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Commodities Briefing - Category | Bullion/Gold more

Big gold futures buying pushing market higher

Posted on 18 March 2014 by VRS  |  Email |Print

Gold’s strong rebound upleg this year has been driven by big gold-futures buying. After abandoning gold last year, American futures speculators are returning to the yellow metal in droves. These capital inflows are a very bullish harbinger, as major futures buying is the primary fuel for young gold uplegs before investors return to take the baton. And this big gold-futures buying is likely less than half done!
From a pure fundamental supply-and-demand standpoint, gold’s crushing losses last year were solely attributable to record gold-ETF selling by stock traders………………………………………..Full Article: Source

RBCCM sees gold rally ahead - similar to 2005-2008

Posted on 18 March 2014 by VRS  |  Email |Print

Royal Bank of Canada Capital Markets analysts Dan Rollins in Toronto and Jonathan Guy in London have come up with a detailed analysis of the gold market over the next few years comparing it with the big ETF driven gold price rally of 2005-2008.
Over this period, gold doubled in price from $450 to $900, and while the analysts are not putting exact price predictions into their prognostications, nor coming up with a precise timescale, the implication is there in their research that this could lead to a big gold price increase in the medium to long term………………………………………..Full Article: Source

Is a silver supply deficit on the horizon?

Posted on 18 March 2014 by VRS  |  Email |Print

Silver, it seems, is everywhere. The precious metal’s dual role as both an investment and industrial metal means that while it can be bought physically or in paper form by investors, it also has myriad technological and medical applications.
It’s in part because of those many uses that some silver market watchers think at some point — perhaps in the near future — demand for the metal will exceed supply, creating a shortage………………………………………..Full Article: Source

UBS reviews precious metals in response to regulators

Posted on 18 March 2014 by VRS  |  Email |Print

Swiss banking giant UBS AG disclosed in its annual report on Friday that it is reviewing its precious metals business as global regulators step up their examination of currency and commodity benchmarks.
“Precious metals is a niche market though it’s part of what UBS considers value-added for its wealth management clients,” said Vontobel Holding AG analyst Andreas Venditti to Bloomberg………………………………………..Full Article: Source

Speculators see gold gaining with wheat on Ukraine: Commodities

Posted on 17 March 2014 by VRS  |  Email |Print

After shunning gold and wheat for most of last year, hedge fund managers are piling back in as the escalating crisis in Ukraine spurs a rebound in the prices of both commodities.
Speculators have the biggest bet on a gold rally since December 2012 and turned bullish on wheat for the first time since November, government data show. Bullion last week reached a six-month high and wheat entered a bull market as Crimea prepared for a referendum. A majority in the disputed vote March 16 chose to leave Ukraine and join Russia, exit polls showed………………………………………..Full Article: Source

Russia/Ukraine escalation could drive gold to $1400 – or higher - short term

Posted on 17 March 2014 by VRS  |  Email |Print

With gold hovering around the $1370 level this morning – a level which has confounded the very bearish bank analyst sector – gold has, as we have noted before, been by far the best asset class to be invested in so far this year, beating even the other precious metals which might seem to have even more going for them.
But the analysts will say that they could not have predicted the flare-up in the Ukraine and the subsequent aggressive moves by Russia which look as though they will see the annexation of Crimea. It seems Ukraine is virtually powerless to do anything about this beyond gleaning Western support which could result in sanctions being imposed on Russia, given its likely intransigence in the matter, with the threat of further escalation overhanging the situation………………………………………..Full Article: Source

Gold prices on the way up

Posted on 17 March 2014 by VRS  |  Email |Print

Gold prices are looking set to crack the $US1400 mark yet again, with surges over the last three weeks leading to a finish of $US1385 per ounce last week. With the Australian dollar sitting at 90 US cents, the Australian gold price has hit $1536.
The new prices come as a relief to gold miners, especially Newcrest Mining Limited, pegged by the pundits to win big in the long term from the rising prices thanks to substantial reserve holdings of the precious commodity………………………………………..Full Article: Source

