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Gold And Commodities Outlook: Follow The Yellow Brick Road

Posted on 10 July 2014 by VRS  |  Email |Print

Over the years we’ve gravitated towards tracking the nuances in the precious metals sector, because they can be great leading indicators of some of the broader changes in the macro climate.
In 2011, we kept a close eye on silver and the silver:gold ratio, as it shot up its parabolic peak and exhausted in the indiscriminate risk blow-off that culminated at the end of April of that year. In 2012, we followed the sector lower as it made a tradable low at the end of Q2, but warned of the comparative differences between QE II and QE III that participants were drawing with the precious metals and commodity markets………………………………………..Full Article: Source

Gold Price $10,000 Is it Possible?

Posted on 10 July 2014 by VRS  |  Email |Print

When analysts forecast future asset prices they typically choose valuations that make sense in the context of current valuations. We could, for instance, easily imagine that a $100/share stock can trade up to $120/share. But when somebody comes out and says that it can go to $1,000/share in a few years time this person is ridiculed because it is very difficult for us to imagine a reality that differs wildly from the current state of affairs.
So when I suggest that the gold price can rise to a level in the 5-digit range, I expect to be ridiculed or to have my forecast overlooked by most market participants. Nevertheless, as we will see in a moment the prospect of 5-digit gold is not so far-fetched. Gold at $10,000 or higher is not as unlikely as many people would think………………………………………..Full Article: Source

Is investing in gold a good decision?

Posted on 10 July 2014 by VRS  |  Email |Print

Is this is a ‘golden’ opportunity? There is so much media glare on equities that investors have little opportunity to evaluate other options. The perceptive investor however, does not focusing on the media. He wants to know if there is any opportunity out there that he may be overlooking; perhaps an opportunity in gold?
It is normal for investors to think a little contrarian at this stage. Everyone is talking of equities hence they are looking for something other than equities that has not quite shot up to the same extent. Enter gold………………………………………..Full Article: Source

Is Now The Right Time to Buy Silver?

Posted on 10 July 2014 by VRS  |  Email |Print

Silver is indeed a gentleman’s currency. However, it has been two years of downside pressure for investors in silver, but I have recommended accumulating it heavily once it dipped under $23 an ounce and almost took to the streets to encourage buying at $18 an ounce. I have been buying silver at a strong clip.
Prices have now come back and stabilized around $21 and it is likely just the beginning. Inflation is slowly — very slowly — starting to creep up in corners of the world, and that is a nice source of upward pressure for the metal. Still, we are a long way from $50 per ounce. Is now a good time to buy silver? There are key supply and demand issues that you need to be aware of and several ways to play the metal………………………………………..Full Article: Source

As silver fix decision nears, LME joins hands with Autilla

Posted on 10 July 2014 by VRS  |  Email |Print

The London Metal Exchange and technology firm Autilla joined forces yesterday to propose an electronic system for setting the global silver price benchmark as the deadline neared for replacing London’s century-old silver fix.
The 117-year-old price benchmark, or fix, will come to an end on August 14, operator London Silver Market Fixing said in May, as regulatory scrutiny of price-setting intensifies across markets………………………………………..Full Article: Source

Gold bulls deeply suspicious of hedging

Posted on 09 July 2014 by VRS  |  Email |Print

To hedge, or not to hedge? It’s a question the gold industry has grappled with for decades and goes right to the heart of the question about why investors buy gold shares – to gain exposure to a rising gold price or invest in the exploration and development skills of miners.
Julian Baring, the UK fund manager dubbed the “Gold Guru”, once reportedly said he did not like hedging because behind every hedge there was invariably a ditch and these are usually wet and miserable places……………………………………Full Article: Source

