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Commodities Briefing - Category | Bullion/Gold more

Gold going to $5,000 per ounce: Mining executive

Posted on 14 August 2014 by VRS  |  Email |Print

While the exchange-traded fund covering gold miners is outperforming the precious metal itself, McEwen Mining founder and chief owner Robert McEwen said Wednesday that he remains bullish on gold.
“I’m a long term believer in gold and I see it ultimately getting to $5,000 an ounce,” McEwen said on CNBC’s “Fast Money.” “Anything short of that, I wouldn’t be hedging.” McEwen, who owns 25 percent of his company and receives no salary, said that he expects gold to hit his price target of $5,000 in the next three to four years………………………………………..Full Article: Source

What’s Been Supporting Gold Prices?

Posted on 14 August 2014 by VRS  |  Email |Print

Most explanations for these results point to the various geopolitical risks that have generated jitters across a number of markets. However, there is another explanation. Expectations that monetary policy will remain loose across major economies longer than originally anticipated have been driving gold higher. Here are some key indicators supporting this thesis:
1. As discussed earlier (here), China’s monetary policy continues to be quite supportive for credit expansion. 2. Japan’s growth will likely fall short of the BOJ’s projections (see chart), prompting the central bank to accelerate QE or at least maintain it over a longer period. Credit Suisse: “We see additional BoJ easing coming in November.”……………………………………….Full Article: Source

Gold and Silver Miners that Can Make Money Now

Posted on 14 August 2014 by VRS  |  Email |Print

As much as we’d all like significantly higher silver and gold prices, Chris Thompson of Raymond James doesn’t expect them. The good news, he argues, is that the relative stability now characterizing the market permits investors to make informed decisions about which companies can build value and demonstrate cash flows at today’s prices.
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

Confused by the new London silver fix? You should be!

Posted on 14 August 2014 by VRS  |  Email |Print

The silver market has cause for concern… This Friday sees Thomson Reuters and CME roll-out of their new fixing engine and market participants are understandably clueless about how it works less than three days before it goes live. With the traditional fixing members have stepping away, it remains a mystery who will be taking the fix orders - with a deafening silence from market participants.
Oddly, if you can identify who your orders are to go through, then you have to get the calculator out because Reuters advise that prices are no longer in US dollars per ounce but US dollars per “lakh” or 100,000 ounces … why ?……………………………………….Full Article: Source

Why is the gold price immune to global strife?

Posted on 13 August 2014 by VRS  |  Email |Print

Gold has been trapped in a narrow range over $1,300 per ounce, struggling to extend its rally, even as a whole raft of geopolitical tensions remain unresolved.
The yellow metal has failed to “find the vigor usually associated with rising fear,” according to analysts, even as U.S. forces carried out air strikes in Iraq, and NATO warned of the “high probability” of a Russian invasion of Ukraine Monday. Indeed, known holdings of gold by exchange-traded funds remaining close to its lowest point this year………………………………..Full Article: Source

Gold Firmer s Geopolitics Keeps Sellers At Bay

Posted on 13 August 2014 by VRS  |  Email |Print

Gold prices are modestly higher in subdued early U.S. trading Tuesday. Some safe-haven demand is still present in the market place, evidenced not only by the firmer gold prices but also by a stronger U.S. dollar and higher U.S. Treasury prices. December Comex gold was last up $3.20 at $1,312.50 an ounce. Spot gold was last quoted up $0.80 at $1,311.75. December Comex silver last traded up $0.014 at $20.175 an ounce.
There are still geopolitical hotspots in the world that have the attention of the market place: civil war in Iraq, in which the U.S. has just injected military force; the Russia-Ukraine tensions; and the Israel-Hamas fighting. ……………………………….Full Article: Source

Silver Prices Decoupling From Gold

Posted on 13 August 2014 by VRS  |  Email |Print

Gold prices are showing some modest gains on geopolitical concerns, but silver prices are struggling to show similar strength and that may be sign that gold’s strength could be limited.
Last week December gold futures on the Comex division of the New York Mercantile Exchange settled up 1.25% on the week while September silver fell 2.1%. That’s unusual because gold and silver generally trade in tandem. Gold received a late-week boost on geopolitical tensions, but silver was unable to follow suit………………………………..Full Article: Source

