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Let’s talk diamonds

Posted on 29 August 2014 by VRS  |  Email |Print

Let’s talk diamonds for a change. Often it seems that gold gets all the fun when I write and speak about precious metals and minerals. But Vancouver-based Lucara Diamond, which we own in both our Gold and Precious Metals Fund (USERX) and World Precious Minerals Fund (UNWPX), has been turning heads here at U.S. Global Investors lately for a number of reasons, the most notable being that it continues to report stellar returns.
The company reports that, in its second quarter, it achieved tender proceeds, or profits, of $95 million from sales of 111,900 carats of diamonds, amounting to $849 per carat. Compared to last year’s second quarter, profits are up an impressive 93 percent………………………………………..Full Article: Source

Silver Pricing Change Takes Effect; Other Metals to Follow

Posted on 29 August 2014 by VRS  |  Email |Print

With the launch in mid-August of a new system to arrive at the price for silver, precious metals investors are dealing with the first in a series of changes in how the market prices of silver, gold, platinum and palladium are reached.
More change is coming, since the other three metals have yet to go through the process, but what’s happened so far is this: Concerns about price fixing after everything from LIBOR to currency were found to have been manipulated led to accusations about the gold and silver markets, and in January of this year Germany’s financial regulator Bafin said that the manipulation of precious metals prices was worse than that occurring with LIBOR………………………………………..Full Article: Source

Gold price ‘could have some way to fall yet’

Posted on 28 August 2014 by VRS  |  Email |Print

Investors should ignore the ‘myths’ that surround gold as an investment and not buy at the current level, despite the fact that the asset class is trading at 33 per cent below its peak valuation of just three years ago, according to Brian Dennehy, managing director of FundExpert.co.uk.
Dennehy remarked, ‘Usually, there is a negative correlation between the performance of the dollar and the price of gold. Many people expect the dollar to start performing better now that tapering is coming to an end, and indeed it already has started to perform better, and generally speaking if the dollar is performing better then the price of gold will usually perform poorly.’ ……………………………………….Full Article: Source

The Continued Strive of Market for Gold Bullion

Posted on 28 August 2014 by VRS  |  Email |Print

For a lot of business-minded people and investors, establishing and owning of solid gold bullion stores is considered as one of the best ways to secure finances for future use. With today’s unpredictable and mostly unstable economy, currency has often dealt with weak and vulnerable hand pushing investors alike to invest in gold coins hoping to gain a more stable strength as well as market independence from the currency that is holding their assets.
US Mint, for example, has found a reliable indicator of gold, silver as well as platinum demand in the country. However, sales in here have recently shown diminishing interest from present as well as potential business owners………………………………………..Full Article: Source

Gold shines most in September on seasonal buys

Posted on 28 August 2014 by VRS  |  Email |Print

Gold investors are hurting from prices within 1% of a two-month low can find solace from the historical record and research and showing gold performs best in September.
Our Bloomberg chart of the day shows bullion averaged gains of 3% each September over the past 20 years, beating next best month November, when prices rose an average 1.8% according to Bloomberg based on a market update by GoldCore. We covered gold’s seasonality and gold’s best performing months here………………………………………..Full Article: Source

Gold price lifted out of danger zone

Posted on 27 August 2014 by VRS  |  Email |Print

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery on Tuesday attempted a comeback of sorts, recovering from a two month low. By the close of regular trade gold was changing hands for $1,285.20 an ounce, up over $6, after earlier hitting a day high of $1,291.90. The gains follow six weak sessions which saw the metal lose 2% in value.
Tuesday’s move lifted the metal above its 200-day moving average – a bullish technical sign – after bouncing off support at $1,272 and could now attempt a move back above $1,300 an ounce………………………………………..Full Article: Source

India’s Appetite for Gold Improves

Posted on 27 August 2014 by VRS  |  Email |Print

As gold prices linger near a two-month low, demand in Asia has started edging higher with buyers in India increasing purchases ahead of a Hindu religious festival this week. The mark up to global gold prices, known as a premium, that Indian consumers pay has climbed to $10 to $13 a troy ounce from zero in July, a sign that appetite for gold is picking up in the world’s second-largest consumer of the precious metal.
The vast majority of India’s gold supply comes from abroad. As a result, Indian gold buyers typically pay a premium to global prices that reflects the tightness of locally available supply as well as the government-imposed import duty………………………………………..Full Article: Source

Is Asian gold demand really slipping so much?

