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Silver Prices Preparing For A Strong Rally

Posted on 20 February 2015 by VRS  |  Email |Print

In September, we alerted readers to watch Gold and Silver prices for a development that could signal a market low. We believe that low arrived on November 30, and prices are now tracing an upward pattern that should continue until the middle of 2015 or beyond. For several reasons, we expect the current price area to serve as a base for both precious metals to rally. This article presents our forecast for silver prices, which we believe will test targets in the 20’s in coming months.
Even though we are watching for higher silver prices, we expect the rally to take a three-wave corrective form. The monthly silver chart below shows some of the context around that prediction. For both gold and silver, there are numerous signs that the price decline from 2011 was merely the first part of a larger corrective structure………………………………………..Full Article: Source

India: Banks allowed to import gold on consignment basis

Posted on 19 February 2015 by VRS  |  Email |Print

The Reserve Bank of India (RBI) on Wednesday said nominated banks were now permitted to import gold on consignment basis. “All sale of gold domestically will, however, be against upfront payments,” said the RBI, adding, “Banks are free to grant gold metal loans.”
In a notification to banks, the central bank also said that Star and Premier Trading Houses can “import gold on documents against payment basis as per entitlement without any end use restrictions. While the import of gold coins and medallions will no longer be prohibited, pending further review, the restrictions on banks in selling gold coins and medallions are not being removed, it added………………………………………..Full Article: Source

Gold Edges Higher After Fed Minutes Reveal Rate Worries

Posted on 19 February 2015 by VRS  |  Email |Print

Gold reversed losses Wednesday after minutes from the Federal Reserve’s last meeting showed some central bank officials were worried about raising rates too soon. Gold for April delivery, the most actively traded contract, was recently up 0.2% at $1,211 a troy ounce in electronic trading on the Comex division of the New York Mercantile Exchange. Gold prices ended floor trading down 0.7% at $1,200.20 an ounce, the lowest settlement since Jan. 2.
Minutes from the Fed’s Jan. 27-28 policy meeting showed some officials believed it would be prudent to delay raising interest rates, fearing that financial markets may overreact to tighter monetary policy. Other Fed officials continue to argue for a rate increase in the near term, the minutes showed………………………………………..Full Article: Source

Gold Price $250 Forecast - Dear Harry Dent: Wanna Bet?

Posted on 19 February 2015 by VRS  |  Email |Print

Some of you may be aware that investment guru Harry Dent has publicly stated that gold will fall to $250-$400. He specifically predicted: Around $700/ounce is a certainty in gold by 2015 to 2016, and $250 is a possibility well down the line by 2020–2023.
His forecast is largely based on his belief that deflation will prevail. Governments are fighting deflation. If government stimulus fails, we will have deflation, not inflation. And he claims that gold bugs are wrong about gold’s future price because they don’t understand how markets work………………………………………..Full Article: Source

Gold price starting to look ‘vulnerable’ on seasonality: UBS

Posted on 19 February 2015 by VRS  |  Email |Print

The price of gold is starting to look vulnerable as the market heads into the “seasonally weak period” with the Lunar New Year around the corner, UBS said. New Year holidays in China begin Wednesday, and participants will be out through to Tuesday next week.
“The absence of this key physical market in a sense removes a natural cushion and therefore increases gold’s downside potential should negative catalysts emerge in the coming days,” analyst Joni Teves said in a research note. The price of gold had been enjoying a solid run in recent weeks spurred by a myriad of bullish factors including the unpegging of the Swiss franc against the euro and concerns about a possible exit by Greece from the eurozone and any potential ramifications………………………………………..Full Article: Source

Gold demand and supply trend in 2014 stands fundamentally bullish for gold prices

Posted on 18 February 2015 by VRS  |  Email |Print

Today we make a short break from the news from the main financial markets in order to analyze the gold demand trends for the full 2014 year, published a few days ago by the World Gold Council. How did the demand for gold behave last year?
A full year gold demand amounted to 3,923.7 tons, which means a 4 percent drop. It was caused by a10percent decline in jewelry demand. The decline is not surprising given the price-driven jewelry demand surge in 2013, however the 33 percent plunge in Chinese demand is substantial (on the other hand, Indian demand for jewelry was up 8 percent)………………………………………..Full Article: Source

