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Investors hold the gold as risk-appetite goes cold

Posted on 05 July 2016 by VRS  |  Email |Print

The amount of cash invested in gold funds has jumped by one-third since the beginning of the year, as investors become more and more desperate to squirrel their money away in safe havens.
Data from Bloomberg showed holdings in bullion-backed exchange-traded funds (ETFs) swelled to 1,959 tonnes at the end of June, up from 1,458 at the beginning of the year, with a flurry of new investments off the back of the UK’s decision to leave the EU………………………………………..Full Article: Source

Rio Tinto says commodities rout far from over

Posted on 04 July 2016 by VRS  |  Email |Print

The new chief executive of Rio Tinto has warned there is no end in sight to the commodities downturn, saying a supply glut will continue to put pressure on prices for the mining company and its rivals.
Jean-Sébastien Jacques, who became chief executive of the Anglo-Australian company this weekend, said in an interview with the Financial Times that supply was still outstripping demand for most major raw materials that Rio mines………………………………………..Full Article: Source

Why Goldman thinks its $50 oil forecast could be wrong

Posted on 01 July 2016 by VRS  |  Email |Print

Most oil market pundits will tell you how hard it is to predict where the black stuff is heading. And while Goldman Sachs is the most influential commodities bank, like pretty much every forecaster, it has been known to get things wrong.
Now it’s said that crude could trade below its $50 forecast in the second half of 2016 due to higher-than-expected output from Organisation of Petroleum Exporting Countries (Opec) member Nigeria, Bloomberg reported………………………………………..Full Article: Source

Brexit Gold Rally Seen Cutting Indian Imports to 7-Year Low

Posted on 01 July 2016 by VRS  |  Email |Print

The surge in gold prices after Britain’s vote to quit the European Union will deal a further blow to demand in India, the second-largest consumer, and may cut imports to the lowest in seven years, said Bachhraj Bamalwa, a director at the All India Gems & Jewellery Trade Federation.
Purchases from overseas are seen slumping to about 700 metric tons this year, Bamalwa said by phone from Kolkata on Wednesday. That’s a decline of 23 percent from 2015 and the smallest since the country imported 559 tons in 2009, data from the London-based World Gold Council show………………………………………..Full Article: Source

3 Reasons Why This Gold Rally Can Last

Posted on 01 July 2016 by VRS  |  Email |Print

The story of the year in financial markets has been gold’s underdog rally from multi-year lows. Can it last? Heiko Ihle at Rodman & Renshaw says that yes, indeed, the rally can continue. The analyst sees a “paradigm shift in sentiment for the gold market” and outlines three factors that we feel should “not only support gold at current levels,” but “potentially continue to push prices higher going forward.”
The SPDR Gold Shares (GLD) added 0.2% to $126.14 in recent trading. Here’s more: “The next bull market in precious metals and precious metal related equities has begun. Our updated price deck of $1,300 per ounce gold and $17.50 per ounce silver reflects what we believe to be the dawn of a new era.”……………………………………….Full Article: Source

Which Commodities Will Benefit From Brexit?

Posted on 30 June 2016 by VRS  |  Email |Print

Buy gold but be cautious around oil and copper, that’s the main takeaway from Deutsche Bank’s special commodities report entitled “commodities weathering the Brexit storm”.
Most commodity markets remain plagued by oversupply, but the gold market is set to see increased demand over the next 18 months. There are a number of political risk events set to unfold during this period, which are only set to add to the global economic uncertainty that’s been thrown up as a result of Brexit…………………………………………………………………………………Full Article: Source

Gold is about to drop, and this play will let me cash in big when it does

Posted on 30 June 2016 by VRS  |  Email |Print

Gold’s run is almost done, according to gold trader Andrew Keene of AlphaShark, and he has just the way to profit from an expected slide in the precious metal. The yellow metal has had an incredible year, and that has sent most gold-mining stocks soaring. But with market uncertainty appearing to settle amid the post-Brexit vote rebound, Keene thinks the metal is due for a turn lower.
Keene has picked one gold stock that he sees following an expected downtrend for the metal in the coming months. Barrick Gold (ABX), the world’s largest gold-mining company, has seen its shares on the rise since September of last year, following the gold rally……………………………………….Full Article: Source