Posted on 27 August 2014 by VRS  |  Email |Print

By all accounts in the mainstream media, gold demand in Asia, and in particular in China and India, has been slipping dramatically this year which some see as the principal reason behind current price weakness. But all may not be as the reports suggest. Is Chinese demand, as suggested by the enormous slippage in gold imports though Hong Kong really as bad as the figures appear to show?
Reuters reports Hong Kong net gold exports to mainland China in July as falling to the lowest level since June 2011 at 22 tonnes (Bloomberg reports the figure as 21 tonnes). Compare this with the heady days last year when such gold imports exceeded 100 tonnes monthly for 6 months in a row from May to October………………………………………..Full Article: Source

How The Coming Silver Price Bubble Will Develop

Posted on 27 August 2014 by VRS  |  Email |Print

What is an asset bubble? An asset bubble occurs when a large number of buyers, normally not usually prone to speculate in an asset, bid the price of that asset much higher than underlying valuations would support, most often fueled by leverage or borrowed money. Typically, towards the terminal phase of the bubble the most compelling reason for continuing to buy the asset is due to the rising price itself, as all caution is thrown to the wind amid the collective belief that prices can only move higher still.
Then, when the last possible speculator has purchased the asset, the inevitable occurs and the price of the asset collapses as previous buyers turn into sellers and attempt to get out………………………………………..Full Article: Source

How to Invest in Silver Today for Double-Digit Gains

Posted on 27 August 2014 by VRS  |  Email |Print

If you’ve been watching silver for some time, you know it’s been in the doghouse. After peaking at $49 back in April 2011 the white metal is down 60%, having languished between $19 and $22 for the past two years.
But a confluence of factors is building that make today’s silver prices look downright cheap. Here’s how the bull is going to run - and how you can ride it all the way up from here… To explain how the precious white metal behaves, I like to use the phrase: silver is like gold - on steroids………………………………………..Full Article: Source

Why Gold And Silver Prices Are Range-Bound

Posted on 27 August 2014 by VRS  |  Email |Print

Frustrated investors in physical gold and its derivative asset classes have fumed quietly as a mal-regulated market for counterfeit gold and silver (futures contracts, certain ETFs) leads precious metals prices around by the nose for the exclusive enrichment of an elite cadre of financial institutions.
Entities such as Goldman Sachs, HSBC, Barclays, J.P. Morgan, and others are able to issue contracts deemed to represent millions of ounces of gold for future sale or purchase anonymously, and without limit. These paper representations of gold, while notionally tied to the prices of silver and gold, have the effect of suppressing the prices of the physical commodities because they represent exponentially more gold and silver than is physically available, thus creating a supply scenario that is utterly false………………………………………..Full Article: Source

Platinum giants still to struggle

Posted on 27 August 2014 by VRS  |  Email |Print

A combination of labour issues, various spats with government and a number of operational issues are not yet behind Lonmin, Impala Platinum and AngloPlats and investors should be wary of committing to buying shares despite a recent recovery. Lonmin in particular was one of the big movers in Europe last week, rising just over 5%. But Peter Garny, head of equity strategy at Saxo Bank was not convinced.
He told clients: “Our quant model remains significantly more bearish than consensus with a 12-month return target of only 2% compared to 31% based on 25 sell-side analyst estimates. As a result, Lonmin is the least favoured mining company in Europe by our model and the technical picture shows significant negative momentum so, in our view, it is too early to play the turnaround case………………………………………..Full Article: Source