Gold physical demand stays subdued as prices rally

Posted on 14 March 2014 by VRS  |  Email |Print

Gold prices are up about 14% on the year as investors return to commodities and the yellow metal gets a safe-haven bid on geopolitical worries, but one key market participant is largely absent.
Physical buying, particularly out of Asia, has been subdued at best for the past few weeks, as seen by the small premium or occasional discount Shanghai Gold Exchange prices trade versus spot. Additionally, gold-market traders pointed to positive gold forward rates, known as “gofo” rates, or lease rates, which also suggest the physical market isn’t tight………………………………………..Full Article: Source

Gold price hits a six-month high

Posted on 14 March 2014 by VRS  |  Email |Print

The price of gold hit a six-month high overnight of $US1,370 ounce buoyed by investor appetite and civil unrest in Ukraine. Gold has always been considered a safe haven during times of political and civil unrest and the geopolitical uncertainty in Crimea has seen the price steadily rise all week.
But the managing director of gold miner Ramelius Resources, Ian Gordon, believes there are also other factors at play in the price rise. “Events like the unrest in Ukraine do spur on the price of gold, but I don’t know if it’s as important as people say, but it’s in the mix of factors………………………………………..Full Article: Source

Gold could reach 5,000 within a few years - Oliver

Posted on 14 March 2014 by VRS  |  Email |Print

Charles Oliver joined Sprott Asset Management LP in January 2008. He focuses on gold and silver investments as a portfolio manager for the Sprott Gold & Precious Minerals Fund and the Silver Equities Class.
“In 1980, when the gold price peaked at $800, it took 1 ounce of gold to buy the Dow Jones Index. After 1980, financial assets took the lead over hard assets. In 1999, it took 44 ounces of gold to buy the Dow Jones, at a gold price of $250. If gold were to regain the position it held in 1980, we could easily see a 3:1 ratio – gold at $5,000 given the current level of the Dow Jones, or even $15,000 if gold returns to the 1:1 level………………………………………..Full Article: Source

When to buy silver? Prices failing to come back

Posted on 14 March 2014 by VRS  |  Email |Print

It is unquestionable that silver and gold prices share a strong relationship. Like gold, silver is dependent on psychology and the factors that drive psychology, such as inflation and the dollar. However, despite being considered a precious metal, silver also plays a role as an industrial metal.
Like the rest of commodities, silver peaked in 2011, as the dollar pushed commodity prices down. Since then, silver prices have weakened. Despite the upward move that silver made last month, it seems that silver is struggling to overcome previous levels………………………………………..Full Article: Source

Is a silver supply shortage on the horizon?

Posted on 14 March 2014 by VRS  |  Email |Print

Silver, it seems, is everywhere. The precious metal’s dual role as both an investment and industrial metal means that while it can be bought physically or in paper form by investors, it also has myriad technological and medical applications.
It’s in part because of those many uses that some silver market watchers think at some point — perhaps in the near future — demand for the metal will exceed supply, creating a shortage………………………………………..Full Article: Source

Silver’s three main drivers for 2014 - HSBC

Posted on 14 March 2014 by VRS  |  Email |Print

Silver is likely to trade in a range between $17.75 and $22.75 for the rest of 2014 as the global silver surplus widens to around 156moz this year, says HSBC. According to the group’s latest silver outlook publication, there are three main trends that are likely to drive the silver market in 2014: Supply remaining strong, investment demand making a modest recovery and the current pickup in demand from industry and jewellery.
Looking at the supply side first, the bank says that at near $20/oz, prices are within striking distance of the highest-cost marginal producers. But, despite this, it says, silver remains worth extracting………………………………………..Full Article: Source

