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A 107pc return in six months: Gold funds storm 2016 performance tables

Posted on 27 May 2016 by VRS  |  Email |Print

Specialist gold funds have clocked up incredible gains since the start of the year, with some doubling investors’ money. The rally, thanks to a 20pc rise in the gold price, puts them among the best performers of the 3,500 or so collective investments available to British investors.
Investec Global Gold, MFM Junior Gold, Ruffer Gold and Blackrock Gold & General are all among the top performers, while WAY Charteris Gold & Precious Metal and the Smith & Williamson Global Gold & Resources fund have also delivered stand-out performance………………………………………..Full Article: Source

Top 10 Countries With The Largest Gold Reserves

Posted on 27 May 2016 by VRS  |  Email |Print

Beginning in 2010, central banks around the world turned from being net sellers of gold to net buyers of gold. Last year they collectively added 483 tonnes—the second largest annual total since the end of the gold standard—with Russia and China accounting for most of the activity. The second half of 2015 saw the most robust purchasing on record, according to the World Gold Council (WGC).
Not every top bank is a net buyer. The Bank of Canada has liquidated close to all of its gold, mainly in coin sales, while Venezuela is in the process of doing the same to pay off its debts, but most of the world’s central banks right now are accumulating, holding and/or repatriating the precious metal………………………………………..Full Article: Source

Should you start hoarding gold? Some say China’s gold ambitions mean you should keep some stashed at home

Posted on 27 May 2016 by VRS  |  Email |Print

China’s decision to buy its second gold storage vault in London last week was another step towards total dominance of the market. The vault is in a secret location and was bought by Chinese state-owned bank ICBC Standard Bank from Barclays. It could store $90bn of gold at today’s prices, and follows the purchase of a lease on another vault in the capital earlier this year from Deutsche Bank.
London has been a hub for metals investment for hundreds of years, but times have changed and the big banks are pulling back from trading them. Now China is pushing into the gold market in a big way. The reasons why are unclear, and gold continues to spawn more conspiracy theories than the moon landing, but what is known is that China has been amassing the yellow metal at a rapid pace over the last decade………………………………………..Full Article: Source

Gold likely to see speculative unwinding: S&P Global Platts survey

Posted on 27 May 2016 by VRS  |  Email |Print

Market participants expect the US dollar gold price to head lower over the next week, with signals from the US Federal Reserve on a possible rate hike and speculative unwinding the likely key drivers, the S&P Global Platts Gold Sentiment Survey indicated this week.
The poll of 20 industry participants showed that the majority of those who responded were bearish on the outlook for the gold price over the course of the coming week. This is the second week of the market being polled, and like the first week it shows lower price forecasts………………………………………..Full Article: Source

New global precious metals code created - LBMA

Posted on 27 May 2016 by VRS  |  Email |Print

A new code for precious metals has been created that will apply to all precious metals markets participants and will provide guidance for best practice, the London Bullion Market Association (LBMA) said. The new code will replace the Bullion Market annex currently within the Non-Investment Products (NIPs) code, it said in a release on Thursday.
The final global Foreign Exchange Code will be published in May 2017 and it will replace the FX element of the NIPS code, which focuses on best practice in the global wholesale foreign exchange markets, it added. The new FX Code is being jointly produced by central banks and market participants………………………………………..Full Article: Source

Platinum and Palladium: Are They Following the Fall in Gold?

Posted on 27 May 2016 by VRS  |  Email |Print

Platinum and palladium are exclusively used in emission-curbing autocatalysts. Those demands impact the price direction for these metals. Platinum has increased approximately 13% year-to-date. Palladium, however, has erased its losses from 2015 and now has a year-to-date loss of 2.7%.
The last month has adversely impacted palladium, which fell about 9.8%. Platinum fell a marginal 0.14%. The beginning of the year remained slow for palladium. This is likely due to industrial metals rather than precious metals. The volatility in palladium is close to 31%, while platinum’s volatility is around 23%. Palladium is the most volatile among the four precious metals………………………………………..Full Article: Source

