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Capital Economics Sees $1,400 Platinum At Year-End, $1,500 By End-2015

Posted on 25 September 2014 by VRS  |  Email |Print

Capital Economics has lowered its end-of-year platinum forecast to $1,400 an ounce but listed an upbeat outlook for the medium term, calling for $1,500 platinum by the end of 2015. “Disappointing growth in demand at a time of high stocks is weighing on the price of platinum,” the firm said in a report Wednesday.
“We expect lower prices to encourage some buying, notably of jewelry, but a sustained recovery is only likely when stocks are depleted, possibly some time next year.” October platinum futures settled at $1,319.40 an ounce on the New York Mercantile Exchange Wednesday………………………………………..Full Article: Source

Gold: The Bewitching Hour Of A Triple Bottom Nears

Posted on 25 September 2014 by VRS  |  Email |Print

The last time gold sparkled was in the summer of 2011 when an all-time record of $1900/oz was achieved. Alas since then it has been a torturous journey as gold prices has trekked south arriving at today’s price of $1216/oz, registering a loss of 36%. However, for the year to date gold is still trading above its low of $1180/oz as it grimly hangs on to a modest gain of 3%.
The question we face now surrounds gold’s direction; will it test the previous low of $1180/oz and bounce to higher levels or will it penetrate this support level and set the stage for sub $1000/oz gold prices………………………………………..Full Article: Source

Reasons Gold Neared $2,000 Still In Place - Frank Giustra

Posted on 25 September 2014 by VRS  |  Email |Print

There is a reason to hold gold but patience is a virtue, said Frank Giustra, renowned resource investor and co-founder of the Clinton Giustra Enterprise Partnership. “All the reasons why gold went to $2,000 in the first place are still there, and in spades,” he said during an interview with Kitco News’ Daniela Cambone at the Clinton Global Initiative annual meeting on Tuesday.
Gold is currently stuck in a ‘no one cares phase’ but his views on the metal remain unchanged he said on the sidelines of the annual meeting in New York………………………………………..Full Article: Source

Gold Speculation Interest Rising - Gold Price Falling

Posted on 25 September 2014 by VRS  |  Email |Print

Recent Seeking Alpha articles take very opposite postures on gold commitments, but the more optimistic, flamboyant, promotional approach seems to draw larger attention. Old saying: You catch more flies with honey than with vinegar.
When I started in the late 1950s just out of B-school as an investment researcher for one of the top NYC investment counsel firms my assignment was the metals stocks. It was apparent then, as it has continued to be since, that making forecasts about gold and gold stocks was an entertainment activity graced with results drawn from a random number table………………………………………..Full Article: Source

What the Charts Are Saying About Gold, Precious Metals

Posted on 25 September 2014 by VRS  |  Email |Print

As bad as conditions have been for gold and precious metals stocks in recent weeks, they could be on the verge of getting much worse. Some key indices, exchange-traded funds and individual stocks are nearing critical support levels, leaving little room for further weakness before the sector breaks down completely.
Here are the levels you need to watch to determine whether to position for a bounce or stay out of the way: The SPDR Gold Shares (GLD) ETF has been falling with virtually no let up since the beginning of August, bringing it within striking distance of its 52-week low of $114.46. The last time GLD traded below this level was 2010, about the midpoint of what would prove to be a three-year rally………………………………………..Full Article: Source

World Gold Council: ETFs ‘Good For Investors – And For Gold’

Posted on 25 September 2014 by VRS  |  Email |Print

Gold-backed exchange-traded funds “have been good for investors — and for gold,” said the World Gold Council in a report Wednesday. “Over the past decade, gold-backed exchange-traded funds have transformed the gold investment market,” the report said. “Yet, their rise has not been universally popular. They may have put pressure on gold vendors’ margins, and some investors believe that they have led to an increase in volatility of the gold market.
“As we see it, ETFs may not be an answer to every gold investor’s needs, but the gold market has benefited more broadly since their launch. Overall, we believe that ETFs have reduced total cost of ownership, increased efficiencies, provided liquidity and access, and brought new interest – and demand – into gold as a strategic investment.”……………………………………….Full Article: Source

How low can gold and silver go?