Precious metals posting strong ‘14 performance

Posted on 13 March 2014 by VRS  |  Email |Print

Gold and silver prices have logged solid gains this year, helped by concerns over the crisis in Eastern Europe and slowing economic growth in China. Tensions continued to build in Ukraine this week as negotiations appear to be at a standstill and European Union governments are considering sanctions against Russia.
Also leading investors to opt for safe-haven assets rather than equities was weaker-than-expected Chinese export data for February. Over the weekend, China said exports plunged 18.1%, compared to expectations they would jump more than 7%, leading to a broad selloff in Asian markets earlier this week. ……………………………………….Full Article: Source

Three reasons to buy gold now

Posted on 13 March 2014 by VRS  |  Email |Print

When it comes to gold bullion prices, despite their mere 10% climb since the beginning of 2012, I wouldn’t be at all surprised to see gold bullion prices increase even further. With this, companies producing or looking for the precious metal are still presenting a great buying opportunity.
Let me explain… We see demand for gold bullion continues to increase, and at the same time, supply constraints are slowly starting to show. This is something I have been talking about for some time now and at the very core, it is the perfect recipe for higher gold bullion prices ahead………………………………………..Full Article: Source

Time to take profits from gold and run: CIBC

Posted on 12 March 2014 by VRS  |  Email |Print

After a strong run-up in gold prices this year, analysts at CIBC World Markets are recommending investors take money off the table. The precious metal has spiked 10% this year, following a crushing 28% decline last year that put an end to a 12-year bull market. CIBC last year called for gold prices to reach US$1,350 an ounce in 2014, a level they quickly achieved last month.
But CIBC said “the returns no longer justify the risk” now that gold has hit that price point………………………………………..Full Article: Source

Gold’s bull days are back?

Posted on 12 March 2014 by VRS  |  Email |Print

Gold is coming back with a vengeance, experiencing a clear recovery and grabbing the attention of market cynics. Analysts from Noruma Securities even upgraded its outlook for gold, expecting bullion to climb over the next three years, according to Barron’s.
Nomura analysts attribute their increased gold forecast to real interest rates that “don’t seem to be heading anywhere at the moment.” In addition, there appears to be “long-term demand support from Asian nominal income growth, an evolving post-QE macroeconomic environment and lower disinvestment potential.”……………………………………….Full Article: Source

Is gold set for a big fall in 2014?

Posted on 12 March 2014 by VRS  |  Email |Print

Is the golden run about to come to an end? Just two months into the new calendar year and the price of gold has staged a surprising recovery, rising over 11% to around US$1,342 per ounce. However suggestions of lower demand from China and positive economic data from the U.S. could see the price for the metal flatten out, and even fall throughout 2014 analysts say.
While there is always a big range of opinions on the future of gold, one widely held view is that a recovery in the U.S economy will speed up later in 2014, dissuading investors from gold. There have also been fears this week that poor Chinese economic growth and stronger than expected U.S. employment figures could speed up falls in the gold price………………………………………..Full Article: Source

Gold price uncertainty, the fix and the quantum

Posted on 12 March 2014 by VRS  |  Email |Print

Does one of the great mysteries of the universe shed light on allegations surrounding the Gold Fix? Or is it the other way around? When Werner Heisenberg looked at his brand new quantum formulae in 1927, he noticed something weird.
The world of very small spaces and particles is ruled by matrix mechanics, but as you may remember from your school mathematics, in matrix multiplication (A * B) * C is not the same as A * (B * C). What Heisenberg saw was that because of the difference in the two matrix products there would always be uncertainty as to key physical properties of a particle. His discovery forbids a particle from having both precisely defined motion and precisely defined position at the same time………………………………………..Full Article: Source

China Gold Association forecasts 17pct drop in 1Q gold demand, annual demand steady – HSBC