Precious Metal Miners Slide alongside Precious Metals

Posted on 27 May 2016 by VRS  |  Email |Print

Precious metal miners have been following metals fairly closely. Miners are often known to amplify the returns of previous metals, as they take directional moves from these metals. Because 2016 brought positive sentiment for precious metals due to increased safe-haven bids, miners also recovered their 2015 losses.
However, these metals have been pulled back, and the losses in mining stocks are once again amplified. Royal Gold (RGLD), GoldCorp (GG), Gold Fields (GFI), and Alacer Gold (ASR) rose by 53.7%, 45.2%, 30%, and 24.3%, respectively, on a YTD (year-to-date) basis. Crucial contributors to the miners’ rally in 2016 have been safe-haven bids on gold and silver………………………………………..Full Article: Source

The top 10 countries with the largest gold holdings

Posted on 26 May 2016 by VRS  |  Email |Print

Beginning in 2010, central banks around the world turned from being net sellers of gold to net buyers of gold. Last year they collectively added 483 tonnes—the second largest annual total since the end of the gold standard—with Russia and China accounting for most of the activity. The second half of 2015 saw the most robust purchasing on record, according to the World Gold Council (WGC).
Not every top bank is a net buyer. The Bank of Canada has liquidated close to all of its gold, mainly in coin sales, while Venezuela is in the process of doing the same to pay off its debts………………………………………..Full Article: Source

Get into gold now! Prices could hit $1,900

Posted on 26 May 2016 by VRS  |  Email |Print

Gold’s losing streak continued on Tuesday as the precious metal tumbled to its lowest level in more than five weeks. However, one of Wall Street’s most closely followed analysts says the dip presents a prime buying opportunity and that bears are reading the market incorrectly.
“This is just the beginning of a new bull market in the metals,” the Lindsey Group’s chief market analyst Peter Boockvar told CNBC’s “Futures Now” on Tuesday. Ultimately, Boockvar believes that the 2011 highs of around $1,900 for gold are not only reachable, but surpassable, as reasoned that bull markets historically exceed the previous bull market peak at some point………………………………………..Full Article: Source

Gold price setback temporary: ABN Amro

Posted on 26 May 2016 by VRS  |  Email |Print

Gold is enduring some rare price weakness thanks to dollar strength, but this should prove transient, according to Dutch bank ABN Amro. Prices fell again on Tuesday, coming under pressure from a stronger dollar amid rising expectations of an interest-rate rise this year in the US.
However, Georgette Boele, ABN’s coordinator of precious metals and FX strategy writes that there are a “wide variety of drivers” for prices, and not the dollar alone. “We think that the recent set-back in gold prices is temporary… and drivers will turn more positive again… leading to higher gold prices later this year and next year,” she says………………………………………..Full Article: Source

An Inside Look at the World’s Biggest Paper Gold Market

Posted on 26 May 2016 by VRS  |  Email |Print

Every day, there are a whopping 5,500 tonnes ($212 billion) of gold traded in London, making it the largest wholesale and over-the-counter (OTC) market for gold in the world.
To put that in perspective, more gold is traded in London each day than what is stored at Fort Knox (4,176 tonnes). On a higher volume day, amounts closer to total U.S. gold reserves (8,133.5 tonnes) can change hands. How is this possible? The infographic below tells the story about gold’s foremost trading hub, as well as the paper gold market in London, England……………………………………….Full Article: Source

The easiest way to buy gold is actually backed by the real thing

Posted on 26 May 2016 by VRS  |  Email |Print

The largest gold exchange-traded fund (ETF) says it has the physical gold to back up every share it issues. Because investors don’t buy physical gold when they purchase shares in the ETF, there’s been concern that the fund does not.
The SPDR Gold Trust exchange-traded fund, which uses the ticker ‘GLD,’ launched in 2004. In part, it serves as a cheaper alternative to investing in the physical metal. It is sponsored by the World Gold Council, which has oversight over the Bank of New York Mellon as a trustee………………………………………..Full Article: Source

Is gold THE investment of 2016?