Gold is back

Posted on 30 June 2016 by VRS  |  Email |Print

Significant downturn in economic growth and rising uncertainty over the political developments have helped gold become a new emerging bull market, with the price expected to rise to US$2,300 within the next 24 months, according to a Liechtenstein-basesd asset and wealth management firm.
Incrementum AG’s study, “In Gold we Trust”, said that the first step had already been taken and early this year gold celebrated an impressive comeback, exhibiting strong vital signs, and recording its strongest quarterly performance in 30 years, which was fuelled by fears over ‘the recovery of the post-Lehman economy’……………………………………….Full Article: Source

Faber Says Own Gold, Prepare for QE4 as Easing Follows Brexit

Posted on 30 June 2016 by VRS  |  Email |Print

Gold’s investment case has been strengthened by the U.K.’s vote to quit the European Union as the fallout may spur the world’s central banks to step up easing, hurting currencies and favoring bullion, according to Marc Faber, publisher of the Gloom, Boom & Doom Report.
The U.S. Federal Reserve may even embark on a fourth round of quantitative easing, or QE4, Faber said in an interview on Bloomberg Television on Wednesday, adding that he typically buys bullion every month. While he also likes gold shares, they need to correct first after recent gains, he said……………………………………….Full Article: Source

‘Going long on fear’: Analysts hike gold price forecasts after Brexit

Posted on 29 June 2016 by VRS  |  Email |Print

Gold prices ran up after Britain’s decision to quit the European Union, climbing sharply last Friday and yesterday as the referendum results rippled through global markets, pummelling stocks and some currencies.
Gold has pulled back from its Friday high, and dipped about 1 per cent amid today’s stock market rally. “We are revising our gold price assumptions as we believe that the fundamental macro backdrop for gold prices provides significant runway for gold price appreciation from current levels despite an appreciation of 25 per cent [year to date],” Clarus Securities said this week………………………………………..Full Article: Source

Gold Veteran Says Brexit May Be Start of ‘Major Bull Market’

Posted on 29 June 2016 by VRS  |  Email |Print

Gold may stand at the start of a major bull market should the U.K.’s Brexit vote prove to be a forerunner of greater political and financial instability around the world, according to Evolution Mining Ltd.’s Jake Klein, a veteran of more than 20 years in the industry.
With the rise in uncertainty, investors are coming back to the market, the executive chairman of Australia’s second-biggest producer said in an interview with Bloomberg Television. “It is an alternate currency, it’s performed that role” as a haven for over 2,000 years, he said………………………………………..Full Article: Source

Gold still the star among commodities after Brexit

Posted on 28 June 2016 by VRS  |  Email |Print

As far as commodities go at the moment, there’s gold, and then there’s pretty much everything else. The yellow metal, which enjoys a reputation as a haven in times of volatility and crisis, is up 0.8 per cent this morning at a two-year high of $1,326.80 an ounce.
It has been one of the stars of the show, rallying 4.7 per cent on Friday as the UK voted in favour of leaving the EU and the plunging British pound sent financial markets into a tailspin. Gold should also benefit if central banks, particularly the Federal Reserve, refrain from tightening monetary policy………………………………………..Full Article: Source

Gold: Bears Are Trapped, Next Stop $1,400

Posted on 28 June 2016 by VRS  |  Email |Print

Gold posted a massive weekly gain Friday of over 4%, despite the largest one day advance for the U.S. Dollar in 2 years. Gold is up over 14% this year as we head into its strongest half of the year seasonally.
Brexit was a black swan event for gold bears, and most shorts were caught completely flat footed with commercial short positions in gold near all time highs………………………………………..Full Article: Source

How long Brexit uncertainty reigns is key for commodities, gold: Russell

Posted on 27 June 2016 by VRS  |  Email |Print

Amid the horror for many, the elation for others and the shock for virtually everybody of the British vote to exit the European Union, perhaps the most measured and predictable response was from commodity markets.
As it became clear on Friday that the Leave camp was going to pull off an unexpected victory, commodities did what they normally do in a period of heightened risk, they declined. The outlier of course was gold, which also did exactly what it was expected to do by rallying strongly as investors sought the protection of what is still viewed by many as the ultimate safe-haven in times of crisis and uncertainty………………………………………..Full Article: Source

