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Commodities Briefing - Category | Bullion/Gold more

Gold-silver price ratio may fall as gold cools faster

Posted on 23 September 2014 by VRS  |  Email |Print

The price of gold might fall more than that of silver this year, taking the price ratio between the two precious metals back towards its five-year average. Gold has been on a downtrend as pickup in global economies has reduced demand for this safe asset. This may offer music to the ears of Indian consumers, as they begin to purchase jewellery for the festival and marriage seasons.
ET data show the gold-silver ratio averaged 55.71 in the five years through end-2013. This means 55.71 kg of silver is needed to purchase a kilogram of gold. But, year-to-date, this ratio has climbed to 65.26, as silver has become more undervalued. The ratio was calculated based on average annual prices of front month gold and silver contracts on Multi Commodity Exchange………………………………………..Full Article: Source

Gold bullion offer prompts investment warning

Posted on 23 September 2014 by VRS  |  Email |Print

Investment analysts have urged investors to be cautious after the Royal Mint launched a new website selling gold and silver coins. On offer are single gold Sovereigns costing £197, larger gold Britannias at £800 and £19 silver coins.
The Mint is trying to expand the bullion business by selling what it calls “relatively affordable” coins online. It is also offering to store them for larger investors. The World Gold Council has estimated that there is a £4bn untapped market for gold among savers in the UK………………………………………..Full Article: Source

Gold eyes 1175 as USD does it like 2005

Posted on 23 September 2014 by VRS  |  Email |Print

Gold’s 10% decline to fresh 8-month lows from its July highs and its 16% drop from its August 2013 highs, and intensified in late August as the end of the Fed’s QE3 became inevitable. The simultaneous rally in bond yields and the US dollar since early September helped accelerate gold’s downward momentum below $1270 to reach a new low for the year at $1208. Considering the US dollar is rallying in ways not seen since 2005, gold weakness is here to stay.
The current dollar momentum continues to show signs of a rally not seen since 2005. Why 2005? Back then, the US dollar index, as measured by the 6-currency basket of EUR, JPY, GBP, CAD, CHF & SEK, rallied against each of those two currencies, particularly the Japanese yen………………………………………..Full Article: Source

Gold Mining “Hurt Long-Term”, Output “Peaking in 2014″

Posted on 23 September 2014 by VRS  |  Email |Print

Gold mining output worldwide is set to peak and then “plateau” in 2014, according to the leading data analysts, as today’s lower prices force producers to cut exploration spending in a bid to boost profit margins. “It seems inevitable,” says the new Gold Survey 2014 Update from Thomson Reuters GFMS, that the mining industry’s response to 2013’s gold price crash “will be detrimental to mine supply levels in future years.”
Forecasting a 10% drop in the average market price to $1270 per ounce for full-year 2014 (currently at $1290), “The mining sector is increasing production this year,” says the consultancy, “with a number of important projects coming into production and/or ramping up to full capacity, having benefited from investment flows in earlier years when prices were much higher.”……………………………………….Full Article: Source

Silver hammered to 4-year low as gold and base metals retreat

Posted on 23 September 2014 by VRS  |  Email |Print

Silver prices slid to their lowest in four years on Monday, with the prospect of rising U.S. interest rates undermining precious metals and industrial commodities dented by worries over Chinese demand.
Caught on both counts with dual roles as an industrial metal, widely used in electronics, and as an investment vehicle, silver tumbled more than 3 percent in just 40 minutes in early Asian trade to hit its lowest since mid-2010 at $17.30 an ounce………………………………………..Full Article: Source

Gold Bulls Extend 2014 Exit as Slump Erases $6.7 Billion

Posted on 22 September 2014 by VRS  |  Email |Print

Hedge funds extended this year’s longest exit from bullish gold bets as slumping prices and investor outflows since June erased $6.7 billion from the value of exchange-traded funds backed by the metal.
The net-long position in New York futures and options fell for a fifth straight week, with speculators boosting short bets to the highest since June, U.S. government data show. Investors sold 7.75 metric tons of gold held in ETPs last week, sending holdings to the lowest in five years………………………………………..Full Article: Source

