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Geopolitics trump fundamentals in 2015, likely bull year for gold price: MKS

Posted on 10 February 2015 by VRS  |  Email |Print

Geopolitics and the market’s view of risk, rather than fundamentals, will push the price of gold higher this year, according to Swiss refiner MKS. Speaking at this year’s Richcomm Commodities Outlook in Dubai Sunday, CEO of MKS in Dubai Frederic Panizzuti said the market’s reaction to the possibility of a renewed euro crisis, fallout from the Russia-Ukraine standoff, as well as interest rate hikes in the US, will all add to gold’s appeal as a safe haven for investors in 2015.
“We have put fundamentals aside in our gold outlook for 2015,” Panizzuti said. “Geopolitics, the perception of risk and even emotional risk from investors are the main drivers this year.”……………………………………….Full Article: Source

Protecting Your Portfolio: Should You Buy Gold Or Gold Miners?

Posted on 10 February 2015 by VRS  |  Email |Print

Many investors consider gold to be a safe haven, a hedge against inflation and a hedge against financial calamity. Indeed, a small allocation to gold in your portfolio is a prudent diversification tool but it has its drawbacks.
For example, physical gold becomes expensive and is bulky to store in any large quantity. Additionally, there are plenty of gold-focused investment funds on the market but some charge hefty management fees and others are difficult to understand………………………………………..Full Article: Source

Dubai Gold Jewelry Demand Higher After Slow Star to Year

Posted on 09 February 2015 by VRS  |  Email |Print

Gold-jewelry demand in Dubai is picking up after a slow start to the year when buyers were held back due to high prices, according to Tawhid Abdullah, chairman of the Dubai Gold & Jewellery Group, a retailer in the gold souk.
Industry sales are probably 8 percent higher so far this year compared with the same period in 2014, Abdullah said in an interview at a commodities conference in Dubai on Sunday. In January, when gold jumped to a five-month high, demand was probably 2 to 3 percent higher over a year earlier, he said………………………………………..Full Article: Source

China’s SGE January gold withdrawals record 255 tonnes

Posted on 09 February 2015 by VRS  |  Email |Print

With another 53.7 tonnes of gold withdrawn from the SGE in the final week of January, Chinese gold demand appears to match almost exactly total global new mined gold supply. Global new mined gold supply approximately 3,100 tonnes a year or averaging 258 tonnes/month: Shanghai Gold Exchange (SGE) gold withdrawals in January 255 tonnes! The figures speak for themselves.
Forget GFMS China gold consumption figures, we just don’t believe they are even close to reality. Forget the latest Reuters report on Chinese gold demand published here on Mineweb on Friday – it just quoted the same figures although it attributed them to another source………………………………………..Full Article: Source

What price gold in an increasingly unreliable world?

Posted on 09 February 2015 by VRS  |  Email |Print

You may have noticed that whenever the gold price picks up steam, some in the international media spring into condemnation. The fact that a shiny metal should be favoured over paper money (though equally redundant in its purely physical aspect) sparks their concern.
The reason is that they specifically want savers to lose out relative to spenders, in the quest for economic momentum. The use of gold, then, is a snag in that stratagem. Gold is quiet right now, but its relative slumber may not last if the latest round of deflationary global numbers leads to further desperate official measures worldwide………………………………………..Full Article: Source

Will Silver Prices Hit New Lows In 2015?

Posted on 09 February 2015 by VRS  |  Email |Print

There’s been quite a bit of volatility with Silver prices. After a nice rally into early 2015, the past 2 weeks has ushered in some price weakness. And this begs the question: Do lower prices loom for Silver in 2015? Back in August 2014, I wrote an article projecting lower Silver prices. In that post, I used my custom Fibonacci method to calculate probable Silver price targets over the short and long term. The short-term targets were both hit and closed.
It’s the longer term target that deserves our attention here. My projected target was 14.095. A nice call, considering that Silver futures were trading at 19.395. That represented a pullback of 27.3 percent and seemed somewhat of a stretch. But was it a stretch? Not so much………………………………………..Full Article: Source

3 Factors That Drive Gold Prices

Posted on 06 February 2015 by VRS  |  Email |Print

Gold is something that fascinates us all at some level. Kings fought for it, explorers risked their lives for it and we’ve all been conditioned to believe it has an almost magical intrinsic value. (If you want to listen to a captivating story explaining why we value gold so much more than any of the other basic elements on the periodic table, check out the Planet Money podcast “Why Gold”.)
As traders and investment educators, our fascination with gold went beyond the element itself. It took us into the realms how traders view gold and what makes them buy it. This exploration led us to write a book for McGraw-Hill in 2011 entitled All About Investing in Gold — a must read, if we do say so ourselves………………………………………..Full Article: Source

Where Is Germany’s Gold?

