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Silver Was Not In a Bubble in 2011!

Posted on 15 May 2014 by VRS  |  Email |Print

The April 2011 silver price spike was NOT a bubble. The January 1980 silver price blow-off was a bubble, and it was materially different from the April 2011 price spike. I fully expect a bubble in silver – someday – but that day is months or years into the future.
Prices for food, energy, silver and gold are going up – broadly speaking – along with the national debt, money supply, and similar measures of debt and credit. Since we KNOW national debt will increase for the foreseeable future, plan on the prices for food, energy, silver, and gold increasing similarly………………………………………..Full Article: Source

Why you should short gold now: BofA technician

Posted on 14 May 2014 by VRS  |  Email |Print

Is it time to short gold? That’s the latest call from MacNeil Curry, head of global technical strategy at Bank of America Merrill Lynch, who says the yellow metal is poised to drop as much as 9 percent.
“First and foremost, we’ve been in a medium-term downtrend since peaking out back in March at about the $1,392 area. And price action since the beginning of April has done nothing to reverse that downtrend. All we’ve been doing is consolidating,” Curry said……………………………………….Full Article: Source

Commodity exposure: What currently keeps us away?

Posted on 13 May 2014 by VRS  |  Email |Print

Financial, rather than industry players have become a much more important factor in the price action of almost all commodities. This in turn leads to greater price volatility, and greater correlation with other financial assets, therefore reducing the diversifying characteristics of the asset class.
That is not to say that there are no opportunities. There are. And we seek to take advantage of specific opportunities as we see them. But a blanket commodity-index exposure we believe has less value for these reasons, as well as for the simple fact that the broad commodity indices are overwhelmingly dominated by energy components………………………………………..Full Article: Source

Gold price likely to moderate in medium term

Posted on 13 May 2014 by VRS  |  Email |Print

While gold had a tremendous run in the last few years, fuelled by turbulence in the global economy, prices are likely to moderate in the medium term with an improving economic environment, experts said.
Nilesh Gupta, Chairman, Administrative Committee, India Bullion & Jewellery Association (IBJA) felt that there was an overall bearish mood about gold “on the part of the trading fraternity given the developments over several months in India, although there is optimism that a new government would tackle issues like high duty and the 80:20 scheme”. On Monday, gold was trading at $1,300 levels and at Rs.28,700 per 10 gram levels on the MCX………………………………………..Full Article: Source

Exchange-Traded Confusion

Posted on 13 May 2014 by VRS  |  Email |Print

Exchange-traded funds and all the products related to them have terminology that’s foreign to many investors. People hear “ETF” and they assume every product that’s called an ETF is the same. They’re not. Product structure can have big implications for investors, especially if it’s held in a taxable account.
There are five basic exchange-traded product (ETP) structures: Open End Funds, Unit Investment Trust (UIT), Grantor Trusts, Limited Partnerships and Exchange-Traded Notes………………………………………..Full Article: Source

What Is The Next Bullish Fundamental Driver For Gold?

Posted on 12 May 2014 by VRS  |  Email |Print

During the final phase of the last Gold rally between 2008 and 2011, we heard a lot about any number of bullish catalysts for gold: The long term decline of the US Dollar as the world’s reserve currency,Insatiable Asian demand for physical gold, The specter of hyperinflation resulting from the Federal Reserve’s quantitative easing policies, Negative real interest rates, Central bank accumulation of gold, And the list goes on……
As we sit here today in May 2014 none of these formerly bullish fundamental drivers appears to carry much weight in driving the day-to-day price of gold. When will this change? And what will be the next major fundamental driver in the next leg higher for gold?……………………………………….Full Article: Source

Silver Volatility Levels Near 10-Year Lows

Posted on 08 May 2014 by VRS  |  Email |Print

Silver prices are nearly unchanged on the year, underperforming the rest of the precious metals complex, and with its sluggish price action, options volatility levels are near multi-year lows. Having such low volatility is unusual for silver, and one analyst said it’s a situation that’s unlikely to last.
Mike McGlone, head of U.S. research for ETF Securities, said 30-day silver options volatility is around 12% as of Tuesday’s close, coming just off a 10-year low made during last week’s price drop………………………………………..Full Article: Source