Brexit ‘not a game changer’ for commodities

Posted on 27 June 2016 by VRS  |  Email |Print

Research house Capital Economics expects other drivers to play a bigger part now that the referendum is behind us, while Randgold Resources stands to benefit from Brexit… The drop in prices for industrial commodities like oil and copper - down 5% and 3% respectively this morning - are not expected to last, not according to Capital Economics.
Julian Jessop, Capital Economics head of commodities research, in a note said: “these moves are already starting to unwind. “Once the dust has settled on the shock result, we suspect that the prospects for all these commodities will be determined by other, more specific factors.”……………………………………….Full Article: Source

Commodity Markets Entering Period of Stability

Posted on 24 June 2016 by VRS  |  Email |Print

Orica Ltd., the largest supplier of explosives to the mining industry, has begun to observe stability in commodity markets that have been marked by volatility, sinking profits and job cuts after a global boom ended.
“We still see a lot of volatility, but I think that I’ve seen more stability than I’ve seen in some time,” in the past month, Chief Executive Officer Alberto Calderon said. “When I talk to our customers I get the sense they are saying ‘Well let’s get on with it’………………………………………..Full Article: Source

Is there really a commodity revival?

Posted on 24 June 2016 by VRS  |  Email |Print

Following multiple years of calamitous returns the tide appears to be showing some signs of turning for commodities, with some even calling the end of the sector’s prolonged bear market. Last year witnessed the MSCI World Energy index nosedive 18 per cent. But since the start of 2016 to June 10, the measure has jumped by 16 per cent, according to data from FE Analytics.
Of course, all eyes have been on the oil price, which after crashing below $28 a barrel earlier this year topped the $50 mark in late May. But gold too, bolstered by its safe-haven status, has enjoyed a strong year-to-date run with the price of bullion up 21 per cent………………………………………..Full Article: Source

Why Substantially Weaker Commodity Prices Are Here to Stay

Posted on 24 June 2016 by VRS  |  Email |Print

The outlook for commodities–steel-making or coking coal as well as copper in particular–remains bleak, and this certainly doesn’t bode well for struggling coal and base metals miner Teck Resources Ltd.
Nonetheless, it–like a number of other miners, including First Quantum Minerals Ltd. has experienced a massive rally in its share price since the start of 2016 on the back of growing optimism surrounding commodities. However, there are signs that this optimism is unfounded. A range of factors highlight that substantially weaker commodity prices are here to stay. ……………………………………….Full Article: Source

Gold Price and Brexit - Correlation and reactions (Video)

Posted on 24 June 2016 by VRS  |  Email |Print

Phil Carr, Co-founder and Director of The Gold & Silver Club, comments his vision on Gold and its correlation with Brexit polls and possible outcomes. When the odds of the Brexit increase, so do gold prices. While when the odds fall, so do gold prices.……………………………………….Full Article: Source

Why Gold, Why Now?

Posted on 23 June 2016 by VRS  |  Email |Print

During my most recent webcast a couple of weeks ago, I had the pleasure of being joined by the CEO of the World Gold Council (WGC), Aram Shishmanian. As expected of someone of his stature, Aram brought another level of insight and expertise to our discussion of gold’s Love Trade and Fear Trade.
You might wonder what the WGC does exactly. In Aram’s words, it focuses on “innovation and integration to create the gold market” around the world. Among other important endeavors, the group “lobbies governments to make their countries appropriately pro-gold” and is the only agency in the world to “train central bankers in the use of gold.”……………………………………….Full Article: Source

Brexit gold rush: Scared Brits stockpile bars & coins, just in case

Posted on 23 June 2016 by VRS  |  Email |Print

UK citizens worried about the potential fallout of a Brexit are stockpiling gold bars and bullion coins in their safes at home. Searches for the phrase “home safe” have skyrocketed on Google, coming in at 61 percent higher than the previous peak in November 2008 during the global financial crisis, according to data obtained by the Telegraph.
The UK’s official producer of gold and silver coins, Royal Mint, said its sales have soared by 32 percent in June, with customers desperate to buy signature gold bars and Britannia bullion coins………………………………………..Full Article: Source

The commodity rebound has legs

Posted on 22 June 2016 by VRS  |  Email |Print

The price rebound in oil prices this year has provided plenty of merriment for energy investors. Oil prices have gained about 30% this year and both West Texas Intermediate, the U.S. benchmark, and Brent crude, the global benchmark, traded above $50 in early June.
Yet, the commodity rebound is far deeper than just oil. Prices for coffee, corn, orange juice, gold and silver are up more than double digits so far this year, according to an analysis by Bespoke Investment Group………………………………………..Full Article: Source

Will Trump or Hillary Be Good for Precious Metals Prices?