Posted on 06 February 2015 by VRS  |  Email |Print

Almost half of Germany’s gold resides at 33 Liberty St., the headquarters of the Federal Reserve Bank of New York, 80 feet below street level in a vault that sits on Manhattan’s bedrock. In 2012, Peter Boehringer started a campaign on his blog to bring it home. He argued the gold should be shipped to the German central bank in Frankfurt.
The hoard, amassed during Germany’s postwar boom, had never been subject to a published bar-by-bar physical review by its owners. That lack of accounting had become an insatiable itch for Boehringer. As the volunteer chairman of a private storage company for silver and gold investors based in Gerstetten, Germany, Boehringer personally counts the holdings each year by lugging metal valued at some €140 million ($161 million) from one end of the vault to the other, just to make sure it’s all there………………………………………..Full Article: Source

Thinking of switching from gold to gold miners?

Posted on 06 February 2015 by VRS  |  Email |Print

The recent strengthening of the gold price along with a weaker rand in the last quarter of 2014 has prompted many investors to consider switching from owning physical gold (Like the ABSA NewGold ETF) to owning the shares of gold mining companies.
The attraction of owning shares is obvious when the operating margin of gold companies is increasing. This can happen when things outside (rand/dollar exchange rate, gold price) or inside the mines’ control results in income rising faster than costs. This widening of the operating margin creates free cash flow, which in turn underpins a rising share price and results in a holding income for investors (dividends)………………………………………..Full Article: Source

My Gold Rush—Away From the Metal

Posted on 06 February 2015 by VRS  |  Email |Print

Last Thursday, gold futures had an electrifyingly bad day, losing 2.4% of their value, their worst performance in more than a year. This was after the Federal Reserve expressed optimism about the economy, indicating that rate increases were still in the offing. Both of these things are bad for gold.
All good news is bad for gold. Gold is a lustrous, highly malleable version of the Grinch. Why anyone would be surprised that gold tanked last week is beyond me. Gold is the world’s stupidest and most annoying metal. It has been disappointing people or getting them killed since the dawn of history………………………………………..Full Article: Source

Gold Ticks Higher on Worries Over Greece

Posted on 05 February 2015 by VRS  |  Email |Print

Gold prices ended higher Wednesday, as investors hunkered down for drawn-out debt negotiations with Greece, boosting demand for the precious metal as a safe-haven asset. Gold for April delivery, the most actively traded contract, rose $4.20, or 0.3%, to close at $1,264.50 a troy ounce on the Comex division of the New York Mercantile Exchange.
After a friendly reception in France and Italy earlier this week, Greece’s newly elected leaders are meeting with more skeptical politicians in Belgium and Germany, where they hope to press the European government into easing terms of the country’s international bailout………………………………………..Full Article: Source

Gold price set to improve in February – INTL

Posted on 05 February 2015 by VRS  |  Email |Print

The gold price should recover in February although it has struggled so far this month, INTL FCStone analyst Edward Meir said. Gold came storming out of the gate in 2015, peaking at $1,308 at one point and gaining 10 percent in the first three weeks of January.
“There were lots of economic ‘mini-shocks’ that sparked prices higher, with the most significant being the undoing of the Swiss franc’s three-year peg against the euro,” Meir said in a monthly note on Wednesday. “The backlash this caused has been well documented by now, but what we think is the more important takeaway is just how tenuous central bank policy can be,” he added………………………………………..Full Article: Source

