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Bulls looking for $1.400 gold this year – can this level be reached?

Posted on 17 April 2014 by VRS  |  Email |Print

Gold will remain a strong safe-haven bet in spite of its recent seesawing price as the Ukraine crisis and expectations of a further pullback in U.S. equities will push the precious metal’s price higher, CNBC’s weekly sentiment survey showed.
Some of those surveyed believe gold has enough momentum to test the year’s highs near $1,400 an ounce last seen in mid-March, as investors strike a more risk-averse stance, shunning equities and rotating instead into safe-haven assets………………………………………..Full Article: Source

Bear market in Silver may be entering its next (and final) down phase

Posted on 17 April 2014 by VRS  |  Email |Print

Critics of price charting charge that charts only show for certain where a market has been. I completely agree. These charges are valid. Yet, understanding where market has been can provide historical context — and this historical context can be useful in anticipating the future. With the above disclaimer in mind, let’s take a look at Silver’s chart history.
Firstly, the monthly price chart shows that Silver remains in a long-term bull trend from the 1932 low. Yet, long-term trends experience sudden and violent counter-trend reactions. Such was the case in the 1980 through 1993 decline during which Silver priced declined by 93%. Silver bulls should know they can go broke being right on the metal’s long-term direction………………………………………..Full Article: Source

Commodities seen by Goldman down after ‘transient events’

Posted on 15 April 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc. expects commodity prices to decline this year even after precious metals and crop prices rallied on Ukraine tension and weather concerns. The S&P GSCI Enhanced Commodity Index may drop 4 percent in the next 12 months from a 4.3 percent decrease predicted in February, analysts led by Jeffrey Currie wrote in a report.
Precious metals will decline 15 percent, compared with a 14 percent retreat forecast in February, it said. Agriculture prices will drop 10 percent, from February’s estimate of a 9 percent loss, it said………………………………………..Full Article: Source

Gold prices 2014: Do what Goldman does, not what it says

Posted on 15 April 2014 by VRS  |  Email |Print

Goldman Sachs must really want to buy more gold; this week it repeated yet again its forecast for gold prices in 2014 to drop to $1,050 an ounce. That might sound contradictory at first, but not when it comes to Goldman.
Jeffrey Currie, the investment bank’s head of commodities research, has repeated his $1,050 target several times since last October, when he declared gold a “slam-dunk sell” along with other precious metals………………………………………..Full Article: Source

Commodities: A lacklustre outlook?

Posted on 14 April 2014 by VRS  |  Email |Print

Even though the main commodity index, the UBS Bloomberg CMCI Composite, has risen modestly recently there have been relatively few gains outside of agriculture. Indeed, it was the only main sector to show positive returns as continuing poor weather conditions led to further rises in many grain prices. Elsewhere, the only moves of note were a sizeable fall in copper and renewed weakness in the gold price.
A global economic background of slower emerging market growth, combined with the reform and rebalancing of a Chinese economy generating a significantly lower trend growth rate, presents a more difficult medium term backdrop for many commodity producers. This represents a departure from the structural bull market witnessed during the last decade and will lower potential returns until capacity tightens again………………………………………..Full Article: Source

Gold bears bet wrong again as Fed talk favors bulls: Commodities

Posted on 14 April 2014 by VRS  |  Email |Print

Bearish speculators misjudged gold bets again as the release of Federal Reserve minutes extended this month’s rally in bullion. Money managers cut their net-long position to the lowest since February in the week ended April 8. The minutes of the Fed’s March meeting the next day played down forecasts for higher rates, and gold had its biggest weekly gain in a month.
Speculators misjudged prices in three of the past four weeks. First, investors anticipated accelerating inflation only to see the Fed signal higher borrowing costs in 2015. Then, bets that the gold rally would fizzle were undermined by weak economic reports………………………………………..Full Article: Source