Posted on 22 June 2016 by VRS  |  Email |Print

This year’s presidential election is getting lots of attention, and customers are asking about how the outcome might impact the gold and silver markets. The questions generally fall along two lines. One is whether we think a Donald Trump victory will be good for prices and another regarding what a Hillary Clinton presidency might mean.
There is no telling exactly what either candidate has in store for the nation. And, this year more than most, we can’t even be certain that either of the front runners will win. There is plenty to dislike about both Trump and Hillary and many voters are looking for alternatives. The Libertarian party has become the fastest growing political party in the country………………………………………..Full Article: Source

China’s supply-side reforms bring silver lining to rare metals

Posted on 22 June 2016 by VRS  |  Email |Print

After a long downtrend, prices of some rare metals have been recovering since the beginning of the year. Driving the change is China, the leading supplier, where government-led moves are underway to consolidate producers, slash output and build up reserves.
To address excessive production, Beijing has recently been promoting supply-side reforms. And while those efforts have struggled to make progress in the steel, coal and aluminum industries, they are gradually bearing fruit in the rare metals industry………………………………………..Full Article: Source

How Brexit vote will shape the price of gold

Posted on 21 June 2016 by VRS  |  Email |Print

Gold prices are likely to decline this summer then recover to $1,300 an ounce or more by year-end, no matter what the outcome of the U.K. referendum is later this week, analysts at CPM Group said in a note Monday.
Uncertainty surrounding Thursday’s referendum that will help determine if Britain remains a member of the European Union has benefited the price of gold Futures prices have posted gains over the last three weeks in a row and settled at a nearly 17-month high on June 16………………………………………..Full Article: Source

Brexit Alarms Propel Gold Investors to Near Record Rally Wagers

Posted on 20 June 2016 by VRS  |  Email |Print

The turbulence sweeping global markets has reignited investors’ passion for gold. Global central bankers have sounded the alarm that a British exit from the European Union could be disruptive to the global economy.
Anxiety about the June 23 vote contributed to more than $1 trillion of value being wiped from global equities last week as bullion futures reached the highest in almost two years. Hedge funds are holding the second-biggest bet ever that the metal will rally further, falling just short of a record reached in 2011………………………………………..Full Article: Source

Should investors be seeking safety in gold?

Posted on 16 June 2016 by VRS  |  Email |Print

Global gold investment shot up to the equivalent of 617.6 tonnes in Q1 this year, the second highest quarter on record, according to figures from the Global Gold Council and equivalent to $27.2bn (£18.8bn) based on prices of $1,250 an ounce. The industry body attributed the upsurge in demand to negative interest rates, stock market volatility and concerns about global growth.
ETFs were the “main engine” of this growth, according to the organisation, seeing inflows of 363.7 tonnes following three years of almost uninterrupted outflows. At BlackRock, one of the largest ETF providers, gold-based ETPs saw $4.1bn (£2.8bn) of inflows in May, second only to bond funds for net flows at the asset manager, while its gold miners ETFs saw inflows of $1.3bn………………………………………..Full Article: Source

Commodity maket rally ’still in early stages’

Posted on 15 June 2016 by VRS  |  Email |Print

The commodities rally is still in its early stages, leading commentator David Hightower told the Agrimoney Investment Forum, flagging the growing demand for ags from emerging market countries. “We are much closer to the bottom for commodity prices than to a high,” Mr Hightower, founder of the influential Chicago-based Hightower Report said.
“If you think you have missed the commodities move – think again.” He highlighted that even now - after commodities prices have risen by 12.3% this year, as measured by the Bcom index – they remain well below historic highs………………………………………..Full Article: Source

Charting the lowest interest rates in 5,000 years, worst commodity returns in 80 years

Posted on 15 June 2016 by VRS  |  Email |Print

Looking to dazzle friends and family at the next summer barbecue? Well, drop this little fact on them: global interest rates are at their lowest in 5,000 years. Not only that, you can tell the acquaintance who brags about his gold bars in the bank vault that returns on commodities are the worst since 1933. Sounds crazy you may say, but that’s just the kind of history Bank of America Merrill Lynch rolled out in the third edition of “Longest Pictures” note.
The assembly of more than 100 charts illustrates the long-term history of returns, volatility, valuation and ownership of financial assets. Pushing aside the mindblowers listed above, they also found corporate bond returns have never been higher going all the way back to 1915………………………………………..Full Article: Source