Gold price to hit US$3000 within 2 to 3 years

Posted on 07 May 2014 by VRS  |  Email |Print

Ian Williams, co-fund manager of the WAY Charteris Gold & Precious Metals Fund, has told Every Investor that he believes both gold and silver will hit new highs within the next 2 to 3 years. Since launch in February, 2010 the fund has lost approximately 50% for investors in line with the performance of other gold funds over that period.
Yet, Williams believes this is set to change as the gold market is currently in ‘backwardation’, when the spot price is higher than the nearest futures contract. Also, the selling of 700 tonnes last year by American holders of ETF’s has now dried up but the ongoing demand from Asia continues apace………………………………………..Full Article: Source

How China manipulate the REE prices?

Posted on 07 May 2014 by VRS  |  Email |Print

Lanthanum and cerium make up the bulk of what China produces in the REE space, but they’re not the value-added metals. Metals like europium may enjoy better prices, but they’re a small part of the whole REE complex. China’s bread and butter comes from Bayan Obo, which is not a rare earth mine at all. It’s an iron ore mine that produces REEs as a byproduct.
The Chinese can’t stop producing REEs at Bayan Obo because they’d have to stop producing the iron ore as well. One of the intriguing things about REEs is that you can’t just take the ones you want and leave the others behind. You have to go through the whole chemical extraction process to get those with the biggest market or the best price. You can’t send a metal into the tailings pond because it doesn’t have a good price today. You have to do them all………………………………………..Full Article: Source

2014: Year of Commodities (May)

Posted on 06 May 2014 by VRS  |  Email |Print

Thus far in 2014, April ended on schedule and May arrived as expected. Well-placed sources, wishing to remain anonymous as they are not at liberty to speak on the matter, suggest that June will also arrive on time. That seems to sum up the only accurate components of the consensus forecast for 2014. As the chart below portrays, just about everything else continues to do the opposite of what was generally expected by the popular seers on the future.
n the above chart are plotted year-to-date returns for several investment measures. Bars on the left, the ones continuing to show significant positive returns, represent the three components of the commodity sector. To the right, using red bars, are what would be commonly referred to as underperforming groups………………………………………..Full Article: Source

Gold is still good to have in portfolio: Religare Sec

Posted on 06 May 2014 by VRS  |  Email |Print

Gold is not correlated to other financial assets like equities and bonds. Having gold in your portfolio increases diversification . It is instantly liquid in any country in the world and is virtually indestructible. The year gone by saw a lull in gold prices and some serious short-selling by gold bears, especially after the Fed started shutting the stimulus tap progressively.
But unlike in the West, it is not just about calculated returns because in India we buy gold for a variety of reasons including ornamentation, investment, social compulsion as well as religious reasons. This has ensured that the limitations imposed by the government have led to the spot prices being higher than futures prices because buyers are ready to pay a premium to secure physical delivery………………………………………..Full Article: Source

Are commodities a good long-term investment?

Posted on 02 May 2014 by VRS  |  Email |Print

Since the beginning of this year, commodities have performed remarkably well. For example, while the S&P 500 has gained 2%, the Dow Jones Commodity index has gained 10%. Why have commodity values increased? Well, it is due to a number of reasons that include more positive news regarding the global economy, international political concerns, and extreme weather conditions.
Which Commodities are Currently Increasing in Price? Two commodities that have done particularly well are coffee and nickel with increases of over 15% in the past month alone. Coffee is up in price mainly due to the dry weather Brazil is experiencing, and nickel is mainly up in price due to the mineral ore export ban Indonesia imposed in January. However, as the economies in China, Europe, and the US improve, most base metals have benefited from the more positive economic news………………………………………..Full Article: Source

The Gold Price is Fixed. So What?