Gold should continue to slide

Posted on 14 April 2014 by VRS  |  Email |Print

Over the first quarter of the year, gold prices benefited primarily from unexpected weakness in the US economy. Abnormally cold winters dampened economic activity, causing 10-year yields to drop 33 basis points to 2.75 per cent, reducing the opportunity cost of holding gold. At the same time, the dollar lost around one per cent, further contributing to higher dollar-denominated gold prices.
Geopolitical events have also been positive for gold prices. The crisis in Ukraine caused investors to seek a safe-haven store of value in case the annexation of Crimea led to military conflict in the region………………………………………..Full Article: Source

Investing in the oldest commodity

Posted on 11 April 2014 by VRS  |  Email |Print

Forget Precious Metals… It was a commodity long before man started storing wealth in hard assets like gold and silver. And unlike gold and silver, this commodity has a very practical, non-ornamental use that a man with little training and no education can exploit.
Over the course of human history, it’s been the core cause of just about every major war, and to this day, it continues to appreciate. It’s the most basic, most pure form of wealth there is — a source of power and influence for anybody who owns it. It’s also the most recession-proof asset known to man………………………………………….Full Article: Source

Why I reckon the gold Price will hit $1,425…

Posted on 11 April 2014 by VRS  |  Email |Print

As far as gold goes, I would describe myself as cautiously optimistic. Let’s not beat about the bush. I now have a target of US$1,425 an ounce and I’m hoping to see it by May. My stop is just below $1,275. If I’m wrong, I stand to lose about 30 bucks.
Several factors have led me to this target. First, gold seems to be having one of those years where it follows the seasonal patterns. That is, a strong January with a small sell-off towards the end of the month. Then a strong February with a peak towards the end of the month, followed by a nasty March………………………………………..Full Article: Source

World Bank says Latin America growth slowing as commodities ease

Posted on 10 April 2014 by VRS  |  Email |Print

Economic growth in Latin America and the Caribbean will slow this year as commodity prices remain flat or drop on a deceleration in China, the World Bank said in a report today.
The region’s economy will climb 2.3 percent in 2014 after expanding a “disappointing” 2.4 percent last year, the Washington-based lender wrote in the report, “International Flows to Latin America: Rocking the Boat?” That would be less than half the pace of growth in the years before the global financial crisis in 2008………………………………………..Full Article: Source

Gold prices 2014: What’s next after Tuesday’s 2-week high

Posted on 10 April 2014 by VRS  |  Email |Print

June gold finished the day up $10.60 at $1,308.90 an ounce. Spot gold ended the session on a favorable note as well, up $12 at $1,309.50. The yellow metal is up 1.1% in April, and up 8% year to date.
Stoking yellow metal gains Tuesday was a weaker dollar and troubling headlines out of politically unstable Ukraine. Gold, a safe-haven investment, moves when market uncertainty and geopolitical tensions increase………………………………………..Full Article: Source

Does a US oil boom mean lower gas prices?

Posted on 09 April 2014 by VRS  |  Email |Print

Crude oil sourced in the United States is cheaper and therefore means less pain at the pump for American drivers. When adjusted for inflation, however, the price for a gallon of regular unleaded gasoline is still high because of international dynamics, AAA said Monday.
“Cheaper domestic crude has a significant effect on the price most of us pay at the pump,” AAA spokesman Michael Green told Oilprice. “U.S. refineries have access to cheaper crude oil than their overseas competitors, which provides a lucrative business advantage.”……………………………………….Full Article: Source

Commodities are back

Posted on 08 April 2014 by VRS  |  Email |Print

There has been no shortage of fireworks in the commodities sector in the first quarter of 2014 after a relatively dormant second half of 2014. What has changed in the last three months? Here, in no particular order, are the factors pushing the commodity complex.
At the Fed, leadership has changed with Ben Bernanke’s eight-year tenure having come to an end. Bernanke will likely be viewed as a cyclical dove. His dovish policies developed after an academic career of studying the “Great Depression” and what went wrong, destined him to learn from past monetary policy mistakes………………………………………..Full Article: Source