Gold Rising-Rate Fallacy

Posted on 26 August 2014 by VRS  |  Email |Print

Gold has slid during this past week on mounting fears of interest-rate hikes. Between the latest FOMC meeting’s minutes and the Fed’s annual Jackson Hole Economic Policy Symposium, American futures speculators’ rising-rate phobias have been whipped into a fever pitch. They worry gold will be crushed when the Fed eventually starts normalizing rates. But history shatters this fallacy that rising rates are gold’s nemesis.
Today there is a near-universal belief among futures traders that rising interest rates are very bearish for gold. The underlying logic is simple. When interest rates rise, so do yields on bonds and cash in the form of money-market funds. This makes bonds and cash relatively more attractive to investors than gold, which yields nothing. Therefore they jettison their gold holdings to migrate capital back into bonds and cash………………………………………..Full Article: Source

Gold likely to find limited support on downside: Barclays

Posted on 26 August 2014 by VRS  |  Email |Print

Gold is likely to find limited support on the downside in the absence of firm physical demand coupled with muted investor appetite, a report by Barclays said. Gold prices dropped to two-month lows, remaining below the $1300/oz mark last week following stronger-than-expected data from the US and hawkish comments from the Fed.
In the US, key data released last week were stronger than expected, ranging from existing home sales, the Philly Fed manufacturing index, the Conference Board’s index of leading indicators, to the weekly unemployment claims. The August employment report (due September 5) is likely to show solid employment growth of 200k and the unemployment rate to decline 0.1%, to 6.1%………………………………………..Full Article: Source

Gold price drops to near 2-month low

Posted on 26 August 2014 by VRS  |  Email |Print

Gold held close to its lowest in two months on Monday, as the dollar marched higher after central bank heads signaled that interest rates were set on a diverging course in the United States, Europe and Japan.
At a gathering of central bankers in Jackson Hole, Wyoming, Federal Reserve Chair Janet Yellen nodded to the concerns of some Fed officials about the sustained level of monetary policy stimulus, even as she stressed the need to move cautiously on raising rates. The heads of the European Central Bank and Bank of Japan pledged more policy stimulus, which weighed on the euro and the yen versus the US currency………………………………………..Full Article: Source

Gold Speculators Reduce Positions

Posted on 26 August 2014 by VRS  |  Email |Print

Investors are exiting the Gold market on speculation that signs of sustained U.S. economic growth will push the Federal Reserve closer to raising interest rates, cutting demand for bullion as an inflation hedge.
Hedge funds reduced their bullish gold bets for the third time in four weeks and open interest in New York futures and options are near the lowest in five years, U.S. government data show. Prices tumbled 2 percent last week, the most since late May, erasing $1.2 billion from the value of exchange-traded products backed by bullion………………………………………..Full Article: Source

Platinum giants still to struggle

Posted on 26 August 2014 by VRS  |  Email |Print

A combination of labour issues, various spats with government and a number of operational issues are not yet behind Lonmin, Impala Platinum and AngloPlats and investors should be wary of committing to buying shares despite a recent recovery.
Lonmin in particular was one of the big movers in Europe last week, rising just over 5%. But Peter Garny, head of equity strategy at Saxo Bank was not convinced. He told clients: “Our quant model remains significantly more bearish than consensus with a 12-month return target of only 2% compared to 31% based on 25 sell-side analyst estimates……………………………………….Full Article: Source

Fund Managers Cut Most Precious Metals Positions In Latest CFTC Data

Posted on 26 August 2014 by VRS  |  Email |Print

Large speculators cut their net-long gold 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 Aug. 19, reversing some of the gains established in the last report.
The retreat came as geopolitical fears subsided and pushed the yellow metal under $1,300 an ounce during that timeframe. Platinum group metals activity was mixed, with large speculators adding to bullish palladium holdings and dropping platinum. These traders continued to trim net-long silver positions and cut their exposure in copper, too………………………………………..Full Article: Source

Weaker Prices Forecast For Gold Market — Survey Participants

Posted on 25 August 2014 by VRS  |  Email |Print

A majority of participants in the weekly Kitco News Gold Survey expect gold prices will continue to soften as improving U.S. economic news and the Federal Reserve making broader hints about raising interest rates next year may weigh on values.
Out of 37 participants, 23 responded this week. Of those, eight see higher prices, 12 see lower prices and three see prices trading sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts………………………………………..Full Article: Source

