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WGC says low gold price not sustainable

Posted on 04 November 2014 by VRS  |  Email |Print

Having fallen to $1,160 an ounce, a four-year low, the yellow metal stares at a bear phase in the medium term. But the World Gold Council (WGC) maintains that the current price level is unsustainable due to higher cost of production for the metal. It also says the US interest rate trajectory will not be the key driver of gold price.
The average all-in cost of production of gold stands at $1,350 an ounce as per GFMS-Thomson Reuters, WGC said in a report. The sharp drop in price may lead to a contraction in gold mining over the next few years. “While gold prices can fall below production cost for various reasons, prices below this level are not sustainable for an extended period, unless there is a widespread reduction in production cost or readily available new deposits are found. Both are unlikely,” the market development organisation for the gold industry said………………………………………..Full Article: Source

Survey: Will a Cartel Save the Silver Price?

Posted on 04 November 2014 by VRS  |  Email |Print

By now those involved in the silver space are likely well aware of First Majestic Silver’s decision to postpone the sale of about 934,000 ounces of silver.
The company announced the move on October 14, describing it at the time as “an attempt to maximize future profits.” Since then, President and CEO Keith Neumeyer has offered a more in-depth explanation, telling Future Money Trends that it’s a path his company has followed before………………………………………..Full Article: Source

Outlook for gold and iron ore is ‘very good’

Posted on 04 November 2014 by VRS  |  Email |Print

Although most commodity prices were weak, large-scale producers’ margins remained high, but profitability would continue to be helped by increasing global production levels, said Afriforesight’s monthly commodity update released last month.
The report forecast that in the coming year, the profitability for the top players in iron ore and gold industry was “very good” while diamonds profitability was “excellent”, however platinum group metals were “okay” but were still recovering from effects of the five-month strike………………………………………..Full Article: Source

Gold price tumbling to $1,000 as rising dollar crushes confidence

Posted on 03 November 2014 by VRS  |  Email |Print

Precious metal tipped to fall further as US economic growth and the Fed’s retreat from QE to see investors dump holdings. Gold prices slumped last week to a four-year low, but do not expect a turnaround in fortunes any time soon with analysts now predicting that a level of $1,000 (£625) per ounce could present the next point of resistance for the precious metal.
On Friday, gold capped off a bad week of trading slumping 3pc to $1,163 per ounce on the day that Japan shocked financial markets by expanding its programme of quantitative easing (QE) in a bold move intended to revive Asia’s second-largest economy………………………………………..Full Article: Source

What Should Gold Investors Do Now?

Posted on 03 November 2014 by VRS  |  Email |Print

Gold fell last week when the Fed cut QE and the Bank of Japan increased QE. The fundamentals right now are not relevant to gold as it is trading based on very negative sentiment.
Investors need to think long-term and control their emotions as that is the only way to weather “sentiment bottoms”. Investors should not be idle, but instead be developing their strategies and culling their portfolios to the best gold stocks………………………………………..Full Article: Source

Kiosk carnage becomes indicator of gold’s top

Posted on 03 November 2014 by VRS  |  Email |Print

Wall Street didn’t call the top in gold—the neighborhood mall did, Buyers may want to be cognizant of that before the next craze takes hold. It used to be that kiosks had cornered the market on retail bullion. All you had to do is follow the growing number of gold kiosks offering to buy used jewelry and coins in 2011. That’s the year when gold prices were on a tear and hit fresh highs in the $1,900 range.
As big investment firms were hiking their forecasts to more than $2,000 an ounce, Main Street was trying to cash in by convincing people they could be missing the opportunity of a lifetime………………………………………..Full Article: Source

Gold below key support at $1180, India market to limit decline: Barclays

Posted on 03 November 2014 by VRS  |  Email |Print

Gold fell below support of $1180 per ounce with physically exchange traded funds (ETFs) across precious metals witnessing redemptions thus far this month, Barclays noted in a weekly report. Gold holdings are down 34 tons, on track to match the magnitude of outflows last month.
Physically backed ETPs across all four precious metals have suffered from net redemptions thus far this month. Gold holdings are down 34 tonnes, on track to match the magnitude of outflows last month. Silver holdings are down over 100 tonnes partially reversing the sizeable inflows seen last month while the PGMs are down just over 50koz each extending the losses from September………………………………………..Full Article: Source