Posted on 12 March 2014 by VRS  |  Email |Print

China Gold Association says gold demand may fall 17%, to 250 metric tons, in the first quarter of 2014, versus 300 tons in the first quarter of 2013, HSBC says, citing a Bloomberg News story. In the Bloomberg story, Zhang Yongtao, CGA’s vice chairman, said 2014 annual demand is forecast to be unchanged at 1,176 tons versus 2013, and 2014 annual mine supply is expected to remain mostly unchanged at 428 tons versus 2013, HSBC says.
“A simple math calculation based on Mr. Zhang’s forecast would indicate that China’s gold demand should be stronger for the rest of 2014 after 1Q, when compared to the same period in 2013. This may indicate that China’s strong appetite for gold is likely to be sustained well into 2014, in our view,” HSBC adds………………………………………..Full Article: Source

Chinese demand for gold, silver exploded in 2013 - FIA

Posted on 12 March 2014 by VRS  |  Email |Print

The biggest growth in trading activity of gold future contracts in the last five years has come from China, according to the latest information from the Futures Industry Association.
Monday evening the FIA released its annual report on global trends in the trading of futures and options; Gold futures on the Shanghai Futures Exchange saw the biggest increase volume in the last five years as 20.09 million contracts were traded in 2013, an increase of 416% from the 3.9 million contracts traded in 2008………………………………………..Full Article: Source

Will platinum, palladium and silver outperform gold this year?

Posted on 12 March 2014 by VRS  |  Email |Print

So far this year gold has probably been the best performing asset class of all having risen around 12% to date. But, within the overall precious metals sector, silver has only moved up a seemingly disappointing 7%, platinum 8% and palladium perhaps an even more disappointing 5% - despite analysts almost being unanimous in their views that the platinum group metals (pgms) in particular will outperform given the ongoing industrial action in South Africa, the world’s largest producer.
The South African situation is potentially severely disrupting supplies, while the global economy is seen as being in a recovery phase, which should indeed be a positive for the pgms given that within the Western recovery – and also with ongoing Chinese sales increasing – the automobile sector seems to be doing particularly well and that is the principal user of pgms, especially palladium………………………………………..Full Article: Source

Morgan Stanley lowers gold price forecast for 2014, 2015

Posted on 11 March 2014 by VRS  |  Email |Print

Morgan Stanley lowered its gold price forecasts for 2014 on Monday, citing the impact of the US Federal Reserve’s reduction of stimulus along with mounting regulatory pressure on investment banks to scale back commodity operations.
Despite a falling US dollar gold price, legal Indian gold imports remain low, in contrast with strong Chinese physical gold demand, the note from Morgan Stanley said. The steep sell-off by ETFs in 2013 countered the cushion provided by strong consumer demand for gold, resulting in a decline in gold prices, the bank added………………………………………..Full Article: Source

Comparing today’s gold rally with 2009

Posted on 11 March 2014 by VRS  |  Email |Print

Every week, our investment team reviews a variety of sources to formulate a summary of the top events in the gold, resources, and emerging markets. The results are categorized in terms of strengths, weaknesses, opportunities and threats. We believe this SWOT model helps investors make informed decisions about their gold and gold stock investments.
The analysts at CIBC World Markets published an interesting note comparing the current 2014 rally with the rally in 2009, both of which were preceded by a 29-percent drop from the highs during those times. Equities have outperformed bullion by roughly 14 percent during this 2014 rally, still shy of the 32 percent outperformance during the 2009 rally………………………………………..Full Article: Source

Will new Fed policy put pressure on gold prices?

Posted on 11 March 2014 by VRS  |  Email |Print

In previous years, the Federal Open Market Committee’s expanding monetary policy (e.g. lowering interest rates) has lifted demand for gold, which is often used as protection against the potential devaluation of the U.S. dollar. But back in 2013, the FOMC’s policy of purchasing long-term treasuries didn’t seem to lift the price of gold.
Moreover, in the past couple of months, the price of has gold rallied, even though the FOMC decided to reduce its asset purchase program. This raises the question: Does the FOMC’s policy still affect gold prices as it once did? Looking forward, will the upcoming FOMC meeting influence precious metals investors as it did before 2013?……………………………………….Full Article: Source