Posted on 25 September 2014 by VRS  |  Email |Print

A word of warning – if you’re a gold or a silver bug, you’re not going to like what I have to say. Gold looks absolutely awful. It’s up the proverbial creek and there’s no paddle in sight. Silver looks even worse.
Just how much more ugly can all this get? What’s the worst-case scenario for silver? We’ll start with silver. Last week, Reuters reported that silver holdings in exchange-traded funds (ETFs) were at all-time highs. That is incredibly bearish – and it was worrying me a few weeks back………………………………………..Full Article: Source

Silver prices hit 4-year low as US dollar soars

Posted on 25 September 2014 by VRS  |  Email |Print

Asian shares slipped on Tuesday as a periodic bout of angst over China combined with the U.S. dollar’s recent meteoric run to pile pressure on silver prices and other commodity prices. Brent oil was near lows last seen in mid-2012, while gold came off a nine-month trough and copper a three-month low on fears a survey out on Tuesday could show stalling factory growth in China.
The HSBC flash reading on manufacturing (PMI) for September is expected to dip to the flat level of 50.0 from August’s microscopically expansionary 50.2, though the market is braced for an even weaker number………………………………………..Full Article: Source

What’s behind the current silver disconnect?

Posted on 25 September 2014 by VRS  |  Email |Print

Something strange is happening in the silver markets. While the silver price has crashed along with gold – not in itself an unusual occurrence – the biggest of the silver ETFs have been seeing very large inflows, while the gold ETFs are seeing sales. What is happening here? Surely if silver investors are piling in because they see it as oversold and at bargain price levels then surely gold investors would be doing so too?
Taking SLV as a proxy for all silver ETFs it has taken in 650 tonnes since the beginning of August, while the biggest gold ETF – GLD – has bled 26 tonnes over the same period and has fallen back to a level last seen in December 2008. True, the total GLD falls this year have only been around 20 tonnes and thus only a fraction of what we saw last year, but they are falls nonetheless. The gold:silver ratio is currently sitting at close to 69 which is above the top of its recent range too………………………………………..Full Article: Source

Rigged Gold Price Distorts Perception of Economic Reality

Posted on 24 September 2014 by VRS  |  Email |Print

The Federal Reserve and its bullion bank agents (JP Morgan, Scotia, and HSBC) have been using naked short-selling to drive down the price of gold since September 2011. The latest containment effort began in mid-July of this year, after gold had moved higher in price from the beginning of June and was threatening to take out key technical levels, which would have triggered a flood of buying from hedge funds.
The Fed and its agents rig the gold price in the New York Comex futures (paper gold) market. The bullion banks have the ability to print an unlimited supply of gold contracts which are sold in large volumes at times when Comex activity is light………………………………………..Full Article: Source

Gold prices: Who has the Midas touch?

Posted on 24 September 2014 by VRS  |  Email |Print

The glint of gold has caught the eye of Business Middle East. It was a golden week for buyers of bullion as prices continued to drop. Prices slid to their lowest level in nearly nine months, as the dollar rose to its highest in four years against a basket of major currencies. Why gold fell: There were several influences at play, but the biggest was higher borrowing cost expectations from the Federal Reserve.
After the latest meeting of the Fed’s policy committee, Chair Janet Yellen said interest rates in the US will remain near zero for a “considerable time,” but she also projected a faster rate of increases when they do occur………………………………………..Full Article: Source

Silver Reached A New Low - What Is Next?

Posted on 24 September 2014 by VRS  |  Email |Print

The silver market cooled down again last week. Last week’s FOMC meeting may have provided the fuel to drag down the price of silver to its lowest level in recent years. Let’s examine the latest developments in the silver market and see what’s next for this precious metal.
During the previous week, the price of silver decreased by 4.13% to reach $17.79 - its lowest level since 2010. The silver ETF, iShares Silver Trust, also tumbled down by 3.9%. Silver related companies, including Silver Wheaton and Pan American Silver also fell by 7% and 4.8%, respectively………………………………………..Full Article: Source