Gold price ignores Swiss vote on higher dollar

Posted on 31 October 2014 by VRS  |  Email |Print

For gold investors it is an eye-opening prospect: if the Swiss vote Yes in a referendum next month, their central bank could be forced to buy gold equivalent to just over half the world’s annual mine supply, according to one analysis.
Yet the gold price has slipped; it fell to a three-week low on Thursday. Holdings in exchange-traded funds backed by physical gold have also continued to slide………………………………………..Full Article: Source

Goldcorp CEO Jeannes Sees Gold Price Floor Around $1,200

Posted on 31 October 2014 by VRS  |  Email |Print

Gold won’t dip much below $1,200 an ounce as Asian buyers help create a price floor, according to the biggest producer of the precious metal by market value.
Gold will probably trade in a range of about $1,200 to $1,400 in the next six to 12 months, Goldcorp Inc. (G) Chief Executive Officer Chuck Jeannes said in a phone interview today. While continuing uncertainty about U.S. monetary policy will keep financial investors hesitant, physical demand will support prices, he said………………………………………..Full Article: Source

Credit Agricole Looks For Gold To Stabilize In 4Q, Soften In 2015

Posted on 31 October 2014 by VRS  |  Email |Print

Credit Agricole sees gold stabilizing in the fourth quarter on “conflicting” influences but then soften in 2015. There is potential for long-term exchange-traded-fund investment to be further reduced, which could weigh on gold in dollar terms. “In the absence of a more persistent financial scare — not in our forecasts — this moderation in longer-term investor demand should continue,” the bank said.
However, potentially offsetting this is speculation about increased reserve demand from the Swiss National Bank, which could lead to increased short-term positioning and thus a stable price into year-end, Credit Agricole said……………………………………….Full Article: Source

Why are gold prices down again?

Posted on 31 October 2014 by VRS  |  Email |Print

The U.S. dollar was comforted by the Fed’s October statement, viewed by many as more hawkish than dovish. The broad implication in the minds of many traders is that the Fed is likely to raise interest rates sooner than was thought ahead of the meeting.
Before the meeting investors had assumed that, on account of a benign inflationary environment, the Fed might even make reference to continued or future policy accommodation in light of the financial meltdown during the first two weeks of October. Rather than dwelling on the short-lived asset price dip, the Fed instead focused on the broader, multi-year improvement in the labor market as it closed the book on QE………………………………………..Full Article: Source

Gold price could benefit from Swiss vote

Posted on 30 October 2014 by VRS  |  Email |Print

Switzerland enjoys a rather more direct system of democracy than we do. If you want some kind of constitutional change, and you can find 100,000 people prepared to support your proposal with their signature, you can get a referendum called.
If the majority then vote in your favour, the matter is then referred to the 26 cantons – the administrative regions (similar to our counties) – and if the majority too vote yes, you’ll get the change you were agitating for. There’s a referendum coming up next month that could have huge ramifications for gold investors………………………………………..Full Article: Source

Gold is up and defying expectations

Posted on 30 October 2014 by VRS  |  Email |Print

The World Gold Council has encouraged investors to consider gold as a valuable component in an investment portfolio. It comes as the council announced that the price of gold is up, amid record low volatility and against analysts’ forecasts, the World Gold Council has said.
In its six-page investment report, the body has shown that the gold price is up 3.4 per cent in the year-to-date, and has been above its 2013-end price for all but two days this year, defying predictions from analysts who had generally expected lower prices………………………………………..Full Article: Source

Will the Swiss drive up gold prices?

