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Jim Grant: Gold is the play off a confusing Fed

Posted on 23 September 2016 by VRS  |  Email |Print

Contrarian investor and widely followed author Jim Grant joined CNBC’s Kelly Evans to discuss the potential trajectory of gold and other assets after the Fed’s decision to leave interest rates unchanged.
“I think gold will really be interesting when people stop asking what the Fed is going to do, and begin asking, who is the Fed and what can they know?” said Grant, who’s the founder of Grant’s Interest Rate Observer, a bimonthly newsletter. “We are the prisoners of a very dubious set of pseudo-scientific pretensions that are part of the people who manage our monetary affairs,” he added………………………………………Full Article: Source

Trump and Clinton Are “Positive For Gold” – $1,900/oz by End of Year

Posted on 22 September 2016 by VRS  |  Email |Print

Trump or Clinton are “positive for gold” and prices could rise to between $1,700 and $1,900 per ounce by year end according to Canadian gold mining magnate Rob McEwen. Gold “is a currency that doesn’t have a liability attached to it,” McEwen said Tuesday in an interview with Bloomberg at a gold conference in Colorado Springs.
“A store of value that has gone for millennia. And the big argument against gold used to be it costs you money to store it. Right now, it’s costing you money to store your cash.”……………………………………Full Article: Source

The Case for ‘Good Picks’ Within Commodities (Video)

Posted on 21 September 2016 by VRS  |  Email |Print

Christoph Eibl, co-founder and chief executive officer at Tiberius Group, discusses the outlook for commodities and why he says there are “good picks” to make within the market. He speaks with Guy Johnson and Caroline Hyde on Bloomberg Television’s “On The Move.”.…………………………………….Full Article: Source

Is this the most undervalued commodity in the world?

Posted on 21 September 2016 by VRS  |  Email |Print

This year has seen solid gains posted by precious metals. Gold has been one of the best performing assets in the world this year posting a 23% rise. However, silver has vastly outperformed gold and has gained over 38% year-to-date. I’m a precious metals bull and I think that silver may be the most undervalued asset in the world.
It’s well known that precious metals outperform in recessions and periods of economic uncertainty. This year gold and silver prices have been spurred on by the Chinese economic slowdown, the Federal Reserve delaying interest rate hikes in the USA and Brexit to name a few factors………………………………………Full Article: Source

Why gold won’t hit US$1,900 an ounce

Posted on 21 September 2016 by VRS  |  Email |Print

It must be a full moon. That’s when the crazy predictions seem to come out. A spot gold price as high as US$1,900 an ounce is just one of those. That’s the prediction from renowned gold bull Robert McEwen.
Speaking at a gold conference yesterday, McEwen says that record low global interest rates will cause a huge amount of anxiety for investors and they will be forced to turn to gold as a store of value and an alternative asset. Unfortunately, that’s exactly why the gold price is currently trading at around US$1,318 an ounce………………………………………Full Article: Source

Barclays: Investor Demand For Gold ‘Likely To Persist’

Posted on 20 September 2016 by VRS  |  Email |Print

Barclays anticipates investor demand for gold will persist on concerns about the global economy, with the bank also saying investment in commodities generally should hold up. The bank reports that some $54 billion has flowed into commodity exchange-traded products and index investments so far in 2016.
“However, if expectations were to shift suddenly, then a rush for the exit could send prices sharply lower,” Barclays says, referring to commodities in general. “Although we cannot rule out that risk entirely, we think the key themes that have supported commodity investments in the year to date should ensure continued inflows over the next few years and that the risk of large-scale liquidation, even if commodity markets disappoint in Q4, is limited.”……………………………………….Full Article: Source

Commodities may be a sweet spot for blockchain

Posted on 15 September 2016 by VRS  |  Email |Print

Distributed ledger technology – popularly known as blockchain – has the potential to become a massively disruptive force in financial services. By enabling ‘smart contracts’ with automated post-trade processing, for example, the technology could eliminate the need for clearing houses.
Big banks and exchanges are paying attention. “On the blockchain front, [the second quarter of 2016] saw a number of banks and financial institutions globally begin focusing on proof-of-concept initiatives, moving from initial ideas to actual pilot-testing of solutions,” said a report on fintech investment published last month by KPMG and CB Insights, a New York-based research firm………………………………………..Full Article: Source