Silver to $14/oz, but discounting QE end - analysts

Posted on 24 September 2014 by VRS  |  Email |Print

Silver prices are headed significantly lower in a stronger dollar market, some analyst now forecast. “Silver prices have returned to the levels seen before the financial crisis that started in 2008, and before quantitative easing (QE) was introduced,” noted Scotiabank analysts in a recent report. “It might, therefore, well be into the process of discounting the prospects of an end of the QE. For now, however, that seems to be one of the reasons behind the price weakness.”
Scotiabank added that the weakness was also justified by weak fundamentals, which show a large supply surplus . “Now that investors are not buying much silver through exchange-traded fund (ETFs), less of the supply surplus is being absorbed. That means more of the surplus has weighed on prices,” it added………………………………………..Full Article: Source

Gold-silver price ratio may fall as gold cools faster

Posted on 23 September 2014 by VRS  |  Email |Print

The price of gold might fall more than that of silver this year, taking the price ratio between the two precious metals back towards its five-year average. Gold has been on a downtrend as pickup in global economies has reduced demand for this safe asset. This may offer music to the ears of Indian consumers, as they begin to purchase jewellery for the festival and marriage seasons.
ET data show the gold-silver ratio averaged 55.71 in the five years through end-2013. This means 55.71 kg of silver is needed to purchase a kilogram of gold. But, year-to-date, this ratio has climbed to 65.26, as silver has become more undervalued. The ratio was calculated based on average annual prices of front month gold and silver contracts on Multi Commodity Exchange………………………………………..Full Article: Source

Gold bullion offer prompts investment warning

Posted on 23 September 2014 by VRS  |  Email |Print

Investment analysts have urged investors to be cautious after the Royal Mint launched a new website selling gold and silver coins. On offer are single gold Sovereigns costing £197, larger gold Britannias at £800 and £19 silver coins.
The Mint is trying to expand the bullion business by selling what it calls “relatively affordable” coins online. It is also offering to store them for larger investors. The World Gold Council has estimated that there is a £4bn untapped market for gold among savers in the UK………………………………………..Full Article: Source

Gold eyes 1175 as USD does it like 2005

Posted on 23 September 2014 by VRS  |  Email |Print

Gold’s 10% decline to fresh 8-month lows from its July highs and its 16% drop from its August 2013 highs, and intensified in late August as the end of the Fed’s QE3 became inevitable. The simultaneous rally in bond yields and the US dollar since early September helped accelerate gold’s downward momentum below $1270 to reach a new low for the year at $1208. Considering the US dollar is rallying in ways not seen since 2005, gold weakness is here to stay.
The current dollar momentum continues to show signs of a rally not seen since 2005. Why 2005? Back then, the US dollar index, as measured by the 6-currency basket of EUR, JPY, GBP, CAD, CHF & SEK, rallied against each of those two currencies, particularly the Japanese yen………………………………………..Full Article: Source

Gold Mining “Hurt Long-Term”, Output “Peaking in 2014″

Posted on 23 September 2014 by VRS  |  Email |Print

Gold mining output worldwide is set to peak and then “plateau” in 2014, according to the leading data analysts, as today’s lower prices force producers to cut exploration spending in a bid to boost profit margins. “It seems inevitable,” says the new Gold Survey 2014 Update from Thomson Reuters GFMS, that the mining industry’s response to 2013’s gold price crash “will be detrimental to mine supply levels in future years.”
Forecasting a 10% drop in the average market price to $1270 per ounce for full-year 2014 (currently at $1290), “The mining sector is increasing production this year,” says the consultancy, “with a number of important projects coming into production and/or ramping up to full capacity, having benefited from investment flows in earlier years when prices were much higher.”……………………………………….Full Article: Source

Silver hammered to 4-year low as gold and base metals retreat

Posted on 23 September 2014 by VRS  |  Email |Print

Silver prices slid to their lowest in four years on Monday, with the prospect of rising U.S. interest rates undermining precious metals and industrial commodities dented by worries over Chinese demand.
Caught on both counts with dual roles as an industrial metal, widely used in electronics, and as an investment vehicle, silver tumbled more than 3 percent in just 40 minutes in early Asian trade to hit its lowest since mid-2010 at $17.30 an ounce………………………………………..Full Article: Source

Gold Bulls Extend 2014 Exit as Slump Erases $6.7 Billion

Posted on 22 September 2014 by VRS  |  Email |Print

Hedge funds extended this year’s longest exit from bullish gold bets as slumping prices and investor outflows since June erased $6.7 billion from the value of exchange-traded funds backed by the metal.
The net-long position in New York futures and options fell for a fifth straight week, with speculators boosting short bets to the highest since June, U.S. government data show. Investors sold 7.75 metric tons of gold held in ETPs last week, sending holdings to the lowest in five years………………………………………..Full Article: Source