Gold’s relationship with oil ‘decoupled’, interest rates key: BoA/Merrill

Posted on 04 February 2015 by VRS  |  Email |Print

Gold has “decoupled” its century-old relationship with oil and is now being driven by interest rates and currencies, according to Bank of America/Merrill Lynch Tuesday. “Moreover, we think that a unique combination of factors is again making gold attractive in investor portfolios: negative nominal interest rates, a closing volatility gap to other asset classes, and improving weekly returns. After all, unlike government bonds or fiat currency, gold is no one’s liability,” said BoA/ML analyst Michael Widmer.
Gold has been performing well so far in 2015. The price surged by more than 10% in January alone, breaking through $1,300/oz as investors sought a safe haven………………………………………..Full Article: Source

Gold Falls as Haven Demand Squelched by Greek Plans

Posted on 04 February 2015 by VRS  |  Email |Print

Gold prices fell Tuesday, as hopes for an imminent resolution between the new Greek government and its creditors tempered demand for the safe-haven metal. Gold for April delivery, the most actively traded contract, closed down $16.60, or 1.3%, at $1,260.30 a troy ounce on the Comex division of the New York Mercantile Exchange.
A Greek official said Tuesday that Athens was working on a “road plan” to lessen the burden of his country’s hefty debt pile, and he hoped to have an agreement with Greece’s creditors by the beginning of June………………………………………..Full Article: Source

LBMA ‘experts’ go for $1,211 gold price average in 2015, $16.76 silver

Posted on 03 February 2015 by VRS  |  Email |Print

$1,294 platinum and $838.40 palladium are other average picks in this year’s LBMA precious metals forecasting competition. This is the time of year the London Bullion Market Association (LBMA) announces the entries for its annual precious metals forecasting competition, with submissions from an invited panel of ‘expert’ analysts – mainly from banks and other financial institutions.
Each entrant is asked to forecast high, low and average prices for gold, silver, platinum and palladium for the year, with winners being those who predict average prices closest to the LBMA fixings average over the year. This year there were entries from a record 35 such analysts from around the world………………………………………..Full Article: Source

Hedge-fund bulls betting most on gold in 2 years

Posted on 03 February 2015 by VRS  |  Email |Print

Hedge funds are the most bullish on gold in more than two years, betting the metal’s allure will strengthen as slowing economies in Europe and Asia threaten U.S. expansion. Speculators increased their net-long position by 80 percent this year, U.S. government data show. The U.S. economy expanded at a slower-than-forecast pace in the fourth quarter and Federal Reserve officials acknowledged global risks at the end of their policy meeting last week.
Gold prices in January capped the biggest monthly gain in three years. Policy makers in Europe and Asia are adding to stimulus as they battle cooling growth, boosting the appeal of alternatives to currencies that are being revalued. Weaker foreign expansion has increased speculation among investors that the Fed will wait longer before raising U.S. interest rates………………………………………..Full Article: Source

Chinese Banks in Talks to Take Part in Gold Fix Replacement

Posted on 03 February 2015 by VRS  |  Email |Print

Chinese banks are among those in talks to take part in the replacement for the century-old gold fixing benchmark. There’s a “more diverse pool” of participants, including from China, interested in being part of the LBMA Gold Price, Ruth Crowell, chief executive of the London Bullion Market Association, said in a statement Monday. The LBMA declined to comment on the number and names of those in talks for the new mechanism that will start in March.
No Chinese companies have ever directly participated in the 95-year old price-setting ritual that takes place twice daily by phone between four banks. ICE Benchmark Administration was chosen in November to run the replacement, after silver, platinum and palladium ditched daily fixings last year. Chinese gold demand has more than doubled since 2009………………………………………..Full Article: Source

Hedge-fund bulls betting most on gold in two years: commodities

Posted on 02 February 2015 by VRS  |  Email |Print

Hedge funds are the most bullish on gold in more than two years, betting the metal’s allure will strengthen as slowing economies in Europe and Asia threaten U.S. expansion. Speculators increased their net-long position by 80 percent this year, U.S. government data shows. The U.S. economy expanded at a slower-than-forecast pace in the fourth quarter and Federal Reserve officials acknowledged global risks at the end of their policy meeting last week.
Gold prices in January capped the biggest monthly gain in three years. Policy makers in Europe and Asia are adding to stimulus as they battle cooling growth, boosting the appeal of alternatives to currencies that are being revalued. Weaker foreign expansion has increased speculation among investors that the Fed will wait longer before raising U.S. interest rates………………………………………..Full Article: Source