Will Commodities End the Year at a High? (Video)

Posted on 15 September 2016 by VRS  |  Email |Print

Bloomberg’s Caroline Abramo discusses the outlook for oil supplies and commodities with Bloomberg’s David Gura and Vonnie Quinn on “Bloomberg Markets.”.………………………………………Full Article: Source

OPEC under political pressure - minister

Posted on 15 September 2016 by VRS  |  Email |Print

The U.S. high ranking officials repeatedly said that if Russia, OPEC and non-OPEC countries freeze the output, we are able to increase the output and prevent price rise, Energy Minister Natig Aliyev told APA-Economics.
Answering the question “Do you agree with the opinions that speculations on oil prices come from other side of the ocean?”, the minister said that it is difficult to say what the US aims………………………………………..Full Article: Source

Is it Time For Billionaires Like Warren Buffett To Protect Themselves With Gold

Posted on 15 September 2016 by VRS  |  Email |Print

It has not been a good week for equity markets, nor billionaire investors. After Tuesday’s selloff, the S&P 500 is down 3% from its all-time highs, which were seen just one month ago. According to Bloomberg, leading the losses among the billionaires is the Oracle of Omaha Warren Buffett who, thanks to his stake in Wells Fargo, lost $1.4 billion Tuesday.
The U.S. bank saw significant selling pressure, falling more than 3% Tuesday after it was revealed that bank employees opened up accounts without clients’ permission. Of course, Buffet isn’t alone. Bloomberg noted that according to its index, billionaires lost a total of $37.3 billion yesterday………………………………………..Full Article: Source

Indian Wedding Season Is a Golden Opportunity

Posted on 15 September 2016 by VRS  |  Email |Print

The fact that gold prices have one of the more reliable annual price patterns isn’t an obvious one because it is a mined commodity. Nevertheless, ’tis the season for the gold bulls to shine. Gold generally finds strength through early- to mid-September prior to the Indian wedding season, which runs from October through December.
Elaborate weddings in India date back thousands of years and have consistently been a driver in the gold market. Traditional Indian weddings involve a bride draped in gold, helping India to become the world’s largest consumer of gold jewelry. India accounts for roughly a third of global gold demand, with half of that being spent on jewelry for the average 10 million weddings held there each year………………………………………..Full Article: Source

Poloz says China tops list of global economic concerns

Posted on 15 September 2016 by VRS  |  Email |Print

China tops Stephen Poloz’s list of global concerns that could put a dent in Canada’s economic recovery. The world’s biggest resource importer is wrestling with widening economic imbalances and stresses in its financial system that could stall Chinese growth. Any interruption in Chinese expansion lasting a year or two would drive oil and other commodity prices even lower, the Bank of Canada Governor said.
Poloz also took on critics who carp about the failure of central bank moves to stimulate growth in the wake of the financial collapse and global recession of 2008-09………………………………………..Full Article: Source

The commodities market and Asia: what’s hot and what’s not

Posted on 14 September 2016 by VRS  |  Email |Print

A ceiling for oil prices and concern about commodities financing were main themes at FT’s commodities summit. This month the Financial Times hosted its third Asia commodities summit, bringing together some of the region’s most powerful traders and executives in Singapore to discuss the challenges and opportunities facing the industry.
Based on conversations with delegates and panel discussions, here are the main themes that emerged. The oil market is slowly rebalancing supply, but prices will remain subdued as a huge overhang of inventory is digested. Several speakers said crude oil would trade in a narrow range and struggle to breach $60 a barrel in part due to stocks but also the resilience of US shale drillers………………………………………..Full Article: Source

Gold Would Perform Well Under Trump Presidency - Gartman

Posted on 14 September 2016 by VRS  |  Email |Print

Gold would do well under a Trump presidency because the metal likes confusion, said market commentator Dennis Gartman. “[G]old likes political descent and would do rather well in a Trump administration,” Gartman said. He explained that Trump is a bit more hawkish and more likely to make a protocol mistake and this would be price supportive for gold.
On the other hand, “[A] Trump presidency would be enormously bearish for stocks,” Gartman said. “He’s a wild card and the market hates wild cards.”……………………………………….Full Article: Source