Misconceptions About Gold

Posted on 18 February 2015 by VRS  |  Email |Print

Few markets are as widely misunderstood and subject to as many misconceptions as the gold market. Many of these misconceptions stem from gold’s dual characteristics as a commodity and money. Is it actually correct to claim that “gold is money”? After all, it is not used as official money anywhere and barring isolated instances of payments made from digital gold accounts, it is unlikely that one will ever make payments in gold these days.
In addition to this, central banks have been intent on “demonetizing” gold, and many of the biggest central bank holders of gold (except the US) have unloaded their gold reserves for years, ostensibly in order to earn the higher returns provided by bonds. It has always struck us as odd that they would be selling gold for this reason………………………………………..Full Article: Source

Gold price 2015 rally evaporating

Posted on 18 February 2015 by VRS  |  Email |Print

Negative sentiment swamped the gold market on Tuesday as traders bet on a positive outcome for Greek debt negotiations and the breach of key technical levels put further pressure on the metal. In heavy post-holiday volumes on the Comex division of the New York Mercantile Exchange, gold futures for April delivery – the most active contract – plunged to $1,202.71 an ounce in mid-morning trade, down $24 or 2% from Monday’s close.
Gold gapped down shortly after the open and after breaking through its 100-day moving average, succumbed to more weakness. After a big bounce on Friday, silver’s stellar 2015 also ran into trouble with March contracts falling as much as 6% or more than $1.00 to $16.26 an ounce………………………………………..Full Article: Source

Gold price starting to look ‘vulnerable’ on seasonality: UBS

Posted on 18 February 2015 by VRS  |  Email |Print

The price of gold is starting to look vulnerable as the market heads into the “seasonally weak period” with the Lunar New Year around the corner, UBS said Tuesday. New Year holidays in China begin Wednesday, and participants will be out through to Tuesday next week.
“The absence of this key physical market in a sense removes a natural cushion and therefore increases gold’s downside potential should negative catalysts emerge in the coming days,” analyst Joni Teves said in a research note. The price of gold had been enjoying a solid run in recent weeks spurred by a myriad of bullish factors including the unpegging of the Swiss franc against the euro and concerns about a possible exit by Greece from the eurozone and any potential ramifications………………………………………..Full Article: Source

Paulson holds gold ETF in Q4 but cuts back on some miners

Posted on 18 February 2015 by VRS  |  Email |Print

Hedge fund Paulson & Co kept its stake in the gold-backed exchange-traded fund SPDR Gold Trust unchanged for a fifth straight quarter in the three months ending Dec. 31, a filing with the U.S. Securities and Exchange Commission showed on Tuesday.
The New York-based fund, led by longtime gold bull John Paulson, owned more than 10.2 million shares worth $1.16 billion in the ETF at year-end as bullion prices fell. The stake’s value was cut from $1.19 billion in the third quarter………………………………………..Full Article: Source

Gold has bullish hopes, sobering current reality

Posted on 17 February 2015 by VRS  |  Email |Print

The price of gold appears caught in a holding pattern, stuck between what is actually happening to demand and what potentially may happen. The World Gold Council’s latest quarterly report provides a snapshot of the different dynamics at work in the gold market, and goes some way to explain why the precious metal has been marooned in a fairly narrow range for almost two years.
The broad picture from the council’s Gold Demand Trends 2014 report is that last year was the weakest since 2009. This fits in with spot gold’s modest 1.8 percent decline over the year, but the breakdown of that demand shows where the pressure points are located………………………………………..Full Article: Source

Gold falls back out of favour as hedge funds retreat: Commodities

Posted on 17 February 2015 by VRS  |  Email |Print

Gold is falling back out of favor with investors. Hedge funds cut their net-bullish position in New York futures and options by the most since November, U.S. government data show. A stronger dollar and gains for equities are cutting gold’s appeal as an alternative asset. Prices in New York fell for three straight weeks, snapping a surprise January gain that was the biggest monthly advance since 2012.
The global growth concerns that pushed gold higher last month are starting to subside as tension eases between Greece and its euro-area creditors. Europe’s economy picked up momentum at the end of last year, data showed Friday. The World Gold Council estimates demand for the metal reached a five-year low in 2014 as Chinese purchases slowed………………………………………..Full Article: Source

Gold gains ahead of Chinese New Year

Posted on 17 February 2015 by VRS  |  Email |Print

Gold enjoyed its third straight session of gains on Monday with industry experts predicting a little more shine for the precious metal with the Chinese holiday period just around the corner. The price of spot gold rose by around $6 at the start of the session before easing back a little as European trading hours got under way. The price was at $1,232.40 per ounce by 12.30 p.m. GMT and has clocked a gain of over 4 percent since the start of the year.
Brad Gordon, the CEO of Acacia Mining - a gold mining business operating in Tanzania - said that the feeling in his industry was generally subdued but it is still optimistic that the price was about to head higher in the short-term………………………………………..Full Article: Source