“Gradual” Gold Bull Market to Start 2015, “Next Floor at $1200″ Says GFMS

Posted on 22 September 2014 by VRS  |  Email |Print

Gold’s decade-long bull market is set to resume in 2015, albeit “gradually” from a new bottom according to a new forecast from the market’s leading data analysts, Thomson Reuters GFMS. Thanks to gold’s rally over the first half of 2014 from $1200 to $1400, the consultancy says today in the first Update to its Gold Survey 2014, “Price sensitive [consumer] markets have seen sales slow.
“We believe it will take prices in a $1200-1250 range in order for physical buying from Middle Eastern, East and South East Asian markets to begin to increase.” Low volatility and gold’s tightening price range form “the other defining feature” of the 2014 market to date, GFMS adds, noting that volatility on a 100-day basis has fallen to its second-lowest level since 2005, “undermin[ing] trade volumes.”……………………………………….Full Article: Source

Gold prices tumble, ‘no compelling reason’ to buy

Posted on 22 September 2014 by VRS  |  Email |Print

Hedge funds extended this year’s longest exit from bullish gold bets as slumping prices and investor outflows since June erased $US6.7 billion from the value of exchange-traded funds backed by the metal.
The net-long position in New York futures and options fell for a fifth straight week, with speculators boosting short bets to the highest since June, US government data show. Investors sold 7.75 metric tons of gold held in ETPs last week, sending holdings to the lowest in five years………………………………………..Full Article: Source

India: 40 Years Ago…and now: Gold - From control to seamless trade

Posted on 22 September 2014 by VRS  |  Email |Print

In 1963, when then finance minister Morarji Desai banned gold futures, as part of the Gold Control Act, members of the Bombay Bullion Association didn’t know what hit them. In the crisis that followed, the association had to sell its front building at Zaveri Bazaar to pay for its members’ losses.
The Gold Control Act was in place between 1963 and 1990. It was implemented following the Indo-China war, owing to a felt need to control foreign exchange outflows. The Act allowed individuals and families to only hold up to two and four kg of gold, respectively and only in the form of jewellery. One required a licence to open a jewellery shop or make jewellery………………………………………..Full Article: Source

China’s long term gold plans

Posted on 22 September 2014 by VRS  |  Email |Print

The launch of Shanghai Gold Exchange trading yuan denominated contracts in the China (Shanghai) Pilot Free Trade Zone Thursday, which has enabled foreign investors to invest in China’s physical gold bullion market, is yet another one of China’s overt moves to dominate the global gold sector long term.
It may make a slow start but aims to become the world’s biggest physical gold exchange and is thus is in itself a move towards reducing the influence of COMEX and the LBMA on global gold trade and pricing and move the centre of gravity for this eastwards. Similar moves to set up new international gold contracts in Singapore and Hong Kong will further accelerate the move in gold trade to east Asia………………………………………..Full Article: Source

China Opens Gold Market to Foreigners Amid Price Ambition

Posted on 19 September 2014 by VRS  |  Email |Print

China will give foreign investors direct access to its gold market for the first time today as the biggest-consuming nation seeks to exert more influence over prices while boosting the yuan’s global use.
The Shanghai Gold Exchange will start trading contracts in the city’s free-trade zone that will be linked to its domestic spot market and available to about 40 international members including Goldman Sachs Group Inc. and UBS AG. Access was previously limited to some Chinese units. Gold in China this year cost as much as $31 an ounce more and $42 less than the London spot price, according to data compiled by Bloomberg……………………………………..Full Article: Source

International gold trading launched in Shanghai free-trade zone

Posted on 19 September 2014 by VRS  |  Email |Print

The Shanghai Gold Exchange officially launched its international trading platform in the city’s free-trade zone (FTZ) last night, the first such board in the zone, with hopes of setting benchmark prices for the precious metal in Asia. It could pave the way for the launch of crude oil futures and other key commodities including iron ore in the testing ground for mainland economic reform.
Premier Li Keqiang made an inspection tour of the 28 square kilometre zone yesterday following a no-show on September 29 last year, when it was inaugurated. “The free-trade zone in Shanghai will have a brighter future and Shanghai will have a brighter future,” the premier told officials and others during the tour, Xinhua reported. “I wish the FTZ to be prosperous and developed.”…………………………………….Full Article: Source