Gold Shines Again as Hedge Funds Boost Wagers on Advance

Posted on 09 July 2014 by VRS  |  Email |Print

Gold is precious again. After investors sent bullion tumbling in 2013 by the most in three decades and kept dumping the metal earlier this year, demand is now up and prices are defying bearish forecasts. Money managers increased net-long positions for a fourth straight week through July 1 and holdings in exchange-traded products are climbing at the fastest pace since 2012.
“Gold’s performance has proven the bears wrong so far this year,” John Kinsey, who helps manage about C$1 billion ($935 million) at Caldwell Securities Ltd. in Toronto, said in a telephone interview yesterday. “We look for further strength through the balance of the year.”…………………………………..Full Article: Source

Gold bulls run as assets in world’s biggest ETF erase 2014 drop

Posted on 09 July 2014 by VRS  |  Email |Print

Assets in the SPDR Gold Trust, the metal’s biggest exchange-traded product that counts billionaire John Paulson as its largest holder, erased this year’s decline. Bullion’s 2014 rally is outpacing equities, Treasuries and bonds, defying bearish forecasts from Goldman Sachs Group Inc.
Escalating tensions in Iraq and Ukraine boosted demand for the metal as a haven, and the Federal Reserve affirmed that U.S. interest rates will stay low for a “considerable time,” spurring inflation concerns. Money managers increased bets on a Comex futures rally for the fourth straight week, government data showed……………………………………Full Article: Source

What To Expect Next in Precious Metals

Posted on 09 July 2014 by VRS  |  Email |Print

Since 2008, we have seen evidence of a consistent economic recovery both in the US and around the world. These positive trends have some drastic implications for investors and those that are considering gaining exposure in precious metals. In areas like stocks, the central benchmarks have risen to new record highs and those that are not already long equity markets might find it difficult to navigate the current market.
“It is not easy to buy into stocks at such elevated levels,” said Vlad Karpel, options analyst at TradeSpoon, “so more traders have started to consider buying gold as a way to profit from the market valuations that are present now.” And when we look at the most likely trends that will be seen through the rest of this decade, there is a strong case that can be made for why increased inflationary pressures could bring the price of gold back closer to its 2011 highs……………………………………Full Article: Source

Palladium Caps Longest Rally in 14 Years as Demand Gains

Posted on 09 July 2014 by VRS  |  Email |Print

Palladium capped the longest rally since 2000 on signs that demand will climb for the metal used in pollution-control devices in cars amid lower supplies from South Africa, the world’s second-largest producer.
Palladium has gained 22 percent this year as output slowed during a five-month strike by 70,000 employees in South Africa that ended last month. Auto sales in the U.S. headed for the biggest year since 2007, while retail deliveries of cars, multipurpose and sport utility vehicles climbed 14 percent in China last month, the Passenger Car Association said……………………………………Full Article: Source

Gold industry resistant to price benchmark replacement - WGC

Posted on 08 July 2014 by VRS  |  Email |Print

Gold producers and consumers are resistant to a wholesale redesign of the existing price setting benchmark known as the “fix” despite increasing regulatory glare, a discussion held by the World Gold Council found on Monday.
The debate hosted by the gold mining industry group was attended by 34 delegates from investment funds, refiners, exchanges, and other industry bodies. The four banks that currently set the globally used gold benchmark twice a day via a conference call - Barclays Plc , HSBC, Bank of Nova Scotia and Societe Generale - were not present, but the WGC said it had had meetings with them separately……………………………………..Full Article: Source

Don’t waste time fixing gold fix, it’s obsolete

Posted on 08 July 2014 by VRS  |  Email |Print

With 24-hour electronic trading, the 100-year-old gold fix has become an anachronism. Does the system of fixing the daily price of gold in London really need fixing, or should it be allowed to fade into the annals of history?
Traders and market participants will gather today in London to debate the question which has hung over the City’s precious metals market ever since it emerged earlier this year that major abuses of the 100-year-old process known as the “London gold fix” had taken place……………………………………..Full Article: Source