Posted on 25 May 2016 by VRS  |  Email |Print

Suddenly there’s a real buzz about gold. There’s something about the ancient precious metal that taps deep into human psychology, and it doesn’t take much to get gold bugs flying again. There’s something about George Soros that taps deep into investor psychology as well. This is the man who famously broke the Bank of England in 1992, and holds an estimated $24bn fortune, which always commands attention.
Soros recently bought bullish options contracts on 1.05m shares in the SPDR Gold Trust, that tracks the price of bullion, and took a $264m stake in the Barrick Gold Corp. So why the sudden razzle-dazzle?……………………………………….Full Article: Source

Why the Fed might not be able to put a stop to gold’s run

Posted on 25 May 2016 by VRS  |  Email |Print

Gold has enjoyed a great start to 2016, but now finds itself in retreat, with the yellow metal hitting the lowest level since April in intraday trading Monday. But while the greater perceived potential for a Federal Reserve rate hike this summer appears to be sending the commodity lower, some say such speculation is not a good reason to sell gold.
“If you look at gold on a very long-term basis, there is literally very little correlation between interest rates and gold,” Boris Schlossberg said Monday on CNBC’s “Power Lunch.” “Basically, gold rose when interest rates rose in the ’70s, gold rose when interest rates declined in the ’90s,” so the likely effect of Fed rate rises isn’t straightforward………………………………………..Full Article: Source

Gold – Bullish combination could prevail

Posted on 25 May 2016 by VRS  |  Email |Print

Gold rallied 16 percent in the first three months of 2016 after falling about 10 percent in 2015. Factors in the rise included higher risk aversion, downward revisions to the Fed’s tightening cycle and brighter sentiment across commodities.
While we expect gold to strengthen further and range between $1,180 and $1,325 in the second quarter because these positive drivers may endure, we expect downward pressure to re-emerge later in 2016 stemming from a stronger dollar and rising US real interest rates………………………………………..Full Article: Source

Where Are Silver Prices Headed?

Posted on 25 May 2016 by VRS  |  Email |Print

Investors keeping up with today’s silver prices had a rare down week last week, as the price of the iShares Silver Trust (NYSE Arca: SLV), a proxy for the price of silver, slid from $16.41 on May 17 to close at $15.69 on May 20. So where are silver prices headed next in 2016?
The slide marks a rare set of consecutive down days this year, as the white metal has enjoyed a major bull market in 2016. The price of silver rose 27% from January to April, beating gold’s climb by 7%. ……………………………………….Full Article: Source

Platinum and Palladium (PGMs) forecast and analysis for Q2 2016

Posted on 25 May 2016 by VRS  |  Email |Print

The PGMs were highly volatile in the first quarter, with platinum closing 9.5 percent higher after falling 26 percent last year and palladium ending flat after dropping 29 percent in 2015. Platinum should continue to perform relatively better than palladium although upward pressure should be limited amid poor investment demand.
Overall trend – Platinum and palladium sold off sharply in January before recovering in February and March. We expect modest upward pressure on PGMs in the second quarter, with platinum ranging between $920 and $1,040 and palladium between $550 and $650………………………………………..Full Article: Source

Jim Rickards makes the case for gold at $10,000 US an ounce

Posted on 24 May 2016 by VRS  |  Email |Print

Gold is often seen as a safe investment in times of economic uncertainty, and prominent investors, such as George Soros, are placing big bets on the precious metal. Gold prices of have been surging lately and gold stocks are among the top performers in 2016.
In his new book The New Case for Gold, Wall Street veteran Jim Rickards explains why he expects the current world monetary regime to fail and why he sees bullion heading to $10,000 US an ounce. The current increase in the dollar price of gold reflects the decline of the U.S. dollar, Rickards said during a recent interview with Peter Armstrong, host of The Exchange on CBC News Network………………………………………..Full Article: Source

This could send gold tumbling below $1,000 again, Citi says

Posted on 24 May 2016 by VRS  |  Email |Print

Investors could be forgiven for not being able to recall the last time gold prices traded below $1,000-an-ounce, considering they’d have to scroll back to September 2009 before running into that level. But don’t think gold is so far removed from that sub-$1,000 level that it can’t revisit that nadir in short order, warned analysts at Citigroup in a note on Monday. And they said it’s all about the dollar.
“We see no reason why gold should not once more trade at $1,050/oz if US$-DXY rises back to the 100-level (now 95.3). Nor do we see anything to prevent gold falling below $1,000/oz if US$-DXY rises above the 100-level,” said the analysts………………………………………..Full Article: Source