Posted on 30 October 2014 by VRS  |  Email |Print

If you are invested in gold, you should mark November 30 in your diary. That Sunday could have an impact on your portfolio as Switzerland votes in a referendum on a partial return to the gold standard.
The Swiss have a habit of voting for policies that mainstream political parties would never touch. If opinion polls on the ‘Save our Swiss Gold’ campaign are to be believed, they might be doing it again next month. This would not have only have implications for the Swiss National Bank (SNB) – it could also drive up the gold price………………………………………..Full Article: Source

Investors Turning Their Gaze To Silver

Posted on 30 October 2014 by VRS  |  Email |Print

While silver prices have trended lower over the last three months, investor interest in the white metal has been tracking upwards, said an executive with the Silver Institute.
The Silver Institute released a report Oct. 22, produced by the CPM Group, stating that investors may increase their net silver purchases by as much as 1 billion additional ounces in various investment instruments over the next decade………………………………………..Full Article: Source

What Next for the Gold Price?

Posted on 29 October 2014 by VRS  |  Email |Print

Gold is often the gateway ETF for many investors eager for exposure to the perceived safe haven. But what should we expect from the precious metal in the future? Commodity ETPs have seen their largest inflows in six weeks, with bargain-hunters attracted by depressed valuations. Inflows into physical gold reach six week high.
Several commodities including Brent, platinum, palladium and most industrial metals rose last week rebounding on the back of the better investor sentiment toward commodities. With many commodities trading so close to their marginal cost of production, we believe that prices cannot fall much lower without triggering a supply response. Better-than-expected GDP and industrial production data from China, the world’s largest consumer of commodities, also helped boost cyclical commodity prices………………………………………..Full Article: Source

Gold Gets Price Support From the Fed, Diwali

Posted on 29 October 2014 by VRS  |  Email |Print

Gold futures edged higher on Tuesday after weaker economic data fanned hopes that the Federal Reserve will keep interest rates low for an extended period. The precious metals, in general, got a boost from Diwali in India and National Day in China, this week.
“Demand in India has noticeably strengthened ahead of this year’s Diwali, especially after gold prices traded around the year’s lows during the month or so before this key festival,” Joni Teves, an analyst with UBS told Forbes.com……………………………………….Full Article: Source

The next big market shock can come from ‘Save Swiss gold’ movement

Posted on 29 October 2014 by VRS  |  Email |Print

Love for gold was supposed to be an Indian affair but that was before the Chinese came in and overtook Indian annual purchases. Even this will now change from November 30, 2014 if the Swiss have their way. November 30, 2014 can be a game changing one for the gold market globally. The Alpine country will vote on that day on the so-called “Save our Swiss Gold” initiative.
The motion calls for the central bank to hold at least 20 per cent of its assets in gold, prohibit selling any gold in future and bring back all its reserve of gold back in the country………………………………………..Full Article: Source

Large Speculators Build Bullish Gold Positions For Second Week In Latest CFTC Data

Posted on 28 October 2014 by VRS  |  Email |Print

For the second straight week, large speculators added to their bullish Comex gold futures and options holdings as prices rose during the timeframe covered by the Commodity Futures Trading Commission weekly data. Gold was the only metal to see a rise in bullish positions in the disaggregated and legacy reports for the time period ending Oct. 21.
As it was in the previous report, the situation was mixed for rest of the metals complex. In silver, funds trimmed a net-short position in the disaggregated report and reduced a net-bullish position in the legacy data. In the platinum group metals, large speculators cut bullish exposure in both reports, while in copper, funds raised their net-short position………………………………………..Full Article: Source

Overview of the Gold Market in Q4 2014

Posted on 28 October 2014 by VRS  |  Email |Print

Geopolitical and risk events initially provided some lift at the start of the third quarter but gold failed to clear $1,350 per ounce, prompting further stale liquidation from institutional investors. Resurgent dollar sentiment, coupled with growing signs the US Federal Reserve will begin a cycle of monetary tighten from next year triggered a deeper correction to $1,200 by the end of the quarter.
Gold has found strong jewellery and retail investment demand towards $1,200, which should help limit any further falls, but gold is approaching a key double bottom around $1,180. A breach of that level could threaten a deeper correction towards $1,100………………………………………..Full Article: Source