Gold should be $1,400/oz: Global Investors’s Holmes

Posted on 25 August 2014 by VRS  |  Email |Print

Frank Holmes, CEO and CIO of US Global Investors, a company known for its focus on the natural resources sector, says he believes the price of gold should be $1,400 per ounce, according to an interview on Ceo.ca. Holmes mentions several reasons for his bullish stance on the yellow metal, including economic concerns in Europe and China that trigger stimulus.
“We saw, three weeks ago, Germany go to a negative real interest rates. Well, when that happens all of a sudden you start seeing gold rise in euro terms,” Holmes tells interviewer Shannon Nelson………………………………………..Full Article: Source

Gold Price Manipulation Still Alive

Posted on 25 August 2014 by VRS  |  Email |Print

If one looks at a longer term chart of the last two years it’s very clear that gold is being capped at certain levels, and those levels are slowly forcing gold lower and lower. Each one of these manipulation zones are being defended successfully and that has some serious connotations going forward.
This all started right after the announcement of QE3. Gold was driven below $1700 and held below that level for 2 months. This got the ball rolling so to speak, it broke an intermediate cycle and started the bear market. Of course we all remember the call by GS to sell gold short followed by the premarket attack on April 12 that took out the stops below $1520 leading to a waterfall decline. That had to be one of the most blatant cases of manipulation in market history………………………………………..Full Article: Source

Rhodium Rally Pushes Price Past Platinum, Gold: Chart of the Day

Posted on 25 August 2014 by VRS  |  Email |Print

The price of rhodium, a metal used in car pollution-control devices, surpassed that of more-widely used platinum for the first time in 31 months as a mine strike in South Africa reduced supply amid rising demand.
The CHART OF THE DAY shows rhodium surging to $1,475 an ounce on Aug. 14, surpassing platinum for the first time since 2011 after overtaking gold, according to price data compiled by Bloomberg. Rhodium was at $1,400 as of Aug. 22, up 57 percent from its nine-year low in December………………………………………..Full Article: Source

Korea: No rush of investors at gold exchange

Posted on 25 August 2014 by VRS  |  Email |Print

Although business is transacted, there are no records and the government can’t levy taxes. This is the character of the underground economy in Korea, where gold is the commodity of choice. Transactions are made through a direct exchange of bullion or by cash, and the total value not subject to taxation is estimated at 300 billion won ($294.8 million) a year.
In an attempt to tap into that source of revenue, the government in March opened the nation’s first gold exchange market. After five months, are there signs of progress toward making the underground market more transparent?……………………………………….Full Article: Source

Can Gold and Silver still meet the previous price forecasts?

Posted on 25 August 2014 by VRS  |  Email |Print

In your previous Gold Report interview of Dec. 31, 2013, you predicted 2014 prices of $1,400 per ounce ($1,400/oz) for gold and $25/oz for silver. Do you think that gold and silver can still meet those prices this year?
Those figures referred to the high side of the anticipated trading range for both metals. Today, our prediction for the high side in 2014 is $1,350/oz for gold and $22/oz for silver. In other words, we see silver potentially trading up to $22/oz this year but do not imply in any way that we expect silver to average $22/oz this year………………………………………..Full Article: Source

Investors pile up dollar, abandon gold

Posted on 25 August 2014 by VRS  |  Email |Print

Strong economic data from the US saw gold prices drop sharply last week to hit $1,281/ounce, down 1.8 per cent. The US Commerce Department said that the number of building permits issued in July increased by 8.1 per cent to 1.052 million units from 9,73,000 in June. It also said that the US housing starts soared by over 15 per cent in July, much above the market expectations of an increase of 8.6 per cent.
The FOMC minutes released on Wednesday showed that US officials were optimistic about the recovery in the job market. As this hinted at a sooner than expected increase in interest rates, gold got a thumbs-down from investors………………………………………..Full Article: Source