Believe It Or Not – Silver will be the Top Performing Asset in 2017

Posted on 14 September 2016 by VRS  |  Email |Print

The much awaited Jackson Hole speech by the Fed Chair Janet Yellen – and the subsequent nonfarm payrolls data failed to ignite the prospects of a rate hike this September of 2016. The market now forecasts only a 21% probability of a rate hike in this month, according to the CME FedWatch Tool. The probability of a rate hike in December of 2016 stands at just above 50%.
Time and again, I have explained why the Fed cannot hike rates in 2016. Contrary many market experts, my view has stood the test of time and has come to fruition. According to my research, the chances of a rate hike in December of 2016 are also very bleak. Nonetheless, the Fed speakers will continue to “jawbone” the dollar, the way they have been doing for the whole year………………………………………..Full Article: Source

Silver: Time To Give Up The Shiny Metal?

Posted on 13 September 2016 by VRS  |  Email |Print

Gold/silver ratio near 5-year support level of 65x. Silver producers haven’t been this net short since forever. Quantitative asset managers will most likely continue to go long due to recent momentum, in order to reduce overall volatility of smart beta strategies.
Investors who have held on to silver this past year through exchange-traded funds or long futures positions have seen at least solid double-digit returns. The physical silver trust, has returned a handsome 33% over the past 252 days………………………………………..Full Article: Source

Gold And Presidential Politics: Why Your Vote May Not Count

Posted on 12 September 2016 by VRS  |  Email |Print

Brace yourself. The winds are changing. Come 2017, there will be a new occupant in the Oval Office in Washington, D.C. However, it may be disturbing to know that your vote may not really matter, depending on what state you live in.
It’s not the popular vote in the United States that determines who wins the election, it’s the Electoral College. When Americans go to the polls and vote for President and Vice President, they are actually voting for the Electoral College. It is these electors –who actually choose the nation’s president………………………………………..Full Article: Source

Did a Commodity Bull Market Just Get Started? (Video)

Posted on 09 September 2016 by VRS  |  Email |Print

Metals and other commodities have bottomed and are beginning what is likely to be a long push higher, says Scott Colyer, CEO of Advisors Asset Management. Easy money from Central Banks will fuel the rally.……………………………………….Full Article: Source

Is It Time to Start Buying Commodities? (Video)

Posted on 09 September 2016 by VRS  |  Email |Print

Chris Gaffney, EverBank World Markets president, discusses the outlook for commodities with Bloomberg’s David Gura and Vonnie Quinn on “Bloomberg Markets.”.………………………………………Full Article: Source

If You are Bullish Gold, Buy Silver- Analyst

Posted on 09 September 2016 by VRS  |  Email |Print

“If you are bullish gold, buy silver” is an axiom I’m fond of repeating. Silver is more volatile, which is why in the short term it over reacts relative to Gold. The converse is true. If you are bearish Gold, sell Silver. (Which is less successful if you don’t understand the industrial component of Silver.) But I digress.
This axiom is a positive one for Silver people, but actually has its roots in cynicism and manipulation years ago. We find it helpful to drill down on concepts before adopting them. We now believe that Silver is the way forward because there are big forces with too much to lose if it does not keep a reliable ratio with Gold………………………………………..Full Article: Source

The Bullish Case for Gold Today Remains the Same as in 2011

Posted on 08 September 2016 by VRS  |  Email |Print

The conditions that drove the price of gold to all-time highs in 2011 have only worsened, which just reinforces the long-term bullish narrative for the yellow metal. Bill Gross just called out Janet Yellen as the penultimate market manipulator.
Gross, former head of PIMCO and current manager of Janus funds, recently echoed Rick Rule, assigning blame to the Fed for deferring short-term pain at the expense of long time gain. Mr. Gross’s comments are timed as the Fed continues to debate whether to raise interest rates after years of keeping them anchored in an effort to stimulate the economy and generate inflation………………………………………..Full Article: Source

Q4 commodity trends: What’s next for gold?