10 reasons gold and real interest rates tango

Posted on 28 October 2014 by VRS  |  Email |Print

Generally, the real interest rates are negatively correlated with the gold price, i.e. the rising interest rates adversely impact the yellow metal. Based on this adverse relationship between real interest rates and price of gold, the Elfenbein Gold Model shows that whenever the dollar’s real short-term interest rate is below 2%, gold rallies, and whenever the real short-term rate is above 2%, the price of gold falls.
Another rule of thumb is that gold moves eight times stronger than the difference between real interest rates and 2%. If the model is correct, the Fed’s future interest rates hike may be detrimental for the price of gold………………………………………..Full Article: Source

Gold price: ETF investors cash out

Posted on 28 October 2014 by VRS  |  Email |Print

On Monday gold futures drifted lower for the fifth straight session in anticipation of an end to the US Federal Reserve’s economic stimulus program, slipping back from a six-week high reached a week ago.
In afternoon trade on the Comex division of the New York Mercantile Exchange gold for December delivery was changing hands for $1,225.30 an ounce, down $6.50 from Friday’s close. The gold market has been unpredictable this month, hitting a high of $1,255 an ounce last Tuesday after a sharp recovery from the 2014 sub-$1,200 low early in October………………………………………..Full Article: Source

Gold loses sheen

Posted on 27 October 2014 by VRS  |  Email |Print

After a sharp rise in the beginning of last week, the yellow metal lost momentum and reversed lower. It fell to a low of $1,226 on Thursday before closing at $1,231 on Friday, down 0.6 per cent for the week. The other precious metals Silver and Platinum also closed the week in the red. Silver closed at $17.2 per ounce, down 0.4 per cent and Platinum at $1,250 per ounce, down 0.9 per cent.
Existing home sales in US beating market expectation was the initial trigger that caused a reversal in gold prices. This number increased 2.4 per cent to 5.17 million units in September from 5.05 million in August. Market was expecting a 1 per cent rise in the existing home sales………………………………………..Full Article: Source

Switzerland Set To Greedily Grab Gold

Posted on 27 October 2014 by VRS  |  Email |Print

The Swiss National Bank (SNB) could soon be obliged to begin acquiring gold because of a very specific question posed by a referendum. On Sunday, November 30th, 2014, the Swiss will go to the polls to vote their response to a question titled “Save Our Swiss Gold”. If this were approved it would require the SNB to:
Hold 20% of its reserves in gold. Repatriate any gold it holds outside its borders.Cease selling any gold………………………………………..Full Article: Source

Gold Demand in India, China on the Rise

Posted on 27 October 2014 by VRS  |  Email |Print

Appetite for physical gold in India and China has rebounded in recent days, with low prices boosting demand during India’s Diwali festival, the country’s biggest gold-buying occasion of the year.
Demand surrounding this year’s Diwali festival, which was celebrated Thursday, rose by around a third from last year, said Rahul Gupta, managing director of New Delhi-based P.P. Jewelers, a jewelry retail chain. “The gates seem to have come off for festival buyers in the last couple of days,” he said………………………………………..Full Article: Source

India: Domestic gold market sparkles on festival demand

Posted on 27 October 2014 by VRS  |  Email |Print

The demand for gold is once again sparkling this Diwali. According to the All India Gems and Jewellery Trade Federation, gold sales this Diwali were 20 per cent higher than the previous year. Since the Indian rupee is range-bound between 61 and 62 over the last few weeks, the domestic gold price is now largely influenced and moves more in tandem with the global price.
The probability is high for the market to remain stable at least until the US Federal Reserve meeting on Wednesday. The outcome of this meeting is expected to increase the volatility in the market. Also, it could set the short-term trend for the gold price………………………………………..Full Article: Source

Why Investments In Gold Will Pay Off

Posted on 27 October 2014 by VRS  |  Email |Print

This autumn is probably going to be the last chance to buy gold and silver at bargain prices before a massive spike in prices. A five-year regime of artificially low US interest rates is responsible for a bubble in stocks, bonds, real estate, emerging markets and many other asset classes. But can it really be said to have boosted gold prices?
Certainly not over the past three years. Gold peaked in October 2011 and silver in April of that year. Precious metal prices today are not so far away from where they stood five years ago………………………………………..Full Article: Source

Why is Russia buying so much gold bullion?