Banks could lose monopoly on gold fix

Posted on 08 July 2014 by VRS  |  Email |Print

Other industry groups such as miners may join process of setting crucial benchmark following allegations that process is open to rigging. Banks could lose sole responsibility for setting the gold price benchmark under new rules proposed by the industry.
Other parties such as miners and refiners may enter the London gold fix, which has been controlled by banks for almost a century but has come under scrutiny following allegations that the system is open to manipulation. At a summit held by the World Gold Council (WGC) on Monday, regulators, banks and investors convened to discuss options for the fix, the gold price benchmark that influences trading in the precious metal……………………………………..Full Article: Source

Gold outpaces rival asset classes

Posted on 08 July 2014 by VRS  |  Email |Print

Commodity has gained almost 10 per cent since 2013 thanks to demand for jewellery. Following a prolonged period of miserable returns, gold investors are finally clawing back some losses, with the precious metal currently the top performing asset class of 2014.
Since the start of the year, bullion has rallied by 9.3 per cent, well ahead of its nearest challengers, the S&P 500 and the STOXX 600 indices, which have notched up respective gains of 6.2 and 5.5 per cent in dollar terms, according to JPMorgan Asset Management……………………………………..Full Article: Source

When and Why Do Gold Prices Plummet?

Posted on 08 July 2014 by VRS  |  Email |Print

The supply of gold is largely static from one period to the next. Gold mines are large and plentiful, but almost the entirety of what they produce is dross. As technology improves, ore with ever-lowering concentrations of gold becomes economically feasible. Ore that contains as little as one part of gold per 300,000 is worth mining.
Discard all the billions of tons of worthless ground rock, and it’s been estimated that all the gold ever mined would fit on a football field, piled less than 10 feet high. The gold mined each year adds less than the thickness of a coat of paint to the total……………………………………..Full Article: Source

No ‘gold rush’: Germany keeps reserves in the US

Posted on 08 July 2014 by VRS  |  Email |Print

Germany’s plan to bring back the nation’s gold reserves to Frankfurt by 2020 has fizzled, and instead has for now decided to leave $635 billion of gold in US vaults. Home to the world’s second largest gold reserves, worth $141 billion, Germany only keeps about one third of its gold ‘at home’, the rest is abroad.
45 percent is in the US Federal Reserve in New York, 13 percent in London, 11 percent in Paris, and only 31 percent in the Bundesbank in Frankfurt. “The Americans are taking good care of our gold, we have no reasons for mistrust,” Nobert Barthle, the German Parliament Budget spokesman, told RT……………………………………..Full Article: Source

Weighing the Prospects for Gold Prices

Posted on 07 July 2014 by VRS  |  Email |Print

The gold bugs are stirring. A 10% gain by the yellow metal this year is rekindling hope among long-suffering bulls that the major bear market that began nearly three years ago finally might be over. They argue that gold will continue to rise because investors will be seeking a hedge against rising inflation, currency fluctuations and geopolitical uncertainty.
Yet according to Duke University finance professor Campbell Harvey —one of academia’s leading experts on gold prices—the odds are poor that the metal will return any time soon to its all-time high in August 2011. That month, the spot Comex gold contract reached an intraday high of $1,929.20, more than $600 above Thursday’s settle price of $1,320.40………………………………………..Full Article: Source

Gold market to return to net hedging in 2014 - GFMS

Posted on 07 July 2014 by VRS  |  Email |Print

Gold producers will return to net hedging for the first time since 2011 this year, GFMS analysts at Thomson Reuters said on Friday, after Polyus Gold this week announced a two-year programme to sell gold forward.
Hedging, or selling future gold production, allows miners of the metal to lock in prices for their output. While it can protect producers when prices are falling, it can also stop them capitalising on a rising market………………………………………..Full Article: Source

Gold price fixing under review

Posted on 07 July 2014 by VRS  |  Email |Print

London’s century-old gold price fixing, tainted by a rigging scandal and attacked by critics as old-fashioned, goes under the spotlight this week in key talks aimed at modernizing the process. Analysts said that the market price of gold, which is driven by investment and jewellery demand, could climb as a result of an overhaul.
Buyers and sellers of the precious metal will meet in London on Monday to discuss the setting of the global benchmark, which affects the flow of billions of dollars worldwide every day………………………………………..Full Article: Source

Gold Option Trade: Will Gold Continue To Consolidate?