Gold To Fall Lower But Don’t Expect Prices To Collapse - Capital Economics

Posted on 22 August 2014 by VRS  |  Email |Print

An improving U.S. economy and growing expectations for an early rate hike will drag gold prices lower by the end of the year, but the impact will be limited says commodity economists at a leading macro-economic research firm.
Caroline Bain, senior commodity economist at Capital Economics said, in an interview with Kitco News, that they are currently in the process of revising their year-end price target for the yellow metal lower; the firm’s current price target is $1,400 an ounce………………………………………..Full Article: Source

Three reasons why gold is set to rally for the rest of 2014

Posted on 22 August 2014 by VRS  |  Email |Print

Scott Winship, portfolio manager of the Investec Global Gold fund, explains why gold is set to build on a strong first half of the year. In recent months there has been renewed investor interest in gold, with the first half of 2014 seeing the gold price rise by 10 per cent.
Investors have also tempered their gold ETF selling year on year. Last year saw global gold ETF holdings decline by 33 per cent as investors priced in tapering of QE and higher interest rates, but this year has seen a change in sentiment as year-to-date ETF holdings have only declined by 1.8 per cent………………………………………..Full Article: Source

Can Gold and Silver still meet the previous price forecasts?

Posted on 22 August 2014 by VRS  |  Email |Print

Today, our prediction for the high side in 2014 is $1,350/oz for gold and $22/oz for silver. In other words, we see silver potentially trading up to $22/oz this year but do not imply in any way that we expect silver to average $22/oz this year.
We think gold and silver have performed relatively well this year and showed strength toward the end of the second quarter. My feeling is that stronger gold and silver prices that we have seen earlier than anticipated this year is a reflection of global political tensions and maybe just a reminder that we are not out of the woods as far as U.S. economic performance is concerned. Earlier is better, and so we look for gold and silver prices to retain most of their gains in the third quarter………………………………………..Full Article: Source

Is the LBMA Silver Price more transparent than the Fix? Not yet!

Posted on 22 August 2014 by VRS  |  Email |Print

So now we have had three days of the new LBMA Silver Price – the new name for the London Silver Fixing given that the term ‘Fix’ is somewhat discredited in modern-day parlance. The banks involved in the old system, which had fallen to two, wanted to withdraw from it, in part because they felt the process, even if it was a totally honest system, which it probably was, could lay them open to having to defend expensive, and probably spurious, lawsuits and the London Bullion Market Association took upon itself to go out and set up some kind of new silver benchmarking process at very short notice.
And is this new process any more transparent than the old one – one of the main charges laid against the old Silver fixing process. The answer so far is probably not!……………………………………….Full Article: Source

US Mint Platinum Coins Bypassed in Rush for Gold

Posted on 22 August 2014 by VRS  |  Email |Print

Five months after the U.S. Mint began producing coins made with platinum, sales have all but collapsed as investors continue to favor gold and silver.
“It’s not considered a currency,” said Jason Carstensen, a medical-sales representative in Ventura, California, who spends about $2,000 a month on coins. Gold and silver have value as hedges against a devaluation of the dollar, while platinum is viewed as an industrial commodity, he said………………………………………..Full Article: Source

Peak Gold? Russia To Surpass Australia As World No 2 Gold Producer

Posted on 21 August 2014 by VRS  |  Email |Print

Another important player in the gold market at the moment is Russia. Their intentions are more realistic and not as ambitious of those of China. However, Russia sees gold as a valuable monetary asset that will protect the ruble in the continuing currency wars.
This is why, Russia has been one of the largest buyers of gold in recent months (see chart) - largest sovereign buyer and one of the largest buyers in general. Although we do not know how much gold the People’s Bank of China is quietly accumulating. Russia now looks set to become the world’s second largest producer of gold, after China and surpassing current world number two gold producer Australia………………………………………..Full Article: Source

Why Aren’t Gold Prices Rising?