Posted on 27 October 2014 by VRS  |  Email |Print

One area where physical gold demand has remained constant has been Russia, with the central bank buying another 37 tonnes of gold in September. The Russians has now been net buyers for seven months running and its gold reserves are now up to 1,150 tonnes.
Adding to the country’s gold reserves has been a feature of Vladimir Putin’s stints as Russian president. It is now officially the world’s fifth largest holder of gold, but could be one place lower as China’s reserves are thought to be understated. Russia is also the number three gold producer………………………………………..Full Article: Source

Why it’s time to watch silver

Posted on 27 October 2014 by VRS  |  Email |Print

Battered silver remains deeply out of favour, recently plumbing miserable new lows after drifting sideways for most of 2014. This metal’s relentless and oppressive weakness continues to break the wills of long-suffering contrarians. But professional investors are taking advantage of the epically-bearish psychology plaguing silver. They’ve been steadily accumulating positions all year long in massive stealth buying.
Silver certainly wasn’t always a loathed market pariah. Back in early 2011, silver blasted up above $48 on widespread enthusiasm from investors and speculators. It was one of the 2000s’ greatest bull markets, up an astounding 1105% during a 9.4-year span where the benchmark S&P 500 limped to a 20% gain. The brave contrarians fighting the herd to buy silver low in the early 2000s greatly multiplied their wealth………………………………………..Full Article: Source

Can the Indian-Chinese Gold Frenzy Boost Prices?

Posted on 24 October 2014 by VRS  |  Email |Print

Many investors aren’t pleased with the current price of gold , which closed Wednesday at $1,241.10 per ounce, but for buyers in India, the metal’s ill fortune has turned into an opportunity. CNBC reported that a better Indian economy has prompted those in the country to buy the yellow metal during this year’s five-day Diwali festival, which will peak on Thursday.
“[T]here is more money around to spend,” Matthew Turner, a precious metals analyst at Macquarie, told the news outlet. Also helping sales is a slight relaxation in the 80:20 rule. Put in place by the Indian government back in 2012, it mandates that 20 percent of imported gold be set aside for re-export. Along with a concurrent jump in the country’s gold tax from 2 to 10 percent, it put quite a damper on gold sales last year………………………………………..Full Article: Source

Buy gold if it dips to $1,228-30/oz

Posted on 24 October 2014 by VRS  |  Email |Print

Comex gold futures ended lower on Thursday, as better-than-expected euro zone business activity data lifted stock markets from early lows, while the dollar index held near its highest in a week and demand for the physical metal softened. Gold futures hit a one-month high, supported by growth concerns over slower economic growth in China, with investors seeking safety amid increasing concerns over a slump in the global economy.
However, prices could come under pressure in coming days as demand from top consumers China and India recedes. Buying from India had risen in recent weeks, ahead of Diwali………………………………………..Full Article: Source

Russians Make Largest Gold Purchase In 15 Years: What Does It Mean For Gold Investors?

Posted on 24 October 2014 by VRS  |  Email |Print

Russian central bank purchases 1.2 million ounces of gold in September. This is the largest gold purchase by Russia in over 15 years. If the Russian central bank keeps up monthly gold purchases of this size then it will impact total annual gold demand.
There may also be significant political motivations in publicly announcing this large gold purchase. A few days ago the Russian central bank released its gold reserve data that showed a tremendous increase in gold reserves during the month of September………………………………………..Full Article: Source