Ron Struthers sees Gold’s next resistance level at $1,360–1,370 an Oz

Posted on 11 March 2014 by VRS  |  Email |Print

Ron Struthers, publisher and editor of Struthers’ Resource Stock Report, believes the fractional reserve gold system has seen more stress and was probably in good part responsible for cementing the bottom in gold around $1,200 and ounce.
We see that the gold inventories at COMEX and the bullion banks have been steadily declining for the past year. There are not too many places to turn to, if any, for physical supply. It is no secret that record amounts of physical gold have been moving into China, and India continues as a major buyer despite higher import taxes………………………………………..Full Article: Source

Gold: Is the real excitement ahead?

Posted on 10 March 2014 by VRS  |  Email |Print

Now just because — as did Lawrence before me and Moses before him — I have ventured into the desert, desert you I shan’t dear readers, for ’tis Saturday morning and thus time to compose The Gold Update, as abbreviated an edition as is this one.
Warm (understatement) greetings from Scottsdale, Arizona, where harmoniously man lives with the gila monster. As does one in France learn to walk about with one’s head bowed to avoid the sidewalk presents left by les chiens, so does one here keep the eyes peeled — as well as ears pricked — for the sudden presence of the rattler………………………………………..Full Article: Source

Gold most bullish since 2012 as Goldman sees slump: Commodities

Posted on 10 March 2014 by VRS  |  Email |Print

Gold is getting more attractive to hedge-fund managers even as Goldman Sachs Group Inc. says the metal’s surprising rally this year will soon fizzle.
Hedge funds and other speculators expanded bets on higher prices for a fourth week in New York futures and are now the most bullish since December 2012, government data show. While gold is off to its best start in six years after topping $1,350 an ounce, Goldman’s Jeffrey Currie says chances are increasing that prices will slump to $1,000 for the first time since 2009………………………………………..Full Article: Source

Can gold be a better investment than cash?

Posted on 10 March 2014 by VRS  |  Email |Print

‘Why do you invest in gold, when it doesn’t pay interest?’ This is one of the most frequently asked questions when it comes to gold investment discussions. Goldmay not pay interest but neither, it seems, do the banks.
Today the Bank of England’s MPC met for their monthly bank-rate setting meeting. This was the 60thmeeting since they first set rates at the record low of 0.5%, five years ago. Savers’ campaign group Save Our Savers estimates that since the first rate cut to 0.5% on the March 5, 2009, savers have lost ‘a staggering £326 billion………………………………………..Full Article: Source

Gold price challenges $1350

Posted on 10 March 2014 by VRS  |  Email |Print

From last Friday’s close at $1322, gold opened strongly on Monday trading, as high as $1355 before losing two thirds of the rise on Tuesday. On Thursday afternoon (GMT) gold rallied back to challenge the $1350 level. This morning (Friday) it is in the balance as to whether or not gold will need more consolidation before moving on towards $1400, with everyone watching out for US employment numbers.
The change in sentiment over the last eight weeks has encouraged small traders to go long on gold. Normally, market-makers would be able to mark prices down aggressively to shake out these short-term speculators, but it has not recently happened. This suggests that the underlying market is robust………………………………………..Full Article: Source

Exactly how much does it cost to produce an ounce of gold?

Posted on 07 March 2014 by VRS  |  Email |Print

For many years, there was broad agreement that the gold industry’s cost reporting was an embarrassment and an utter joke. Gold miners have worked hard to shed that reputation in the past year and a half. And they certainly made progress with the introduction of all-in sustaining costs.
But the question remains: Are investors now being told what it really costs to produce an ounce of gold? According to experts, that is debatable………………………………………..Full Article: Source

Five banks sued for manipulating gold price

Posted on 07 March 2014 by VRS  |  Email |Print

Five banks at the center of London’s gold trade have been sued in New York for manipulating prices, in the latest accusation of fraudulent collusion in the global finance hub.
A class-action suit was filed by US gold futures and options trader Kevin Maher against Bank of Nova Scotia, Barclays Bank, Deutsche Bank, HSBC, and Societe Generale, all involved in setting the London Gold Fix, a twice-daily benchmark price used as a reference for trade in gold and gold derivatives………………………………………..Full Article: Source

Is gold becoming another regular old commodity?