High risk haunts gold buyers in 2015

Posted on 02 February 2015 by VRS  |  Email |Print

Market experts believe that high risk would continue to be associated with gold purchases in 2015 as the prices are to be determined by a host of global and domestic cues. Though considered as a protection against depreciating assets in an inflationary economy, movement of gold prices is unpredictable. Dollar’s strength is always gold‘s weakness. The uncertainty over the price movement in global currency markets makes speculation on gold prices risky.
In fact, Indian gold consumer failed to enjoy the full benefit of falling global gold prices in the recent past due to rapid depreciation of rupee. Economists are finding it difficult to bet on the direction of rupee – dollar exchange rates………………………………………..Full Article: Source

Uncertainty sparks a rush for gold

Posted on 02 February 2015 by VRS  |  Email |Print

Syriza’s electoral victory in Greece and fears that its anti-austerity stance could spread to other eurozone countries have sent many investors scuttling back to the perceived safety of gold and gold funds.
Commodity funds in general had already begun to enjoy strong inflows spurred by uncertainty over the decision in January by the European Central Bank to begin quantitative easing and the Swiss central bank’s decision to remove its currency ceiling………………………………………..Full Article: Source

A Look At Gold And Silver For 2015 And Beyond

Posted on 02 February 2015 by VRS  |  Email |Print

There is only one reason to make an investment: expectations that one will come out of it with more money than one came in. So have gold and silver rewarded investors since 1969, the year when gold first appeared on investors’ radar after being fixed for decades at $35 an ounce?
During the 1970s bull markets, gold and silver’s gains exceeded those of the Dow Jones. During the eighteen year Dow Jones bull market from 1982 to 2000 investors realized a gain of 1380%. Not a bad return, but in the eleven years from 1969 to 1980 gold increased in price by 1918% and silver by 2869%………………………………………..Full Article: Source

India reclaims top spot as No. 1 gold consumer

Posted on 02 February 2015 by VRS  |  Email |Print

India is back to being the number one consumer of gold, knocking China off the top of the podium as the country that consumed the most bullion in the form of gold bars, coins and jewelry, in 2014. The latest update of the annual study by GFMS of world gold supply and demand found that sliding demand from China – which grabbed the top gold consumer mantle from India in 2011 – is behind the shift.
The report by GFMS analysts at Thomson Reuters showed that Chinese gold demand dropped by over a third to a four-year low of 866 tonnes, while scrap gold supply rose to a new high of 182 tonnes………………………………………..Full Article: Source

Is This Gold And Silver Rally For Real?

Posted on 02 February 2015 by VRS  |  Email |Print

After struggling for much of 2014, gold and silver have experienced some respite in the past few months as Eurozone and emerging market fears surfaced once again. The relentless U.S. dollar rally and the commodities bust hurt demand for precious metals last year, but worries about Greece leaving the Eurozone and currency turmoil from Russia to Turkey to Brazil helped gold to climb 13 percent and silver 20 percent since November.
Though many precious metals bulls are starting to get excited again, gold and silver have had several temporary rallies that fizzled out since their peak in 2011. Is the current rally for real, or will it end in another disappointment? To answer that question, let’s take a look at the technical picture………………………………………..Full Article: Source

Consensus forecast 2015 gold price average: DOWN

Posted on 30 January 2015 by VRS  |  Email |Print

Gold on Thursday plunged more than $30 an ounce as eurozone troubles fade from headlines and the focus shifts to US fundamentals, the rampant dollar and a likely June rise in interest rates.In heavy trade of more than 22m ounces by lunchtime in New York, gold for delivery in April fell over $35 an ounce or 2.8% from Wednesday’s close hitting a low of $1,251.84 an ounce – the lowest in two weeks and the worst trading day in more than a year.
The metal is still trading up nearly $70 or almost 5.5% in 2015, but is down sharply from an intra-day high of $1,307 hit last week. Gold’s gains this year have been ascribed to safe haven buying amid currency turmoil, a slowing global economy, the continuing fallout of the collapse in oil prices and a crisis in the Eurozone………………………………………..Full Article: Source