Why Worry About Bullion Silver

Posted on 24 October 2014 by VRS  |  Email |Print

Bullion silver is likely to be less pure than coins or small bars, but 1,000 ounce bullion silver bars are cheaper per ounce than the smaller fabricated sizes. Bullion silver is typically available for only a few cents more per ounce than the spot price in the paper futures market. So long as bullion bars can always be purchased at little more than spot price, a business that simply melts the bars would never pay more to melt fabricated silver, even if it is more highly refined.
If the business could not buy cheap bullion bars locally, it would simply go long a futures contract and then stand for delivery of the physical bullion silver.If a company cannot get bullion bars from the futures market to consume for its production needs, then there will be a delivery default on the futures exchange………………………………………..Full Article: Source

Gold price flirts with $1,250 as Diwali lights up bullion demand

Posted on 23 October 2014 by VRS  |  Email |Print

Gold price smashed through the $1,250 per ounce barrier earlier today, a six-week high, as physical gold demand on the occasion of Diwali seems to have lit up the bullion market. The yellow metal is currently again a whisker shy of the psychological mark, and was trading at $1,249.08 at 11am UAE time.
Rising physical demand due to the festival of Diwali and the global investor gravitation towards safe have assets seem to have collaborated since early October to push the gold price up from $1,190/oz on October 3 to the current spike above $1,250/oz………………………………………..Full Article: Source

International demand for gold continues surging

Posted on 23 October 2014 by VRS  |  Email |Print

Demand for gold continues to be robust and has indeed increased significantly in recent weeks despite gold’s most recent paper driven gold weakness. Demand in China and India surged again and gold reserve diversification by the central bank of Russia hit a new record high in September as geopolitical tensions rose.
The seemingly insatiable appetite of the growing Indian middle class for gold is causing the government in India to again consider imposing sanctions on the importing of gold. Gold imports into India in September were worth $3.8 billion. This figure is almost double the $2 billion spent by Indians in August as, once again, the Indian middle class, like their Chinese counterparts, used the opportunity of a weakened gold price to increase their holdings………………………………………..Full Article: Source

Gold Is Undervalued – Ned Goodman

Posted on 23 October 2014 by VRS  |  Email |Print

Ned Goodman, president and chief executive officer of Dundee Corp., believes gold is undervalued while equities are poised for a crash. Speaking at a keynote luncheon at the Quebec Mining Exploration Xplor 2014 Convention in Montreal, Quebec, Goodman was blunt regarding gold prices and where they’re heading.
“We think gold is very undervalued at current gold prices,” Goodman said. “I think gold will hit $1,200, and when it does, be a buyer because I think that will be a good place to be.” Touching on stock markets, Goodman didn’t pull any punches, calling it a Botox market where all deficiencies are simply covered and propped up to look healthy………………………………………..Full Article: Source

Will Gold Outshine Platinum? — Overheard

Posted on 23 October 2014 by VRS  |  Email |Print

Gold and platinum are prized for their rarity. What is happening with their prices right now is also pretty unusual. At about $1,245 an ounce, gold isn’t far off parity with platinum at about $1,270. This doesn’t happen often. In the past 20 years, gold has matched or exceeded the platinum price only about 7% of the time. And much of that occurred between the summer of 2011 and early 2013, when quantitative easing was in full swing and hyperbole about the dollar’s demise was at its height.
Similarly, the current price action reflects an anxious world. Gold hasn’t really gained much this year; rather, platinum has collapsed since July. This makes sense. as more than half of platinum demand relates to industrial, primarily, automotive uses. Deflation fears have whacked industrial commodities………………………………………..Full Article: Source

Gold and Silver Timing is Everything

Posted on 23 October 2014 by VRS  |  Email |Print

Timing is everything in investments, and after watching the precious metals markets for the past three months, since the publishing of his last article at the June lows, Peter draws the conclusion that gold bullion and gold mining stocks have finally bottomed and are ready to resume the bullish trend than began twelve years ago.
The fundamentals support an end to the correction that began in September of 2011: 1. Asian and Russian banks continue to accumulate gold faster than mines can produce this precious metal. 2. Western nations are running ongoing Federal Deficits. Deficits are always covered with printing press money. This ‘currency destruction’ causes investors to add gold and silver to their net worth………………………………………..Full Article: Source

The Better Short: Gold Or Silver?