Lack of interest sees gold price back below $1,300

Posted on 08 April 2014 by VRS  |  Email |Print

The price of gold fell back below the 1,300 an ounce level after traders booked profits on Friday’s brief post US jobs-numbers rally. On the Comex division of the New York Mercantile Exchange, gold futures for June delivery in late afternoon trade exchanged hands for $1,296.90 an ounce, down close to $7 compared to Friday’s close.
Volume was noticeably thin with 70,000 contracts traded, compared to average daily volumes on the exchange of around 200,000. Reuters quotes Jonathan Jossen, a COMEX gold options floor trader, as saying “investors are not taking any interest in the precious metals right now, and gold and silver are definitely in tight trading ranges.”……………………………………….Full Article: Source

Robert Cohen’s 3 drivers for the gold price in 2014

Posted on 07 April 2014 by VRS  |  Email |Print

The gold price is driven by global liquidity, fed by international balance-sheet expansions, impacted by trade deficits built up in countries like China. Over the last 40 years, one ounce of gold typically bought 15 barrels of West Texas Intermediate oil. That ratio has been knocked down to about 13:1.
Any significant catalyst that will erode fiat money purchasing power, such as falling industrial production, more unemployment or broader trade deficits, could take gold much higher………………………………………..Full Article: Source

Top tips on selling your old gold

Posted on 07 April 2014 by VRS  |  Email |Print

Gold bullion prices have had a spectacular run in the past few years but the party’s over, at least for the time being. The year 2013 saw the precious metal record its biggest annual loss in decades. For the record: Gold hit an all time high on September 6, 2011 when it touched $1,921.50 an ounce. Last week it was at $1,293.80.
So is that it then? Is there now no point in digging out old, unfashionable, unworn or simply broken jewellery to raise a bit of cash? Should we leave it in the box where great-grandma stored it in the last century?……………………………………….Full Article: Source

Gold equity premiums may not return, but value’s back - Altus

Posted on 04 April 2014 by VRS  |  Email |Print

Carl Noack, vice president investments for Altus Global Gold, gave his views on seeking value in the resource sector. He admitted that recent market performance has proved to be a painful time for gold bulls with the sector market down 28% last year and around 50% or more from its peak and with good companies in many cases hit just as badly as poor ones.
Noack pointed to last year’s sharp downturn in the gold price being primarily due to two factors – big sales out of the gold ETFs and ever continuing uncertainty over whether the U.S. Fed would indeed start its tapering programme………………………………Full Article: Source

Gold forecasts for China drive prices higher

Posted on 03 April 2014 by VRS  |  Email |Print

Gold rose, ending the longest slump in 19 weeks, on speculation that demand for bars and jewelry will increase in China after futures touched a seven-week low. ANZ Banking Group said Wednesday its gauge of demand increased late last month in China, the world’s biggest buyer. Iraq’s central bank plans to process 11 metric tons for public sale, and will import bars to sell to goldsmiths.
The outlook for reduced U.S. monetary stimulus and higher borrowing costs helped push futures Tuesday to the lowest since Feb. 11. “People are betting on increased physical buying and bargain hunting at these levels,” said Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago. “This may be temporary, as prices could head lower because of expectations of higher interest rates.”………………………………..Full Article: Source

BP warns of regulatory hit to commodities prices

Posted on 02 April 2014 by VRS  |  Email |Print

The head of one of the world’s biggest energy trader has said some of the regulation being imposed on financial markets could have “very worrying” side effects on commodities prices.
Paul Reed, chief executive of BP’s integrated supply and trading division identified a range of new threats from new regulations, including higher capital requirements and a push to using clearing houses to settle trades………………………….Full Article: Source

Vitol CEO Taylor says oil price underpinned by Libya supply halt

Posted on 02 April 2014 by VRS  |  Email |Print

Oil supply disruptions in countries such as Libya will support crude prices this year, said the chief executive officer of Vitol Group. Booming U.S. output means the world’s largest independent oil trader is looking to invest more there, he said.
Libya has “severe problems” and is producing “extremely little” crude, Ian Taylor said in an interview at the FT Commodities Global Summit in Lausanne, Switzerland. This is important for Europe, where oil demand has been higher than expected this year, he said………………………….Full Article: Source