Posted on 07 March 2014 by VRS  |  Email |Print

One of my more controversial views in finance is that gold will one day be viewed as a mere commodity and not a form of money. My reasoning for this view is simple - I think the era of money as a physical item is long behind us and that the future of money rests with electronic forms of money that serve primarily as a record of account and medium of exchange.
That means the need for physical gold as a form of money will likely cease to exist or at least be reduced substantially in the future………………………………………..Full Article: Source

Gold price “will probably test $1400″ as Crimea moves to quit Ukraine

Posted on 07 March 2014 by VRS  |  Email |Print

Gold Price trading in London kept bullion prices in a 2-day range between $1330 and $1340 per ounce Thursday morning, while Ukraine’s Crimea crisis continued to dominate headlines ahead of tomorrow’s much-awaited US jobs data.
Trading some 1.5% below Monday’s new 4-month high, the gold price fell for Euro investors, dipping beneath €970 as the single currency rose after ECB chief Mario Draghi reaffirmed a commitment to ultra-low rates. Members of parliament in the Crimea today voted to put joining Russia to a referendum on March 16th – a move that Reuters called a “dramatic escalation”……………………………………….Full Article: Source

Is renewed Indian demand driving gold prices higher?

Posted on 07 March 2014 by VRS  |  Email |Print

Since last August, the Indian government placed a stranglehold on gold imports into the country by requiring that 20% of all gold imported be exported as jewellery. This forced the amount of gold imported to drop to 30% of former levels until October of last year.
Then the amount imported rose to 38 tonnes a month and has been at that level since then. The amount of gold that was expected to be imported for the year was north of 1,200 tonnes. It only achieved an imported total of 825 tonnes, around 400 tonnes less than expected………………………………………..Full Article: Source

Barrick Gold CEO says gold could reach US$2,000/oz in 2-3 years

Posted on 06 March 2014 by VRS  |  Email |Print

Barrick Gold Corp, the world’s largest gold producer, said prices for the metal could reach US$2,000 an ounce within two or three years. “I think ultimately we are going to see gold go back up and challenge the highest we saw a couple of years ago and certainly push up through US$1,500 an ounce within the next year,” the company’s chief executive Jamie Sokalsky told Bloomberg.
“Within two or three years, I wouldn’t be surprised to see gold back up towards U$2,000.” The Canadian gold producer could do with some good news after last month posting a loss and US$2.8bn write-down for the fourth quarter as it lowered its gold reserves………………………………………..Full Article: Source

Physical demand from emerging markets to drive gold in 2014

Posted on 06 March 2014 by VRS  |  Email |Print

HSBC — the multinational banking and financial services company — in its latest released gold analysis report has stated that physical demand for jewelry, coins and bars from China and other emerging markets will turn out to be the key driver for gold prices in 2014. The report further states that rampant outflows from gold Exchange Traded Funds (ETFs) may stabilize during the year.
According to HSBC, investment demand had fuelled the rally in gold prices during the past decade. But this investment demand has largely dried up and is no longer defining gold price movements. Instead, rising demand for physical gold out of China and other emerging economies has become the key driver of bullion prices in 2014………………………………………..Full Article: Source

Nomura raises gold forecasts as price drivers ‘already reset’

Posted on 06 March 2014 by VRS  |  Email |Print

Nomura Securities has raised its 2014 gold price forecast to US$1,335/oz this year from the previous US$1,138/oz as the speed of last year’s price decline “brings forward the start of the next cycle.”
Gold appears set to recover “like a phoenix regenerating from its ashes,” RBC analysts wrote in a research note cited by financial magazine Barron’s. Nomura follows UBS and RBC Capital Markets, both of whom recently raised their gold price forecasts. UBS now sees gold averaging US$1,300/oz this year while RBC has set an average of US$1,400/oz………………………………………..Full Article: Source

