Posted by Investment Rarities on December 5th 2013 in China, Federal Reserve, GATA, General Economy, Gold, India, Janet Yellen, JPMorgan, Monetary Policy, Quants, Short Sellers, Silver, Wall Street | Be the first to comment!
In reporting on a keynote speech at London’s Mines & Money conference by John Hathaway, asset manager of the Tocqueville Gold Fund, Mineweb‘s Lawrence Williams writes that “Hathaway’s interpretation of gold’s decline, paints an exceptionally bullish long term picture….The same physical demand that has caused an apparent unwinding of trades in the paper market will therefore drive a ‘new leg in a secular bull market for gold’, with an eventual ‘implosion of credit structures’ in the gold futures markets of London and New York.” Williams has more coverage of the conference, in a separate article headlined, “Bull market or bear market – where does gold stand now?“
Jesse’s Café Américain: Comex deliverable gold still out on the tails of leverage at 57 to 1
Reuters: Gold drops 1.1% on uncertainty over Fed tapering; Silver also off 1.1%
Coin News: Gold gives back some gains; U.S. Mint gold bullion coins soar
Business Insider: People are buying a lot of silver & gold with their Bitcoins
Liberty Blitzkrieg: Gold smuggling increases 7x in India and surpasses illegal drug trade
GATA: Grant Williams: Today’s gold suppression will break just as London Gold Pool did; Williams – Twisted (By the Pool)
Zero Hedge: Jim Rogers cautions “Be prepared, be worried, and be careful… This is going to end badly
IB Times UK: Freedom Ship: $10 billion floating city for world’s super rich
Posted by Investment Rarities on November 29th 2013 in China, Federal Reserve, Gold, India, Monetary Policy, Quants, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!
Following reports that China imported 131.9 tonnes of gold through Hong Kong in October, for a total of 967 tonnes this year, Mineweb’s Lawrence Williams, who believes even that figure is conservative, wonders: “When are investors in the West going to wake up to the fact that if China carries on buying at current rates – and there’s no sign of any slowdown – there soon won’t be any physical gold left to trade in the traditional markets – it will all be being swallowed up by China and the other eastern consumers. If anything points to a massive price squeeze ahead this has to be it!”
And in examining who benefits from golds “organized retrreat,” a USA Gold commentary points out that China’s annual imports, “according to some market watchers, are on the order of 2500 tonnes, nearly the equivalent of the annual global mine production.”
SilverSeek: Gold and silver gain almost 1% on the week
Bloomberg: Comex gold futures rise on signs of increasing demand in China
Seeking Alpha: Lawrence Williams – How high are China’s real gold imports?
Alasdair Macleod: Chinese gold demand and the World Gold Council’s estimates
Economic Times: Gold purchases – China to surpass India
SafeHaven: China gives thanks for cheap gold
Posted by Investment Rarities on November 26th 2013 in China, Federal Reserve, General Economy, Gold, India, Janet Yellen, JPMorgan, Monetary Policy, Quants, Short Sellers, Silver, Wall Street | Be the first to comment!
As gold and silver end slightly lower on Tuesday, Gold Scents asks if gold is in a “Brief pause, or final bottom?” And in an interview with The Gold Report, publisher and radio host Jay Taylor also weighs in: “The chances are better than 50/50 that we’ve seen the bottom and we’re just meandering around and building a base for the next major leg up. It’s not hard for me to imagine gold exploding off the launch pad to hit new highs. The question is: How much higher than $1,900/ounce will it go? I don’t have a strong opinion on that. It depends on how the economy goes and the psychology of the masses.”
Asked if he thinks silver will follow suit or chart its own course, Taylor predicts that “It will follow suit, to a great extent, because it will take on more of a monetary component; currently much of its demand is still from industry. Silver and gold nearly always move in the same direction, but because silver is more undervalued than gold, it could have a much bigger move in percentage terms.”
Zero Hedge-Bloomberg: How gold price is manipulated during the “London Fix”/Original article
Jesse’s Café Américain: Gold bullion ETF and fund drains in 2013 – Comex registered at 69 to 1
Got Gold Report: GoldCore’s Mark O’Byrne – China gold demand causing paradigm shift
Peter Schiff: Ben’s rocket to nowhere
Wall Street On Parade: New York Fed’s strange new role – Big bank equity analyst
Bloomberg: Speed traders meet Nightmare on Elm Street with Nanex
Posted by Investment Rarities on November 24th 2013 in China, Federal Reserve, General Economy, Gold, Janet Yellen, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!