Gold Prices: 3 Reasons Gold Prices Could Be About to Skyrocket

Posted on 15 June 2016 by VRS  |  Email |Print

Gold prices are up by more than 20% year-to-date, but the gain for gold bullion could be just getting started. There are three events that every gold investor should pay attention to, because they have the ability to cause a super spike in gold prices.
On June 23, Britain will be voting on whether the country should leave the European Union (EU) or stay. As it stands, it looks like the “Leave the EU” movement is surging. According to the Opinium Poll, commissioned by the Brexit-backing think tank Bruges Group, 52% of the respondents said they would prefer to leave the EU………………………………………..Full Article: Source

Fluctuating Commodities: How They Impact Businesses and What You Can Do

Posted on 14 June 2016 by VRS  |  Email |Print

The volatility of the commodities market can be extremely difficult to manage as a company. The cost of goods can fluctuate immensely, which can be devastating to those predicting profits. This can also eat away at profit margins slowly and a smaller company can quickly become unprofitable.
Most people do not realize the impacts that commodities have on everyday life. The prices of good we buy or ship are impacted on a daily basis along with the jobs that we have. The following are some ways to deal with fluctuating commodities in order to secure a business………………………………………..Full Article: Source

How Is Volatility and Market Sentiment Impacting Gold?

Posted on 14 June 2016 by VRS  |  Email |Print

According to the latest figures out by BlackRock, global investors have dived into gold and gold-based exchange-traded funds since the beginning of 2016. On the basis of the reports, gold-tracking funds attracted almost $5.4 billion in the month of May, which drastically outpaced the investments in other asset class like corporate bonds and real estate.
These two stand as competitors for gold funds. These two sector funds together attracted only $4.7 billion. Now that could be a major victory for gold, or could we say that haven demands have helped………………………………………..Full Article: Source

Why the Oil Price Rally Might Falter

Posted on 13 June 2016 by VRS  |  Email |Print

Last year’s oil price rally ran out of steam in early May after 112 days. This year’s has already lasted longer (140 days so far) and prices have risen further, but there are worries that, it, too, may be running ahead of market fundamentals. While prices seem unlikely to collapse again, there are good reasons to expect a pause in their upward march.
Crude prices have nearly doubled from the lows reached in mid-January. Brent rose above $50 a barrel last Monday and stayed there all week. West Texas Intermediate crude narrowly failed to do the same after breaking through the psychological barrier on Tuesday………………………………………..Full Article: Source

Gold is sending a warning signal: Bouroudjian

Posted on 10 June 2016 by VRS  |  Email |Print

The recent action in the gold market is sending out a big warning signal that investors need to heed, veteran industry insider Jack Bouroudjian said. That “red flag” is the acceleration of the move higher in gold over the last couple of months, which he believes is telegraphing a loss of confidence in central banks.
“It may have started out as a reinflation trade, but right now it is turning into that flight to quality and flight to safety. It is one of those things that is more than likely going to stop any kind of a move in equities,” the co-founder and director of UCX said……………………………………….Full Article: Source

Silver Acting Like ‘Gold on Steroids’ as Assets Near Record High

Posted on 10 June 2016 by VRS  |  Email |Print

For all the concerns whether the rally in precious metals will last, investors are close to making the biggest bet ever on silver. Silver funds have taken in a wave of new cash this year and assets are approaching an all-time high. Prices are up 25 percent in 2016, tracking a similar rally in gold on speculation the Federal Reserve will hold off on raising interest rates.
“We’re still seeing big chunks of managed money coming into the silver market,” Adrian Ash, head of research at online-trading service BullionVault, said by phone from London. “Inflows from our clients match those at the all-time highs of early 2011.”……………………………………….Full Article: Source

Commodities: The bear market is over

Posted on 08 June 2016 by VRS  |  Email |Print

Following five years of devastatingly poor returns in the market, sentiment towards commodities is at rock bottom - but it’s starting to turn following the surge in the prices of a wide variety of products since the beginning of the year.
The biggest price gains, in percentage terms, occur at the beginning of a bull market. And the best (lowest risk) time to buy anything is when the consensus expectation is turning from bearish to bullish, as is happening now in commodities. Now is the time for investors to focus on this unloved asset class………………………………………..Full Article: Source