Gold: investor views on the price drivers

Posted on 12 August 2014 by VRS  |  Email |Print

A third of gold and silver investors think monetary policy will have the biggest effect on gold prices in the second-half of 2014, with geopolitics in second place. These two factors beat inflation, which came in fourth place, alongside the direction of the stock market.
BullionVault the physical gold and silver exchange online, asked its users in July what they thought most impacted the price of gold. With the Bank of England expected to hold interest rates at 0.5% for the foreseeable future, 33% of respondents believe monetary policy will have the biggest influence. However historical data shows that there is no constant relationship between interest rates and UK gold prices……………………………………Full Article: Source

Is there synergy in going after both Uranium and Gold?

Posted on 12 August 2014 by VRS  |  Email |Print

Simply put, there is a short-term supply problem in the uranium industry. We believe, however, in the long term, supply will not be able to keep up with demand growth. The point at which we previously expected demand to outstrip supply has been pushed out by a couple of years. That development has impacted the price in recent months, as well as Raymond James’ outlook for the price going forward.
The three main reasons for continued global growth of uranium mine production are the persistence of long-term fixed-price sales contracts, the intransigence of government producers who believe that security of supply is more important than mine economics, and byproduct uranium production. Secondary supply sources also remain robust……………………………………Full Article: Source

Economic, Geopolitical Worries Push Gold Up

Posted on 12 August 2014 by VRS  |  Email |Print

Gold rose to two-week highs last week as worries grew over economic weakness in the euro zone and tensions between Russia and the West. The rise in gold continued a rally sparked Tuesday afternoon, when Polish Foreign Minister Radoslaw Sikorski said Russian troops are poised to pressure or invade Ukraine, causing gold prices to reverse losses and head higher in aftermarket electronic trading.
Conflicts in Ukraine and the Middle East have helped buoy gold prices in recent months, even as the market has been weighed down by expectations that the Federal Reserve may tighten monetary policy sooner than expected, according to the Wall Street Journal……………………………………Full Article: Source

Silver: Investing Essentials

Posted on 12 August 2014 by VRS  |  Email |Print

Mankind has been mining silver for more than 5,000 years. It is believed to have first been mined in what is now Turkey. Through the centuries it became an important trading component especially along the Asian spice routes. Today, silver is not only important for the value it holds but for the vast array of usages derived from its versatility.
What is silver and why is it important ?: Silver is a soft and shiny metal that has the highest electrical and thermal conductivity of all the metals, as well as being the most reflective……………………………………Full Article: Source

Top 7 Reasons I’m Buying Silver Now

Posted on 12 August 2014 by VRS  |  Email |Print

I remember my first drug high. No, it wasn’t from a shady deal made with a seedy character in a bad part of town. I was in the hospital, recovering from surgery, and while I wasn’t in a lot of pain, the nurse suggested something to help me sleep better. I didn’t really think I needed it-but within seconds of that needle puncturing my skin, I WAS IN HEAVEN.
The euphoria that struck my brain was indescribable. The fluid coursing through my veins was so powerful I’ve never forgotten it. I can easily see why people get hooked on drugs……………………………………Full Article: Source

Hedge Funds Are Digging Gold Miners

Posted on 11 August 2014 by VRS  |  Email |Print

All that glitters isn’t gold—at least for the investors who are eschewing the precious metal in favor of the companies that mine it. After years spent in the shadow of gold, miners are back in favor, driven by stronger earnings and cuts to mining costs. The NYSE Arca Gold Miners Index, which tracks 39 gold-mining companies, has soared 26% so far this year, compared with a 8.9% rise in gold and a 4.5% increase in the S&P 500.
The gold-miner rally is a boon for high-profile hedge-fund managers such as George Soros and John Paulson—as well as traditionally gold-focused traders like Peter Palmedo and Eric Sprott. Their gold bets were pummeled last year, when a rise in bond yields and muted inflation dulled gold’s allure, sparking a stampede that drove the precious metal’s price down 28% and the gold-mining index down 54%……………………………………..Full Article: Source

Gold Likely To Break Out, But Will It Go Up Or Down?