Gold Falls Back Out of Favor as Hedge Funds Retreat: Commodities

Posted on 16 February 2015 by VRS  |  Email |Print

Gold is falling back out of favor with investors. Hedge funds cut their net-bullish position in New York futures and options by the most since November, U.S. government data show. A stronger dollar and gains for equities are cutting gold’s appeal as an alternative asset. Prices in New York fell for three straight weeks, snapping a surprise January gain that was the biggest monthly advance since 2012.
The global growth concerns that pushed gold higher last month are starting to subside as tension eases between Greece and its euro-area creditors. Europe’s economy picked up momentum at the end of last year, data showed Friday. The World Gold Council estimates demand for the metal reached a five-year low in 2014 as Chinese purchases slowed………………………………………..Full Article: Source

Global Demand for Gold Fell in 2014

Posted on 16 February 2015 by VRS  |  Email |Print

Global demand for gold fell last year as buying plunged in two important markets, China and India, the World Gold Council said Thursday. Total demand in 2014 weighed in at 3,924 tons, compared with 4,088 tons the previous year. However, growth in demand increased into the end of the year: Fourth-quarter demand was 988 tons, up 6% from the year-earlier quarter.
Last year “was a year of stabilization…after the record-breaking level of buying seen in 2013,” said Marcus Grubb, managing director of investment strategy at the World Gold Council………………………………………..Full Article: Source

Turkish banks capitalize on savers’ preference for gold

Posted on 16 February 2015 by VRS  |  Email |Print

From the outside, it looks like any other automatic bank machine on the streets of Istanbul. But rather than notes, this one distributes small pieces of gold. Gold is hugely prized in Turkey not just for ornamentation or investment by banks but as a secure way for private individuals to hold their savings.
Many people in Turkey – which has one of the lowest private savings rates among major economies – keep gold as security for a “rainy day” rather than products offered by banks. According to estimates, Turks hold some 3,500 tons of gold. Banks have sought to capitalize on the tradition by offering accounts denominated in gold………………………………………..Full Article: Source

Silver - The Best Precious Metal Investment For 2015

Posted on 16 February 2015 by VRS  |  Email |Print

Silver, a tangible asset, which is recognized as a store of value, its price can be affected by inflation, values of paper currency and fluctuations in interest rates and deficits. Silver investors insist on staying exposed to the metal despite its price weakness in 2014. Total physical demand for silver stood at a record 1,081 million ounces (Moz) last year.
If gold is poised to hit the $1,400 to $1,500 range in 2015, the biggest question for investors is whether a silver rebound will follow. Other precious metals like Silver and Platinum have generally followed the gold price. Silver is currently trading near all time low levels and has toyed with a rebound for months………………………………………..Full Article: Source

Global gold demand hits four-year low

Posted on 13 February 2015 by VRS  |  Email |Print

Global gold demand fell 4 per cent last year to its lowest level since 2010 as China failed to repeat its record buying of 2013, according to the World Gold Council, an industry body. Demand in China fell 38 per cent, as sales of gold bars and coins halved on the back of domestic equity markets recovering and the Communist party’s anti-corruption campaign having a “strong impact”, it said.
Gold has bounced back more than 3 per cent this year on renewed haven buying amid turmoil in the eurozone, after falling 28 per cent over the past two years as global inflation failed to materialise………………………………………..Full Article: Source

Gold demand sinks to five-year low in 2014

Posted on 13 February 2015 by VRS  |  Email |Print

Global gold demand slumped to its lowest level in five years in 2014 as bar and coin buying plunged and jewelry purchases cooled, according to the World Gold Council (WGC). Overall demand totaled 3,924 tonnes, down 4 percent on year at its lowest level since 2009, the WGC’s quarterly demand trends report, published on Thursday, showed.
Total bar and coin investment fell 40 percent to 1,064 tonnes as investors, who had made major purchases in 2013 amid a sharp fall in prices, held back from further purchases, the industry group said………………………………………..Full Article: Source

Indian Gold Consumption Fell, But Is Still the Highest in the World

Posted on 13 February 2015 by VRS  |  Email |Print

In the Olympics, India rarely brings home gold medals but when it comes to actual gold, it brings home more than any other country. The World Gold Council said Thursday that the South Asian nation consumed less gold last year than it had in five years but it still bought tons more of the precious metal than any other country.
India has been desperate to wean its citizens of their addiction to gold. It has slapped new restrictions and import taxes on gold to rein in trade imbalances. Overall Indian consumer demand for gold only fell 12% to 842.7 tons last year. That’s the least amount of gold India has bought in one year since 2010, but still more than China or any other nation bought in 2014………………………………………..Full Article: Source