Posted on 07 September 2016 by VRS  |  Email |Print

The fourth quarter poses possible challenges to gold’s price growth, which, unlike many other commodities, has actually seen a strong 17 per cent price rise over the last year. While other commodity classes struggle amid slowing global growth and reduced demand, gold shines brightly as a safe-haven beacon in a stormy investment environment.
The big question now is whether the storms will continue into the next quarter, thereby increasing gold’s attractiveness, or whether they will abate, thus reversing gold’s relatively-bullish trend………………………………………..Full Article: Source

Commodities: Flicker of optimism

Posted on 05 September 2016 by VRS  |  Email |Print

Analysts and investors usually hang on the lips of Glencore CEO Ivan Glasenberg at the group’s results presentations to hear where one of the world’s top commodities traders thinks commodity prices are headed.
Glencore and South32, both with a significant exposure to energy and industrial metals, have reported lower profits for their recent financial periods because of weak prices. But they are showing strong cash generation and their optimism about current conditions, after a general firming in commodities since February/March, is reflected in their dividend policies………………………………………..Full Article: Source

The Real Reason Gold Is Up 25% In 2016

Posted on 05 September 2016 by VRS  |  Email |Print

Precious metals are a top performing asset in 2016. Here is a quick snapshot of gold and silver performance versus other major asset classes around the globe year to date. Question: What is behind the massive outperformance in gold and silver in 2016? Answer: Uncertainty.
Uncertainty is the main driver for gold buyers this year, and that encompasses a great deal of macro-economic, monetary and political concerns. Here is a short list of factors that have unsettled global money managers worldwide in 2016………………………………………..Full Article: Source

Here’s the big mistake oil investors can’t stop making

Posted on 01 September 2016 by VRS  |  Email |Print

Goodbye, August, and don’t let the door hit you on the way out. The S&P 500 index could be in for a whopping 0.3% gain this month, which means the beach bums didn’t miss much.
Bring on September and some big losses as well? Michael Brush, writing for MarketWatch, rattles off seven reasons why stocks are primed for a 5% to 10% drop. Some of those sound familiar — interest rate worries, politics, investors and the media (whaaaaaat?) are too bullish — but he also offers up some ideas on how to prepare………………………………………..Full Article: Source

Biggest African Economies Stall on Politics, Commodity Slump

Posted on 31 August 2016 by VRS  |  Email |Print

Africa’s two largest economies are stalling amid slumping commodity prices and political infighting that’s hampering decision making. A government report on Wednesday will probably show Nigeria contracted for a second consecutive quarter in the three months through June as the price and output of oil, its main source of revenue, were squeezed.
While South Africa may have avoided falling into a recession, according to the median estimate of five economists surveyed by Bloomberg, the continent’s most-industrialized economy will not grow this year, the nation’s central bank said last month……………………………………….Full Article: Source

Central Bankers Get Tired of Gold as Lower Exports Cut Cash

Posted on 31 August 2016 by VRS  |  Email |Print

The biggest owners of gold are tiring of the metal. Central banks — holders of about 32,900 metric tons of bullion — cut their purchases by 40 percent during the three months through June, compared with the same period a year earlier, to the lowest since 2011, World Gold Council figures compiled by Bloomberg show. It was the third-straight quarterly drop, the longest such streak in at least five years.
Buying declined in 2016 as prices were rallying for their biggest first-half gain in 40 years……………………………………….Full Article: Source

Commodities Are the Best Bargain Now: Here’s What to Buy

Posted on 29 August 2016 by VRS  |  Email |Print

What kind of investor are you? Are you the buy-high-sell-higher (trend continuation) type? Or are you a bargain hunter who likes beaten-down (trend reversal) opportunities? The former type of investor is now in heaven. With the stock market at new highs, there are many stocks on fire.
But if you’re looking for bargains, the pickings are pretty slim. Don’t worry. There are still many places to invest your money. I’m talking about hard assets, aka commodities. Hard assets go well beyond real estate and gold. They include all types of natural resources like oil, wheat, copper, timber, coffee, zinc, and pork bellies………………………………………..Full Article: Source

Commodity Prices And The Fed: What’s Happening Man?