Posted on 11 August 2014 by VRS  |  Email |Print

Gold snapped a three-week losing streak and saw solid gains last week as a result of renewed safe haven demand, but silver registered losses for the fourth straight week, following the broad commodity market lower. A stronger U.S. dollar has been a key factor in limiting recent gold price gains and, with the eurozone economy now stumbling badly, the strong inverse correlation between the two could continue to hold metal prices in check.
U.S. stocks and bonds both rose last week and this too limited the upside for gold while the latest ETF flows indicate U.S. investors may again be souring on the metal, due in part to its inability to break free of its recent trading range……………………………………..Full Article: Source

Gold hold on to overnight gains above $1,300 as Ukraine boosts safe-haven appeal

Posted on 08 August 2014 by VRS  |  Email |Print

Gold held on to overnight gains above $1,300 on Thursday, trading near its highest in more than a week as fears of Russian military action against Ukraine and retaliation by Moscow over Western sanctions burnished gold’s appeal as a safe haven.
Russia will ban all imports of food from the United States and all fruit and vegetables from Europe, the state news agency reported on Wednesday, even as NATO said Russia had massed around 20,000 combat-ready troops on Ukraine’s border………………………………………..Full Article: Source

What do Indian gold market changes mean for U.S. price?

Posted on 08 August 2014 by VRS  |  Email |Print

We are soon entering a propitious period for gold in the annual calendar. Historically, prices have moved higher as gold traders and buyers returned from their summer holidays. In reality, it has been the approaching Indian holiday, wedding, and agricultural harvest seasons that have boosted gold demand and supported higher prices in world markets as summer draws to a close.
Until last year, India was the largest consumer of gold in the world market, but thanks to the imposition of gold-import barriers by the Indian authorities and the surge in Chinese demand, China rose to the top spot and India trailed behind. Nevertheless, India remains a major player holding much sway over the world price………………………………………..Full Article: Source

Manipulation of gold is self-evident

Posted on 08 August 2014 by VRS  |  Email |Print

Eighty years of manipulating gold markets….stock, bond and currency markets. The manipulation of markets is not exclusive to gold. Stock, bond and currency markets are also manipulated, but there is one difference. Gold’s price is manipulated downward, while stock, bond and currency markets are typically manipulated upward.
In February 2014, Bloomberg reported there were indications that gold has been manipulated for the past decade………………………………………..Full Article: Source

Gold and Silver - From Price Manipulation to Hyperinflation

Posted on 08 August 2014 by VRS  |  Email |Print

The precious metals are lynch pins. They are nagging and persistent counter-parties to money printing gone wild. It’s been this way for as long as commerce was semi-civilized. (Though given the amount of financial fraud, violence, and chaos in the world, the term “civilized” might need to be reconsidered)…
When prices began to fly, the point of no return will be long since passed. I believe we are living in limbo at the moment. We’ve passed the point of return, but have yet to move into the next (collective) phase………………………………………..Full Article: Source

Why The Price Of Silver Should Rise In August

Posted on 08 August 2014 by VRS  |  Email |Print

August has in recent history been a strong month for silver prices, though coming off a weak July and held back by speculator activity, it is having a slow start to the month. But silver prices are rising today. New York spot silver, which trades continuously from 6 p.m. Sunday to 5:15 p.m. EDT Friday, pushed up over $20 an ounce at around 9:30 a.m. EDT after slipping below that point yesterday. Tuesday marked the first time that silver was trading below $20 since mid-June.
Silver futures contracts for September delivery opened down 2.8% on the week at $19.79, but pushed back up above $20 and hovered around that level in the afternoon………………………………………..Full Article: Source