Posted on 07 July 2014 by VRS  |  Email |Print

Until recently, the world has forgotten about Gold and gold futures prices it would seem. A few years ago, all we heard about was gold and Silver futures making new highs on the back of the Federal Reserve’s constant money printing schemes. However, after a dramatic selloff in the world of precious metals it became very quiet.
Gold prices have been in a giant basing or consolidation pattern for more than one year. As can clearly be seen below, gold futures prices have traded in a range between roughly 1,175 and 1,430 since June of 2013………………………………………..Full Article: Source

Palladium prices hit 13-year highs as demand increases

Posted on 07 July 2014 by VRS  |  Email |Print

Palladium prices hit 13-year highs on Friday, driven by expectations that South African supply will remain constrained after a lengthy strike and that demand from Chinese and US carmakers will improve. Spot palladium hit a high of $865 an ounce, its highest since February 2001, and was up 0.9 per cent at $862.25 an ounce.
Holdings of palladium-backed exchange-traded funds - popular investment vehicles which issue securities backed by physical metal - have risen to a record 2.55 million ounces this week, suggesting investors’ appetite for the metal is firm………………………………………..Full Article: Source

Gold price to hit $10,000 by 2020-21

Posted on 04 July 2014 by VRS  |  Email |Print

US forecaster Bo Polny has predicted that the price of an ounce of gold will hit US$2000 by the year end, rising to $10,000 by the end of 2020-21. Polny found fame by predicting the top for the gold price at $1900 and the bottom at $1180. He is apparently a student of WD Gann, the legendary futures trader who became a self-made millionaire.
Polny reasons that gold is in a 21-year bull cycle, with three 7-year mini-cycles within that. According to Polny we’re entering the third cycle now. The interview was conducted by Kitco News and can be viewed below………………………………………..Full Article: Source

Will Gold Rise in the Second Half This Year?

Posted on 04 July 2014 by VRS  |  Email |Print

The first half of the year was great for gold, which rose by about 10 percent from January through June. While analysts were nearly unanimously bearish in January, there have been a couple of individuals outside of the gold community who have turned bullish, but the vast majority of mainstream analysts are bearish or neutral. They see a lack of interest in gold as the economy improves and stock prices continue to rise. When stocks rise people feel good, and there is no reason for them to hold gold.
And these people may be right in the near term even if they are mistaken in the long term. The gold price is near a critical resistance point at around $1,350 per ounce, and the price is trending downward if you take the August 2013 peak and connect it to the March peak………………………………………..Full Article: Source

Here’s Why Gold Stocks Are on the Rise – Plus Three Picks That Will Benefit

Posted on 04 July 2014 by VRS  |  Email |Print

Gold stocks are poised for an upswing. Just recently, the European Central Bank (ECB) announced a new policy to promote lending and, ultimately, inflation in the Eurozone. The move sent investors flocking to precious metals like gold and silver.
That’s because precious metals tend to move in tandem with inflation. As the value of a currency decreases - which is an effect of inflation - the price of precious metals increases. A declining value of a currency means that it takes more of that currency to purchase an ounce of the metal………………………………………..Full Article: Source

Now is the time to buy gold – Nichols

Posted on 04 July 2014 by VRS  |  Email |Print

One of the problems facing the potential gold investor who may see the longer term future of the precious metal as being decidedly positive, is when to actually step in and buy bullion, bullion related securities or gold stocks. Respected New York gold analyst, Jeff Nichols, feels that the time may well be now.
Nichols recommends holding a proportion (perhaps 5-10%) of one’s investment portfolio in physical gold, thus providing a variety of benefits – portfolio appreciation, diversification, reduced portfolio volatility, risk reduction, inflation protection, and more. Given that Nichols describes himself as not being a ‘gold-bug’ he does reckon to be ‘super-bullish’ on gold’s longer term prospects………………………………………..Full Article: Source

Silver: A Return To Equlibrium Price?