Avoid gold until Fed moves: Gartman

Posted on 24 May 2016 by VRS  |  Email |Print

Owning the metal in dollars will be for the brave until the US central bank pulls the interest rate trigger, the respected US investor says. Those trading gold should probably do it in something other than dollars while the theme of higher US rates plays out.
That’s the view of Dennis Gartman, US investment guru and publisher of The Gartman Letter. “If you have to trade gold, stay on the sidelines in terms of US dollars,” he says on Monday. While owning gold in non- dollar terms, particularly in yen and euros, he feels a rising dollar will continue to put a ceiling on gains………………………………………..Full Article: Source

Gold Fever: Why Investors Rush to Buy Gold

Posted on 23 May 2016 by VRS  |  Email |Print

Demand for gold rose by 21 percent in the first quarter of 2016. Recently, billionaire George Soros invested nearly $390 in gold stocks, having decreased investments in other assets. Shortly after, large hedge-funds followed the example of the legendary US investor.
Between January and March 2016, Soros Fund Management established by George Soros increased investments in gold market assets, according to the company’s data. Particularly, the fund bought shares worth $264 million in Canada’s company Barrick Gold, one of the world’s leading gold producers. It also bought an option for nearly 1.05 million shares ($123 million) in SPDR Gold Trust, the world’s biggest gold exchange fund………………………………………..Full Article: Source

Why gold makes sense for investors

Posted on 23 May 2016 by VRS  |  Email |Print

The price of gold rose more in the first quarter of 2016 than during any quarter since the third quarter of 1986. As a result, should advisers be educating their clients about including this rather unique commodity as part of their investing tool box, particularly now that a variety of gold ETFs are so readily available?
Gold doesn’t pay a dividend or yield interest, nor does it convey partial ownership of an enterprise that may increase in value. However, there are times when gold can play an important role in a diversified portfolio. It can serve as a leading indicator of future inflation. It can be a defensive asset to hold during periods of economic and market anxiety………………………………………..Full Article: Source

When’s it safe to buy gold? After the Fed hikes, Gartman says

Posted on 23 May 2016 by VRS  |  Email |Print

Something strange is happening right now in the gold market, and it has commodities investor Dennis Gartman erring on the side of caution. Gold ended Friday with its biggest weekly drop in two months, and its third straight week of losses. Conversely, the dollar saw its third straight week of gains following comments from New York Federal Reserve President William Dudley.
The central banker indicated that markets were underestimating the likelihood of an interest rate increase in June or July. The backdrop suggests investors may be positioning themselves for higher rates—a possibility not lost on Gartman, who has taken note of some interesting movements in the yellow metal………………………………………..Full Article: Source

After the gold rush — Paul Rollinson

Posted on 23 May 2016 by VRS  |  Email |Print

When Paul Rollinson took over as chief executive of Kinross Gold four years ago the end was in sight for the biggest gold boom in history — and for some of the people who were part of it. After rising 500 per cent in a decade, the market price of the precious metal had peaked. In the rush to exploit the boom, mining investments and costs had spun out of control.
Investors in gold miners such as Kinross, which had lavished $11bn on acquisitions in six years and was already writing off part of that spending, were in revolt. Tye Burt, Mr Rollinson’s predecessor, was among a score of mining chief executives to lose their jobs………………………………………..Full Article: Source

Huge Trend Changes Point To Something Big In The Gold Market

Posted on 20 May 2016 by VRS  |  Email |Print

Very few precious metals investors realize how recent trend changes will greatly impact the gold market going forward. The reason many investors fail to grasp the huge change in the gold market is that they look at data or information on an individual basis. To really understand what is going on, we must look at how all segments of the market compare to each other… a BIRD’S EYE VIEW.
Let’s start off with one segment of the gold market that has changed significantly in the past 15 years. The Global Gold Hedge Book hit a peak of nearly 3,100 metric tons (mt) in 1999: Here we can see that after the Global Gold Hedge Book peaked in 1999, it fell to a low at a little more than 100 mt in 2013………………………………………..Full Article: Source