“Gradual” Gold Bull Market to Start 2015, “Next Floor at $1200″ Says GFMS

Posted on 22 September 2014 by VRS  |  Email |Print

Gold’s decade-long bull market is set to resume in 2015, albeit “gradually” from a new bottom according to a new forecast from the market’s leading data analysts, Thomson Reuters GFMS. Thanks to gold’s rally over the first half of 2014 from $1200 to $1400, the consultancy says today in the first Update to its Gold Survey 2014, “Price sensitive [consumer] markets have seen sales slow.
“We believe it will take prices in a $1200-1250 range in order for physical buying from Middle Eastern, East and South East Asian markets to begin to increase.” Low volatility and gold’s tightening price range form “the other defining feature” of the 2014 market to date, GFMS adds, noting that volatility on a 100-day basis has fallen to its second-lowest level since 2005, “undermin[ing] trade volumes.”……………………………………….Full Article: Source

Gold prices tumble, ‘no compelling reason’ to buy

Posted on 22 September 2014 by VRS  |  Email |Print

Hedge funds extended this year’s longest exit from bullish gold bets as slumping prices and investor outflows since June erased $US6.7 billion from the value of exchange-traded funds backed by the metal.
The net-long position in New York futures and options fell for a fifth straight week, with speculators boosting short bets to the highest since June, US government data show. Investors sold 7.75 metric tons of gold held in ETPs last week, sending holdings to the lowest in five years………………………………………..Full Article: Source

India: 40 Years Ago…and now: Gold - From control to seamless trade

Posted on 22 September 2014 by VRS  |  Email |Print

In 1963, when then finance minister Morarji Desai banned gold futures, as part of the Gold Control Act, members of the Bombay Bullion Association didn’t know what hit them. In the crisis that followed, the association had to sell its front building at Zaveri Bazaar to pay for its members’ losses.
The Gold Control Act was in place between 1963 and 1990. It was implemented following the Indo-China war, owing to a felt need to control foreign exchange outflows. The Act allowed individuals and families to only hold up to two and four kg of gold, respectively and only in the form of jewellery. One required a licence to open a jewellery shop or make jewellery………………………………………..Full Article: Source

China’s long term gold plans

Posted on 22 September 2014 by VRS  |  Email |Print

The launch of Shanghai Gold Exchange trading yuan denominated contracts in the China (Shanghai) Pilot Free Trade Zone Thursday, which has enabled foreign investors to invest in China’s physical gold bullion market, is yet another one of China’s overt moves to dominate the global gold sector long term.
It may make a slow start but aims to become the world’s biggest physical gold exchange and is thus is in itself a move towards reducing the influence of COMEX and the LBMA on global gold trade and pricing and move the centre of gravity for this eastwards. Similar moves to set up new international gold contracts in Singapore and Hong Kong will further accelerate the move in gold trade to east Asia………………………………………..Full Article: Source

China Opens Gold Market to Foreigners Amid Price Ambition

Posted on 19 September 2014 by VRS  |  Email |Print

China will give foreign investors direct access to its gold market for the first time today as the biggest-consuming nation seeks to exert more influence over prices while boosting the yuan’s global use.
The Shanghai Gold Exchange will start trading contracts in the city’s free-trade zone that will be linked to its domestic spot market and available to about 40 international members including Goldman Sachs Group Inc. and UBS AG. Access was previously limited to some Chinese units. Gold in China this year cost as much as $31 an ounce more and $42 less than the London spot price, according to data compiled by Bloomberg……………………………………..Full Article: Source

International gold trading launched in Shanghai free-trade zone

Posted on 19 September 2014 by VRS  |  Email |Print

The Shanghai Gold Exchange officially launched its international trading platform in the city’s free-trade zone (FTZ) last night, the first such board in the zone, with hopes of setting benchmark prices for the precious metal in Asia. It could pave the way for the launch of crude oil futures and other key commodities including iron ore in the testing ground for mainland economic reform.
Premier Li Keqiang made an inspection tour of the 28 square kilometre zone yesterday following a no-show on September 29 last year, when it was inaugurated. “The free-trade zone in Shanghai will have a brighter future and Shanghai will have a brighter future,” the premier told officials and others during the tour, Xinhua reported. “I wish the FTZ to be prosperous and developed.”…………………………………….Full Article: Source