Physical gold demand likely positive for price in 2015: GFMS

Posted on 30 January 2015 by VRS  |  Email |Print

Underlying physical demand is starting to pick up in 2015 and will “give the market longer-term ballast” although more headwinds remain before a return to a bull market, analytical company GFMS said Thursday. In conjunction with Thomson Reuters, GFMS said in its Gold Update 2 report that professional investors are absent as the dollar “remains king. Fresh professional investment is unlikely much before there is clarity on the Fed’s timing over rate hikes.”
Continued monetary easing in Europe, Japan and China will support the dollar in the medium term, pointing away from gold investment, “especially as US equities, on an historical multiple at least, are not over-extended.” It also cautioned that recent strength in the gold price, which has been as high as $1,307/oz so far in 2015, has been driven by short-covering, not fresh long positioning………………………………………..Full Article: Source

Russia buys record amounts of gold

Posted on 30 January 2015 by VRS  |  Email |Print

Russia accounted for about one-third of central banks’ gold purchases last year as the country spent more on the metal than at any time since the break-up of the Soviet Union amid escalating tensions with the west and a collapse in the value of the rouble.
Central banks around the world bought a net 461 tonnes of gold in 2014 — 13 per cent higher than the previous year and the second-highest level since the collapse of the gold standard in 1971 — as they continued to diversify their currency reserves following the financial crisis. They have added 1,800 tonnes to their holdings in the past six years………………………………………..Full Article: Source

Gold Caps for Biggest Drop Since 2013 as Silver Plummets

Posted on 30 January 2015 by VRS  |  Email |Print

Gold futures fell the most in 13 months and silver posted the biggest plunge since June 2013 as signs of a robust U.S. labor market cut demand for haven assets. The two most-traded gold options were bets on further declines, and prices for the contracts doubled. Aggregate futures trading was 79 percent above the 100-day average for this time of day, with silver 70 percent higher, data compiled by Bloomberg show.
The fewest Americans in almost 15 years filed applications for unemployment benefits in the week ended Jan. 24. Economic activity “has been expanding at a solid pace,” Federal Reserve officials said in a statement on Wednesday………………………………………..Full Article: Source

LBMA forecasters see gold averaging $1,211/oz this year

Posted on 29 January 2015 by VRS  |  Email |Print

The gold price will remain broadly flat in 2015 after a 28-percent fall last year, according to 35 bullion market analysts polled by the LBMA, but silver, platinum and palladium should rise as much as 5.6 percent. In gold, Ross Norman of Sharps Pixley is the most bullish analyst, forecasting an average price $1,321 per ounce this year, while Adam Myers of Credit Agricole the most bearish with a prediction of $950.
Averaging out the 35 forecasts, gold will trade at a mean of $1,211 per ounce and in a range of $1,085-1,356 this year, the LBMA said in its Forecast 2015 report. “Factors which are likely to restrain gold prices in 2015 include[e] the possible strengthening in the US dollar, interest rate hikes by the Fed in the second half of 2015, QE programmes in Europe and a weak oil price reducing gold’s attraction as a hedge against inflation,” it said……………………………………….Full Article: Source

Spot gold prices lower after verdict

Posted on 29 January 2015 by VRS  |  Email |Print

Spot gold prices were little changed on Wednesday after the Federal Reserve signaled that it would remain patient when it comes raising interest rates.
In a statement after its latest policy meeting, the Fed made clear that no rate increase is imminent. Chair Janet Yellen said after last month’s meeting that by saying it would be “patient,” the Fed was signaling there would be no rate increase for at least two meetings………………………………………..Full Article: Source

Hedge funds snap up gold, but where’s it heading?

Posted on 28 January 2015 by VRS  |  Email |Print

Hedge funds are snapping up gold, pushing their net long positions to levels not seen for almost two years. Meanwhile, analysts are split over what 2015 will hold for the precious metal. Speculative investors bought gold for a fourth successive week at a “strong pace” upping long positions. Silver has also been bought for close to 12 weeks, but positioning remains “far from stretched”, according to data from Bank of America Merrill Lynch.
The bank said its indicators suggest investors remain bullish for precious metals, a view which is supported by a number of investment banks and economists, but targets for where the metal will end up by year end differ dramatically………………………………………..Full Article: Source