HSBC expects gold’s recent price decline to boost demand

Posted on 07 August 2014 by VRS  |  Email |Print

Australian Perth Mint gold and silver sales declined during July this year, as per latest figures from Perth Mint. Perth Mint gold bullion coins and bars sales for July down to 25,103 ounces from sales of 39,405 in July last year. For silver, July sales totaled 577,988 ounces, down from 586,358 sold in the same month last year.
According to HSBC, Perth Mint July data show a decline in sales of gold bullion coins and bars, but lower prices lately may help revive demand. US Mint data last week showed a 49% year-on-year decline in gold coin sales to 35,500 ounces………………………………………..Full Article: Source

Gold Prices Rally on Economic, Geopolitical Worries

Posted on 07 August 2014 by VRS  |  Email |Print

Gold prices rose to their highest level in nearly two weeks on Wednesday, as worries grew over economic weakness in the euro zone and tensions between Russia and the West.
Gold for December delivery, the most actively traded contract, rallied $22.90, or 1.8%, to $1,308.20 a troy ounce, the highest settlement price since July 21. The contract posted the biggest one-day percentage gain since June 19. Italy fell back into recession for the third time since 2008, data showed Wednesday, signaling that the euro zone’s recovery has hit a major stumbling block………………………………………..Full Article: Source

Gold Investors Shouldn’t Fear Rising Interest Rates: Here’s Why

Posted on 07 August 2014 by VRS  |  Email |Print

Investors commonly assume that rising interest rates adversely impact the gold price, and vise versa. They believe that a rising interest rate environment is indicative of a strong economy, which is supposed to drive investors out of gold and into the stock market. They further assume that investors will want to exchange their gold, which has no yield, for stocks and bonds, both of which have yields and generate income.
But this intuition is unfounded, at least when tracking the Fed Funds Rate since the Nixon abandoned the gold standard (i.e. after August 15th, 1971). Since then, a rising Fed Funds Rate has usually coincided with rising gold prices, and vise versa………………………………………..Full Article: Source

Palladium weakens as bulls head for exit

Posted on 07 August 2014 by VRS  |  Email |Print

The top performing precious metal of 2014 is beginning to come under pressure. Since reaching its highest level in almost 14 years three weeks ago, palladium, used in catalytic converters that clean car exhausts, has dropped more than 4 per cent. It fell as much as 0.9 per cent to $835.90 a troy ounce on Wednesday, underperforming sister metal platinum as well as gold and silver.
Analysts say there is no fundamental reason for the recent weakness other than profit-taking by investors who have built large positions in palladium, a byproduct metal produced from platinum and nickel mines………………………………………..Full Article: Source

3 Reasons Why Silver Miners Should Be in Every Investor’s Portfolio

Posted on 07 August 2014 by VRS  |  Email |Print

Precious metal prices remain volatile and this has seen the precious metals mining sector fall out of favour with investors. But there are signs that a sustained rally in precious metal prices is imminent. For the year to date both gold and silver prices have remained relatively flat. But with growing demand along with supply shortages, geopolitical instability in Europe and the Middle East, and Wall Street making big bets on precious metals, I expect to see a sustained rally shortly.
Typically, the preferred means of gaining exposure to precious metals is to invest in gold, but for a variety of reasons I believe silver is a superior investment at this time, offering investors superior potential upside………………………………………..Full Article: Source

The seven drivers of the gold price

Posted on 06 August 2014 by VRS  |  Email |Print

Ben Bernanke, the former chairman of America’s Federal Reserve, famously told Congress that no one really understood gold. NM Rothschild, the Victorian banking and bullion magnate, said the same, if more wittily. “I know of only two men who really understand the value of gold, an obscure clerk in the basement vault of the Banque de France and one of the directors of the Bank of England.
“Unfortunately, they disagree.” Plenty of analysts now ignore Rothschild’s joke, and make a living trying to predict the direction of gold. But they’ve been confounded so far this year, forecasting fresh falls after 2013’s crash only to see gold outperform other assets………………………………………..Full Article: Source

Gold Price Will Pass $1,400 This Year As US Inflation Rises, USAGOLD Analyst Says