China’s net silver imports to continue to decline in 2014; Silver to avg $20.40/Oz: Citi

Posted on 06 March 2014 by VRS  |  Email |Print

China’s net silver imports dropped sharply by 37% year-on-year last year, Citi believes the decline to continue in 2014. The New York based bank also looks for by-product output from mining operations for other metals to drive up silver supply by 2% in 2014.
Citi also looks for silver prices to average $20.40 an ounce level this year. The metal hit a nine-week high of $21.98 in January, with prices buoyed by the uptick in gold, driven by concerns about China, geopolitical turmoil in Ukraine and mixed U.S. economic data………………………………………..Full Article: Source

Silver looking range-bound for 2014: SilverCrest (Video)

Posted on 06 March 2014 by VRS  |  Email |Print

Kitco News meets with SilverCrest President & COO Eric Fier about the expansion of the company’s Santa Elena mine as well as Sandstorm’s recent bid to buy 10% of SilverCrest’s underground gold. Tune in for our continuous coverage of PDAC. Kitco News, March 5, 2014.……………………………………….Full Article: Source

China now biggest driver of gold prices, HSBC says

Posted on 05 March 2014 by VRS  |  Email |Print

China’s buying of gold jewelry, coins and bars is now the biggest driver of prices, not investment demand from the West, according to Global Research. “We would argue that physical demand trends in the emerging world will largely define gold’s price movements this year,” HSBC analysts James Steel and Howard Wen said in a research note.
China alone can take up the equivalent of half of the global gold mine output, while a possible recovery in Indian demand could also act as a boost for the yellow metal as long as the Indian authorities reduce import tariffs on gold………………………………………..Full Article: Source

4 reasons the gold market looks super shady right now

Posted on 05 March 2014 by VRS  |  Email |Print

You’re not supposed to discuss religion or politics at the dinner table, and you really shouldn’t ever bring up gold in polite company either. For many boosters, gold takes on a kind of religious political importance, as some investors feel they can turn to it for deliverance from seemingly wasteful and duplicitous governments who resort to inflation to sustain ever-growing bureaucracies.
It’s the political extremism of gold’s fervent supporters that often leads people to ignore their claims of gold market manipulation. But there has been increasing evidence that something fishy is going on in the market for gold bullion, and in so-called paper gold, or various financial derivatives backed by gold………………………………………..Full Article: Source

Gold price may rise to $1,400/oz near term, says SocGen

Posted on 05 March 2014 by VRS  |  Email |Print

With mounting tensions between Russia and Ukraine, most analysts fear a rise in crude oil prices. But Mark Keenan, Head of Commodities Research - Asia, Societe Generale does not agree with the popular perception. He is not expecting an escalation in crude prices because of unrest in Ukraine.
Keenan argues the initial concerns and fears were a function of risks to crude oil moving out of the Black Sea region. But according to later research, it is in everyone’s interest - especially Russia - to ensure that crude oil continues to flow out of the region. He is infact more concerned about other commodities like natural gas where a lot of the supply out of Russia moves through Ukraine to Europe. ……………………………………….Full Article: Source

Silver fundamentals don’t support current price: Citi

Posted on 05 March 2014 by VRS  |  Email |Print

The shine is coming off of silver, at least according to a report from Citi Research published yesterday. Citi analysts David B. Wilson, Jason S. Sappor and Ivan Szkapowski say that the recent rise in silver prices is likely unsustainable given the neutral-to-bearish fundamentals of the silver market. The analysts summarize their point of view below.
“It should be emphasized that strong retail investor demand for coins and medals in 2013, with record US Silver Eagle coin sales of 47 m oz., was driven largely by falling prices and resultant bargain hunting, while conversely 2013 ETF uptake was muted because of those same price falls. ……………………………………….Full Article: Source

The fix is in: Are gold prices a gigantic bank scam?