Gold Bulls Could Lead M&A Stampede

Posted on 20 May 2016 by VRS  |  Email |Print

Gold producers have a new spring in their step following a rebound in the value of the precious metal, and it is an optimism that could trigger deals. The price of gold has risen more than 18% since the turn of the year, filling the coffers of producers whose balance sheets had already been strengthened by a focus on debt repayments and years of cost cutting following a downturn in prices in 2013.
“Gold has been one of the best performing commodities this year, as investors have sought safe havens amid equity market volatility and as expectations of a US rate hike have been pushed out,” Goldman Sachs analysts noted in a report that upgraded their gold price forecasts to $1,200 an ounce by the end of the year, up 4%………………………………………..Full Article: Source

Positive on precious metals, see gold at $1370 by 2017 end: ABN

Posted on 20 May 2016 by VRS  |  Email |Print

Financial markets had not anticipated a rate hike in June and the US dollar has moved high while some of the commodity prices have been under pressure on the back of this news, says Georgette Boele of ABN AMRO Group.
Global equity and commodity indices witnessed volatile trade today after US Federal Reserve officials hinted at a possible rate hike in June if economic growth and other data signals continue to strengthen in the second quarter. Financial markets had not anticipated a rate hike in June and the US dollar inched higher while some commodity prices have been under pressure on the back of this news, says Georgette Boele of ABN AMRO Group………………………………………..Full Article: Source

Silver Prices Rising in 2016 – and Will Continue

Posted on 20 May 2016 by VRS  |  Email |Print

Silver may not be as scarce as gold, but its attractiveness to investors has been gaining momentum in 2016. Many are asking why are silver prices rising, and the answer is twofold.
Silver prices are up after several years of declines due to a host of economic factors combined with a surge in demand for the product. Here is a more in-depth discussion of those elements that answers the question: “why are silver prices rising?”……………………………………….Full Article: Source

Gold’s Glow Could Continue To $2,000 - Gerald Celente

Posted on 19 May 2016 by VRS  |  Email |Print

Gold continues to shine, up some 20% year-to-date, and one famed trends forecaster remains positive on the metal. “We maintain our forecast that should gold stabilize above $1,400 per ounce, we anticipate a sharp gold spike toward $2,000,” says Gerald Celente in a research note Wednesday.
”With gold demand up some 21 percent this year, according to the World Gold Council, and gold prices up over 20 percent since the start of the year, even the banksters see gold glowing.” After hitting $1,300 an ounce earlier this month, gold futures have struggled to breach above that level with June gold last trading at $1,274 an ounce, down $2.90 on the day………………………………………..Full Article: Source

Gold Prices: One Big Reason Why $2,000 Gold Could Be Possible

Posted on 19 May 2016 by VRS  |  Email |Print

Something just happened in the gold market that suggests gold prices are severely undervalued. Don’t expect to read this in the mainstream financial publications. Gold buyers are increasing in numbers.
You see, in 2013, when the precious metal’s prices were plummeting (for all the wrong reasons as I see it), the mainstream media told investors that buyers would be running from gold. Big investment companies said gold prices would fall further. They were all wrong………………………………………..Full Article: Source

Why Silver Prices Fluctuate

Posted on 19 May 2016 by VRS  |  Email |Print

Silver prices have been very bullish in 2016. They have risen a very healthy 20% year to date, despite short-term pullbacks in late April and early May. The five-year silver bear market of 2010-2015 appears to be over.
But run-ups and pullbacks both cause investor concern. How far up is up? Why are silver prices so strong? Are pullbacks harbingers of long-term declines? Why do the prices fluctuate, either up or down? We’ll answer these silver price questions for you today – let’s take a look………………………………………….Full Article: Source