There is such a thing as too much gold

Posted on 19 September 2014 by VRS  |  Email |Print

Goldcorp Inc., the Canadian producer starting up three new mines to boost output 50 percent, says there’s such a thing as too much gold. The largest producer by market value, which expects annual output to reach as much as 4 million ounces by 2016, would prefer to fine-tune its mining assets to increase profitability than just keep growing to a point where it’s difficult to replace reserves, Chief Executive Officer Chuck Jeannes said.
“That means constantly trying to add high-quality things and, as we do that, dispose of the non-core things,” Jeannes said in an interview this week at the annual Denver Gold Forum. “We don’t want to be 7 or 8 million ounces.”…………………………………….Full Article: Source

Will gold face another downward move?

Posted on 19 September 2014 by VRS  |  Email |Print

For all the anticipation surrounding the delivery of the Fed’s statement in the run-up to the September meetings, not much has changed. Ms. Yellen seemed to sound as dovish as ever and she played down the threat of any chasm emerging between FOMC participants. The market continues to feel that the Fed will be forced into raising interest rates sooner-rather-than-later, which is keeping a bullish trend intact for the U.S. dollar.
It is generally trading higher against most major alternatives with the exception of the British pound as the Scots go to the polls to determine whether they should remain part of the 307-year old Union. In the current environment, even as the Fed holds a steady hand on the wheel, commodity prices are suffering. Gold prices are fading in response to the manner in which bond traders sense the Fed will have to throw the towel in on holding rates steady……………………………………..Full Article: Source

Barclays Lowers Gold Price Forecast, Raises Palladium Outlook

Posted on 19 September 2014 by VRS  |  Email |Print

Barclays on Wednesday lowered its price forecast for gold, citing “an increasingly bearish macro backdrop developing for gold,” while raising its outlook for palladium. “Rising rates and a significantly stronger dollar present headwinds, which are set to overwhelm any seasonal strength in physical demand this year,” the bank said.
Barclays lowered their fourth-quarter average gold price forecast to $1,220 an ounce. They now expect prices to average $1,270 an ounce in 2014. Their 2015 forecast calls for an average gold price of $1,180. Palladium’s “sizable” deficit “will likely overpower the downside risk presented by a weaker gold price and a stronger dollar and reinforce the longer-term support for prices,” Barclays said……………………………………..Full Article: Source

Barclays Cuts 2014 and 2015 Gold Price Forecasts

Posted on 18 September 2014 by VRS  |  Email |Print

Barclays plc has reduced its Q4 gold price forecast to $1,220 per ounce. For the whole of 2014, the firm believes gold will average $1,270. In 2015, Barclays sees the price of the yellow metal averaging just $1,180.
Barclays bearish view on gold is linked to rising rates and the dollars strength. ‘Rising rates and a significantly stronger dollar present headwinds, which are set to overwhelm any seasonal strength in physical demand this year,’ said Barclays’ analyst Suki Cooper…………………………………….Full Article: Source

Charts show gold could drop to $1,000 an ounce if cluster of support lines broken

Posted on 18 September 2014 by VRS  |  Email |Print

Charts show gold could drop to $1,000 an ounce if cluster of support lines broken Gold’s slide to eight-month lows over the last week has brought it within sight of a cluster of chart support lines near its 2013 lows, a breach of which could set up a slide back to $1,000 an ounce.
Analysts who study past price patterns for clues on the next direction of trade say a breach of support around the metal’s June 2013 low of $1,180 an ounce could see it fall back towards triple figures as soon as early next year…………………………………….Full Article: Source

China will Dominate the Gold Market

Posted on 18 September 2014 by VRS  |  Email |Print

Back in the maritime age, sailors referred to the equatorial waters of the Atlantic and the Pacific as the ‘doldrums’. It’s where the prevailing winds remained calm and the sun hot and humid. Ships would float aimlessly for days or weeks on end.
For the past few months, asset markets have been in the doldrums too. But now they’re coming out of the languid zone. The trade winds are picking up… I’ll look at where the winds are coming from in a moment. But first, a few things you might be interested in………………………………………Full Article: Source