Turkey is microcosm of int’l gold market: Council

Posted on 28 January 2015 by VRS  |  Email |Print

Gold plays a huge role in Turkish consumers’ lives and the economy, making the country the world’s fourth largest gold consumer, says a new report by the World Gold Council. At an average of 181 tons per annum over the past 10 years, Turkey is the world’s fourth largest consumer of gold, accounting for around 6 percent of global consumer demand.
The “Turkey: Gold in Action” report, published on Jan. 22, described Turkey as a “microcosm of the global gold market” as it is home to the entire gold value chain from mining and refining, to jewelry design and investment………………………………………..Full Article: Source

Russia buys more gold reserves, Netherlands steady

Posted on 28 January 2015 by VRS  |  Email |Print

Russia extended its buying spree of gold to a ninth straight month, and the price of gold rose for the first time in five months, data from the International Monetary Fund showed on Tuesday. The global financial institution later on Tuesday confirmed the Netherlands did not increase its bullion holdings in December, contrary to the IMF’s earlier report that the bank had raised gold holdings for the first time in 16 years.
The Dutch central bank, the world’s ninth-biggest official sector gold holder, has kept its holdings unchanged since late 2008. The bank earlier on Tuesday denied that it bought more gold last year………………………………………..Full Article: Source

Why Hasn’t Silver Completely Broken Out?

Posted on 28 January 2015 by VRS  |  Email |Print

Whenever central banks engage in stimulus schemes that flood financial markets with cheap liquidity, attention almost always turns to investments that can store value. Obviously, when a central bank works to actively devalue its currency, it is a good idea to start shoring up, or preserving the value of a currency by tying it to a commodity.
Gold and silver are the natural safe havens of investors who are spooked by the prospect of cheap liquidity. This is exactly what played out with the recent appreciation in gold and silver prices. However, silver prices may not hold up that well over the midterm. Why? Silver is both an investment commodity and an industrial commodity. In fact, there is still a lot of silver being produced every year for industrial purposes………………………………………..Full Article: Source

Gold Eases as Greece Uncertainty Fades

Posted on 27 January 2015 by VRS  |  Email |Print

Gold prices fell Monday, as investors took profits on the metal’s recent rally after a victorious antiausterity party in Greece didn’t appear inclined to take the country out of the eurozone. Gold for February delivery, the most actively traded contract, closed down $13.20, or 1%, at $1,279.40 a troy ounce on the Comex division of the New York Mercantile Exchange.
Prices hit $1,307.80 an ounce last week, their highest level since August, in part on worries that if the leftist Syriza party won Sunday’s election, party leaders would want Greece to exit the eurozone. Some investors like to shift their money to gold in turbulent times………………………………………..Full Article: Source

Goldman cuts base metal price forecasts, ups gold

Posted on 27 January 2015 by VRS  |  Email |Print

Goldman Sachs Group Inc on Friday slashed its 2015 price forecasts for several base metals including copper and aluminium while raising its estimate for gold by $62 per ounce. “The primary reason for the changes to our forecasts is cost deflation – driven by a combination of actual and anticipated U.S. dollar strength, cheaper energy and other input costs, and our expectation of an improvement in mining productivity,” Goldman Sachs said.
Weaker-than-expected Chinese and European demand has also contributed to the deflationary environment, it added. Goldman cut its 2015 average copper price forecast to $5,542 per tonne from $6,400, and aluminium to $1,788 per tonne from $2,075………………………………………..Full Article: Source

German Regulator Found No Signs of Gold Price Manipulation

Posted on 27 January 2015 by VRS  |  Email |Print

Germany’s financial regulatory authority, known as BaFin, has concluded a probe into allegations of manipulation in the gold market and found no signs of rigging, according to Handelsblatt newspaper.
Examinations regarding the manipulation of currencies are still underway and have shown no systematic manipulation of exchange rates so far, the newspaper reported, citing an interview with Raimund Roeseler, head of Bafin’s banking supervision………………………………………..Full Article: Source

Despite higher gold price Chinese demand still surging

Posted on 26 January 2015 by VRS  |  Email |Print

The latest SGE withdrawal figures show withdrawals of 70 tonnes for the week ending Jan 16th – the third highest weekly figure ever. The recent rise in the gold price, now standing at just below the $1300 mark, does not yet appear to have put a dent in Chinese gold demand as represented by withdrawals from the Shanghai Gold Exchange (SGE).
Indeed it appears to be picking up even further in the weeks ahead of the Chinese New Year which falls on February 19th this year. If demand continues at the current rate, January will be a very strong month indeed despite the loss of a few trading days at the beginning of the month for the calendar New Year………………………………………..Full Article: Source