Posted on 21 August 2014 by VRS  |  Email |Print

The numbers are in… In the second quarter of 2014, world central banks bought 117.8 tonnes of gold bullion compared to 92.1 tonnes a year earlier—a jump of 28%. Central banks have been net purchasers of gold bullion for 14 consecutive quarters!
According to the World Gold Council, “Economic and geopolitical events throughout the world are sources of ongoing instability and uncertainty. Such events reinforce the requirement for appropriate risk management by central banks through holding gold reserves for asset diversification.”……………………………………….Full Article: Source

Tentative signs of stronger Indian gold demand in H2

Posted on 21 August 2014 by VRS  |  Email |Print

Gokulasthami, one of the major festivals celebrated across Maharashtra and some parts of South India, has now got a touch of gold, underscoring what some expect will be stronger second half for gold demand in India as the festival season ramps up.
If anything attracts Indians, it is gold, and gift prizes of gold pots, and gold coins, and even gold plated decorations rouse the masses. The tradition of Dahi Handi festival on Gokulashtami, celebrated across India on August 18 and 19 this year, relates to a human pyramid breaking an earthen pot filled with buttermilk suspended high above the ground, sometimes well over 50 feet above the ground………………………………………..Full Article: Source

Why Silver Prices Could Easily Double Or Triple

Posted on 21 August 2014 by VRS  |  Email |Print

Jim Rogers once quipped that he waits to invest until “there’s a pile of money just sitting there in a corner and I can walk over and pick it up.” In other words, an asset that’s deeply undervalued, widely ignored, with potent fundamentals ready to kick in. Is there such an opportunity in any of the precious metals right now?
One could make a case for all of them, given the likelihood of high inflation and the mainstream largely ignoring the industry. But there’s one metal in particular that I think will deliver the most fireworks………………………………………….Full Article: Source

Global gold demand continues to recalibrate in Q2

Posted on 20 August 2014 by VRS  |  Email |Print

The latest World Gold Council Gold Demand Trends report, covering the period April – June 2014, shows that global gold demand continues to demonstrate a return to long-term trends after an exceptional year in 2013. Total global gold demand in Q2 stood at 964 tonnes (t), 16% lower than the same period last year, as consumers and investors pulled back and consolidated their activity.
Global jewellery demand, which represents more than half of total global demand, was unsurprisingly down 30% year-on-year to 510t. In comparison Q2 2014 was 11% higher than Q2 2012, extending the broad upward trend evident since 2009. India and China remain significant drivers of the global jewellery market, purchasing 154t and 143t respectively……………………………………….Full Article: Source

China allows 3 more banks including StanChart to import gold

Posted on 20 August 2014 by VRS  |  Email |Print

China has allowed three more banks, including a foreign lender, to import gold, sources with direct knowledge of the matter said, as the world’s top gold buyer gears up for its strongest effort yet to gain pricing power of the metal.
The move, which brings the number of firms allowed to import gold into China to 15, comes ahead of the launch in September of a new international bullion exchange in Shanghai with which China hopes to become a price-discovery centre………………………………………..Full Article: Source

Why You Should Buy Silver Before It’s Too Late

Posted on 20 August 2014 by VRS  |  Email |Print

Too often silver falls in the shadow of its flashy, favored cousin gold, but the precious metal grabbed headlines last week when a 117-year-old tradition came to an end. Until last week, the price of silver had been decided, or “fixed,” each day at noon in London by representatives from three different banks. The process was conducted in private and it was all very secretive.
Now, regulators have finally dragged the silver “fix” into the 21st century in an effort to improve transparency and reduce the risk of price manipulation. The new system, called the London Silver Price, is run by CME Group and Thomson Reuters. It uses trading on the over-the-counter market and determines the price through an algorithm………………………………………..Full Article: Source

Has Gold Become a Bad Investment in India?