New Silver Fix Still Irks This Mining CEO

Posted on 18 September 2014 by VRS  |  Email |Print

In a bid to heighten transparency, the mining and silver industries have taken steps towards improvement for investors, but First Majestic Silver Corp.’s Keith Neumeyer isn’t buying into it. Speaking with Kitco News at the 25th Denver Gold Forum, Neumeyer, president and chief executive officer of First Majestic, doesn’t see an improvement.
“Any transparency is healthy and the mining industry needs to put out numbers that make sense to the market,” he said. “Adversely, all-in sustaining cash costs don’t make sense to the market…………………………………….Full Article: Source

US to remain biggest diamond market

Posted on 18 September 2014 by VRS  |  Email |Print

The United States is likely to remain the world’s largest market for diamonds for the next 15 years despite a growing appetite for the gems from China and India, leading producer De Beers said Wednesday.
China has the fastest growing demand, jumping to a share of about 15 percent of the world’s diamond market from less than three percent in 2003. But it is not expected to overtake the US market’s 40 percent share for more more than a decade, De Beers CEO Philippe Mellier said…………………………………….Full Article: Source

Gold Steadying On Physical, Safe-Haven Demand

Posted on 17 September 2014 by VRS  |  Email |Print

The combination of improved physical demand in Asia combined with safe-haven buying are helping gold continue to steady after last week’s weakness, with the U.S. gold futures modestly higher so far Tuesday for the second day in a row.
Around 7:50 a.m. EDT, gold for December delivery was $2.40, or 0.2%, higher at $1,237.50 an ounce on the Comex division of the New York Mercantile Exchange. Spot metal was up $4.60 to $1,236.85 an ounce. December silver was up 9.5 cents, or 0.5%, to $18.715. The London a.m. gold fixing was $1,238.75, up from the Monday afternoon fixing of $1,234.25………………………………………Full Article: Source

Zimbabwe to revive gold market?

Posted on 17 September 2014 by VRS  |  Email |Print

The Zimbabwean government has decided to lower the royalty on gold from 7% to 5% in an attempt to boost gold production from the country. The government decision is expected to breathe new life into the Zimbabwean gold mining industry, which has been struggling for a long time.
According to data, the country’s gold production plummeted to 6 tonnes during the initial seven months of the year. This is 26% lower when compared with the total gold production during the corresponding seven-month period in 2013. The drastic fall in international gold price stares at the profitability of many mining companies including Freda Rebecca, African Consolidated Resources and RioZim Ltd. In addition, the mines are also affected by severe power outages and extremely high borrowing costs………………………………………Full Article: Source

Can Gold Recover?

Posted on 17 September 2014 by VRS  |  Email |Print

Gold recently fell to its lowest level in seven-and-a-half months as the dollar rose to a 14-month high. Easing tensions in Ukraine and the Middle East also acted as a drag on gold and Silver prices. Investors have been asking the obvious question as to whether gold can recover from here and if a bottom of at least short-term duration is imminent?
Dollar strength has been especially hard on the precious metals of late. Commodity prices in general have been beaten up in recent weeks by the surging U.S. dollar index, as sagging gold and silver prices attest……………………………………..Full Article: Source

Why Goldman Sachs Is Wrong On Gold

Posted on 17 September 2014 by VRS  |  Email |Print

Wall Street powerhouse Goldman Sachs has recently reiterated its negative view on gold, which it has held for the past year. However, it is now doubling down on this view and advising clients to actually go short the metal. Jeff Currie, head of commodity research at Goldman noted “Our target is really driven by the view that we think that the Fed will ultimately be the dominate force here and put more downward pressure [on prices]“.
While I am in agreement with Goldman that the Fed will be the dominant force behind the price of gold, I believe the central bank will soon be back into the QE business, rather than raising interest rates and crushing the dollar price of gold………………………………………Full Article: Source

John Paulson Pays A High Price For His Adventure in South African Gold

Posted on 17 September 2014 by VRS  |  Email |Print

John Paulson might have won a battle but he’s losing the war with his big bets on gold. The billionaire fund manager was a key player in forcing one of the world’s biggest gold mining companies, AngloGold Ashanti, to pull the plug on a $2.1 billion rights issue but as the dust settles the value of his 6.6% stake in the stock is sharply lower, and the price of gold keeps falling.
The problem for Paulson is that he’s in the wrong company which is in the wrong commodity at the wrong time………………………………………Full Article: Source