Posted on 02 May 2014 by VRS  |  Email |Print

We can’t ignore it anymore - the markets are rigged. The LIBOR scandal broke almost two years ago, and the banks found responsible for manipulating that key index are still dealing with lawsuits. Meanwhile, allegations of gold market manipulation have been simmering for over a decade and grew into an inferno after the spot price dropped dramatically last spring.
Yet I’m left wondering what the conspiracy theorists hope to accomplish. Yes, I believe in exposing truth for its own sake and that the individual investor should have the same opportunities in the marketplace as the big institutions. But with these conspiracists, there is often a subtext of, “Because the price is suppressed, buying gold is for suckers.” I think this conclusion is precisely wrong………………………………………..Full Article: Source

Deutsche Bank ditching gold and silver fix worries British regulator

Posted on 02 May 2014 by VRS  |  Email |Print

According to a Reuters report, Britain’s financial watchdog could intervene if there are too few participants to set commodity benchmarks including gold and silver. Since Deutsche Bank’s withdrawal from the fixing process, without a replacement, this leaves only four banks – Barclays, HSBC, Bank of Nova Scotia and Sociéte Generale involved in the twice daily London Gold Fixing process – and only two (HSBC and Bank of Nova Scotia) to fix the daily silver price.
Recently the London gold fixing process has come under considerable scrutiny following a research report by U.S academic, Professor Rosa Abrantes-Metz, and Albert Metz of Moody’s which suggested that the fixing process could be open to manipulation………………………………………..Full Article: Source

What America’s energy blunder means for oil

Posted on 30 April 2014 by VRS  |  Email |Print

Here’s a quiz for you. Can you name the top three countries by proven oil reserves? The top spot may surprise you. It’s Venezuela. The number two spot is more obvious. It’s Saudi Arabia. What about number three?
You won’t get this one. But don’t feel bad about it. The energy industry has gone through big changes in recent years, and even bigger changes are on the way… It may surprise you to know that the country with the third largest proven oil reserves is Canada. That’s an impressive feat for a country often disparaged as being the 51st US state, and for its people’s fondness for putting bacon on pancakes………………………………………..Full Article: Source

China has control of the gold price

Posted on 30 April 2014 by VRS  |  Email |Print

In addition to the latest excellent study of the Chinese gold market by the World Gold Council, we have received other reports on the Chinese gold market that differ with the conclusions drawn by the World Gold Council.
But we shouldn’t be surprised by this, not only because of the opaque nature of the Chinese gold market and the dearth of accurate statistics that are accessible. Which ones are right is critical for the conclusions each draw paint very different pictures of the future of the gold price………………………………………..Full Article: Source

Here’s why some of the world’s big banks are dumping their commodities desks

Posted on 29 April 2014 by VRS  |  Email |Print

A number of the world’s big banks have either dumped or downsized their commodities trading businesses because of falling returns. The latest, Barclays, announced last week it will stop the majority of its commodities activities as it ups its focus on electronic trading. The UK bank will continue to trade precious metals.
In March JPMorgan Chase sold off its commodities division to Swiss trading company Mercuria for $3.5 billion and has also retained precious metal trading activities………………………………………..Full Article: Source

Morgan Stanley on gold: Still dour after a nasty year

Posted on 29 April 2014 by VRS  |  Email |Print

The commodity strategists at Morgan Stanley write that record demand from China won’t be enough to keep gold’s price above $1,200 per ounce in the coming year, much less help it rise. On the contrary, the firm’s Joel Crane and six co-authors argue instance that weaker Chinese demand could the thing that causes prices to erode even more.
Here’s how that could happen: The weakening yuan. The Chinese currency’s downswing reduces the purchasing power of Chinese consumers, cutting down the amount of gold each yuan can buy………………………………………..Full Article: Source

Silver: ‘The worst story of all the metals’

Posted on 29 April 2014 by VRS  |  Email |Print

“Silver has the worst story of all the metals,” says Adam Klopfenstein, a senior market strategist with Archer Financial Services, citing the bountiful supplies and silver’s tendency to move in tandem with gold.
On top of the potential for higher interest rates, the silver market has been inundated with supplies of the metal. HSBC expects a 3.4% increase in the silver supply to 1.09 billion troy ounces in 2014, while demand will remain nearly unchanged at some 938 million ounces………………………………………..Full Article: Source

Suppressing the price of gold: JPMorgan chase, Goldman and the Fed complicit in “gold price rigging”