Soros and Paulson go head-to-head in the gold market

Posted on 18 May 2016 by VRS  |  Email |Print

From two of the world’s most renowned billionaire investors, George Soros and John Paulson, there can be only one winner. Soros, via his Soros Fund Management portfolio, has piled back into the gold markets, while notorious gold bull Paulson has gone the other way.
Paulson’s New York-based hedge fund, Paulson & Co, cut its investment in the world’s largest gold exchange traded fund (ETF), the SPDR Gold Trust, by 17%. He’s been closely followed ever since he made a staggering US$5bln on the precious metal back in 2010………………………………………..Full Article: Source

Moody’s predicts gold price will remain volatile, despite recent rally

Posted on 18 May 2016 by VRS  |  Email |Print

Following Moody’s large-scale review of the global mining sector in January, the ratings agency expected the price of gold to remain volatile. In a report released on Tuesday, Moody’s anticipated capital spending for gold miners – which fell to $8-billion in 2015 from $23-billion in 2012 – to remain at diminished levels.
With the steady decline of gold prices since a peak at nearly $1 900/oz in 2011, producers adjusted their strategies to address debt levels and spending in an effort to respond to the new gold price environment………………………………………..Full Article: Source

Gold Investment Surge ‘Marks Major Price Low’

Posted on 18 May 2016 by VRS  |  Email |Print

Gold investment prices slipped to 3-session lows beneath $1270 per ounce in London trade Tuesday, retreating 1.4% from yesterday’s 1-week high as Western equities failed to follow China’s stock market higher. Silver also erased Monday’s pop higher, trading unchanged in Dollar terms from the end of last week at $17.13 per ounce.
“Major lows achieved across the complex,” says a new chart book from the technical analysis team at French investment and London bullion bank Societe Generale – calling December 2015’s gold price low a “major bottom” at $1045 per ounce. “Short term though, a shaky configuration [is] expected.”……………………………………….Full Article: Source

China’s biggest bank just bought a vault that holds 2,000 tons of gold in a secret location near London

Posted on 18 May 2016 by VRS  |  Email |Print

ICBC Standard Bank Plc expanded its push into London’s precious metals market by agreeing to buy one of Europe’s largest vaults from Barclays Plc. ICBC Standard, formed last year after Industrial and Commercial Bank of China Ltd. — China’s biggest bank — bought a controlling stake in Standard Bank Plc’s global markets business, expects the purchase of the vaulting business and related contracts to be completed in July.
No financial details were given. About US$5 trillion of transactions are cleared every year in London’s gold market, which Barclays is exiting as it pulls out of precious metals………………………………………..Full Article: Source

How much gold is there in London - and where is it?

Posted on 18 May 2016 by VRS  |  Email |Print

The world’s biggest bank has agreed to buy a vault for gold and precious metals in London. But how many of these vaults are there, and how much gold do they hold? The streets of London may not be paved with gold, but there is certainly a huge amount stored underneath them. About 6,500 tonnes is stored in seven vault-systems under the city.
The largest by far lies in the Bank of England. It holds three-quarters of the gold in London, or 5,134 tonnes. Most of the gold is stored as standard bars weighing 400 troy ounces (12.4 kg or 438.9 ounces) - there are about 500,000 of them, each worth in the region of £350,000………………………………………..Full Article: Source

Funds rushed back into gold as prices surged in Q1 - 13F filings

Posted on 17 May 2016 by VRS  |  Email |Print

Billionaire financier George Soros and other big investors have returned to gold for the first time in years, U.S. Securities and Exchange Commission filings showed on Monday, a move which spurred a rally to 12 month highs.
Institutional and retail buying has propelled prices to fresh one-year highs of $1,303 an ounce this month. In the first quarter, Soros, who once called gold “the ultimate bubble,” returned to gold after three years, with 1.05 million shares in SPDR Gold Trust, the world’s biggest gold exchanged-traded fund (ETF), valued at about $123.5 million………………………………………..Full Article: Source