Gold becomes the ultimate hedge

Posted on 26 January 2015 by VRS  |  Email |Print

Lenin, the implacable Russian revolutionary, despised gold. He thought it should be used to build public lavatories. I was of much the same persuasion early in my career. The yellow metal’s economic utility seemed to me minimal in the light of its declining industrial uses. As an investment it was and remains entirely speculative because it yields no income.
And since the introduction of index-linked government bonds, any merits it might have as an inflation hedge have become less relevant. Certainly gold has been a very erratic store of value in recent decades. Anyone who bought gold at the peak of the gold bull market in the early 1980s saw their investment lose 80 percent of its value in real terms over the next 20 years………………………………………..Full Article: Source

Gold spike in major currencies a remarkable start to 2015

Posted on 26 January 2015 by VRS  |  Email |Print

The new year has ushered in a remarkable and unexpected turn of events for gold. It is up significantly in four of the seven top currencies (the euro, British pound, Australian and Canadian dollars), up respectably in two others (U.S. dollar and Japanese yen) and down slightly in the last (Swiss franc).
The significant gains in gold’s value in a very short period of time demonstrate amply the value of gold as a hedge, not just against inflation, but against sudden currency devaluation and systemic financial and economic risks as well. In short, it is important to see that gold owners in these countries got the protection they sought against adverse circumstances when they first purchased the metal. In short, gold has performed as advertised………………………………………..Full Article: Source

Gold’s First Big Test In 2015

Posted on 26 January 2015 by VRS  |  Email |Print

Some of you might think that Gold has already passed its first big test in 2015 by price being up better than 9% in this young year, despite the Dollar’s rising as well. But regular readers know such positive correlation with the Buck is not a big deal for us, our having demonstrated time and again in these updates that Gold plays no currency favourites.
Moreover, last April we wrote a Gold Update similarly entitled “Gold’s First Big Test In 2014″: ’twas just before StateSide Tax Day, which a year prior in 2013 infamously marked the unrelenting unraveling of Gold’s price from the 1600s down into the 1100s in just over 11 weeks………………………………………..Full Article: Source

Precious Metals Coveted Once More as Draghi Acts: Commodities

Posted on 26 January 2015 by VRS  |  Email |Print

Investors’ desire for precious metals is deepening after Mario Draghi’s $1.3 trillion pledge drove gold to a five-month high and silver to the brink of a bull market. Their buying helped boost the value of exchange-traded products backed by gold and silver by $8.94 billion this month, the most since September 2012, data compiled by Bloomberg show.
Hedge funds and other speculators in futures are the most bullish on gold in two years and have bet more on silver in all but two weeks since the start of November. At a time when the price of almost every other commodity is sinking, silver and gold are having their best start to a year in more than three decades………………………………………..Full Article: Source

Platinum Is Worth Acquiring When Cheaper Than Gold

Posted on 26 January 2015 by VRS  |  Email |Print

Platinum is cheaper than gold, which is the opposite of what’s usually the case. The supply side of platinum is bad and will get worse if prices do not improve. Demand for platinum can only increase while substitutes become less attractive.
Platinum is one of the best known precious metals. While not as popular as gold and silver, there are some people out there who consider platinum to be an alternative candidate to those two metals………………………………………..Full Article: Source

Gold Prices Get a Boost While Oil Spirals Downwards

Posted on 23 January 2015 by VRS  |  Email |Print

Gold’s relationship to oil has been turned on its head. Investors who saw little value in the metal last month, as plunging energy costs curbed inflation, have started buying in January even as crude continues to tumble. Bullion is off to its best start to a year since 1980 while West Texas Intermediate is trading near the lowest since April 2009.
The correlation between the two commodities that reached a 16-month high in December is now the weakest in five months. The about-face reflects an investor shift in focus away from the benefits of cheap fuel to the risk of economy-damaging deflation. Oil costs are so low that gold buyers are seeking a hedge against prolonged declines in consumer prices………………………………………..Full Article: Source

Is this the start of a gold bull market?