There is such a thing as too much gold

Posted on 19 September 2014 by VRS  |  Email |Print

Goldcorp Inc., the Canadian producer starting up three new mines to boost output 50 percent, says there’s such a thing as too much gold. The largest producer by market value, which expects annual output to reach as much as 4 million ounces by 2016, would prefer to fine-tune its mining assets to increase profitability than just keep growing to a point where it’s difficult to replace reserves, Chief Executive Officer Chuck Jeannes said.
“That means constantly trying to add high-quality things and, as we do that, dispose of the non-core things,” Jeannes said in an interview this week at the annual Denver Gold Forum. “We don’t want to be 7 or 8 million ounces.”…………………………………….Full Article: Source

Will gold face another downward move?

Posted on 19 September 2014 by VRS  |  Email |Print

For all the anticipation surrounding the delivery of the Fed’s statement in the run-up to the September meetings, not much has changed. Ms. Yellen seemed to sound as dovish as ever and she played down the threat of any chasm emerging between FOMC participants. The market continues to feel that the Fed will be forced into raising interest rates sooner-rather-than-later, which is keeping a bullish trend intact for the U.S. dollar.
It is generally trading higher against most major alternatives with the exception of the British pound as the Scots go to the polls to determine whether they should remain part of the 307-year old Union. In the current environment, even as the Fed holds a steady hand on the wheel, commodity prices are suffering. Gold prices are fading in response to the manner in which bond traders sense the Fed will have to throw the towel in on holding rates steady……………………………………..Full Article: Source

Barclays Lowers Gold Price Forecast, Raises Palladium Outlook

Posted on 19 September 2014 by VRS  |  Email |Print

Barclays on Wednesday lowered its price forecast for gold, citing “an increasingly bearish macro backdrop developing for gold,” while raising its outlook for palladium. “Rising rates and a significantly stronger dollar present headwinds, which are set to overwhelm any seasonal strength in physical demand this year,” the bank said.
Barclays lowered their fourth-quarter average gold price forecast to $1,220 an ounce. They now expect prices to average $1,270 an ounce in 2014. Their 2015 forecast calls for an average gold price of $1,180. Palladium’s “sizable” deficit “will likely overpower the downside risk presented by a weaker gold price and a stronger dollar and reinforce the longer-term support for prices,” Barclays said……………………………………..Full Article: Source

Barclays Cuts 2014 and 2015 Gold Price Forecasts

Posted on 18 September 2014 by VRS  |  Email |Print

Barclays plc has reduced its Q4 gold price forecast to $1,220 per ounce. For the whole of 2014, the firm believes gold will average $1,270. In 2015, Barclays sees the price of the yellow metal averaging just $1,180.
Barclays bearish view on gold is linked to rising rates and the dollars strength. ‘Rising rates and a significantly stronger dollar present headwinds, which are set to overwhelm any seasonal strength in physical demand this year,’ said Barclays’ analyst Suki Cooper…………………………………….Full Article: Source

Charts show gold could drop to $1,000 an ounce if cluster of support lines broken

Posted on 18 September 2014 by VRS  |  Email |Print

Charts show gold could drop to $1,000 an ounce if cluster of support lines broken Gold’s slide to eight-month lows over the last week has brought it within sight of a cluster of chart support lines near its 2013 lows, a breach of which could set up a slide back to $1,000 an ounce.
Analysts who study past price patterns for clues on the next direction of trade say a breach of support around the metal’s June 2013 low of $1,180 an ounce could see it fall back towards triple figures as soon as early next year…………………………………….Full Article: Source

China will Dominate the Gold Market

Posted on 18 September 2014 by VRS  |  Email |Print

Back in the maritime age, sailors referred to the equatorial waters of the Atlantic and the Pacific as the ‘doldrums’. It’s where the prevailing winds remained calm and the sun hot and humid. Ships would float aimlessly for days or weeks on end.
For the past few months, asset markets have been in the doldrums too. But now they’re coming out of the languid zone. The trade winds are picking up… I’ll look at where the winds are coming from in a moment. But first, a few things you might be interested in………………………………………Full Article: Source