Posted on 06 August 2014 by VRS  |  Email |Print

Gold prices will reach $1,400 an ounce, the highest price since last September, by the end of the year, according to USAGOLD Centennial Precious Metals Inc. Higher demand from Asia and an anticipation of accelerating inflation are lifting the price, the precious metal dealer’s chief market analyst Peter Grant told Bloomberg.
Gold bullion prices will rise even if the Federal Reserve increases the interest rates that banks charge one another for short-term loans, which affects the rates banks charge customers for loans, to forestall future inflation. That’s because higher borrowing costs will likely come with rising consumer prices, he said………………………………………..Full Article: Source

Silver: The Rallies Are Getting Smaller And Smaller

Posted on 06 August 2014 by VRS  |  Email |Print

Silver’s nearly 15% rally from the first week of June that took it from a low of $18.75 to a high of about $21.50 appears to have ended. Silver has given up about half of those gains and is currently trying to hold the $20 mark. Back in the glory days of silver’s bull market (pre-2012), silver had large rallies that easily exceeded the most recent 15% run-up.
There is still some negative psychology in the precious metals market. Fundamentals for silver don’t seem to matter, at least in the short-term. The hedge funds are still overbought according to the COT report………………………………………..Full Article: Source

Silver To Eventually Benefit From Rising Industrial Demand

Posted on 06 August 2014 by VRS  |  Email |Print

ETF Securities looks for improving industrial demand to ultimately underpin silver, although worries about rising U.S. interest rates may pressure precious metals in the near term.
“From a fundamental perspective, the strong correlation to gold continues to pressure the silver price lower….Largely to blame is the stronger U.S. dollar and improving investor sentiment, which is being buoyed by the robust U.S. recovery and the re-rating of the potential for tighter Fed policy as the central bank remains on track to wind down its bond buying by year-end,” said the provider of metals exchange-traded funds………………………………………..Full Article: Source

Gold Price Bullish Falling Wedge

Posted on 05 August 2014 by VRS  |  Email |Print

We called the exact top in gold to the day in the last update 3 weeks ago, as it has since reacted back. Now the picture is more messy, with conflicting indications, but let’s see what we can make of it. There was no update for these 3 weeks as we were waiting for this decline to run its course (no point in working for the sake of it).
On the 6-month gold chart we can see how the forecast decline was kicked off by a sharp drop, but as it has proceeded it has diminished in force, and it now looks like the minor downtrend has developed into a bullish Falling Wedge………………………………………..Full Article: Source

Gold outlook grim, but don’t take your eyes off it

Posted on 05 August 2014 by VRS  |  Email |Print

Upbeat manufacturing data from China notwithstanding, all commodities have been exhibiting price volatility. In line with this, gold saw the third weekly drop, the longest streak of decline since September, amid speculation that an improvement in the US labour market will reduce investor appetite for the yellow metal, considered a safe haven. On August 1, gold traded in the international spot market near the lowest point in six weeks at $1,284 a troy ounce.
Normally, major events like a war or a terrorist attack lead to a spike in inflation as supply of certain goods (crude oil, for example) gets disrupted, increasing their demand. Going by the same logic, rising geopolitical uncertainties — be it in Ukraine or West Asia — is a fertile ground for gold. The metal sees a price spurt in such times because of safe haven demand and also because its price constantly gets adjusted to inflation………………………………………..Full Article: Source

4 Reasons To Invest In Silver Rather Than Gold

Posted on 05 August 2014 by VRS  |  Email |Print

With Wall Street and a number of institutional investors like Ray Dalio and billionaire George Soros placing big bets on a recovery in precious metals, now is likely the time for investors to take the plunge. But the key question remains, which precious metal should they choose?
Gold has remained a firm favourite among investors and Mr. Soros has made a massive US$120 million plunge on the world’s largest gold producer Barrick Gold Corporation. However, my preference is to invest in Silver and not gold. Not only does it share similar characteristics to gold, including acting as an inflationary hedge, being a well of value in uncertain times and a safe-haven asset, it possesses four unique characteristics which could propel its price skyward………………………………………..Full Article: Source