Posted on 23 January 2015 by VRS  |  Email |Print

Many strategists are saying a gold bull market has just begun, as investors crowd into the one asset that isn’t getting debased by central banks. Chart analyst point to the price breaking out of long-term resistance levels.
“The breakout above technical re-entrance levels ($1,250) has placed a new floor from which the rally is likely to continue,” said Peter Cardillo, chief market economist at Rockwell Global Capital. “We look for a climb towards to $1,325-$1,350 in the near term.”……………………………………….Full Article: Source

Gold reclaims $1,300 level as ECB rolls out QE

Posted on 23 January 2015 by VRS  |  Email |Print

Gold prices strengthened Thursday to reclaim the key $1,300 mark after the European Central Bank announced a full-blown stimulus plan. Gold for February delivery rose $7, or 0.5%, to settle at $1,300.70 an ounce while March silver futures SIH5, -0.03% advanced 17 cents to $18.36 an ounce in electronic trading.
On Thursday, ECB President Mario Draghi announced an open-ended bond-buying program worth €60 billion a month as part of its quantitative easing program. The central bank said it won’t buy more than a third of any issuer’s debt………………………………………..Full Article: Source

Gold and Silver Buyers Take a Shine to Precious Metals Again

Posted on 23 January 2015 by VRS  |  Email |Print

Gold and silver are getting another turn in the spotlight, luring investors worried about slowing global growth and surprises by central banks. On Thursday, the European Central Bank offered the latest reason to pile into precious metals by unleashing a bigger-than-expected bond-buying program amid continued worries about Europe’s economy.
Gold futures ended above $1,300 a troy ounce for the first time since August, while silver neared bull-market territory, defined as a 20% increase from a recent low. Gold and silver are drawing buyers of all stripes, a sign fears about a worsening economic outlook run deep in financial markets………………………………………..Full Article: Source

Speculators Looking for Havens from Slowing Growth are Piling Into Silver

Posted on 23 January 2015 by VRS  |  Email |Print

Silver headed for a bull market in its best start to a year in more than three decades as the European Central Bank expanded economic stimulus measures, boosting demand for the metal as a store of value.
Holdings in exchange-traded products backed by the metal have posted three straight weekly gains, while U.S. government data show money managers raised their net-bullish wagers to the highest since August. An ounce of gold bought as much as 71.5 ounces of silver on Thursday, compared with an average of 58 in the past decade, signaling the white metal is inexpensive relative to gold………………………………………..Full Article: Source

Gold fifth best performing commodity of 2014

Posted on 22 January 2015 by VRS  |  Email |Print

Before you gold bulls out there cry ‘rubbish’ it should be borne in mind that last year was a disastrous year for virtually all commodities across the board. Only four internationally traded commodities showed gains over the year, while gold was the least bad negative performer among the rest with a drop of only 1.7% – but has shot up nearly 10% since the start of the year.
Indeed, as we pointed out in a recent article, gold performed positively over 2014 in virtually every currency other than the U.S. dollar. So despite being a disappointing year for dollar area gold bulls, it will have been a positive year in all non-dollar tied nations………………………………………..Full Article: Source

Gold above $1,300 for first time in 5 months

Posted on 22 January 2015 by VRS  |  Email |Print

Gold prices have risen above $1,300 an ounce for the first time since August 2014. It’s because the global economic slowdown, expectation of ECB ‘easy money’, and currency volatility make investors turn to a safe haven, gold trader Mark O’Byrne told RT.
The spot price has jumped by 1.5 percent to $1,303.63 for an ounce on Wednesday early trading. February futures rose by 1.2 percent to $1,292.50 an ounce on the New York Comex. Last week the price rose by 4.7 percent for the first time since 2013. Gold has added 10 percent to its value since the beginning of the year………………………………………..Full Article: Source

Gold Futures Approach $1,300 to Post Longest Rally in 11 Months

Posted on 21 January 2015 by VRS  |  Email |Print

Gold futures approached $1,300 an ounce to post the longest rally in 11 months as signs of slowing global economies boosted demand for the metal as a haven. Assets in the SPDR Gold Trust, the biggest exchange-traded product backed by the metal, last week rose 3.3 percent, the most since May 2010.
Economists expect European Central Bank President Mario Draghi to make his biggest push yet to steer the euro area away from deflation by announcing quantitative easing on Jan. 22, according to a Bloomberg survey………………………………………..Full Article: Source

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