25% of physical gold buyers are crazy, metals executive says

Posted on 13 February 2015 by VRS  |  Email |Print

A lot of people who buy bits of physical gold aren’t looking to make a bracelet or ring. They buy gold because they believe disaster is imminent. These investors are convinced gold will spike to $10,000 an ounce (it’s currently around $1,225) when the U.S. government implodes, said Peter Hug, an executive at metals retailer Kitco.
Hug calls these people “crazies” and says they form a substantial amount of the U.S. physical gold market — at least 25%. It’s no secret that gold has long been viewed as a form of insurance against disaster. The thinking is that even if the financial or political system collapses, gold will still hold value………………………………………..Full Article: Source

Gold Price Forecast For 2015

Posted on 13 February 2015 by VRS  |  Email |Print

At gold prices of $1,200/oz, nearly 40% of gold production is loss-making on an All-in Cost (AIC) basis. Supportive macroeconomic considerations will attract capital flows because of re-allocation of portfolio. Central bank purchases, abundant liquidity, geopolitical risks in Europe, Greek exit, delay in Federal Reserve Bank first interest rate hike and normalization of dollar may result in an upward gold.
The unwinding of retail and institutional gold investments, which acted as a substantial addition to the supply in 2014, seems to decline. Since 1972 to 2007 there have been 14 bull and 13 bear market cycles in Gold (20% rises/declines preceded by a 20% decline/rise)………………………………………..Full Article: Source

Swiss Bank Says Investors Favor Gold Amid Charges on Cash

Posted on 12 February 2015 by VRS  |  Email |Print

Investors are buying more gold as an alternative to hold Swiss franc cash deposits, according Vontobel Holding AG, a Swiss bank and wealth manager. “We keep noticing that gold is coming back into favor with investors,” Vontobel Chief Executive Officer Zeno Staub, 45, told reporters Wednesday after the Zurich-based company announced full-year earnings.
Concerns that Greece may abandon the euro and Ukraine may be headed for a wider conflict have spurred demand for haven assets. Gold has climbed 4.2 percent this year, even as the dollar strengthened on prospects of higher U.S. interest rates. Investors’ holdings in gold-backed funds are near the highest since October………………………………………..Full Article: Source

Gold price likely to end 2015 at $1,250/oz: Commerzbank

Posted on 12 February 2015 by VRS  |  Email |Print

Gold is likely to be trading at $1,250/oz and Eur1,200/oz by the end of 2015, Commerzbank said Wednesday. That implies the euro would be trading around $1.042 at the end of the year, Platts calculated, a level last seen early 2003 and compared with $1.130 at 1230 GMT.
The German bank noted the price of gold was up as much as 10% in parts of January, despite the firmer dollar, owing to a culmination of factors. “The gains were triggered by the announcement of extensive bond purchases by the European Central Bank, the surprising decoupling of the Swiss franc from the euro by the Swiss National Bank and the renewed flaring up of the Greek debt crisis following the election victory of Syriza,” it said………………………………………..Full Article: Source

Glencore to Divest Platinum Miner Stake to Shareholders

Posted on 12 February 2015 by VRS  |  Email |Print

Glencore Plc, the mining and commodities trading company headed by billionaire Ivan Glasenberg, said it’s planning to distribute its 23.9 percent holding in platinum producer Lonmin Plc to its own shareholders.
“As we do not trade platinum and have no special insight into the market, we believe that it is better to leave to our shareholders the decision as to how to manage the Lonmin shares,” Glasenberg said in a statement Wednesday………………………………………..Full Article: Source

Silver and Gold Truth Versus Fiat Lies

Posted on 11 February 2015 by VRS  |  Email |Print

What do loss of confidence, loss of faith in financial systems, and pervasive lies have to do with gold and silver? The answer begins with: Gold is far more truthful money – central banks can’t print it or create it from “thin air.” Dollars, euros, yen and others are fiat currency units based on confidence and debt (not assets) and are supported by government mandates that these pieces of colored paper and computerized digits shall be accepted as money.
But confidence in debt based currencies promoted by insolvent governments is clearly waning. The Russians and Chinese understand – they are converting dollars, yuan, and rubles into gold. Europe, Japan and the U.S. are “printing” more euros, yen, and dollars hoping that “extend and pretend” will give the politicians more years in office, another war or two, and more profits for the military contractors and bankers………………………………………..Full Article: Source