Posted on 23 October 2014 by VRS  |  Email |Print

The fundamentals for the precious metals are weak. This has been highlighted in recent weeks by the lack of a major rally in Gold and the losses in Silver despite a spike in volatility to its highest since 2011.
Improving economic data, the tapering of QE, and discussion of when the first rate hike will be have resulted in heavy losses over the past two years in the precious metals, and are to blame for the poor performance in the recent risk off market conditions stemming from the Ebola fears. These overwhelmingly bearish fundamentals are the reason that we have taken short positions on the precious metals sector and why we intend to continue to do so………………………………………..Full Article: Source

Factors Affecting Precious Metals

Posted on 23 October 2014 by VRS  |  Email |Print

Since the dawn of civilization, precious metals — especially Gold and Silver — have been recognized as stores of value and have been used as money for transaction purposes. Even today, in the presence of stocks, bonds and a number of alternate investment options, they are a very popular source of investment.
They neither yield dividends nor interest and they don’t convey an ownership interest in a firm or stock — in fact, they actually come with additional storage and safeguarding fees. But still, they are an important component of individual as well as institutional investors’ portfolios. Apart from acting as investment vehicles, gold and silver also have a strong jewelry market and are used for manufacturing purposes in some industries………………………………………..Full Article: Source

Chinese and Indian gold buyers back in market in a big way

Posted on 22 October 2014 by VRS  |  Email |Print

What has been particularly strange about the gold market over the past two years is that the stronger the physical demand appearing for gold, the weaker the gold price has tended to get.
In the past few months, the gold price has fallen back from around $1,340 down at one time to $1,190 and now hovering back seemingly trying to breach $1,250 on the upside again, yet by all accounts demand in the two biggest consuming nations has been soaring and they are, between them, taking in virtually everything the world’s gold mines can produce………………………………………..Full Article: Source

Can gold bounce back? Here’s why experts feel that you should give yellow metal a miss this Diwali

Posted on 22 October 2014 by VRS  |  Email |Print

What will you buy on muhurat day? Will you stock up on equities or will you go for gold? To some buyers, gold might appear very attractive right now. The domestic gold price is down more than 18% from its all-time high of Rs 33,265 per 10 gm recorded in August 2013. The past 15 months, in fact, have been devastating for gold investors. The price of the yellow metal has slipped, turning conventional wisdom on its head. Even now, analysts believe that gold faces headwinds that could take prices down in the near to medium term.
This is not good news for buyers getting ready for Dhanteras shopping. After all, their blind faith in gold had delivered handsome returns in the past decade. This changed last year, with gold churning out losses for investors who bought the yellow metal on the muhurat day in 2012 and held it till the 2013 Diwali. ……………………………………….Full Article: Source

How Much Gold Is On Loan Worldwide?

Posted on 22 October 2014 by VRS  |  Email |Print

We can’t speak about the manipulation of the gold price today without understanding the derivatives market. Right after the crash of 2000 in the stock market I became alarmed by the exponential increase of derivative products but especially by the complexity of those products.
I am sure that if I asked one of those financial engineers who has designed those products to explain their functioning and consequences in a bear market or, better yet, in a crash, he would be incapable. We are familiar with derivatives in real life through cars. When we speak of the speed of a car we talk of a first derivative, while acceleration, an increase of the speed, is a second derivative………………………………………..Full Article: Source

Gold demand up, more buying needed:Barclays

Posted on 22 October 2014 by VRS  |  Email |Print

Given that the Diwali holiday is this week, ahead of the wedding season, Gold demand is expected to improve, potentially offsetting macro headwinds in the near term. However, buying needs to pick up materially to overwhelm the gold-negative external drivers, a report by Barclays said.
Broad risk reduction amid tumbling equity markets, the sharp decline in US 10y Treasuries, and weaker-than-expected US retail sales have fueled uncertainty and aided gold’s bounce. The gold-supportive macro environment has seen gold extend its gains above the $1200/oz mark as the dollar has weakened, the St Louis Fed discussed the possibility of further stimulus, and, importantly, demand picked up amid the seasonally strong period for consumption………………………………………..Full Article: Source