Posted on 04 July 2014 by VRS  |  Email |Print

Price discovery in all commodities is an electronic paper affair. While the macro-economy and the geopolitical provide a distant framework, they do not wield significant direct influence. The “discovery issue” occurs across the board, but is nowhere more evident than in the precious metals futures markets and, most notably, silver.
A look under the hood at the most recent rally confirms that we are nowhere close to the point of return to equilibrium price. The set up for precious metals has been in place for years. In silver, the trading structure has been this way for decades………………………………………..Full Article: Source

UK watchdog says no evidence that gold price is rigged

Posted on 03 July 2014 by VRS  |  Email |Print

Collusion among banks in setting the gold price benchmark was possible but there is no evidence of this, a senior British regulator said on Wednesday when answering lawmakers’ questions on the trustworthiness of the gold market.
Gold prices and other benchmarks have come under scrutiny, with banks fined $6 billion for rigging the Libor interest rate, used to price a range of financial products. Allegations are also emerging of potential rigging of currency markets………………………………………..Full Article: Source

British MPs urge watchdog to probe price-rigging in gold market

Posted on 03 July 2014 by VRS  |  Email |Print

British MPs have called on the UK’s financial watchdog to investigate allegations of price-rigging in the London gold market after a senior regulatory executive said that there may have been co-ordinated attempts to manipulate a crucial benchmark.
Members of the influential parliamentary Treasury select committee pressed the Financial Conduct Authority to act after hearing evidence on Wednesday from gold market analysts who believe there is scope to rig the daily price-setting process and that it has probably been exploited frequently………………………………………..Full Article: Source

Gold rush: Is it really worth investing in?

Posted on 03 July 2014 by VRS  |  Email |Print

Gold is generally seen as a safe haven during periods of high inflation. As inflation increases, the value of money decreases and the prices of all goods increase. People prefer to hold gold instead of cash during these periods as gold acts as a retainer of value for them.
Traditional theory states that prices of real assets such as gold does not change permanently in times of high inflation but changes proportionately with the rate of inflation………………………………………..Full Article: Source

Gold industry bust at $1 300/oz, says Randgold’s Bristow

Posted on 03 July 2014 by VRS  |  Email |Print

The gold mining industry was fundamentally broke at a gold price of $1 300/oz, Randgold Resources CEO Dr Mark Bristow said. Bristow said the industry was unable to make returns at that low level of gold price range.
The consequences would be a reduction in the supply of gold, which would ultimately push the gold price higher, as physical demand was definitely present. The crystal ball that needed to be studied was the extent of damage the industry would need to experience to reduce supply to drive up the gold price and rescue the rest of the industry………………………………………..Full Article: Source

Gold price set to average $1,290/oz in H2 – Heraeus

Posted on 02 July 2014 by VRS  |  Email |Print

Heraeus sees the gold price averaging $1,290 per ounce in the second half of the year, it said, with the various factors driving the market to keep it largely in balance.
The yellow metal has risen almost 10 percent since the start of the year but this positive development has not been enough to “draw it out of its continual downtrend”, the precious metals group said in a report on Tuesday. ……………………………………….Full Article: Source

Gold bullion imports in India hit 13-month high

Posted on 02 July 2014 by VRS  |  Email |Print

Gold bullion imports by the India’s northern state of Gujarat touched its highest levels in thirteen months during June, primarily on account of recent relaxations in gold import norms by the new government.
Per trade figures released June 30, the total gold imports during the month of June totaled 14.33 metric tonnes (MT). This is the first time in the past year that the monthly gold imports have touched double digits. Gold imports surged by 74% compared to 8.74 MT in June last year………………………………………..Full Article: Source

