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Commodities Briefing - Category | Bullion/Gold more

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

Gold loses shine as Chinese curb jewellery purchases

Posted on 15 August 2014 by VRS  |  Email |Print

India regained its position as the world’s leading gold buyer in the second quarter as Chinese demand for jewellery, gold coins and bars dropped sharply from record levels amid a government crackdown on corruption. Soaring purchases by retail customers in 2013 helped China overtake India as the world largest gold consumer for the first time.
The buying frenzy, which led to a temporary shortage of physical gold stocks, was sparked by the 28 per cent fall in the precious metal’s price last year, the worst performance in more than three decades………………………………………..Full Article: Source

Concerns Remain Ahead of New Silver Benchmark Debut

Posted on 15 August 2014 by VRS  |  Email |Print

With the unveiling of London’s shiny, new silver benchmark Friday, metal producers and traders are hoping to head off lingering concerns about the credibility of the market. But as the price-setting process undergoes the first major overhaul in more than a century, there are signs the revamped process isn’t quite ready.
“The overall impression I get from this is that everyone is a little unsure of how it’s all going to work—just because it’s something new,” said David Govett, head of precious metals at brokerage firm Marex Spectron. “The bullion market is quite a staid market, shall we say, and a lot of the people in it, especially the traders, have been around for a long old time.”……………………………………….Full Article: Source

Here’s What the New Silver Price Fix Means for Prices

Posted on 15 August 2014 by VRS  |  Email |Print

The much-maligned London silver price fix ended (Thursday) after 117 years, and market observers are hoping the new pricing mechanism will herald an era of true and transparent silver price discovery.
Silver pricing could definitely use more transparency, following a century-old mechanism that involved three banks negotiating prices in secret. The three member banks were facing lawsuits after accusations arose that they were manipulating prices, so it’s no wonder that some are expecting a free market transition………………………………………..Full Article: Source

Platinum looking at a bright future?

Posted on 15 August 2014 by VRS  |  Email |Print

Northam Platinum Ltd. plans to position itself as one of the world’s largest producers as it forecasts an increase in prices of the metal by 2018. Northam, owner of the deepest platinum mine, targets production of more than 1 million ounces of platinum-group metals by 2020 through acquisitions and expansion, the Johannesburg-based company said in a statement today. It sold 396,417 ounces in the year through June.
The average basket price Northam received for platinum-group metals, which include palladium and rhodium, declined 6.1% to $1,198 an ounce from a year earlier, it said………………………………………..Full Article: Source

Citi: Cost Cuts Help Gold Names Now, But Trouble Looms

Posted on 14 August 2014 by VRS  |  Email |Print

Citigroup’s Johann Steyn and Craig Irwin have a note out today, adjusting their gold outlook to reflect industry trends, but they remain bearish on the sector overall. They note that global gold on mine unit costs fell 5% year-over year, while notional cash expenditure fell 24% and all-in costs dropped 23% in the March 2014 quarter.
Clearly, austerity moves have helped gold firms navigate through a lower price environment, and Steyn and Irwin estimate that only 40% of the global gold cost curve is burning through cash, nearly half the 75% in the March 2013 quarter………………………………………..Full Article: Source

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

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