Silver to Gain Ground in August on These Factors

Posted on 05 August 2014 by VRS  |  Email |Print

Silver prices may have had an unremarkable July, trading down 3%, but if recent history is any indication, August could help steer prices in the right direction and draw in the bulls. One reason for a rosy silver price forecast for August is that the white metal has finished up every year in this month for the last five years, averaging a return of 10.4%.
In the last 10 years, silver has finished up seven times and averaged a 3.6% month-long return. The last two years have been even better - silver tallied double-digit gains in August, with an astounding 19.3% surge in 2013………………………………………..Full Article: Source

India Snatching Up Swiss Gold, Silver

Posted on 04 August 2014 by VRS  |  Email |Print

Gold loving India is hoarding Swiss gold, and recently accounted for 42% of total gold and silver leaving Switzerland. According to the Swiss government, its total value of exported gold, silver and coins in the month of June stood at 3.9 billion Swiss franc ($4.3 billion), of which India accounted for 1.63 billion francs ($1.8 billion).
Indian demand for gold has taken overall Swiss exports this year to to 32.1 billion francs. And out of that total, gold exports alone to India hit 7.3 billion francs, or roughly 23% of the market………………………………………..Full Article: Source

Gold price risk still to downside

Posted on 04 August 2014 by VRS  |  Email |Print

The gold price tried to regain the psychologically important $1,300 an ounce level on Friday after slightly disappointing jobs number out of the US and a losing streak on Wall Street sent investors back into gold. On the Comex division of the New York Mercantile Exchange, gold futures for August delivery closed at $1,295 an ounce, up $12 from Thursday’s trading session.
The US economy added 209,000 jobs in July – the sixth straight month of 200,000-plus gains for the first time since 1997 – but the unemployment rate edged up to 6.2% from 6.1%. The below-forecast numbers hurt the dollar which usually move in the opposite direction of the gold price………………………………………..Full Article: Source

Why Did Ron Paul Say Gold Could Go To Infinity?

Posted on 04 August 2014 by VRS  |  Email |Print

This week, former Congressman Ron Paul said gold could go to infinity. Many people will be tempted to buy gold based on his prediction. It’s certainly exciting to think about the upside, the profit potential. Who doesn’t want to buy whatever’s going up? However, in the case of gold, there is a serious error in this thinking.
Dr. Paul has put his finger on something very important. The government is abusing its credit, and borrowing itself into oblivion. If this continues, then the value of the government’s debt and currency will drop, probably quite rapidly. This means the price of gold will skyrocket………………………………………..Full Article: Source

Hedge Funds Cut Gold Bull Wagers by Most in Eight Weeks

Posted on 04 August 2014 by VRS  |  Email |Print

Hedge funds reduced bets that gold would rally from the longest retreat in a year as U.S. economic growth exceeded analysts’ estimates.
Money managers cut their net-long position by 10 percent in the week through July 29, the most since June, U.S. government data show. Prices dropped for a third week, the longest slide since July 2013. The decline helped to erase almost $610 million from the value of exchange-traded products backed by the metal………………………………………..Full Article: Source

Like gold, base metal stocks offer huge investment opportunities

Posted on 04 August 2014 by VRS  |  Email |Print

Base metals stocks, like gold stocks, nowadays offer some enormous investment opportunities. They fell so low, along with most base metals prices that, particularly with the improved economic recovery in the U.S. and in some other nations, and with China showing some positive growth indications again, there is relatively little downside remaining.
Indeed base metals stocks have been some of the best performers so far this year as they have risen off their nadirs. And in the junior sector in particular, selective stock picking – i.e. those with good projects, the finances to survive any continuing price malaise and successful management teams – should, like similarly placed gold juniors, ultimately pay off in spades………………………………………..Full Article: Source