New Silver Fix Still Irks This Mining CEO

Posted on 18 September 2014 by VRS  |  Email |Print

In a bid to heighten transparency, the mining and silver industries have taken steps towards improvement for investors, but First Majestic Silver Corp.’s Keith Neumeyer isn’t buying into it. Speaking with Kitco News at the 25th Denver Gold Forum, Neumeyer, president and chief executive officer of First Majestic, doesn’t see an improvement.
“Any transparency is healthy and the mining industry needs to put out numbers that make sense to the market,” he said. “Adversely, all-in sustaining cash costs don’t make sense to the market…………………………………….Full Article: Source

US to remain biggest diamond market

Posted on 18 September 2014 by VRS  |  Email |Print

The United States is likely to remain the world’s largest market for diamonds for the next 15 years despite a growing appetite for the gems from China and India, leading producer De Beers said Wednesday.
China has the fastest growing demand, jumping to a share of about 15 percent of the world’s diamond market from less than three percent in 2003. But it is not expected to overtake the US market’s 40 percent share for more more than a decade, De Beers CEO Philippe Mellier said…………………………………….Full Article: Source

Gold Steadying On Physical, Safe-Haven Demand

Posted on 17 September 2014 by VRS  |  Email |Print

The combination of improved physical demand in Asia combined with safe-haven buying are helping gold continue to steady after last week’s weakness, with the U.S. gold futures modestly higher so far Tuesday for the second day in a row.
Around 7:50 a.m. EDT, gold for December delivery was $2.40, or 0.2%, higher at $1,237.50 an ounce on the Comex division of the New York Mercantile Exchange. Spot metal was up $4.60 to $1,236.85 an ounce. December silver was up 9.5 cents, or 0.5%, to $18.715. The London a.m. gold fixing was $1,238.75, up from the Monday afternoon fixing of $1,234.25………………………………………Full Article: Source

Zimbabwe to revive gold market?

Posted on 17 September 2014 by VRS  |  Email |Print

The Zimbabwean government has decided to lower the royalty on gold from 7% to 5% in an attempt to boost gold production from the country. The government decision is expected to breathe new life into the Zimbabwean gold mining industry, which has been struggling for a long time.
According to data, the country’s gold production plummeted to 6 tonnes during the initial seven months of the year. This is 26% lower when compared with the total gold production during the corresponding seven-month period in 2013. The drastic fall in international gold price stares at the profitability of many mining companies including Freda Rebecca, African Consolidated Resources and RioZim Ltd. In addition, the mines are also affected by severe power outages and extremely high borrowing costs………………………………………Full Article: Source

Can Gold Recover?

Posted on 17 September 2014 by VRS  |  Email |Print

Gold recently fell to its lowest level in seven-and-a-half months as the dollar rose to a 14-month high. Easing tensions in Ukraine and the Middle East also acted as a drag on gold and Silver prices. Investors have been asking the obvious question as to whether gold can recover from here and if a bottom of at least short-term duration is imminent?
Dollar strength has been especially hard on the precious metals of late. Commodity prices in general have been beaten up in recent weeks by the surging U.S. dollar index, as sagging gold and silver prices attest……………………………………..Full Article: Source

Why Goldman Sachs Is Wrong On Gold

Posted on 17 September 2014 by VRS  |  Email |Print

Wall Street powerhouse Goldman Sachs has recently reiterated its negative view on gold, which it has held for the past year. However, it is now doubling down on this view and advising clients to actually go short the metal. Jeff Currie, head of commodity research at Goldman noted “Our target is really driven by the view that we think that the Fed will ultimately be the dominate force here and put more downward pressure [on prices]“.
While I am in agreement with Goldman that the Fed will be the dominant force behind the price of gold, I believe the central bank will soon be back into the QE business, rather than raising interest rates and crushing the dollar price of gold………………………………………Full Article: Source

John Paulson Pays A High Price For His Adventure in South African Gold

Posted on 17 September 2014 by VRS  |  Email |Print

John Paulson might have won a battle but he’s losing the war with his big bets on gold. The billionaire fund manager was a key player in forcing one of the world’s biggest gold mining companies, AngloGold Ashanti, to pull the plug on a $2.1 billion rights issue but as the dust settles the value of his 6.6% stake in the stock is sharply lower, and the price of gold keeps falling.
The problem for Paulson is that he’s in the wrong company which is in the wrong commodity at the wrong time………………………………………Full Article: Source