Gold Investing Sentiment Hits 4.5-Year Low

Posted on 02 July 2014 by VRS  |  Email |Print

Gold investing amongst private households sank to the weakest sentiment in nearly 4.5 years in June. Bulls can blame last month’s jump above $1300 per ounce. It spurred the number of sellers on Bullion Vault – the world’s largest physical gold provider online – and deterred new buyers. That took our Gold Investor Index down to 51.2, the lowest reading since February 2010.
The Gold Investor Index is a unique window onto private investing behavior in gold. Unlike an exchange-traded trust fund (ETF), BullionVault has few professional money managers amongst its 52,000 users. Unlike a retailer dealing coins or small bars, we also enable our users to sell their vaulted property instantly, when they choose (and offering it at their own price too if they wish)………………………………………..Full Article: Source

Did you know gold has reached double-digit gains in 2014?

Posted on 02 July 2014 by VRS  |  Email |Print

Overnight gold futures hit a 14-week high on the Comex, settling at US$1,326.60 an ounce after peaking at US$1,334.90. The recent re-rating in gold has boosted the yellow metals gains to 10% for 2014, as tensions in Iraq and Ukraine lift demand for safe-haven assets.
There has been more fighting in the Ukraine, where a ceasefire between the Kiev government and pro-Russian separatists has floundered, and the situation in Iraq added to the improved mood over gold. Israel also launched air attacks in Gaza on Tuesday in retaliation for the deaths of three kidnapped teenagers………………………………………..Full Article: Source

Firm With ‘Critical Mass’ Seen Running New Silver Price

Posted on 02 July 2014 by VRS  |  Email |Print

The replacement for the 117-year-old London silver fixing benchmark that’s ending Aug. 14 will probably be chosen as soon as one of the companies proposing an alternative wins “critical mass” support from the market, according to the London Metal Exchange.
Garry Jones, the LME’s chief executive officer, and Matthew Chamberlain, head of business development, spoke at a news briefing at the bourse today. The LME, Autilla Ltd., Bloomberg LP, CME Group Inc./Thomson Reuters, ETF Securities Ltd., Intercontinental Exchange Inc. and Platts have made proposals………………………………………..Full Article: Source

LME eyes July launch for silver fix pricing

Posted on 02 July 2014 by VRS  |  Email |Print

British market is one of a number of firms vying to run the silver price mechanism. The London Metal Exchange (LME) is planning to launch its silver price settlement solution and test trade sessions on July 14, one month before the London Silver Market Fixing stops running the benchmark.
Speaking at briefing, a number of LME executives said on Tuesday market participants want an electronic solution and it is targeting a July launch date to ensure banks and other participants have time to prepare for the LME’s launch if it is successful in its bid………………………………………..Full Article: Source

Platinum at 10-month high on supply worries; gold eases

Posted on 02 July 2014 by VRS  |  Email |Print

Platinum rose to a 10-month high above $1,500 an ounce on Tuesday, boosted by new positioning by funds at the start of the quarter and long-term supply worries despite the end of South Africa’s mining strike.
Gold reversed gains as investors took profits after strong exchange-traded fund buying sent prices to a near two-month peak earlier, a day after data showed US gold coin sales rose to a five-month high in June on heightened geopolitical tensions………………………………………..Full Article: Source

Platinum, Palladium: The Other Precious Metals

Posted on 02 July 2014 by VRS  |  Email |Print

Gold isn’t the only precious metal that glitters today. Platinum prices broke through the $1,500 an-ounce mark today and palladium futures gained as better than expected U.S. car sales and a strike in South Africa attracted buyers.
October platinum jumped $26.70 or 1.9% to $1,509.6, while September palladium climbed $9.45 to $852.60. The related ETFs also gained, with the ETFS Physical Platinum Shares (PPLT) up 1.25% and the ETFS Physical Palladium Shares (PALL) up 1.03%………………………………………..Full Article: Source