Gold Price Trades Up to 2016 Highs

Posted on 17 May 2016 by VRS  |  Email |Print

Gold Prices rose to 1-week highs in London bullion trade Monday, touching $1288 per ounce as China’s stock markets held flat overall but New York equities pointed lower with UK shares as half of Europe stayed shut for the Whit Monday holiday.
Silver just outpaced the rise in gold prices, gaining 1.2% from the close of Friday’s US trade but only to two-session highs of $17.38 per ounce. Recovering 2.4% from last week’s lows versus the Dollar, the gold price also rose against all other major currencies, reaching the highest level against the Euro at €1135 since March’s retreat from 13-month highs………………………………………..Full Article: Source

The volatile gold play that’s nearly doubled this year

Posted on 17 May 2016 by VRS  |  Email |Print

Can you dig it? This year’s best-performing exchange-traded funds are all gold plays. Among ETFs with more than $500 million in market value, the top dog is triple-leveraged gold miners product (NUGT), with an insane 315 percent rally.
But nipping at its heels is unleveraged gold mining pick (GDXJ), which tracks smaller, or “junior” gold miners, which tend to be more volatile. That ETF is up 98 percent this year, outperforming its bigger brother (GDX), which is also a VanEck Vectors product. What’s incredible is that even after nearly doubling this year, the GDXJ is still down 73 percent over the past five………………………………………..Full Article: Source

Paulson cut gold bets again as Soros, others rushed back

Posted on 17 May 2016 by VRS  |  Email |Print

Gold bull John Paulson slashed his bets on bullion while billionaire investor George Soros and other big funds returned to the metal for the first time in years, filings showed on Monday, as prices staged their biggest rally in nearly 30 years.
New York-based hedge fund Paulson & Co, led by John Paulson, one of the world’s most influential gold investors, slashed its investment in SPDR Gold Trust, the world’s biggest gold exchanged-traded fund (ETF), by 17 percent to 4.8 million shares, U.S. Securities and Exchange Commission filings showed on Monday………………………………………..Full Article: Source

Silver Prices per Ounce Will Be Determined by These Three Factors in 2016

Posted on 17 May 2016 by VRS  |  Email |Print

Over the past trading week, silver prices per ounce have been in an ongoing battle with the U.S. Dollar Index (DXY). Late last month, we saw the silver price flirt with the $18 level. It has since backed down but has continued to trade in a relatively narrow range between $16.80 and $17.50.
But we’ve recently witnessed some strength in the U.S. Dollar Index (DXY), which arguably became somewhat oversold in early May. It’s bounced back 1.7% so far this month. That’s been the biggest headwind facing silver prices right now. And by many accounts, it may not be over yet………………………………………..Full Article: Source

Palladium and platinum to fall short of highs this year

Posted on 17 May 2016 by VRS  |  Email |Print

Prices of precious metals platinum and palladium are likely to peak this year, as the market lacks the support that gold draws from investors, a survey said on Monday at the start of London’s annual platinum week.
Both metals, which are used in auto catalysts as well as in jewellery, are likely to fall short of their 2014 highs, according to Metals Focus, a leading metals consultancy. “Ultimately, neither the fundamental market conditions nor the investor activity that would be needed to drive a more decisive bull market seem likely to emerge over the next few months,” Metals Focus said………………………………………..Full Article: Source

ICBC Standard Bank to buy Barclays’ precious metals vault

Posted on 17 May 2016 by VRS  |  Email |Print

China’s ICBC Standard Bank said on Monday that is has agreed to buy Barclays’ London precious metals vaulting business as it moves to expand its capabilities in precious metals clearing and storage services.
The agreement, which is due to close in July, will make ICBC Standard the only Chinese bank to operate a vault in London, a key trading and storage centre for precious metals. The facility, used to store gold, silver, platinum and palladium, is one of the largest in Europe………………………………………..Full Article: Source

Gold prices could hit $US1400 by year’s end

Posted on 16 May 2016 by VRS  |  Email |Print

US gold prices are up 17 per cent since the start of the year and if the pundits are right, prices could be knocking on the door of $US1400 ($1917) an ounce come the end of the year.
Canada’s BMO Capital is among those that reckon the charge from the current spot price of $US1272 an ounce to the $US1400 an ounce level is on the cards, saying it is predicated on uncertainty in the global economy persisting through the remainder of the year. That will drive incremental “safe haven’’ demand………………………………………..Full Article: Source