Profitability Is Gold Mining’s Biggest Issue – Randgold’s Mark Bristow

Posted on 17 September 2014 by VRS  |  Email |Print

Without batting an eye, Randgold Resources Ltd.’s Mark Bristow, chief executive officer, bluntly said profitability is the biggest issue facing the mining industry today. Speaking with Kitco News at the 25th Denver Gold Forum, Bristow didn’t hold back when asked on where the blame should be spread as the sector struggles with profitability.
“It’s going to be tough, right now we’ve seen the fund managers looking to management to fix it,” he said. “I think, to a large degree, the fund managers are joined in how we got there, culpable like management………………………………………Full Article: Source

Gold prices to remain under pressure next year too

Posted on 16 September 2014 by VRS  |  Email |Print

Gold prices in the global market are likely to remain under pressure and rule below $1,200 an ounce next year, a global convention was told. “We expect gold prices to remain low next year too. Once gold slips below $1,200, it could head towards $1,175. The positive thing about the fall is that physical buying could emerge once prices drop to $1,200 levels,” said Cameron Alexander, Manager, Precious Metals, Thomson Reuters GFMS, at a price outlook session at the 11th India International Gold Convention – 2014.
However, prices could look up later this year and could even rise to $1,300 levels. This will be because there could be some buying in China and India, particularly during festival and marriage season. “I think the Chinese government will encourage its people to buy gold but it could ensure that prices are under control,” he said. The outlook for gold is not bright next year because a surplus is seen in the yellow metal………………………………………..Full Article: Source

Why Goldman Sachs is Wrong on Gold

Posted on 16 September 2014 by VRS  |  Email |Print

Wall Street powerhouse Goldman Sachs has recently reiterated its negative view on gold, which it has held for the past year. However, it is now doubling down on this view and advising clients to actually go short the metal. Jeff Currie, head of commodity research at Goldman noted “Our target is really driven by the view that we think that the Fed will ultimately be the dominate force here and put more downward pressure [on prices]“.
While I am in agreement with Goldman that the Fed will be the dominant force behind the price of gold, I believe the central bank will soon be back into the QE business, rather than raising interest rates and crushing the dollar price of gold………………………………………..Full Article: Source

Gold industry needs ‘cleansing’ of weakest miners

Posted on 16 September 2014 by VRS  |  Email |Print

The gold industry, recovering from the worst slump in prices in 30 years, needs more mergers to help improve investor returns and eliminate unprofitable mines, Fidelity Investments said. About a third of gold production is probably money-losing when the price of the metal is lower than $1,250 an ounce, said Joe Wickwire, who manages more than $1.8 billion of assets including the Fidelity Select Gold Portfolio.
With gold trading at about $1,230, it “might not be a bad thing” if the number of producers was reduced by a third. “It’s part of the life cycle of industries that every so often you need to have a cleansing of that which is not working,” Wickwire said in a phone interview last week from Boston, where Fidelity is based………………………………………..Full Article: Source

Why ECB QE Is Bearish For Gold Prices

Posted on 16 September 2014 by VRS  |  Email |Print

The recent action by the ECB appears to have caught many gold bulls off guard. A common interpretation of the impact that a potential quantitative easing program would have on gold prices was that it would be very bullish. This argument was based on the concept that money printing is bullish for gold, and that QE1 and QE2 by the Fed triggered major rallies in the yellow metal.
Whilst we do not dispute that QE1 and QE2 by the Fed were indeed bullish for gold, we strongly disagreed that the ECB would introduce a program that would spark a major rally. In fact we went further, predicting that what the ECB was going to do was in fact highly bearish for gold, and in this article we will endeavour to explain why………………………………………..Full Article: Source

New gold contract to set Singapore up as a global gold hub?