Precious Metals Rising, Switzerland’s Vaults Keep Platinum Prices High

Posted on 02 July 2014 by VRS  |  Email |Print

This week we learned that a major reason for platinum’s price stability during the five-month-long South African mining strike was stockpiles of the metal held in Swiss vaults. The AMCU strike finally ended this week and miners went back to work for Lonmin, Impala and Anglo-American Platinum. Silver was the big winner on the LME, though, doubling the gains of its precious metal cousin, gold.
The week’s biggest mover on the weekly Global Precious Metals MMI® was the price of Japanese silver, which saw a 3.5 percent increase to JPY 680.00 ($6.70) per 10 grams. This week marked the third in a row of rising prices for the metal………………………………………..Full Article: Source

Gold price hits 3-month high on softer dollar, Iraq violence

Posted on 01 July 2014 by VRS  |  Email |Print

Gold climbed to a three-month high on Tuesday as a softer dollar and escalating violence in Iraq increased the metal`s appeal, boosting inflows into the top bullion-backed fund.
Spot gold climbed to USD 1,332.10 an ounce, its highest since March 24, and was flat at USD 1,327.41 by 0240 GMT. It gained nearly 1 percent in the previous session. The metal posted its second straight quarterly gain for the quarter that ended on Monday, and June was also its best month since February………………………………………..Full Article: Source

Are the Gold Majors a Buy Again?

Posted on 01 July 2014 by VRS  |  Email |Print

Barrick Gold hit $55 per share and is now at $18, a decline of 67%! Likewise, Newmont’s high is $70, and it now trades hands near $25, down 64%. Goldcorp is “only” down 50% and Freeport-McMoRan is down about 40%. Freeport is also a very large copper producer, so that has helped it outperform those other pure-play gold majors.
With many of the majors’ stock prices down by a half to two-thirds, the first question to ask is how much did the underlying gold price decline? From about $1,900/oz. to today’s roughly $1,300/oz., gold is down about 30% from its 2011 peak. Yet, Barrick and Newmont, off by more than 60% each, are down twice as much as the gold price. How could that be?……………………………………….Full Article: Source

US Gold has possibility of slow return to $1370/85 per ounce: Barclays

Posted on 01 July 2014 by VRS  |  Email |Print

Gold remains elevated above $1300 per ounce and provides a selling opportunity as prices are unlikely to sustain over a longer time frame. Barclays noted that gold prices still have the possibility of a slow return to $1370/85 per ounce levels. Price forecasts: Q2 2014:$1250/oz, 2014: $1250/oz.
Macro environment remains bearish despite recent gains on geo-political tensions whether it be Russia-Ukraine or Iraq. Barclays expects a rise in US payrolls this week by 250,000 which is higher than 217,000 of May………………………………………..Full Article: Source

So, even gold prices are rigged

Posted on 27 June 2014 by VRS  |  Email |Print

Whether it’s Libor or gold, the story is the same, with Barclays once again at the centre of controversy. On June 28, 2012, the day after Barclays was fined £290 million by Britain’s market regulator for manipulating the benchmark lending rate, Libor, a Barclays customer raised concerns with the bank about the afternoon gold fix. This was set during one of the twice daily telephone gold auctions held by five London-based investment banks — Barclays included, which also acts as a benchmark for gold prices.
The ‘fix’ was declared at $1,558.50, and under an options contract the bank had entered into with the customer, the bank would not have to pay that customer the $3.9 million it would have owed him had the fix been above $1,588.96, boosting its own trading book by $1.75 million………………………………………..Full Article: Source

5 Reasons to Buy Gold and Gold Miners Now

Posted on 27 June 2014 by VRS  |  Email |Print

Gold prices have had a nasty few years, as have major gold miners and mining stocks. Gold bullion prices are down significantly from highs around $1,900 an ounce… and even worse, gold investments including Newmont (NEM), Barrick Gold (ABX) and GoldCorp (GG) are all down over 50% in the last three years.
But there are signals that the worst may now be over, and it may be a good sign to start buying gold once more. Since January, gold has crept up steadily; the SPDR Gold Trust (GLD), which tracks physical gold prices, is sitting on a roughly 10% gain – nearly double the return of the S&P 500 in the same period………………………………………..Full Article: Source