Gold appetite in May was the strongest in over 3 years

Posted on 08 June 2016 by VRS  |  Email |Print

Buyers took advantage of gold’s price volatility to boost their holdings in May, according to data from BullionVault. The increase in buying lifted a key measure of gold investment to its highest level in roughly three years, BullionVault’s report, released on Tuesday, shows.
The Gold Investor Index, run by internet-based metals exchange operator BullionVault, jumped to 55.8 in May—its highest level since April 2013. It stood at 53.5 in April………………………………………..Full Article: Source

BMO: Gold ‘Pullbacks Should Be Viewed As Buying Opportunities’

Posted on 08 June 2016 by VRS  |  Email |Print

BMO Capital Markets remains upbeat on gold for the second half of 2016, commenting that “pullbacks should be viewed as buying opportunities.” The market’s focus will be expectations for Federal Reserve rate hikes, analysts say.
No hike is good for gold, while a hike would hurt the yellow metal. However, a rate increase may hold back gold only for a little while. “Then the markets don’t believe there is actually sufficient economic strength for the next hike. Good for gold,” BMO says. “The underlying driver for our positive view on gold prices remains safe-haven demand in an uncertain global economic environment………………………………………..Full Article: Source

4 Reasons Commodities Will Push Higher

Posted on 07 June 2016 by VRS  |  Email |Print

The bear turns bull. Here’s reason one the commodity bull will remain strong: markets overshoot. Reason two is that global interest rates remain low. Reason three lies in the economics of commodities. Reason four lies in the explosive population growth vs. finite raw materials.
Commodity markets are cyclical in nature. Each raw material market has its individual characteristics. So many factors contribute to whether the price of a commodity moves higher or lower. While commodity production is often a localized affair, consumption is ubiquitous………………………………………..Full Article: Source

Has a commodities bull market taken hold?

Posted on 03 June 2016 by VRS  |  Email |Print

Every asset class has its time in the sun and periods where nobody wants to touch it with a barge pole. In the case of commodities, it is increasingly looking like it has moved from the latter to the former. Taking a selection of commodities linked indices shows a clear upward trajectory has taken hold over the past three months.
Given the notoriously fickle and volatile nature of investing in commodities though, investors should rightly give more careful consideration to jumping on the bandwagon than they may do in the case of other asset classes………………………………………..Full Article: Source

OPEC Is Dead, Long Live OPEC!

Posted on 02 June 2016 by VRS  |  Email |Print

Reports of OPEC’s death have been greatly exaggerated, as many observers mistake inaction for impotence. Throughout the history of the organization, it has been strong, weak, active and passive, but arguably the third-most successful cartel in the past century. (Diamonds are first, the Seven Sisters under the Achnacarry the second.)
Since the rise of OPEC power in the early 1970s, the oil price has remained above the long-term historical level, something all but unheard of for commodities. (Well, sugar in the U.S., where a handful of producers have the political clout to maintain import quotas. Maybe peanuts and tobacco, and well, you get the idea.)……………………………………….Full Article: Source

Be careful wishing for a higher oil price

Posted on 02 June 2016 by VRS  |  Email |Print

Financial markets are happier with oil at $50, but further advances will pose problems. Financial markets have been breathing more easily since late January, when the oil price began a rebound that last week took it beyond the $50 a barrel mark for the first time since November.
Financial conditions in the US are looser, emerging markets are perkier and US energy stocks have staged a recovery so sharp they are now the S&P 500’s third-best performing sector this year………………………………………..Full Article: Source

Calling All Gold Bugs - Look Out Below

Posted on 02 June 2016 by VRS  |  Email |Print

Nothing mysterious about buying or selling gold. Gold bugs aren’t smarter than you or me. Many wax fanatical, and fanatics tap out in financial markets because of inflexibility. As long as they don’t close out positions they’re OK. Right? No, wrong.
Why shoulder a cross of gold? Figuring out Alibaba’s numbers is tough enough. I’m short gold as a conceptual hedge against my contemporary art collection and what is considered luxury real estate in the Big Apple AAPL -1.37%, Hudson Valley and Palm Beach………………………………………..Full Article: Source

Gold: What Is It Good For? Absolute Value Or Absolutely Nothing?