Posted on 16 September 2014 by VRS  |  Email |Print

Singapore continues its push to be a global gold hub. Further details emerged at the weekend about the planned launch by Singapore of a new 1kg physically deliverable gold contract for the Asian wholesale gold market.
This new gold contract differs from others in that as well as acting as a price discovery benchmark for 1kg gold bars in the Asian region, it has been specifically designed to actually deliver gold to wholesalers, because settlement of the contract is in gold 1kg bars and not in cash. A 1kg gold bar is 32.15 troy ounces………………………………………..Full Article: Source

Marc Faber emphasizes need for gold

Posted on 16 September 2014 by VRS  |  Email |Print

Veteran investor Marc Faber, author of The Gloom, Boom and Doom Report, reiterated the need for gold in a diversified portfolio when interviewed last week on CNBC. Faber, a resident of Thailand, is an advocate of gold storage in Singapore, and believes that a diversified portfolio will help protect against future market corrections which he believes are on the horizon.
Faber doesn’t see further new highs this year in the U.S. equity markets, and thinks that there could be an S&P correction of between 10% and 30%. While admittedly Faber has been expecting a U.S. stock market correction for some time now, his view is based on what he sees as weaker earnings from some US consumer bellwether companies………………………………………..Full Article: Source

Reasons For The Recent Decline In Gold Prices

Posted on 15 September 2014 by VRS  |  Email |Print

Gold prices fell to their three-month lows in September. The London PM Fix gold price stood at $1,286.50 per ounce at the beginning of the month, with prices closing at $1,251 per ounce at the close of trading on September 10. Gold is often viewed as an inflation hedge and safe haven investment by investors.
Thus, gold prices are to a large extent influenced by a set of related factors including the macroeconomic outlook for the U.S. and world economies, the performance of alternative assets such as equities and the U.S. Dollar, the trajectory of interest rates and geopolitical uncertainty. In this context, we will look into the reasons for the recent decline in the prices of gold………………………………………..Full Article: Source

Gold Industry Needs ‘Cleansing’ of Weakest, Fidelity Says

Posted on 15 September 2014 by VRS  |  Email |Print

The gold industry, recovering from the worst slump in prices in 30 years, needs more mergers to help improve investor returns and eliminate unprofitable mines, Fidelity Investments said.
About a third of gold production is probably money-losing when the price of the metal is lower than $1,250 an ounce, said Joe Wickwire, who manages more than $1.8 billion of assets including the Fidelity Select Gold Portfolio. (FSAGX) With gold trading at about $1,230, it “might not be a bad thing” if the number of producers was reduced by a third………………………………………..Full Article: Source

Pain for gold, silver price as hedge fund slash bullish bets

Posted on 15 September 2014 by VRS  |  Email |Print

On Friday the price of gold fell again, reaching an 8-month low after five straight days of selling on the back of negative precious metals sentiment among large investors coupled with a strong dollar. On the Comex division of the New York Mercantile Exchange in after-hours Friday trade gold for December delivery slid below $1,230 an ounce, a 2.8% retreat for the week to levels last seen early January.
After hitting a high of $1,380 in March, gold’s retreat accelerated during the third quarter with a loss of 4.5% so far in September alone. Gains since the start of the year are now less than 3%………………………………………..Full Article: Source

September is the time to buy gold, history suggests

Posted on 12 September 2014 by VRS  |  Email |Print

For those who like to follow investment trends there is a new one that is growing in popularity – buying gold in September. Over the past 20 years, as the chart below shows, the gold price tends to shine in September. On average bullion has delivered returns of over 3pc, which is by far the best performing month for the precious metal.
Fans say there is a good reason for the trend - September marks the start of India’s gold gifting season. During September a huge amount of gold jewellery is bought by Indians as gifts for family members during the Diwali festival………………………………………..Full Article: Source

Gold Prices To Hit $5,000 Within The Next 3 To 4 Years

Posted on 12 September 2014 by VRS  |  Email |Print

In April 2010 I made a somewhat controversial prediction that gold would reach $5,000 an ounce. I still believe this to be a realistic price target – and now prominent gold mining experts are following suit. Rob McEwen is more than qualified in the realm of gold mining – he’s the founder and former chairman and chief executive officer of GoldCorp Inc.(NYSE: GG), a $20 billion Canadian gold miner and the world’s largest by market cap.
And in an interview on CNBC‘s “Fast Money” in August, McEwen said “I’m a long-term believer in gold and I see it ultimately getting to $5,000 an ounce. Anything short of that, I wouldn’t be hedging.”……………………………………….Full Article: Source

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