Profitability Is Gold Mining’s Biggest Issue – Randgold’s Mark Bristow

Posted on 17 September 2014 by VRS  |  Email |Print

Without batting an eye, Randgold Resources Ltd.’s Mark Bristow, chief executive officer, bluntly said profitability is the biggest issue facing the mining industry today. Speaking with Kitco News at the 25th Denver Gold Forum, Bristow didn’t hold back when asked on where the blame should be spread as the sector struggles with profitability.
“It’s going to be tough, right now we’ve seen the fund managers looking to management to fix it,” he said. “I think, to a large degree, the fund managers are joined in how we got there, culpable like management………………………………………Full Article: Source

Gold prices to remain under pressure next year too

Posted on 16 September 2014 by VRS  |  Email |Print

Gold prices in the global market are likely to remain under pressure and rule below $1,200 an ounce next year, a global convention was told. “We expect gold prices to remain low next year too. Once gold slips below $1,200, it could head towards $1,175. The positive thing about the fall is that physical buying could emerge once prices drop to $1,200 levels,” said Cameron Alexander, Manager, Precious Metals, Thomson Reuters GFMS, at a price outlook session at the 11th India International Gold Convention – 2014.
However, prices could look up later this year and could even rise to $1,300 levels. This will be because there could be some buying in China and India, particularly during festival and marriage season. “I think the Chinese government will encourage its people to buy gold but it could ensure that prices are under control,” he said. The outlook for gold is not bright next year because a surplus is seen in the yellow metal………………………………………..Full Article: Source

Why Goldman Sachs is Wrong on Gold

Posted on 16 September 2014 by VRS  |  Email |Print

Wall Street powerhouse Goldman Sachs has recently reiterated its negative view on gold, which it has held for the past year. However, it is now doubling down on this view and advising clients to actually go short the metal. Jeff Currie, head of commodity research at Goldman noted “Our target is really driven by the view that we think that the Fed will ultimately be the dominate force here and put more downward pressure [on prices]“.
While I am in agreement with Goldman that the Fed will be the dominant force behind the price of gold, I believe the central bank will soon be back into the QE business, rather than raising interest rates and crushing the dollar price of gold………………………………………..Full Article: Source

Gold industry needs ‘cleansing’ of weakest miners

Posted on 16 September 2014 by VRS  |  Email |Print

The gold industry, recovering from the worst slump in prices in 30 years, needs more mergers to help improve investor returns and eliminate unprofitable mines, Fidelity Investments said. About a third of gold production is probably money-losing when the price of the metal is lower than $1,250 an ounce, said Joe Wickwire, who manages more than $1.8 billion of assets including the Fidelity Select Gold Portfolio.
With gold trading at about $1,230, it “might not be a bad thing” if the number of producers was reduced by a third. “It’s part of the life cycle of industries that every so often you need to have a cleansing of that which is not working,” Wickwire said in a phone interview last week from Boston, where Fidelity is based………………………………………..Full Article: Source

Why ECB QE Is Bearish For Gold Prices

Posted on 16 September 2014 by VRS  |  Email |Print

The recent action by the ECB appears to have caught many gold bulls off guard. A common interpretation of the impact that a potential quantitative easing program would have on gold prices was that it would be very bullish. This argument was based on the concept that money printing is bullish for gold, and that QE1 and QE2 by the Fed triggered major rallies in the yellow metal.
Whilst we do not dispute that QE1 and QE2 by the Fed were indeed bullish for gold, we strongly disagreed that the ECB would introduce a program that would spark a major rally. In fact we went further, predicting that what the ECB was going to do was in fact highly bearish for gold, and in this article we will endeavour to explain why………………………………………..Full Article: Source

New gold contract to set Singapore up as a global gold hub?

