News-Willow Creek Enterprises Inc. (OTCBB: WLOC) ("The Company," "Willow Creek") Willow Creek is pleased to announce that it has signed a Letter of Intent to acquire the Hercules property from Minquest, which is located in the prestigious Walker Lane Mineral Belt in Nevada, USA. 
The historic Walker Lane Mineral Belt, western Nevada, is a highly mineralized trend that contains several world-class epithermal precious metals deposits, such as: the Comstock Lode (estimated production of 8.6 million ounces of gold and 192 million ounces of silver), Round Mountain (Barrick / Kinross)(over 10 million ounces of gold produced since 1906), Rawhide, Aurora, Goldfield mines, as well as porphyry copper deposits: Yerington (1.75 billion pounds of copper produced from 1953-1978 by Anaconda Copper Company), 
Eldora Gold Resources Canada News - The Hercules property gives Willow Creek (OTCBB: WLOC) access to one of the most prolific mining areas in the world. According to a report made by Global Geological Consultants (GGC)* in 2003, The Hercules prospect has direct analogies to the historic Comstock Lode deposit, which is located less than 10 miles to the north. While the Comstock Lode produced approximately $670,000,000 worth of gold and silver from 1860 to 1880, the Hercules Mine, located on the "Hercules" property, is estimated to have produced 5,000 oz of gold and 20,000 oz of silver during early, turn-of-the-century mining efforts. In more recent years, modern exploration has been conducted on the property by companies such as Pioneer Mining Corporation, Phelps Dodge Corporation, and Horizon Gold. The GGC* report further states that the potential for the discovery of thicker, mineralized veins within the Hercules is very good, and that recommended drill tests could identify a deep-seated mineralized deposit for which the Walker Belt is known. Further support for exploration of the Hercules was given by Joseph Tingley** in an annual compilation of major precious metal deposits in Nevada, where he noted a resource for the Hercules deposit of approximately 260,000 oz of gold and 1,950,000 oz of silver. 
"The company believes the Hercules property contains one of the most significant untested Comstock-type vein systems in the Western United States. With gold prices hovering well over $1,300.00 an ounce, and silver prices steadily climbing, the Hercules property offers a tremendous opportunity to our shareholders as we move forward," stated Terry Fields, President Willow Creek. 
Eldora Gold Resources Canada News - Management believes that in addition to its proximity to other major discoveries, the Hercules' physical location makes it an ideal property for exploration and development. Existing infrastructure, including manpower and accessibility for the Hercules property, is supported by the nearby city centers of Reno and Carson City. State highways and paved roads provide easy access, while moderate temperatures allow for year-round physical work on the property. As we approach the colder months, this physical attribute will allow us to continue our work as many others are forced to shut down their operations until the spring. 
Political support for the mining industry enjoyed by the state of Nevada was another determining factor for management when selecting the Hercules property. Favorable laws, positive safety regulations, and the lack of political unrest seen in many other parts of the world are among the main reasons that Nevada's gold production accounted for more than 79% of total U.S. production and 7.2% of the world's gold production in 2009 (Economic Overview of Nevada's Mineral Industry report; Nevada Mining Association). Nevada State Geologist and Director of the Nevada Bureau of Mines and Geology Jonathan Price recently stated that Nevada is still in its biggest mining boom, one that produced more than 200 million ounces of gold in Nevada from 1981 to last year. With the addition of the Hercules prospect to our portfolio of properties, Willow Creek (OTCBB: WLOC) hopes to contribute to Nevada's production numbers in the years to come. 
* Summary Report and Exploration Proposal on the Hercules Gold Prospect. Lyon Nevada, published January 24, 2003 by Geoffrey Goodall, P. Geo 
** Nevada Bureau of Mines and Geology - Special Publication MI-2005 
Eldora Gold Resources Canada News - This news release contains "forward-looking statements", as that term is defined in section 27a of the United States Securities Act of 1933, as amended, and section 21e of the United States Securities Exchange Act of 1934, as amended. Statements in this news release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, except for the historical information presented herein, matters discussed in this news release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Statements that are not historical facts, including statements that are preceded by, followed by, or that include such words as "estimate," "anticipate," "believe," "plan" or "expect" or similar statements are forward-looking statements. Risks and uncertainties for the company include, but are not limited to, the risks associated with natural resource exploration and development and needs for funding as well as the risks shown in the company's most recent annual report on form 10-k and on form 10-q and from time-to-time in other publicly available information regarding the company. Other risks include risks associated with the regulatory approval process, competitive companies, future capital requirements and the company's ability and level of support for its exploration and development activities. There can be no assurance that the company's development efforts will succeed and the company will ultimately achieve commercial success. These forward-looking statements are made as of the date of this news release, and the company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. 

Gold Investment Advice by Gold Bullion

Eldora Gold Advise - When gold is found join the gold rush, it would be an investment that would make you rich! In the following article, we give you some more gold investment advice, with each detail explained to keep away from scams, fraud on investment by boiler rooms.

Eldora Resources Tips: There are several reasons, why gold is so expensive, point one, it is one of the rarest elements. Two, it is really hard and laborious to find, three, it is found in very few places on earth and four, it glitters. Point is, a small volume of supply and a higher demand makes the price of gold sky high. There are a considerable number of pros and cons of standard gold investment and there are several options for you can invest. The following gold investment advice will help you take decisions regarding gold purchase and sale.