Why Silver Is Poised to Hit $50

Posted on 22 October 2014 by VRS  |  Email |Print

In the next few years, you could make triple-digit gains in one of the world’s most hated commodities: silver. You won’t get rich quick. But as I’ll show you today, higher prices are almost inevitable. And before the run is over, we could see spot rates triple or more.
The past few years have been hard for resource investors. Since the summer of 2011, spot gold prices are off more than 35% from their peak. And as we have written about a lot here at Fool Canada, gold miners are struggling just to keep the lights on………………………………………..Full Article: Source

6 beginner tips for investing in precious metals

Posted on 22 October 2014 by VRS  |  Email |Print

If you’ve been thinking about investing in precious metals for the first time, you’ve got your homework cut out for you. It’s a complicated space, especially if you’re a newbie, and a good grasp on the basics is essential to achieving any semblance of success.
Of course, many worthwhile investments take effort, so you should never shy away from the challenge if you’ve got funds to spare. Just make sure you arm yourself with as much information as possible, and don’t “bet” more than you can afford to lose………………………………………..Full Article: Source

Can gold bounce back? Here’s why experts feel that you should give yellow metal a miss this Diwali

Posted on 21 October 2014 by VRS  |  Email |Print

Gold is a good hedge against inflation and global investors get on the gold train only when they fear that inflation will go up. After fears of inflation, the European Union (EU) region is facing the threat of deflation, mainly due to the fall in global commodity prices. The international crude oil (Brent variety) is now trading at $83 per barrel, a two-year low.
Most global agriculture commodities are also at multi-year lows. The inflationary pressure has ebbed significantly in the US as well. Investors deserting gold: Investors have also deserted the gold market. The gold holdings of the SPDR Gold Trust, the largest gold ETF in the world, are down 44% from their peak of 1,353 tonnes in December 2012. They don’t see any upside potential now from the current levels. “Gold is no more in a buy zone………………………………………..Full Article: Source

Buying Gold on Dhanteras? 10 Things to Know

Posted on 21 October 2014 by VRS  |  Email |Print

Many Indians consider Dhanteras as an auspicious occasion to buy gold. Many jewellers have launched promotional schemes to attract gold buyers while stock exchanges have extended trading hours for gold trading on Tuesday. Here is a 10-point cheat-sheet to understand how gold prices could be impacted:
Analysts say that historically October has been seasonally a good month to buy gold. Vikas Vaid, product head of commodity and currency of Prabhudas Lilladher Group, said it has been observed that historically gold prices bottomed out in October and November is a strong month for the yellow metal in terms of prices………………………………………..Full Article: Source

Gold tipped to decline for third straight year in 2015

Posted on 21 October 2014 by VRS  |  Email |Print

Gold prices will lag industrial precious metals platinum and palladium in 2015, analysts polled by Reuters predict, as a gradually stabilising world economy favours raw materials over so called “defensive” assets.
A poll of 30 analysts conducted by Reuters over the last month returned an average gold price forecast of $1,225 an ounce for next year, against $1,270 an ounce predicted for 2014. That would represent a third consecutive year of losses. A similar survey in July returned an average 2015 price view of $1,250 an ounce, suggesting confidence in gold is waning………………………………………..Full Article: Source

American specialists expect two-fold rise in gold prices by the end of 2014

Posted on 21 October 2014 by VRS  |  Email |Print

American economists, such as John Williams, Peter Schiff, Paul Craig Roberts and Gerald Celente, expect the global revaluation of world currencies by the end of 2014. American statistical analyst Jim Willie explained the mechanism of such revaluation: Shanghai gold exchange is to eventually take over global price controls for the monetary metal away from the Comex (New York commodity exchange), and then force a global currency reset by raising the price of gold to its true or actual value, which exceeds the current price at least two-fold.
“When we get this next global currency reset, it’s going to be a complete reset. It apparently will happen predominantly in the gold world. They are going to change the price of gold, and jam it down the U.S.’s throat………………………………………..Full Article: Source

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