Gold demand at ‘interesting crossroad,’ prices could hit $1,450 this year: Lear Capital

Posted on 02 April 2014 by VRS  |  Email |Print

Gold demand stands at an “interesting crossroad” so far this year, with “numerous conditions triggering market demand,” Lear Capital’s Chief Executive Officer Scott Carter said.
Lear Capital expects an average of around $1,400 an ounce for the year. It even sees gold reaching $1,450 this year. Many analysts, however, forecast average 2014 gold prices below $1,300 an ounce. Barclays last week raised its average 2014 gold price forecast to $1,250 from $1,205………………………….Full Article: Source

BlackRock’s Raw: Where will the gold price go in 2014?

Posted on 02 April 2014 by VRS  |  Email |Print

Following last year’s dramatic gold sell-off BlackRock World Mining trust co-manager Catherine Raw is expecting a volatile but ultimately more stable gold price in the year ahead.
Speaking at the Fund Strategy Investment Summit in Pennyhill Park, Raw highlighted a number of crucial changes that have created greater stabilisation for the gold price since last year………………………….Full Article: Source

What makes gold totally different from everything else?

Posted on 02 April 2014 by VRS  |  Email |Print

Gold is unlike every other commodity known to man. No, it’s not just that gold is shiny, malleable, or can be hammered into very thin sheets. Nor is it just that the metal is surprisingly heavy—a bar the size of your iPhone is about a kilogram or 2.2 pounds. The reason is not that gold is scarce (it’s not all that scarce). I refer to a unique property of gold that is man-made.
Nearly every ounce of gold ever mined is still in human possession. Think about that for a minute. Do we accumulate other commodities like that?…………………………Full Article: Source

2014 a good year for commodity bulls, so far

Posted on 27 March 2014 by VRS  |  Email |Print

If you were betting on the price of most commodities going up this year, your bet has likely paid off. Clashes over Crimea and drought in Brazil helped send prices of commodities from wheat to zinc higher in 2014 so far.
Out of roughly 27 active contract commodity markets tracked by analysts at Citi, close to two thirds increased in value during the first quarter to date, while fewer than 10 saw (mostly) marginal declines. As an asset class, commodities have done better than most other asset classes, after two years of underperformance, according to Citi…………………………………Full Article: Source

China’s ‘airpocalypse’ good news for commodities

Posted on 27 March 2014 by VRS  |  Email |Print

The mining industry may be in the doldrums but Robert Friedland, the executive chairman and founder of Ivanhoe Mines, remains undaunted and sees commodity prices bouncing back in two or three years.
We make no apologies for giving you yet more of him, as he tells the best stories in the sector. Of hard and soft rocks, mineral grades and so on, he gives you all that, but tells you why it is important, and where this stuff is being used…………………………………Full Article: Source

Gold to stay above last December’s lows in 2014: CPM Group

Posted on 27 March 2014 by VRS  |  Email |Print

Average annual gold prices are expected to remain steady and stay above the lows seen at the end of 2013, said CPM Group Tuesday. The New York-based consultancy released its annual gold yearbook at Bloomberg’s headquarters during an event fittingly called, An Evening On Gold which featured a panel of gold experts. The yearbook is considered one of the industry’s most coveted staples for forecasting the metal.
Findings from CPM Group’s Gold Yearbook show gold prices averaged $1,409.43 an ounce in 2013, down 15.6% from the average gold price of $1,670.15 an ounce in 2012. This was the first annual average decline for the yellow metal in more than a decade…………………………………Full Article: Source

Perth economist predicts gold prices will keep on shining

Posted on 21 March 2014 by VRS  |  Email |Print

The gold price could reach US $1400 by the end of the month according to a Perth economist. Chief economist for ABC Bullion Jordan Eliseo said the unrest in the Ukraine was pushing the price of gold up.
“If we break US $1430 I think the gold price will continue to appreciate,” Mr Eliseo said. The gold price was US $1332.57 or $1332.57 on Thursday after reaching a six-month high earlier in the month………………………………………..Full Article: Source