Posted on 01 June 2016 by VRS  |  Email |Print

Gold bullion is up 15% so far in 2016. This rise is particularly interesting when you consider that the derivatives of gold, such as gold and silver mining companies, have bounced off of even deeper lows than the metals far more aggressively.
For instance, the NYSE ARCA Gold Bugs Index, a representation of the mining companies, is up over 80% YTD. Conversations about gold often resemble an argument about religion with the believers and the non-believers rarely seeing eye to eye. Typically, the believers are so adamant that the non-believers are left with only one conclusion: being long gold is similar to joining a cult………………………………………..Full Article: Source

Gold fears the Fed: Julius Baer

Posted on 01 June 2016 by VRS  |  Email |Print

Gold prices have come under renewed pressure as the probability of a summer rate hike in the U.S. has risen of late, according to an analyst from Swiss private bank Julius Baer. “A rebounding dollar and cooling futures market sentiment have pushed gold prices towards $1,200 per ounce,” Carsten Menke, commodities research analyst at Julius Baer said in a note Tuesday.
“We maintain a neutral view on gold but believe that investors should continue to consider it as insurance to their portfolios against the backdrop of prevailing economic and financial market risks.”……………………………………….Full Article: Source

The Price of Silver Will Head Lower Before Rising Again in 2016

Posted on 01 June 2016 by VRS  |  Email |Print

The silver price correction I’ve been cautioning readers to expect is finally upon us, as the price of silver has not been able to escape the broader sell-off in precious metals recently. Silver peaked right along with gold prices in late April and has followed a similar decline ever since. As expected, the U.S. Dollar Index (DXY) bottomed right around the same time.
Then, silver prices consolidated between $17 and $17.50 until mid-May. The DXY had already been rebounding, and then it got a second wind and kept climbing higher………………………………………..Full Article: Source

Two Lessons on China and Commodities From Legendary Investor Jim Rogers

Posted on 01 June 2016 by VRS  |  Email |Print

Investor Jim Rogers’ comments from years past are still valid in today’s markets. Maybe not tomorrow, but eventually, China will devalue its currency. And prices for uranium and coal and other undervalued commodities will recover. That’s because, in the end, markets always win.
That’s the application of some of the sage advice from the books of legendary investor Jim Rogers. Rogers co-founded the Quantum Fund, one of the world’s most successful hedge funds, in the early 1970’s. He quit full-time investing in 1980 after generating returns of 4,200% over 10 years………………………………………..Full Article: Source

Gold will not fall below $1,200/oz for long – Commerzbank

Posted on 31 May 2016 by VRS  |  Email |Print

There is the short-term potential for the gold price to fall below $1,200 per troy ounce due to the high level of speculative interest and renewed Fed rate hike speculation, said Commerzbank . But the price is not expected to fall lastingly below this threshold because such a price level is likely to be viewed by investors as an attractive opportunity to buy, it said.
“What is more, lower prices should cause physical buying interest to pick up in Asia, as the consumer restraint exercised there in recent months has generated pent-up demand,” it added. At present, there is also little to suggest that the interest in gold ETFs might wane abruptly or even switch to selling, it noted………………………………………..Full Article: Source

Are commodities signaling a Lehman-sized meltdown? Japan’s Abe thinks so

Posted on 27 May 2016 by VRS  |  Email |Print

Only hours after Brent oil prices shot past $50-a-barrel for the first time in months, Japanese Prime Minister Shinzo Abe warned that the past few difficult years for commodities in general could be a red flag for another global financial crisis. Abe made the comments while hosting a meeting of the Group of Seven leaders on Thursday in Ise-Shima, Japan, according to a report from Reuters.
Abe showed his fellow leaders data charting a 55% drop in global commodity prices between June 2014 and January 2016. He said that’s similar to how much prices fell between July 2008 to February 2009 after Lehman Bros. went bankrupt and triggered a global financial crisis………………………………………..Full Article: Source

Should you start hoarding gold? Some say China’s gold ambitions mean you should keep some stashed at home

Posted on 27 May 2016 by VRS  |  Email |Print

China’s decision to buy its second gold storage vault in London last week was another step towards total dominance of the market. The vault is in a secret location and was bought by Chinese state-owned bank ICBC Standard Bank from Barclays. It could store $90bn of gold at today’s prices, and follows the purchase of a lease on another vault in the capital earlier this year from Deutsche Bank.
London has been a hub for metals investment for hundreds of years, but times have changed and the big banks are pulling back from trading them. Now China is pushing into the gold market in a big way. The reasons why are unclear, and gold continues to spawn more conspiracy theories than the moon landing, but what is known is that China has been amassing the yellow metal at a rapid pace over the last decade………………………………………..Full Article: Source

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