Gold Investment Advice: 2010

One very important thing about gold pricing which you need to know is that like any other market, gold market is dynamic, with significant price changes occurring in them. The level of price changes that is the upper and lower limit in the rise and fall is quite small and the losses one might incur are not very huge. The big drawback is that the initial investment in gold is required to be high and apart from that, panic selling, unnecessary and quick decisions due to ignorance and misleading advice often becomes a drawback for gold market investors. Hence here is some gold investment advice that will give you some more leads in buying gold as an investment.

Gold Demand and Supply

The gold investment approach is similar to that of the stock and Forex investments. The difference is that the volume of investment is quite high and the opportunity for trade, that is buy and sell is quite scarce. The market conditions change from time to time, however a change (usually a rise or fall in price) does not take place very often and hence the scope of instant liquidity is lost.

Eldora Resources Tips: Gold demand and supply determine the market prices of gold. So, you need to consider this aspect before investing in gold. The simple rule is that increasing demand leads to price appraisal and a decreasing demand leads to price fall. Fact is that the demand by people and to some extent supply, govern the prices of gold. Another significant advantage of investing in this market is that scarcity of gold sources have made supply of gold very limited and at the same time demand is increasing as a result of significant rise in population. This gold as an investment has assured profit and return rate, the volume of profit however depends upon when you sell the gold. Economists would always insist that the best buy is at a rock bottom price and the best sale is at the price just before its graph starts falling. Though having the best buy and the exact sale price is difficult, trying to get the best buy and sell price would ensure that you have a good profit margin. Festivals and pre-festive seasons are the best ones for selling gold bullion or for that matter any gold investment. 

Gold Investments: Your Options

There are quite a few options which you can use while investing in the gold market. Here are some leads: 

Bullion: The simplest option that you can find is the gold bullion. Market movements can be capitalized best with the gold bullion which is minted by the government. Almost every country has its bullion which is minted by the government either in bars or gold coins. Gold investment in bullion also ensures liquidity as the sale cost of bullion gold is always high. Thus bullion is considered to be the best gold investment. Yes, it's one of the best ways to invest in gold.

Gold Jewelry: Gold jewelry is also a great investment option owing to the fact that its cost is always escalating. Gold jewelery prices however differ depending upon several aspects such as its age, crafting, etc. The investment is however very expensive and to some extent, the liquidity (sales) is also not instant.

Gold Investment Companies: The gold investment companies are basically the ones that trade in real gold and also gold based securities. These companies provide regular return over investments and the long term benefits include very regular returns.
Mining companies securities: These securities include shares, stocks and other tradable securities which operate exactly like normal securities. Though these securities are based upon normal stock markets, they tend to have very nice returns and dividends.

About GoldBullionPro.com is centered on investment in precious metals such as gold, silver, platinum, palladium and rhodium. Our experts will provide you with useful information about gold and other precious metals investment strategy every day.

Thursday, December 16, 2010

Eldora Tips: Top Reasons to Invest in British Crown Coins

Please be aware that there are scams and fraud at large claiming to offer services and other resources are not owned/endorsed by either e-gold. 

Tips and reasons to invest below to avoid scams and other fraudulent transaction on the web. 

1. Historical And Bullion Value Combined – Other Gold Resources 
British Crowns offer the best of both coin types in a single investment. These coins offer benefits that cannot be found with old British coins that do not offer a standard weight and size. 
2. Backed By the British Monarchy

British Crown coins are backed by the British government and monarchy, similar to the way that American gold Eagles are backed by the US government. With the monarchy backing these coins they are a terrific investment option. 
3. Gold Prices Will Continue To Go Up 
Choosing a crown or Henry VIII coin will offer high returns in most cases. These coins will continue to increase in value as gold prices continue to rise. 
4. Great Hedge against Inflation 
British Crown coins can be used by investors to hedge against any possible inflation in the future. Gold and silver have historically been used for this reason, and they are still effective today. 
5. An Attractive Gold Investment Option

If you are in the market for gold bullion coins, the variety available from Britain can be amazing. These coins contain beautiful and detailed artwork and are enjoyable to look at as well as to own. 
6. Easily Stored and Secured 
As far as gold investments go, British Crown coins can be transported, secured, and stored easily and with very little space required. This is also true of other gold coin types, and many investors prefer these coins over bars because of this factor. 
7. High Degree of Liquidity 
When you buy British gold coins, you are also getting an incredible level of liquidity. Because these coins are so popular it is easy to locate a buyer and sell them in no time. 
8. More Stable than A Stock Investment

An investment in British Crown coins can offer you a much higher degree of stability than investing your money in stocks. Gold coins do not usually experience wide market swings and high volatility the way that stocks do, making them a better choice for many investors. 
9. May Include Tax Advantages For Many Investors 
British Sovereign gold coins, and certain other specific gold coin types, can offer you a number of tax advantages for your investing. 
10. Highly Valued By Investors 
One of the biggest reasons of all to choose British Crown coins is that these coins are very highly valued by investors. This makes them an ideal choice in most circumstances. 

Thursday, November 18, 2010

eldora development environmentally safe gold recovery technology

Environmentally Safe Gold Recovery Technology ... Our technology has no up-front cost to the client due to the low capital cost of the equipment. Eldora Gold will start by ...