How to play the rise in agricultural commodities

Posted on 19 March 2014 by VRS  |  Email |Print

So far this year, agricultural commodities have outperformed most other asset classes. While some have outperformed others in general, we have seen strong performances. In a market where investors are becoming jittery holding stocks after such a large increase in value, I suspect that some of that money is going to find its way into agricultural commodites and related assets.
This could be the catalyst that will drive agricultural commodities to a higher fundamental valuation, which is warranted given the fact that demand for these commodities is steadily increasing, while supply is not………………………………………..Full Article: Source

Will silver catch up to gold?

Posted on 19 March 2014 by VRS  |  Email |Print

Why is silver underperforming, and is this an opportunity or a sign of something else? While it is difficult to know why exactly silver is underperforming in just a two-and-a-half-month timeframe, the most obvious answer to this is that silver is not just a precious metal — it is also an industrial metal, and about half of silver’s demand comes from industrial applications while only about a fourth of silver demand comes from investors.
As we have seen this year, industrial metals such as copper and lead have underperformed, which signals economic weakness. If there is, in fact, economic weakness, then it follows that there will be less industrial demand for silver………………………………………..Full Article: Source

Is Dr. Copper really Dr. Gloom?

Posted on 19 March 2014 by VRS  |  Email |Print

The strong rally in global stock markets was not a surprise after last Thursday’s 2.42 reading in the Arms Index .It signaled that the market was oversold on a short-term basis. The Dow Industrials led the S&P 500 while the oil service and semiconductor stocks were the strongest.
The market internals were pretty strong on Monday but another equally strong up day is needed to turn the short-term momentum positive. A weak rally with minimal price gains will make the market more vulnerable as we head into the end of the week………………………………………..Full Article: Source

Time to reconsider commodities?

Posted on 18 March 2014 by VRS  |  Email |Print

Last year the so-called commodities “supercycle” was widely declared dead, but with price drops – and investors more optimistic about the global economy on the whole – it may be worth rethinking shunning this sector.
From the late 1990s to the 2008 crisis, the price of oil rose 1,062%, while copper shot up 487%, according to investment house Pimco. Behind this meteoric rise were emerging markets where wealth was growing quickly, causing increased demand for food, energy and the inputs of industrialisation and urbanisation………………………………………..Full Article: Source

RBCCM sees gold rally ahead - similar to 2005-2008

Posted on 18 March 2014 by VRS  |  Email |Print

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

UBS reviews precious metals in response to regulators

Posted on 18 March 2014 by VRS  |  Email |Print

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

With volatile commodities, ETFs offer a way in

Posted on 17 March 2014 by VRS  |  Email |Print

149 commodity exchange-traded funds out there but just a handful are broadly diversified. Coffee is up 80% this year. Lean hogs are up 28%. Corn is up 13%. Gold is up 12%. Most of these same commodities were down last year, and any of them could fall at the drop of a hat.
So how do rational investors participate in the upside for unpredictable commodities without losing their all-cotton shirts? One approach is to invest in a diversified basket of commodities. That lowers the chance of a big loss and adds diversification to an investment portfolio, since commodities tend not to track the stock market. While there are 149 commodity ETFs, only a handful are broadly diversified………………………………………..Full Article: Source

Commodity dive no surprise, says Walsh

Posted on 14 March 2014 by VRS  |  Email |Print

Rio Tinto chief Sam Walsh says the market should not be surprised by factors that have sent iron ore prices sliding and he is confident Chinese growth will underpin long-term commodities demand.
And the mining boss has sent a message to his Glencore counterpart Ivan Glasenberg: that the Swiss trader-miner will have to offer more to merge its Hunter Valley coal operations with those of Rio………………………………………..Full Article: Source