Posted on 29 August 2016 by VRS  |  Email |Print

Markets went up on Janet Yellen’s speech yesterday, and then went down on Stanley Fischer’s clarification of Janet Yellen’s speech. The stock market and the commodities market acted like “asset bubble” markets yesterday and reflect how dependent the markets are on Federal Reserve support.
The Fed will probably not raise its policy rate in September; its officials are not ready for an increase and the Fed, usually, does not move just before an election. The headlines on the front page of the Wall Street Journal, front and center, read “Yellen Sends Strong Signal on Rates.”……………………………………….Full Article: Source

Where To For Gold? Down - But Not Out - For Now

Posted on 26 August 2016 by VRS  |  Email |Print

Gold has done very well this year. It was up almost 30% year-to-date in early July, which certainly beats most other investments nowadays! But since then it’s stagnated, and earlier this week took a sudden dive. Where will it go from here?
I believe that the factors pushing gold higher have pretty much played out for now, and the price is likely to fall back further. But that doesn’t mean gold finished, by any means. There are likely to be plenty more opportunities for the metal to rally in the future………………………………………..Full Article: Source

Corruption costs global economy $2.6tn yearly – Kerry

Posted on 25 August 2016 by VRS  |  Email |Print

US Secretary of State, John Kerry, has said corruption is the root of many development challenges, adding that it costs the global economy an estimated $2.6trn yearly. He stressed that Nigeria needed to tackle bribery, fraud, and other forms of corruption which he said were “dangerous” and undermined efforts to ensure a peaceful world.
He spoke on Tuesday when he visited the Sultan of Sokoto, Alhaji Sa’ad Abubakar. Among those that received Kerry were the Sokoto State Governor, Aminu Tambuwal, and his Zamfara State counterpart, Abdulaziz Yari………………………………………..Full Article: Source

Growth through new ways, a well-timed focus for global economy

Posted on 24 August 2016 by VRS  |  Email |Print

Growth as a focus of global efforts is on top of the agenda of the upcoming G20 summit to be held in east China’s Hangzhou City, which is in a well-timed response to the economic difficulties or crises troubling both developed and developing countries.
This is what the Sept. 4-5 summit under China’s presidency will be trying to commit a coordinated global effort to, with a difference to be made that is spelled in its theme “Toward an Innovative, Invigorated, Interconnected and Inclusive World Economy.” China’s ideas and initiatives highlight adjustment and cooperation in seeking a way to get out of the global economic sluggishness to benefit both developed and developing countries while calling for joint efforts from both………………………………………..Full Article: Source

Commodities Are The Best Bargain Now

Posted on 23 August 2016 by VRS  |  Email |Print

What kind of investor are you? Are you the buy-high-sell-higher (trend continuation) type? Or are you a bargain hunter who likes beaten-down (trend reversal) opportunities? The former type of investor is now in heaven. With the stock market at new highs, there are many stocks on fire.
But if you’re looking for bargains, the pickings are pretty slim. Don’t worry. There are still many places to invest your money. I’m talking about hard assets, aka commodities. Hard assets go well beyond real estate and gold. They include all types of natural resources like oil, wheat, copper, timber, coffee, zinc, and pork bellies………………………………………..Full Article: Source

Fed comments push gold lower but what does the future hold for bullion?

Posted on 23 August 2016 by VRS  |  Email |Print

Gold fell to a two-week low on Monday following upbeat comments on the U.S. economy from a senior Federal Reserve official. Spot gold traded at around $1,333.40 per ounce at the start of the trading week, after Fed Vice Chairman Stanley Fischer told a conference in Aspen, Colorado, Sunday that an interest rate hike was still under consideration for this year and that economic growth would accelerate.
“I think that as U.S. data has surprised to the upside recently … the Fed prepares for a hike … it is understandable that gold comes under pressure, especially in these quiet summer months when liquidity is not great,” Joni Teves, UBS strategist, told CNBC on Monday………………………………………..Full Article: Source

Is India’s love affair with gold over?

Posted on 22 August 2016 by VRS  |  Email |Print

India’s gold demand fell significantly in the first half of 2016. World Gold Council data show the combined demand for jewellery and investment at only 247 tonnes. Import during January-June was 248 tonnes, 42 per cent lower than the corresponding period last year and lowest since 2009.
Even in calendar years 2013 and 2014, when the trade was under severe regulatory stress in India, demand and imports were higher than seen in 2016 so far. Estimates peg imports in 2016 at 650 tonnes, after taking into account some recovery expected in rural demand, led by a good monsoon. However, this will be the lowest after 2009, when imports were 559 tonnes………………………………………..Full Article: Source

Commodities Bear Market Begins to Splinter (Video)