Posted on 04 March 2014 by VRS  |  Email |Print

The London gold fix, the benchmark used by miners, jewelers and central banks to value the metal, may have been manipulated for a decade by the banks setting it, researchers say.
Unusual trading patterns around 3 pm in London, when the so-called afternoon fix is set on a private conference call between five of the biggest gold dealers, are a sign of collusive behaviour and should be investigated, New York University’s Stern School of Business Professor Rosa Abrantes-Metz and Albert Metz, a managing director at Moody’s Investors Service, wrote in a draft research paper………………………………………..Full Article: Source

Putin lights fire under gold price

Posted on 04 March 2014 by VRS  |  Email |Print

The gold price soared 2.5% on Monday on the back of safe haven buying as Russian President Vladimir Putin’s adventurism in Ukraine caused a diplomatic scramble in the West. On the Comex division of the New York Mercantile Exchange, gold futures for April delivery – the most active contract – last traded at $1,351.80 an ounce, up $30.20 from Friday’s close.
In brisk trading the metal hit a high of $1,355 earlier in the day, the best level since September and up 13% since the start of the year. While investors were scrambling for hard assets and crude oil, stock markets sold off around the world, with triple digit losses for US blue chips and European investors running for cover. The ruble tumbled and Moscow stocks plummeted………………………………………..Full Article: Source

HSBC maintains $1,292/oz gold price forecast for 2014

Posted on 04 March 2014 by VRS  |  Email |Print

HSBC is keeping its 2014 average gold price forecast unchanged at $1,292 per ounce, the bank said, and sees the metal ranging between $1,120 and $1,390 this year.
Physical demand for jewellery, coins and bars from China and other emerging markets is now driving the price, it said in a note on Monday. And while ETF outflows have moderated, investment demand for gold remains tepid, it added. “The gold market is still finding its equilibrium after last year’s price plunge, which ended a bull run,” chief precious metals analyst James Steel said………………………………………..Full Article: Source

Australia boosts gold output

Posted on 04 March 2014 by VRS  |  Email |Print

Output of gold in Australia, the world’s No. 2 producer, rose to its highest in a decade in 2013 as richer ores were mined to combat weak bullion prices, a survey released on Sunday showed.
The practice, known as high-grading, caused output to jump by 7 percent, or 18 tonnes, to 273 tonnes (8.8 million ounces) last year, worth about $9 billion and the highest since mid-2003, according to a tally by Melbourne-based consultant Surbition Associates. “The 2013 total gold output of 273 tonnes is the highest annual figure since 2003,” said Dr. Sandra Close, a Surbiton director………………………………………..Full Article: Source

There is money in gold, again

Posted on 04 March 2014 by VRS  |  Email |Print

Gold producers that lost almost half their market value are tempting back investors from Julius Baer Group Ltd. to Invesco Ltd. who are getting set for a rebound as Chinese demand for the metal soars.
“We expect a major turn in gold equities in the next two years,” said Herisau, Switzerland-based Erich Meier, who manages about $500 million in the Julius Baer Multipartner Gold Equity Fund and other funds. “Lower production costs and much less capital expenditure spending bode very well for the industry in the near future.”……………………………………….Full Article: Source

Silver will be the king precious metal performer

Posted on 04 March 2014 by VRS  |  Email |Print

While gold is the king monetary metal, silver will turn out to be the king precious metal performer. Currently, gold is stealing the show as the East (China) continues to consume more than total world gold production. However, silver will surprise the markets in the future as overwhelming demand will outstrip supply in a big way.
The key factor that will drive up the price (value) of silver much higher than gold in percentage terms, will be its affordability. As the price of gold heads back above $1,500 and silver to $30, an individual can buy a heck of a lot more silver than gold………………………………………..Full Article: Source

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