“It’s not only the Chinese aunties buying gold who are racking up retail sales of precious metals this year. Sales of silver eagle coins by the US Mint this year are already at a record high,” notes Arabian Money, following a week in which silver lost 4%:
“Silver and gold investors are taking out an insurance policy against a known risk that is guaranteed to reoccur at an unspecified future date. That’s why people continue to buy silver eagles when the price of silver is falling. They are buying their insurance policy at a discount with the disaster coming closer. The truth is that the Fed will not be able to stop printing money or by the time it does there will be so much money in the system that any economic recovery will be accompanied by horrendous inflation.”
Posted by Investment Rarities on November 24th 2013 in China, Gold, India, Silver | Be the first to comment!
“While paper gold is getting the cold shoulder in the West, the Love Trade buyers in the East are wrapping their arms around all the physical gold they can get their hands on. In the third quarter, gold jewelry demand was at the highest level since 2010,” reports U.S. Global Investors’ Frank Holmes, according to World Gold Council data. Holmes, in his chart-rich presentation, also points out that “so far in 2013, the East purchased 5 times more gold bars, coins and jewelry than the West. Together, Chindia purchased a whopping 1,500 tonnes in physical gold in nine months.”
Posted by Investment Rarities on November 21st 2013 in China, General Economy, Gold, India, Quants, Short Sellers, Silver, Wall Street | Be the first to comment!
Spot gold and silver prices rebounded on Thursday, and the gold/silver ratio ended the day at just above 62. Numismaster‘s Patrick Heller argues that it’s headed lower over the next two years, and here’s why:
1. I anticipate substantially higher prices for both metals in the next year or two. With silver being more volatile in price, it should increase by a greater percentage than gold, which would knock down the ratio.
2. The amount of newly mined silver supplies is only about 10 times more than gold. Stated differently, there is not enough silver coming out of the ground to provide 50 or 60 ounces of physical silver for every ounce of gold needed for investor and industrial purposes.
3. The price of silver has acted counterintuitively in 2013. Through several changes in taxes and import restrictions, India’s government has severely restricted the ability of the citizenry to acquire gold. As a consequence, demand for physical silver in India has soared over the past few months.
Heller concludes that “silver will outperform gold over the next couple of years. To be conservative, I still think gold should make up one-third to 40 percent of one’s combined investment in gold and silver, but I am definitely favoring the prospects for silver.”
Posted by Investment Rarities on November 21st 2013 in China, Federal Reserve, General Economy, George Soros, Gold, Janet Yellen, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!
In a MarketWatch column offering up “4 reasons gold is poised for a comeback,” InvestorPlace.com editor, Jeff Reeves, suggests that “it’s possible that gold has found a floor and that now is a decent time to buy.” He concedes that “there are still some big challenges for the precious metal — especially in the last week or so when prices have been steadily rolling back again. But even if investors are a bit early as they turn to gold, fears of overbought domestic stocks may make even an uncertain bet in gold a preferable alternative to some right now.” The four reasons he cites are 1) global physical demand, 2) a slowing in the pace of ETF outflows, 3) Smart money likes gold, and 4) Tapering delayed, buy not denied. And about the latter he reminds that “gold rallied from a low of under $1,200 at the end of June to $1,400 in August on the expectation that tighter monetary policy was on the way.”
Posted by Investment Rarities on November 20th 2013 in China, Federal Reserve, General Economy, Gold, Goldman Sachs, Janet Yellen, Monetary Policy, Quants, Short Sellers, Silver, Wall Street | Be the first to comment!
Gold and silver extended losses following Wednesday’s release of the FOMC’s October meeting minutes, which revealed discussion of tapering “in coming months” or “at one of its next few meetings.” And while the minutes were described as “bearishly construed” for gold and silver, with one precious metals telling Reuters that “Tapering is still definitely on the table,” Zero Hedge points out that “all it takes is for one algo to get the idea of pricing in the inevitable subsequent un-taper and to send the entire risk complex soaring.”