Posted on 19 August 2014 by VRS  |  Email |Print

Indians love gold, they cover their brides and shower their temples with the precious metal, traditionally used as a sparkling insurance policy and inflation hedge to be cashed in when needed. While the South Asian nation is the world’s second largest consumer of gold after China, it seems to be losing some of its appetite for the precious metal as an investment.
Demand for gold in India fell 39% from a year earlier in the quarter ended June to 204.1 tons, the World Gold Council said last week. Investment demand — buying of gold in the form of coins or bars rather than jewelry — plummeted even further, losing 67%………………………………………..Full Article: Source

Why Chinese Citizens Invest In Gold

Posted on 19 August 2014 by VRS  |  Email |Print

The US$ price of gold has soared +377% from 2001 to date. That’s a compound annual growth rate (CAGR) equal to 13.4%. Contrast gold’s monumental appreciation with the pathetic performance of the Shanghai Stock Exchange Index and the miserly return of US Treasuries.
“A major report published recently by the World Gold Council, “China’s Gold Market: Progress And Prospects” suggests that private sector demand for gold in China is set to increase from the current level of 1,132 tonnes per year to at least 1,350 tonnes by 2017. Following the record level of Chinese demand in 2013, which saw the country become the world’s largest gold market, the report suggests that while 2014 is likely to see consolidation, the succeeding years are likely to see sustained growth………………………………………..Full Article: Source

Not just the smart money getting into gold

Posted on 19 August 2014 by VRS  |  Email |Print

Despite gold coming close to dropping below the psychologically important $1,300 an ounce level at the end of the week and silver drifting away from $20 an ounce, precious metals investors added to their holdings. Total holdings in exchange traded products backed by physical gold and silver rose last week, albeit modestly, with two tonnes of gold bringing total holdings to 1,728.7 tonnes. More than 19 tonnes of silver trickled back into ETFs for a total of 19,616 tonnes.
Retail investor sentiment in precious metals were buoyed on Friday when second quarter filings by hedge fund gurus John Paulson and George Soros indicated continuing belief in good prospects for the sector………………………………………..Full Article: Source

Optimism over gold’s chances could be misplaced

Posted on 19 August 2014 by VRS  |  Email |Print

Gold bulls are the economic market equivalent of the apocalypse-fearing survivalists portrayed in the common television show Doomsday Preppers. They buy the yellow metal mainly because of concern that monetary authorities, primarily in the created world, will lose control of inflation and their currencies’ worth through maintaining low interest rates and quantitative easing too lengthy. If the gold bugs are established right, they will prosper though investors in equities and other assets suffer from rampant inflation and serious financial recession.
Possibly a kinder way of searching at gold investment is to say it tends to make sense as lengthy as actual interest prices stay damaging, as is currently the case in much of the Western planet………………………………………..Full Article: Source

3 Reasons Why I Am Bullish on Silver

Posted on 19 August 2014 by VRS  |  Email |Print

Global stock markets continued to be wracked by rising volatility because of a range of economic and geopolitical events that are fueling greater concern among investors. This is generating renewed interest in precious metals, including gold, silver, and platinum, as investors seek safe-haven investments to avoid this volatility.
Economic and geopolitical crises are gripping the globe. Earlier this year, emerging markets plunged as the Argentine peso was sold off; now Argentina has defaulted yet again on its debt, and there is growing concern that Portugal’s banking system is nearing collapse………………………………………..Full Article: Source

7 Reasons to Like Silver

Posted on 19 August 2014 by VRS  |  Email |Print

When considering the catalysts for silver, let’s first ignore short-term factors such as net short/long positions, fluctuations in weekly ETF holdings, or the latest open interest. Data like these fluctuate regularly and rarely have long-term bearing on the price of silver.
I’m more interested in the big-picture forces that could impact silver over the next several years. The most significant force, of course, is what I stated above: governments’ abuse of “financial heroin” that will inevitably lead to a currency crisis in many countries around the world, pushing silver and gold to record levels………………………………………..Full Article: Source