Gold ETPs Halt Outflows as Buyers Return Amid Price Slump

Posted on 01 August 2014 by VRS  |  Email |Print

Gold investors who pulled money out of U.S. exchange-traded products through the first half of 2014 rushed back in July, just as prices resumed a decline that Barclays Plc and Goldman Sachs Group Inc. say will get worse.
ETPs backed by precious metals took in $540.7 million this month through yesterday, a 1 percent gain for funds that saw a net outflow of $319 million in six months through June, data compiled by Bloomberg show. This month’s 3 percent drop in futures left prices down 7.9 percent from a 2014 peak in March………………………………………..Full Article: Source

Is the Fed Cornered? Here’s What Gold’s Price Says

Posted on 01 August 2014 by VRS  |  Email |Print

Step away from monetary-policy details and you’ll see that the Fed is in a conundrum. Economic data is improving. Policy is still ultra-loose. How does the Federal Reserve get from post-crisis mode to something more conventional?
Judging by the attached chart, the gold-price reaction to this morning’s 8:30 a.m. economic data suggests the question is top of mind for at least some traders. If it weren’t, gold’s price might be expected to be on the rise amid Thursday’s tone of worry. Dow futures are falling 118 points. Argentina is on the brink of default. European markets fell by a good 1% nearly across the board………………………………………..Full Article: Source

London platinum/palladium fixes seek third-party admin, in wake of silver/gold

Posted on 01 August 2014 by VRS  |  Email |Print

The world of precious metals price setting was once again in the spotlight Thursday on the back of news that The London Platinum and Palladium Fixing Company Limited is looking for a third party to administrate the daily London platinum and palladium fixes.
The news came hot on the heels of an announcement Tuesday that The London Gold Market Fixing Limited and the London Bullion Market Association are seeking proposals from third parties to “assume administration” of the future London gold fix. The entire London “fixing” process has been in the spotlight for many months on the back of increased regulatory scrutiny………………………………………..Full Article: Source

US growth, inflation numbers drop gold price through $1,300

Posted on 31 July 2014 by VRS  |  Email |Print

The gold price fell below the psychologically important $1,300 an ounce level on Wednesday after strong economic data outweighed safe haven buying on geopolitical concerns. On the Comex division of the New York Mercantile Exchange, gold futures for August delivery in early morning trade exchanged hands for $1,294.60 an ounce, down $5.60 from Tuesday’s trading session.
US gross domestic product grew at a 4% annual pace in the second quarter, according to government data released Wednesday. First quarter number were also adjusted, showing a smaller contraction………………………………………..Full Article: Source

Hold some gold. Better safe than sorry

Posted on 31 July 2014 by VRS  |  Email |Print

The one sided drivel which passes for objective news reporting in the West never ceases to amaze me. On Ukraine, and in particular on the shooting down of Malaysian airlines flight MH17, the western media seem to promote one agenda, and one agenda only, without any recognition at all that there might be an alternative argument viewed from the ‘other side’.
Now whether it is proven that the anti-Russian rhetoric thus encompassed is correct or not surely a wholly impartial news organisation should at least recognise that there could perhaps be another side to the story………………………………………..Full Article: Source

Gold price holds above $1,300, focus on Fed policy meeting

Posted on 30 July 2014 by VRS  |  Email |Print

Gold was little changed just above USD 1,300 an ounce on Tuesday, supported by geopolitical tensions in the Middle East and Ukraine, with investors also focusing on U.S. jobs data and a Federal Reserve policy meeting this week.
The Fed kicks off its two-day meeting later on Tuesday, with markets watching for clues as to when the U.S. central bank will begin increasing interest rates. The Fed will make a statement on Wednesday at the end of the meeting. “Gold is going to be range-bound until the Fed meeting and economic data later this week,” said Mark To, head of research at Hong Kong`s Wing Fung Financial Group………………………………………..Full Article: Source

We’re Ready to Profit in the Coming Gold Price Correction—Are You?