Goldman Sachs increases its gold price forward estimates

Posted on 16 May 2016 by VRS  |  Email |Print

Goldman Sachs has consistently predicted the price of gold is going lower. Last week, the broker raised its price target on the precious metal to trade at an average of US$1,200 per ounce in three months, up from its previous forecast of US$1,100 an ounce.
Looking further ahead, the broker now forecasts US$1,180 an ounce in six months (from US$1,050 an ounce), and then US$1,150 an ounce in 12 months’ time (from US$1,000 an ounce). Gold is up 20% so far in 2016………………………………………..Full Article: Source

Hedge Funds Keep Betting on Silver Even as Rally Starts to Fade

Posted on 16 May 2016 by VRS  |  Email |Print

Hedge funds expanded their bullish bets on silver to an all-time high even as this year’s hottest metals rally began to fade. Money managers added to their net-long positions in silver for the fourth time in five weeks, chasing the kind of returns that in the first three months of the year sent the precious metal to its best quarterly gain since 2012.
The price surge is showing signs of fatigue, with futures posting two consecutive weekly declines and an almost 4 percent drop for May. Silver leapfrogged gold in mid-April as the best-performing precious metal as data signaled a resilient U.S. expansion and a stabilizing Chinese economy………………………………………..Full Article: Source

China goes cold on platinum jewellery, crimping world demand

Posted on 16 May 2016 by VRS  |  Email |Print

China’s penchant for luxury platinum jewellery is fading despite lower global prices, leaving world demand for the metal exposed to sharper decline. China is by far the biggest market for platinum jewellery, making up more than 60 percent of global manufacturing use for the white metal in 2015.
A close to double-digit drop in Chinese platinum jewellery demand is expected this year, GFMS analysts said ahead of the industry gathering London Platinum Week, which starts on Monday. This follows a seven percent drop in Chinese buying in 2015 fed into a four percent decline in global demand for jewellery made from the metal………………………………………..Full Article: Source

Platinum and palladium markets to go into deficit in 2016: GFMS

Posted on 16 May 2016 by VRS  |  Email |Print

There is good news on the horizon for investors of platinum group metals (PGMs), though a reader has to scrutinize the fine print in the latest report from GFMS to find it. The GFMS team at Thompson Reuters released their annual GFMS Platinum Group Survey 2016 (registration required) last week.
In it, GFMS forecasts the platinum market will return to a small deficit in 2016 and the deficit in palladium will deepen, with the chief determinant of lowered supply for platinum being a reduction in mined metal. “There will be little addition from new projects in the development pipeline while the headwinds of mines’ reduced capital spending is expected to start to weigh,” say the report’s authors………………………………………..Full Article: Source

Price of Gold Will Rally in 2016 Thanks to These 2 Bullish Trends

Posted on 13 May 2016 by VRS  |  Email |Print

There are two reasons why prices will continue higher in 2016. But first, here’s the newly revealed trend that’s pushing the gold price higher today…This Is Why the Price of Gold Is Surging in 2016: A report from the World Gold Council (WGC) today shows gold demand is rising faster than ever.
During the first three months of 2016, demand for the metal soared 21%. Investors piled into gold due to worries of a global slowdown and market volatility. Gold demand in Q1 2016 totaled 1,289.90 tons. That’s a huge 21% increase from 1,070.40 tons last year………………………………………..Full Article: Source

2016 gold price rally’s all about ETFs, hedge funds

Posted on 13 May 2016 by VRS  |  Email |Print

On Wednesday, gold snapped back some of its recent losses adding nearly $10 in New York in another day of brisk trading. At $1,275 an ounce, gold is up just over 20% since the start of the year. A new study shows the rally – the best start to the year in almost three decades – has been almost entirely driven by investors in physical gold-backed exchange traded funds and large-scale futures speculators like hedge funds.
According the the World Gold Council’s Gold Demand Trends study ETF investors who’ve been stocking up on the metal right out of the gate in 2016 were behind the best ever first quarter for the metal and the second largest quarter on record after Q1 2009………………………………………..Full Article: Source

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