Gold investors eye EU’s next move

Posted on 18 August 2014 by VRS  |  Email |Print

Gold moved higher in the initial part of the week and closed lower on Friday as news of the EU reviewing the sanctions on Russia began to surface. At $1,304.7 per troy ounce, gold was down 0.3 per cent for the week. It was trading at $1,319.3/ounce on Thursday.
The number of people filing for jobless claims in the US rose more than expected last week. The US Labour Department reported that the claims rose to 3,11,000, against the expected 2,95,000. Weak economic data from the Euro Zone also helped gold prices inch up………………………………………..Full Article: Source

Gold falls globally on declining investor demand

Posted on 18 August 2014 by VRS  |  Email |Print

Gold fell the most this month on signs of waning investor demand from the US to China. The metal pared losses amid rising tensions in Ukraine. Violent conflicts in the Middle East and Eastern Europe helped boost prices 8.6 per cent this year.
Investors haven’t been enticed by the gains, sending open interest in New York futures and options to the lowest since 2009 and money managers have trimmed their bullish wagers. Demand for the precious metal fell 16 per cent in the second quarter, led by declines in India and China, the World Gold Council said this week………………………………………..Full Article: Source

Fateful month for gold at hand

Posted on 18 August 2014 by VRS  |  Email |Print

Why could September be fateful for the precious metals complex? First, consider its history within the current secular bull market. The years 2005, 2007, 2009 and 2010 have seen very important breakouts in either or both gold and gold stocks in the month of September.
Conversely, September marked important peaks in 2008 as well as in each of the past three years! Currently, Gold and more so the gold miners are consolidating their recent gains just below very important resistance. This consolidation figures to end before the end of September which means September will produce another important inflection point………………………………………..Full Article: Source

Silver price goes electronic

Posted on 18 August 2014 by VRS  |  Email |Print

The silver-pricing method begun during the reign of Queen Victoria ends on Thursday in London as the $5 trillion market shifts to a more transparent process and regulators expand scrutiny of how commodity benchmarks are set.
An electronic, auction-based mechanism will replace a ritualised negotiation among a few traders that’s been in place for 117 years. Silver becomes the first of the precious-metals markets to ditch a daily “fixing” procedure where dealers agree to a price over the telephone. Revamps also are planned this year for fixings in gold, platinum and palladium………………………………………..Full Article: Source

Global diamond supply in a single chart

Posted on 18 August 2014 by VRS  |  Email |Print

The diamond monopoly is over, writes Paul Zimnisky in his study of worldwide diamond industry, but he wonders how concentrated the industry remains: For the majority of the 20th century the diamond industry was conspicuously controlled De Beers, hoarding of over 80% of the worlds rough diamond supply in an attempt to manage global supply and thus prices.
However, a series of events over the last two-and-a-half decades reduced De Beers controlling share to 35%. In a monopoly one seller dominates the entire market. In an oligopoly a small number of large sellers dominate the market. While an oligopoly does consists of multiple players, the sellers can still individually set production quantities and prices and significantly influence the market………………………………………..Full Article: Source

Gold demand sinks 16% year-on-year in Q2

Posted on 15 August 2014 by VRS  |  Email |Print

Global gold demand declined sharply in the second quarter as prices steadied following exceptional circumstances in the same period of last year, according to the latest World Gold Council (WGC) report.
Bullion demand stood at 964 tons in the second quarter, down 16 percent on year, when demand totaled 1,148.3 tons, the report published Thursday found. However, the decline came as no surprise given the contrast in market conditions between the periods………………………………………..Full Article: Source

Global gold demand returning to positive long term trends

Posted on 15 August 2014 by VRS  |  Email |Print

The latest World Gold Council (WGC) quarterly Gold Demand Trends analysis as usual makes for some interesting reading. With stats prepared by Thomson Reuters GFMS it at least brings us a regular consistent snapshot of what is happening in global demand for the precious metal and this time around it sees the demand as ‘recalibrating’ towards the previous long term trend.
Gold demand in 2013 was exceptionally strong – despite, or perhaps because of, the gold price crash - with an enormous surge, initially mostly at end Q1 and in Q2 from China and levels continued at a high rate for the remainder of the year too. Indian demand early on was also high ahead of the anticipated, and subsequently applied, import restrictions……………………………………….Full Article: Source

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