Posted on 30 July 2014 by VRS  |  Email |Print

Sometimes I see an important economic or geopolitical event in screaming headlines and think: “That’s bullish for gold.” Or: “That’s bad news for copper.” But then metals prices move in the opposite direction from the one I was expecting. Doug Casey always tells us not to worry about the short-term fluctuations, but it’s still frustrating, and I find myself wondering why the price moved the way it did.
As investors we’re all affected by surges and sell-offs in the investments that we own, so I want to understand. Take gold, for example. Oftentimes we find that it seems to tease us with a nice run-up, only to give a big chunk of the gains back the next week. And so it goes, up and down………………………………………….Full Article: Source

Who will run the gold fix next?

Posted on 30 July 2014 by VRS  |  Email |Print

The banks that conduct the century- old gold fixing and the London Bullion Market Association will seek proposals next month for a new administrator to run a revamped process for the benchmark by year-end.
The London Gold Market Fixing Ltd., which manages the procedure, and the LBMA will open a market consultation in late August and plan to announce a third-party administrator by the end of September, the association said in a statement today. The process will be open and not restricted to firms who pitched to run a mechanism that will replace the silver fixing on Aug. 15………………………………………..Full Article: Source

Can We Trust Silver’s Leadership Over Gold?

Posted on 30 July 2014 by VRS  |  Email |Print

While gold has been nabbing the bulk of the recent commodity headlines, investors have missed what has been — and will likely continue to be — the better long-term, safe-haven holding. Surprise! Silver has actually outpaced gold since both hit a short-term bottom on June 2. Specifically, even with last week’s tumble, the iShares Silver Trust (SLV) is still up 10% since that point, while the SPDR Gold Trust (GLD) is only up 4.9% for the nearly-two-month timeframe.
In fact, SLV has outpaced the SPDR S&P 500 ETF Trust (SPY), the iShares Barclays 20-Year Treasury Bond ETF (TLT), and a whole slew of other asset classes over the past couple of months………………………………………..Full Article: Source

Gold Price In 2014 Consolidating Above Major Support Area

Posted on 29 July 2014 by VRS  |  Email |Print

So far, the gold price in 2014 in the first six months has been trading in a tight range between $1190 and $1390. The yellow metal had one significant rally in February / March and one moderate rally starting in June.
The spikes in the gold price in 2014 have been driven partly by fear and partly by inflation expectations. The first rally coincided with the outbreak of tensions in Ukraine. The second (modest) rally was driven by the US Fed statement mid June that inflation expectations are soaring………………………………………..Full Article: Source

Must-know facts about the silver rally

Posted on 29 July 2014 by VRS  |  Email |Print

First, it’s worth putting silver’s recent rise in context. Here are three important facts about the recent rally. 1. While the metal has had a respectable run over the past month, silver is still playing catch-up after losses earlier this year. Between late February and early June, silver prices fell roughly 15%.
In addition, even with the recent rally, for the first half of the year silver has trailed gold, which has gained nearly 10% versus roughly 7.5% for silver. Prices are based on spot prices for both gold and silver from Bloomberg. 2. The recent jump in silver prices is partly a function of the metal’s volatility. Silver tends to be a relatively thinly traded market………………………………………..Full Article: Source

Should you jump on the silver bandwagon?

Posted on 29 July 2014 by VRS  |  Email |Print

After rising nearly 12% from its June lows, silver has been garnering some attention lately, leaving many investors wondering whether they should raise their allocations to the precious metal. Russ explains why now probably isn’t the best time to allocate more to either silver or gold.
After rising nearly 12% from its June lows, silver (SLV) has been garnering some attention in recent weeks, as investors and market watchers look for something to get excited about amid the broader market’s low volatility and slow grind higher. It’s no wonder, then, that many are asking whether it’s time to jump on the silver bandwagon………………………………………..Full Article: Source

Is gold approaching a tipping point?

Posted on 28 July 2014 by VRS  |  Email |Print

It is a property of physics that action is met by reaction, as a matter of real science. In the world of financial markets, however, that principle may only doubtfully apply, just as in economics cause and effect are very often difficult to disentangle.
That said, there is a fairly clear counterpart to the supposed likelihood of the US dollar rising with the expected onset of rising interest rates, as related last week. That is the impact on gold, responding both to the same underlying force and to the currency’s behaviour itself………………………………………..Full Article: Source

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