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

Posted on 14 March 2014 by VRS  |  Email |Print

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

Silver’s three main drivers for 2014 - HSBC

Posted on 14 March 2014 by VRS  |  Email |Print

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

Three reasons to buy gold now

Posted on 13 March 2014 by VRS  |  Email |Print

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

Why miners aren’t panicking about the latest commodity drop

Posted on 13 March 2014 by VRS  |  Email |Print

While steep declines in copper, iron ore and coking coal prices have spooked investors, they are not severe enough to disrupt the mining sector at this stage. The vast majority of projects can generate decent margins at these price levels, according to experts. Though in the case of coal, there has been enough of a drop to make high-cost producers nervous.
Prices for all three commodities have been under pressure throughout 2014, but they plummeted over the last several days due to economic concerns out of China. Manufacturing activity has been weaker than expected, and a bond default by a solar company raised fears of tighter credit conditions. That hit the copper market in particular, as many Chinese companies use the red metal as collateral to raise money………………………………………..Full Article: Source

Commodities where the action is - Danske Bank

Posted on 12 March 2014 by VRS  |  Email |Print

Allan von Mehren, Chief Analyst at Danske Bank notes that most action has taken place in commodity markets following on the surface very weak trade data out of China. “Iron ore showed the sharpest decline yesterday in more than four years and reached the lowest level since October 2012. LME metal price index also plunged, hitting a two and a half year low.”
“The drop in commodity prices has taken its toll on mining stocks such as Rio Tinto, Vale and BHP Billiton.”……………………………………….Full Article: Source

Time to take profits from gold and run: CIBC

Posted on 12 March 2014 by VRS  |  Email |Print

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

Influential investor Jim Rogers talks commodities and Japanese stocks

Posted on 11 March 2014 by VRS  |  Email |Print

Maverick investor Jim Rogers founded the Quantum Fund hedge fund in 1973 along with George Soros. Rogers made his fortune early and retired at 37. He later traveled on a motorbike around the world in 1990, and then visited six continents over three years in 2003, chronicling his adventures in books.
Around 2005 he relocated with his family to Singapore, partly so his daughters could learn Mandarin Chinese during childhood. In talks, Rogers emphasized China’s rise to economic dominance in the early 2000s and penned “Hot Commodities” (2004), which painted China as a massive consumer of natural resources in coming years………………………………………..Full Article: Source

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

Posted on 11 March 2014 by VRS  |  Email |Print

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

Gold: Is the real excitement ahead?

Posted on 10 March 2014 by VRS  |  Email |Print

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

Commodities bear market could continue for 15 years

Posted on 07 March 2014 by VRS  |  Email |Print

The S&P may have had its best day of the year on Tuesday, but within the world of U.S. stocks, not all sectors are created equal. Some sectors, like technology, have outpaced the market, boasting a near-60% year-over-year return.
Due to a dependency on the prices of underlying commodities like iron and coal and gold, meanwhile, sectors like energy have failed to keep up with the S&P’s year-over-year 22% return. Yet while some analysts foresee the commodities bear market dragging on for the next decade or more, the prediction should not be reason to despair………………………………………..Full Article: Source

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

Posted on 06 March 2014 by VRS  |  Email |Print

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

Silver fundamentals don’t support current price: Citi

Posted on 05 March 2014 by VRS  |  Email |Print

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

So Russia is going to abandon the dollar as a reserve currency? Good luck with that one

Posted on 05 March 2014 by VRS  |  Email |Print

I’ve already explained why meaningful trade and financial sanctions against Russia are a non starter – everyone would lose from such action. Europe would be pushed back into recession, Russia into financial meltdown.
This is not the sort of self harm Europe is prepared to contemplate right now. Indeed, thanks to the indiscretion of a UK official, who was snapped going into Downing Street with his briefing documents on display for all the world to see, we know this to be the case. Trade and financial sanctions have already been ruled out………………………………………..Full Article: Source

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

Posted on 04 March 2014 by VRS  |  Email |Print

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

There is money in gold, again

Posted on 04 March 2014 by VRS  |  Email |Print

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

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April 2014
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