U.S. platinum jewelry imports jump 60 pct in 2014, gold up 15 pct

Posted on 11 February 2015 by VRS  |  Email |Print

U.S. platinum jewelry imports surged more than 60 percent in 2014 from a year ago, while imports of gold jewelry rose 15 percent, according to Thomson Reuters GFMS calculations released on Tuesday and based on United States Census data.
The United States imported 1,156 kg of platinum jewelry in 2014, up 61 percent from 719 kg in 2013 because of steep declines in the euro, Erica Rannestad, senior analyst of precious metals demand for Thomson Reuters GFMS in Chicago, said in an email………………………………………..Full Article: Source

Gold rebounds amid demand for haven assets

Posted on 10 February 2015 by VRS  |  Email |Print

Gold rebounded as Greek Prime Minister Alexis Tsipras reaffirmed his government’s rejection of the country’s bailout programme and concern increased that Ukraine’s conflict may worsen, spurring demand for haven assets.
Bullion for immediate delivery added as much as 0.4 percent to $1,239.31 an ounce and was at $1,238.34 at 2.11pm in Singapore, according to Bloomberg generic pricing. Prices fell to $1,228.48 on February 6, the lowest level since January 15, after data showed the US added more jobs than forecast in January, boosting expectations that the Federal Reserve will move toward the first interest-rate increase since 2006………………………………………..Full Article: Source

Should you write off gold this year?

Posted on 10 February 2015 by VRS  |  Email |Print

Good news for the U.S. economy, in the form of a solid jobs report, decked gold on Friday, leading some analysts to write the yellow metal off for the year. “It’s the nail in the coffin for gold,” said Howie Lee, an investment analyst at Phillip Futures, noting it fell despite increasing tensions over Greece. “It’s increasingly likely [the Federal Reserve] will hike in June. Prospects of higher interest rates have proved to be a catalyst for gold’s downfall.”
On Friday, gold for April delivery fell as much as 3.6 percent in intraday from Thursday’s high, touching a low of $1,228.20 an ounce. In early Asian trade Monday, it recovered somewhat, trading around $1,237.10 an ounce………………………………………..Full Article: Source

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

Posted on 10 February 2015 by VRS  |  Email |Print

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

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

Posted on 10 February 2015 by VRS  |  Email |Print

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

Dubai Gold Jewelry Demand Higher After Slow Star to Year

Posted on 09 February 2015 by VRS  |  Email |Print

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

China’s SGE January gold withdrawals record 255 tonnes

Posted on 09 February 2015 by VRS  |  Email |Print

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

What price gold in an increasingly unreliable world?

Posted on 09 February 2015 by VRS  |  Email |Print

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

Will Silver Prices Hit New Lows In 2015?

Posted on 09 February 2015 by VRS  |  Email |Print

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

3 Factors That Drive Gold Prices

Posted on 06 February 2015 by VRS  |  Email |Print

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

Where Is Germany’s Gold?

Posted on 06 February 2015 by VRS  |  Email |Print

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

Thinking of switching from gold to gold miners?

Posted on 06 February 2015 by VRS  |  Email |Print

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

My Gold Rush—Away From the Metal

Posted on 06 February 2015 by VRS  |  Email |Print

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

Gold Ticks Higher on Worries Over Greece

Posted on 05 February 2015 by VRS  |  Email |Print

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

Gold price set to improve in February – INTL

Posted on 05 February 2015 by VRS  |  Email |Print

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

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

Posted on 04 February 2015 by VRS  |  Email |Print

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

Gold Falls as Haven Demand Squelched by Greek Plans

Posted on 04 February 2015 by VRS  |  Email |Print

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

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

Posted on 03 February 2015 by VRS  |  Email |Print

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

Hedge-fund bulls betting most on gold in 2 years

Posted on 03 February 2015 by VRS  |  Email |Print

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

Chinese Banks in Talks to Take Part in Gold Fix Replacement

Posted on 03 February 2015 by VRS  |  Email |Print

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

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

Posted on 02 February 2015 by VRS  |  Email |Print

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

High risk haunts gold buyers in 2015

Posted on 02 February 2015 by VRS  |  Email |Print

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

Uncertainty sparks a rush for gold

Posted on 02 February 2015 by VRS  |  Email |Print

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

A Look At Gold And Silver For 2015 And Beyond

Posted on 02 February 2015 by VRS  |  Email |Print

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

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