Posted on 16 September 2014 by VRS  |  Email |Print

Singapore continues its push to be a global gold hub. Further details emerged at the weekend about the planned launch by Singapore of a new 1kg physically deliverable gold contract for the Asian wholesale gold market.
This new gold contract differs from others in that as well as acting as a price discovery benchmark for 1kg gold bars in the Asian region, it has been specifically designed to actually deliver gold to wholesalers, because settlement of the contract is in gold 1kg bars and not in cash. A 1kg gold bar is 32.15 troy ounces………………………………………..Full Article: Source

Marc Faber emphasizes need for gold

Posted on 16 September 2014 by VRS  |  Email |Print

Veteran investor Marc Faber, author of The Gloom, Boom and Doom Report, reiterated the need for gold in a diversified portfolio when interviewed last week on CNBC. Faber, a resident of Thailand, is an advocate of gold storage in Singapore, and believes that a diversified portfolio will help protect against future market corrections which he believes are on the horizon.
Faber doesn’t see further new highs this year in the U.S. equity markets, and thinks that there could be an S&P correction of between 10% and 30%. While admittedly Faber has been expecting a U.S. stock market correction for some time now, his view is based on what he sees as weaker earnings from some US consumer bellwether companies………………………………………..Full Article: Source

Reasons For The Recent Decline In Gold Prices

Posted on 15 September 2014 by VRS  |  Email |Print

Gold prices fell to their three-month lows in September. The London PM Fix gold price stood at $1,286.50 per ounce at the beginning of the month, with prices closing at $1,251 per ounce at the close of trading on September 10. Gold is often viewed as an inflation hedge and safe haven investment by investors.
Thus, gold prices are to a large extent influenced by a set of related factors including the macroeconomic outlook for the U.S. and world economies, the performance of alternative assets such as equities and the U.S. Dollar, the trajectory of interest rates and geopolitical uncertainty. In this context, we will look into the reasons for the recent decline in the prices of gold………………………………………..Full Article: Source

Gold Industry Needs ‘Cleansing’ of Weakest, Fidelity Says

Posted on 15 September 2014 by VRS  |  Email |Print

The gold industry, recovering from the worst slump in prices in 30 years, needs more mergers to help improve investor returns and eliminate unprofitable mines, Fidelity Investments said.
About a third of gold production is probably money-losing when the price of the metal is lower than $1,250 an ounce, said Joe Wickwire, who manages more than $1.8 billion of assets including the Fidelity Select Gold Portfolio. (FSAGX) With gold trading at about $1,230, it “might not be a bad thing” if the number of producers was reduced by a third………………………………………..Full Article: Source

Pain for gold, silver price as hedge fund slash bullish bets

Posted on 15 September 2014 by VRS  |  Email |Print

On Friday the price of gold fell again, reaching an 8-month low after five straight days of selling on the back of negative precious metals sentiment among large investors coupled with a strong dollar. On the Comex division of the New York Mercantile Exchange in after-hours Friday trade gold for December delivery slid below $1,230 an ounce, a 2.8% retreat for the week to levels last seen early January.
After hitting a high of $1,380 in March, gold’s retreat accelerated during the third quarter with a loss of 4.5% so far in September alone. Gains since the start of the year are now less than 3%………………………………………..Full Article: Source

September is the time to buy gold, history suggests

Posted on 12 September 2014 by VRS  |  Email |Print

For those who like to follow investment trends there is a new one that is growing in popularity – buying gold in September. Over the past 20 years, as the chart below shows, the gold price tends to shine in September. On average bullion has delivered returns of over 3pc, which is by far the best performing month for the precious metal.
Fans say there is a good reason for the trend - September marks the start of India’s gold gifting season. During September a huge amount of gold jewellery is bought by Indians as gifts for family members during the Diwali festival………………………………………..Full Article: Source

Gold Prices To Hit $5,000 Within The Next 3 To 4 Years

Posted on 12 September 2014 by VRS  |  Email |Print

In April 2010 I made a somewhat controversial prediction that gold would reach $5,000 an ounce. I still believe this to be a realistic price target – and now prominent gold mining experts are following suit. Rob McEwen is more than qualified in the realm of gold mining – he’s the founder and former chairman and chief executive officer of GoldCorp Inc.(NYSE: GG), a $20 billion Canadian gold miner and the world’s largest by market cap.
And in an interview on CNBC‘s “Fast Money” in August, McEwen said “I’m a long-term believer in gold and I see it ultimately getting to $5,000 an ounce. Anything short of that, I wouldn’t be hedging.”……………………………………….Full Article: Source