Sober Look: 5 years of QE and the distributional effects
Dan Norcini: ECB to move to negative interest rates
Reuters: Gold pours into China to meet record demand, bypasses Hong Kong
Mineweb: Financially strained Venezuela reportedly cuts gold deal with Goldman Sachs
Sprott Group: 19 ‘tough’ questions for Eric Sprott on gold and silver
Posted by Investment Rarities on November 19th 2013 in China, Federal Reserve, General Economy, Gold, Goldman Sachs, Janet Yellen, JPMorgan, Monetary Policy, Quants, Short Sellers, Silver, Wall Street | Be the first to comment!
As Bloomberg reports that gold is “no slam-dunk sell in China as aunties buy bullion,” MarketWatch quotes the Midas Letter‘s James West as saying that “Gold and silver prices continue to be buffeted by demand for physical gold from Asian buyers versus negative investment sentiment in the western world expressed in sales of ‘paper’ gold…. Either the western world under appreciates the growing divergence between physical supply and demand, or an absence of regulation in terms of position sizes in paper derivatives of gold engenders mispricing. Either way the long-term price for precious metals is pressured upward with every new month of a quantitatively-eased increase in sovereign debt.”
Reuters: Fed’s Yellen maintains dovish message in lawmaker letters
Alasdair Macleod: Fiat money quantity hits new record
Economic Policy Journal: Treasury printing of $100 bills exploding
Mineweb: Analyst – China gold consumption running at over 2,000 tonnes this year
Zero Hedge: Gold manipulation probed by U.K. regulator
Posted by Investment Rarities on November 19th 2013 in China, Federal Reserve, General Economy, Gold, India, Janet Yellen, Monetary Policy, Silver, Wall Street | Be the first to comment!
In an interview with the Birch Gold Group, Jim Rogers covers the waterfront on currency wars, the likely difficulties the Fed will face in tapering, and of course, precious metals. He declares that “I’ve never sold any gold and if gold comes down and I expect it to go down, doesn’t mean it will, I’ll buy more. I’m certainly not going to sell.” And asked if he prefers silver or gold, he points out that “silver is historically down 60% from its all-time highs, so yes, I would prefer silver at the moment because gold is down only what, 30 or 40% from its all-time highs.” And in an interview with Bull Market Thinking‘s Tekoa Da Silva, Rogers discusses what he sees as the “artificial” highs in the U.S. stock market, and explains why he’s not buying gold yet.
Posted by Investment Rarities on November 15th 2013 in CFTC, China, Gold, India, JPMorgan, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!
Despite gaining almost 1.5% on Thursday and Friday, Comex silver futures fell 2.8% for the week, reports MarketWatch, “But analysts and bullion dealers touted strength in physical demand for silver.” The article cites sales of 2013 American Silver Eagles topping 40 million this week to set an annual record, and, MarketWatch‘s latest “Commodities Corner” column, headlined “Silver coin supplies buckle on fever-pitch retail buys.” It quotes BullionVault’s Adrian Ash as saying that “Private investor demand for physical silver in 2013 has been staggering,” and, “Refiners can’t mint enough product and they’re seeing none of it come back for melt.”
Bloomberg: U.S. Mint’s silver coin sales reach annual record
Wall Street Journal: Investors flock to silver coins
Silver Investing News: Silver trades down as Thomson Reuters GFMS predicts higher demand in 2013
Steve St. Angelo: Silver Bears: You have been warned
SilverSeek: Eric Sprott – Silver, silver stocks will go much higher
Posted by Investment Rarities on November 15th 2013 in China, General Economy, Gold, IMF, India, Monetary Policy, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!
Following up on its report that “China could match U.S. gold reserves inside 10 years – or earlier,” Mineweb deploys the above graph to illustrate “gold’s inexorable move east.” It shows the percentage change in investment demand between the first three quarters of 2012 and 2013, and comes from the World Gold Council’s Q3 Demand Trends that was released on Thursday. And in another article based on the WGC’s release, Reuters reports that “China is this year set to usurp India as the world’s biggest gold consumer by a convincing margin as strict import rules introduced by New Delhi bite.”
And detailing the boom in Asian vaults, the Sprott Group’s David Franklin writes that the new facilities “further reflect the enormous increase in the physical precious metals trade and a requirement for secure storage. With these new vaults located in Asia (or now owned by Asians) it would appear the massive amounts of gold being shipped East will not see the inside of a London or Swiss vault ever again.”