Posted on 28 April 2014 by VRS  |  Email |Print

William S. Kaye, the Senior Managing Director of the Pacific Alliance Group of Companies in Hong Kong says the motive is simple as a free-market price of gold would essentially cast the interventions for what they are and stabilize policy measures taken by Central banks.
However, he explains and predicts that the price suppression scheme can’t go on forever and that in the ‘end game’ the 100 fold paper gold market must eventually be settled with physical gold and that it will require an extremely high price of gold to entice owners of physical gold outside the banking system to be willing to meet that massive anticipated demand……………………………………….Full Article: Source

Whiff of gold price rigging

Posted on 28 April 2014 by VRS  |  Email |Print

A light will be shone on the secretive world of setting gold prices in a review launched by the UK Financial Conduct Authority (FCA), which is studying whether gold market benchmarks are operating properly in the wake of the Libor scandal.
The regulator has started to gather information from market participants about the London gold fix, the benchmark price used worldwide to price the precious metal. The FCA is visiting all five banks that hold seats helping to “fix” the price of gold twice a day, once in the morning and again in the afternoon. It may analyse documents and policies, interview traders and examine IT systems………………………………………..Full Article: Source

A nice rebound for gold, but will it last?

Posted on 28 April 2014 by VRS  |  Email |Print

Precious metals rebounded late in the week after hitting their lowest levels in two-and-a-half months. This change in direction was the result of renewed safe haven demand following another outbreak of violence in the Ukraine.
A slightly weaker U.S. dollar over the course of the week and tumbling equity markets on Friday also provided support to metal prices as investors moved money out of risk assets and into defensive positions. This fresh buying led to key technical support levels being successfully tested for gold and silver, causing many short sellers to close out their positions………………………………………..Full Article: Source

How to protect your portfolio from rising geopolitical risk

Posted on 24 April 2014 by VRS  |  Email |Print

Investors should buy into the energy sector to protect their portfolios from rising levels of geopolitical risk, according to Russ Koesterich, global chief investment strategist at BlackRock. Data from FE Analytics shows that specialist energy funds have done very well so far this year, with an uptick in performance in recent weeks as the Ukraine crisis has escalated.
Koesterich says he expects the outperformance to continue, and suggests overweighting the sector. “We are advocating an allocation to energy stocks, which have outperformed the broader market year-to-date,” he said………………………………………..Full Article: Source

Gold needs to hold $1,278: Peter Hug (Video)

Posted on 24 April 2014 by VRS  |  Email |Print

Peter Hug is in studio to talk gold prices, Chinese gold imports as well as where he thinks the metals are headed. “I have not liked this gold market for the past few weeks, I find it very heavy,” he says. “Other than the geopolitical issues in Ukraine, which has caused some support in the market, there have been very little fundamental reasons to be long this market in the short term.”
Hug says that although the Ukraine situation caused buoyancy in the gold market, what it is really missing is physical demand. “It’s almost non-existent in North America and the Chinese just haven’t stepped up to the plate like they did in 2013.”……………………………………….Full Article: Source

The commodities markets are getting slammed

Posted on 22 April 2014 by VRS  |  Email |Print

Stock markets aren’t doing much. But the commodities markets are selling off nicely. Palladium and platinum prices are leading metals prices lower. “In my opinion, palladium and platinum are the solutions to the pollution, and are also two of the most underreported commodities stories at the moment,” commodities guru Frank Holmes said.
“The long-term demand needs for palladium are enormous. The commodity is used primarily for catalytic converters in automobiles to aid in clean air emission, but can also be found in electronics, various other clean air and water systems, jewelry, chemicals and even dentistry.”……………………………………….Full Article: Source

Chinese gold demand to rise by 25pct by 2017

Posted on 22 April 2014 by VRS  |  Email |Print

China is the world’s leading gold nation, having overtaken India last year, and the future is even shinier. Consumer demand will rise 25 per cent to 1,350 metric tonnes by 2017, the London-based World Gold Council said in a report this month.
In 2013, China accounted for 26 per cent of global private-sector gold demand. China is both the world’s largest jewellery and physical bullion investment market, and it has become a key driver of global demand………………………………………..Full Article: Source

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

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