China holds “Gold Congress,” positioning itself as global gold hub

Posted on 12 September 2014 by VRS  |  Email |Print

The China Gold Congress is currently in full flight in Beijing. The three day Congress is China’s biggest gold industry event of the year, drawing in participants from across the Chinese and international gold sectors including central banks, mining companies, bullion banks and refiners.
The event, co-sponsored by the World Gold Council (WGC) and the China Gold Association, showcases China’s gold industry and acts as a focus point for what is now the world’s largest gold market in terms of demand and product innovation………………………………………..Full Article: Source

6 reasons to invest in silver

Posted on 12 September 2014 by VRS  |  Email |Print

Silver has fallen massively from its highs and arguably offers investors an attractive route to hedge against future market turbulence. Below are 6 reasons to buy this precious metal: 1) The silver price has more than halved from its high of $48 in 2011.
2) History indicates that the recent decline in the silver price volatility, as measured by 30-day volatility, to the lowest levels in over a decade (at the beginning of May), may be a precursor to a strong price move………………………………………..Full Article: Source

Silver Loses Its Polish

Posted on 12 September 2014 by VRS  |  Email |Print

It hasn’t been a good day for precious metals. We already reported that gold is on its way to its fourth straight day of declines thanks to a strong U.S. dollar and falling demand for a safe haven. But silver has also taken a thumping, and earlier today fell to its lowest price in 14 months. That took silver-focused ETFs along for the ride.
Silver futures for December delivery dropped 1.5% to $18.65 an ounce after earlier falling to $18.57, the lowest price since June 28, 2013. Checking in on solver ETFs, the iShares Silver Trust (SLV) fell 1.9% to $17.90. The Proshares Ultra Silver (AGQ) fell 3.6% to $55.40, while the ProShares UltraShort Silver (ZSL) rose 3.8% $91.03………………………………………..Full Article: Source

3 Reasons the Gold/Silver Ratio “Will Fall” as 2014 Ends

Posted on 11 September 2014 by VRS  |  Email |Print

The gold/silver ratio is set to fall as 2015 draws near, according to data consultancy and analysts Metals Focus, with silver outperforming gold prices for 3 reasons. Tracked by some analysts and traders to see which metal is performing better, the ratio simply divides the price of gold by the price of silver. If it rises, then gold has become more expensive in terms of silver.
Although the “lack of investor conviction in gold is likely to continue,” says Metals Focus – and while that “does not bode well for silver prices” – the consultancy now expects the gold/silver ratio “to consolidate at around current levels before edging lower [ie, silver outperforms gold] as we move into next year.”……………………………………….Full Article: Source

Gold may be a ‘buy’ as investors turn ever more bearish

Posted on 11 September 2014 by VRS  |  Email |Print

Gold is finally getting close to a bottom in prices. That is the surprising conclusion of contrarian analysis, which for months now has stubbornly refused to turn positive on gold — even as the yellow metal has suffered a death by a thousand cuts. Just this week, for example, bullion hit a fresh three-month low — among indications that gold’s recent decline has violated some key technical levels.
But what contrarians focus on is market sentiment, and on that front there has been a big change: For the first time in a long time, a large number of short-term gold timers have decided to throw in the towel………………………………………..Full Article: Source

Will gold fall to $1200/oz? A matter of time, says IIFL

Posted on 11 September 2014 by VRS  |  Email |Print

With festive season just around the corner, for most of us investing in gold is like a ritual, which has to be followed at any cost. But a wait to dig into the precious metal could prove to be more rewarding as global and local factors cast shadow on gold’s prospects to shine bright this year. Research firm IIFL foresees global gold price falling to USD 1,200/oz in a matter of time.
It doesn’t find any persuasive factor to allocate funds to the yellow metal now. Rate hike by US Fed There are widespread expectations that strong US economic data could trigger a rate hike by the US Federal Reserve sooner than expected. Once rates are hiked, gold, a non-interest yielding asset may not remain an attractive option for investors………………………………………..Full Article: Source

Four Ways To Trade Silver Near Support

Posted on 11 September 2014 by VRS  |  Email |Print

With silver trading near a major support level, here are four ways to trade it using ETFs and stocks. The iShares Silver Trust (SLV) is currently trading near support level of a large descending triangle that has been in place since July 2013. The longer-term trend is down, so it’s quite possible the $17.75 to $18 support region will eventually give way to the downtrend.
If that occurs, the downside target is near $12.75, attained by subtracting the approximate $5 height of the triangle from the support zone. For those who believe silver is forming a bottom here, the $17.75 to $18 region offers a low risk buying opportunity if a stop-loss is placed just below support………………………………………..Full Article: Source

Gold At $1,500 By Christmas?