Buy gold if it dips to $1,298-1,302/ounce

Posted on 27 June 2014 by VRS  |  Email |Print

Comex gold futures were lower on Thursday, retreating from this week’s two-month high as a firmer tone in equities suggested investors could be switching back into risky assets, abandoning haven gold.
It has struggled to maintain gains, however, as higher prices curbed physical demand and investors stuck to the side lines, awaiting a clearer picture for the US monetary policy. China’s gold imports from Hong Kong dropped in May to the lowest level since January last year as a weaker yuan curbed appetite for the precious metal………………………………………..Full Article: Source

Best Ways To Trade Gold And Silver

Posted on 27 June 2014 by VRS  |  Email |Print

The Reuters/Jefferies CRB Index, which tracks a diverse group of commodities, has been in an uptrend since the start of the year, lead largely by the strong performance in the energy sector. Gold and silver are now following suit, with a sharp rally higher starting in July. Here are four stock and ETF plays you can use to take part.
Relative to the January 2014 low at $114.46, the recent June low was much higher at $119.42 in the SPDR Gold Trust Shares ETF (GLD), indicating accumulation. The subsequent rally through resistance in the $126 to $127 region signals a broader upside move could be underway………………………………………..Full Article: Source

Silver Short Squeeze Presents New Opportunity

Posted on 27 June 2014 by VRS  |  Email |Print

A short squeeze in the silver market is pushing prices profoundly higher, the consequence of which could be felt for years. All told, the month of June has witnessed silver rise by over 12%. But the truly aggressive price action began exactly a week ago – with a single-day move from $19.81 to nearly $21.
Short squeezes occur when short sellers close their positions with a heightened sense of purpose and haste. Such behavior can cause prices to move sharply higher. That is, since closing a short position requires one to buy shares………………………………………..Full Article: Source

Silver: The golden investment?

Posted on 27 June 2014 by VRS  |  Email |Print

Silver has not been on the top of fund managers lists when investing in precious metals. But this unloved metal could be the one to watch out for. The volatile nature of silver could make investing in the companies that extract it remarkably profitable.
One fund manager who has bucked the trend to slant his portfolio towards silver is Ian Williams, CEO at Charteris Treasury Portfolio Managers. The WAY Charteris Gold & Precious Metals fund is the only portfolio in the UK which has the majority of its investments in silver. Around 70 per cent of the portfolio is weighted towards silver, while 30 per cent is in gold………………………………………..Full Article: Source

China, Singapore vie for Asia gold pricing alternative to London

Posted on 26 June 2014 by VRS  |  Email |Print

China and Singapore are vying to provide feasible gold price benchmarks in Asia, as calls grow in the top consuming region for more localized pricing of the precious metal at a time when the global benchmark is under regulatory scrutiny.
Singapore said at an industry conference on Wednesday it would launch a physical gold contract on an exchange to create a transparent form of pricing. China, at the same conference, said it wanted to have a bigger influence on the global gold market and would like to have its own price ‘fix’………………………………………..Full Article: Source

Is this the start of a new bull market for gold?

Posted on 26 June 2014 by VRS  |  Email |Print

I’m afraid ten years of gold investing has given me a bit of a personality disorder. On the one hand I’m a gold bug loon – one of those nutcases you hide from at parties when they collar you and say: “buy gold, buy gold, our monetary system is doomed!”, and then harangue you with a load of statistics about US national debt.
But on the other, I’m a total cynic. Every time gold rallies, I just don’t believe it. False golden dawn after false golden dawn has turned me into a total non-believer. But you’d have to be living a rather secluded existence not to have heard that gold has had quite a run this month………………………………………..Full Article: Source

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