Posted on 19 August 2016 by VRS  |  Email |Print

Alexander Dryden, strategist at JPMorgan Asset Management, discusses commodities and why he says we are entering the next phase of stabilization for the market. He speaks with Guy Johnson on Bloomberg Television’s “On The Move.”.………………………………………Full Article: Source

Gold Bull Market Should Keep Its Shine, Charts Say

Posted on 19 August 2016 by VRS  |  Email |Print

With the Federal Reserve potentially raising interest rates this year and a stronger U.S. dollar being a likely result, gold’s rally could be nearing an end. After all, gold and the dollar generally have an inverse relationship.
However, as a chart watcher I think that all of this is already in the metal’s price. Therefore, analysis of the trend and other supporting factors gives us better odds of gold’s next move. Right now, gold is indeed tired but overall the rising trend is still very much intact. I look for higher prices later this year………………………………………..Full Article: Source

Why Global Outlook Gleams on Gold

Posted on 19 August 2016 by VRS  |  Email |Print

A reading of July’s Federal Reserve policy meeting minutes doused investor expectations of a near-term hike of lending rates. Gold can be seen rising as traders scramble for safe-havens in the absence of attractive yield-bearing assets.
Gold for December delivery could be seen at a session high of $1,361.45 a troy ounce in past midday trade trading in Europe on Thursday. The price of the yellow metal had already advanced earlier in the day in Asian trading………………………………………..Full Article: Source

Gold Boosted By Bullish ‘Outside Markets’

Posted on 19 August 2016 by VRS  |  Email |Print

Gold prices ended the U.S. day session moderately higher Thursday, supported by a lower U.S. dollar index and higher crude oil prices. December Comex gold was last up $8.00 an ounce at $1,357.00. September Comex silver was last up $0.102 at $19.75 an ounce.
The marketplace is focused on the slumping U.S. dollar index, which hit a seven-week low overnight. The weakening greenback is a bullish element for the raw commodity sector. Most major raw commodities on the world marketplace are priced in U.S. dollars. When the dollar depreciates against the other currencies, it makes commodities cheaper to purchase with non-U.S. currency………………………………………..Full Article: Source

TD Securities: Safe-Haven Interest In Gold To Continue

Posted on 17 August 2016 by VRS  |  Email |Print

TD Securities looks for any downward correction in gold to be contained and for safe-haven buying to continue. The metal has risen sharply this year but has been range-bound lately, with market worries about potential Federal Reserve rate hikes returning, causing some funds to liquidate positions, TDS says.
“Still, the risk of an equity correction and negative yields for some $13 trillion worth of fixed-income assets should see safe-haven interest in gold continue,” TDS says. “This should make any correction well contained………………………………………..Full Article: Source

Signs Are Silver Bull Market Is Consolidating

Posted on 11 August 2016 by VRS  |  Email |Print

Having hit a target, silver has formed what is believed to be an intermediate top over the past five weeks or so, which it should soon start to descend from, says technical analyst Clive Maund.
On its three-month chart, we can see this presumed topping pattern started with the appearance of a prominent “Gravestone Doji” or “Shooting Star” candlestick early in July, with its negative implications being amplified by its having occurred on very high volume. While moving averages are in bullish alignment, the now yawning gap between the 50-day and 200-day makes a correction likely………………………………………..Full Article: Source

Further weakness seen in Gold in coming days

Posted on 10 August 2016 by VRS  |  Email |Print

Citi Research cautions that gold could fall some more in the coming days after Friday’s stronger-than-forecast U.S. employment report showing 255,000 new jobs in July.
Gold prices fell immediately after the report as the U.S. dollar rose and traders factored in an increased possibility of a Federal Reserve rate hike. In past years, negative moves in gold post payrolls have tended to fade in the days following the data print, as shown by average cumulative returns of 0.5% in the three days following NFP Fridays on which gold returns were negative from 2004 to present, Citi added………………………………………..Full Article: Source

Gartman Still Bullish Despite Lower Gold Price Post-Jobs

Posted on 09 August 2016 by VRS  |  Email |Print

One veteran gold investor remains bullish on the metal, especially in non-U.S. dollar terms, even though gold is still trading lower since jobs data Friday turned sentiment toward the U.S. economy more positive. Dennis Gartman of the popular newsletter The Gartman Letter said the employment data was “demonstrably less strong” than it appeared to be.
“Let’s say this was a strong number, much stronger than people anticipated, but there are some circumstances incumbent in it that reduce that number or reduce the bullishness that most people want to put into it,” he noted………………………………………..Full Article: Source