Posted on 10 September 2014 by VRS  |  Email |Print

Gold’s fundamentals remain intact, and gold will regain its reputation as a unique store of value. Countries are debasing their currencies, which leads to investors moving into hard assets, as confirmed by U.S. stock indexes reaching record levels. Gold and silver and precious metals equities will recover in the not-too-distant future.
Gold and silver prices are being repressed by central banks, but Sprott Asset Management’s Charles Oliver argues that demand pressure will cause this dam to burst sooner rather than later. As a result, he expects big increases in the prices of gold and especially silver, with a corresponding recovery of small- and mid-cap precious metal equities………………………………………..Full Article: Source

Gold demand to soar as festive season kicks off in India

Posted on 10 September 2014 by VRS  |  Email |Print

Gold prices have traditionally rallied in in September as India, the world’s second-largest gold buyer, stocked up on the yellow metal ahead of its wedding season around Diwali. But investors hoping the Indian Festival season will boost the metal’s ailing price are likely to be disappointed, analysts say.
“Demand is definitely picking up because of the festival season approaching but we don’t see a big spurt in the demand,” Surendra Mehta, secretary of the India Bullion and Jewellers’ Association told FT.com. “Only the people who need gold are buying now, there are no investors.”……………………………………….Full Article: Source

Gold Bulls Retreat as $1.6 Billion Erased From ETPs

Posted on 09 September 2014 by VRS  |  Email |Print

Money managers trimmed bullish gold wagers for a third week, mirroring the retreat in prices that helped erase $1.6 billion from the value of bullion funds. The net-long position in futures and options is at its lowest in 11 weeks after speculators added the most short bets in three months, U.S. government data show.
Investors sold 13.1 metric tons of gold held through exchange-traded products last week, the most since April, as prices fell 1.6 percent. Open interest in New York futures and options is near its lowest in five years as gains in the U.S. economy, dollar and equities curb investor demand………………………………………..Full Article: Source

Bearish bets on gold building, market eying $1,200/ounce

Posted on 09 September 2014 by VRS  |  Email |Print

Gold market participants are turning increasingly bearish, with a raft of recent analyst notes adding to the negative outlook for the precious metal. “Gold suffered a sharp lurch downwards September 2 after the US ISM manufacturing reading came out at the highest since 2005, a catalyst that triggered stops all the way down to $1,263/oz, the 61.8% Fibonacci retracement of the June-July uptrend,” Mitsubishi analyst Jon Butler said.
Gold fixed Monday morning in London at $1,267.25/ounce. A week ago, gold fixed at $1,287.25/oz. Looking at speculative bets on gold, UBS strategist Edel Tully said in a note the September 5 Commitment of Traders Report showed “gold net specs were washed out further in the week to September 2………………………………………..Full Article: Source

Gold Prices’ Seasonal Rise Could Be in Jeopardy

Posted on 09 September 2014 by VRS  |  Email |Print

September typically is a volatile month for stocks, and historically, one of the beneficiaries has been gold prices. In fact, during the past 20 years, gold has climbed more in September than during any other month. However, this year the seasonal effects of September could face some serious headwinds — specifically, from strength in the U.S. dollar.
Gold prices usually climb in September because, among other reasons, investors are looking for a safe haven for volatility. Gold prices have increased in value 75% of the time in September over the past 20 years, rising by an average of 2.9%. The largest improvement during that time was a whopping 17% climb in 1999 during the month………………………………………..Full Article: Source

Funds Continue To Exit Bullish Gold, Silver Positions In Latest CFTC Data

Posted on 09 September 2014 by VRS  |  Email |Print

Large speculators again cut their net-long gold and silver futures and options holdings on the Comex division of the New York Mercantile Exchange in the latest Commodity Futures Trading Commission data for the week ended Sept. 2, following the same action seen in the previous week’s report.
These traders’ activity in platinum group metals and copper was mixed between the legacy and the disaggregated reports, with non-commercial traders returning to a net-short position in copper’s legacy data………………………………………..Full Article: Source

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