Why a brewing global economic storm is turning gold into the perfect trade

Posted on 05 August 2016 by VRS  |  Email |Print

Gold is poised to benefit from a “perfect storm” of fewer viable investment alternatives and bigger risks, according to an industry group that is the sponsor of one of the world’s biggest gold exchange-traded-funds.
Analysts have interpreted weak Japanese government bond demand—such as that seen for a 10-year auction earlier this week—as a sign that investors are losing faith in “unconventional monetary policies,” said the World Gold Council in its August monthly report. “In this environment, we believe investors are using gold to hedge portfolio risk as they add more stocks and low quality bonds to their asset mix,” said the World Gold Council………………………………………..Full Article: Source

‘A perfect storm’ is making gold one of the hottest assets on the planet

Posted on 04 August 2016 by VRS  |  Email |Print

“A perfect storm” in markets has left investors scrambling to add gold to their portfolios for protection, according to the World Gold Council. Investors have another prime and relatively safe choice in the government bonds of developed markets, but that has been compromised by “unconventional monetary policy,” the council said in its market update for August.
The yields on developed-market government bonds have trended lower as demand has risen. Sovereign authorities like the European Central Bank are stoking this demand through their bond purchases, which are pushing down yields………………………………………..Full Article: Source

What’s Next for Silver Prices in 2016 After the Fed’s Latest Fumble

Posted on 04 August 2016 by VRS  |  Email |Print

It wasn’t surprising the U.S. Federal Reserve announced on July 31 it was keeping interest rates unchanged, sending silver prices soaring 3.8% that day. But if you missed out on those gains, don’t panic. Money Morning Resource Specialist Peter Krauth projects silver prices in 2016 will climb even higher.
Today, we’ll share Krauth’s prediction. But first, we wanted to make sure Money Morning readers understand why the Federal Reserve has such a big impact on the price of silver. When the Fed raises interest rates, precious metals like gold and silver are seen as less desirable investments………………………………………..Full Article: Source

Surprising Drivers Of Gold: How To Position Yourself

Posted on 03 August 2016 by VRS  |  Email |Print

Brexit has had an unexpected impact on the stock market. The FOMC market was essentially a win-win for gold. On a risk-adjusted basis, long GDX and short GLD makes sense.
The number of factors impacting the movement of gold - as represented by the SPDR Gold Trust ETF - is often too numerous to count. Furthermore, the impact of the most important factors on the price of gold change rapidly, in terms of both importance and, on occasion, in terms of direction………………………………………..Full Article: Source

Is the Commodities Slump Coming to an End?

Posted on 02 August 2016 by VRS  |  Email |Print

Mark Bennett, chief executive officer and managing director at S2 Resources, discusses the uptick in exploration spending, commodity prices and his outlook for gold, nickel and iron ore. He speaks to Bloomberg’s Rishaad Salamat on “Trending Business” from the Diggers and Dealers Conference in Kalgoorlie, Australia.……………………………………….Full Article: Source

Gold price rally ‘set to continue’

Posted on 02 August 2016 by VRS  |  Email |Print

The rally in gold prices is expected to continue as global uncertainty and volatility persists while economic growth remains weak, former International Monetary Fund deputy head John Lipsky says. In the face of a global outlook based on negative risks and pockets of problems, Australia’s financial system is still rated as one of the most resilient in the world, Mr Lipsky says.
“The happy news for the gold miners is that in the near term the uncertainty is not a bad thing for the gold price,” Mr Lipsky told the Diggers and Dealers Mining conference in Kalgoorlie on Monday………………………………………..Full Article: Source

New OPEC Chief Faces Fragile Unity (Video)

Posted on 01 August 2016 by VRS  |  Email |Print

OPEC’s new boss starts work tomorrow against a backdrop of sinking oil prices. Mohammed Barkindo will also be leading an organization that’s been divided over output policy. Bloomberg’s Dan Murtaugh reports on “Bloomberg Markets Middle East.”.………………………………………Full Article: Source

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