Archive for the ‘India’ Category

Investors ‘Returning to Gold to Take Cover’

Posted by on December 11th 2014 in CFTC, CME Group, Federal Reserve, General Economy, Gold, India, Interest Rates, Middle East, Short Sellers, Silver, U.S. Congress, USD, Wall Street | Be the first to comment!

TakingCoverWithGold“As a rout in energy prices spreads to global equities, investors are returning to gold to take cover,” begins a Bloomberg article about how assets in GLD, the world’s largest gold-backed ETF, rose on Wednesday “at the fastest pace since July. The holdings are up almost 1 percent in December, snapping four straight months of losses.” Spot gold and silver did however end marginally lower on Thursday, falling about one-fifth of a percent following what was described as an “upbeat” retail-sales report But following that release, notes Reuters, “data showed the net worth of U.S. households fell in the third quarter for the first time in three years, hit by a fall in the value of their stock holdings and rising debts, giving mixed signals on the outlook for consumer spending.”

See also:

Zero Hedge/TF Metals Report:  CME implements gold, precious metals circuit breakers up to $400 wide; a.k.a. trading collars

The Gold Report/GoldCore: Elliott Wave charts point to shocking countertrend for gold; Marc Faber favors commodity stocks in Asia … and gold, in interview with Barron’s

Sprott Money/SRSrocco Report: China’s role in the global (paper) silver market; Current price of silver $50 based on the historic oil-silver ratio

Confounded Interest/Moneynews: Fed bubble bursts in $550 billion of energy debt

Matt Taibbi: The 10 craziest things in the Senate report on torture

Does Flight to Safety Have Legs?

Posted by on December 10th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, India, Interest Rates, Short Sellers, Silver, USD, Wall Street | Be the first to comment!

FlightToSafety

The metals moved a mere 0.2% on Wednesday, with spot silver ending up and gold down. “The weak oil prices sapped some of the strength out of the gold market,” according to HSBC analyst James Steel, but “weak equities and the stronger euro were positive, and that kept the losses to a minimum.” And while both metals consolidated recent gains, Arabian Money‘s Peter Cooper suggests that “The recent sell-off in precious metals seems to be over with a massive increase in long positions in the Comex powering prices to the upside.” And asking, “What could sustain a precious metals rally this time?,” he predicts “a flight to safety as other asset markets break down. Whether you look at bonds or equities they have a definite sense of vertigo at these levels.”

See also:

Peter Brandt/ValueWalk:  Six chart reasons why silver has bottomed; The bullish case for gold [charts]

BullionVault/Frank Holmes: Gold & silver price ‘surge’ turns bears ‘neutral’ as China trading hits record; What is China’s ulterior motive for gold?

Mineweb: Chinese and Indian gold demand boost fundamentals further; Gold forecasts for 2015 – Scotiabank mining panel

Economic Times: Indian households spend 8% of daily consumption on gold jewelry and coins

Mike Shedlock/Silver Institute:  I traded some gold for silver

Bullion StarGuilty gold

Financial Times/Telegraph: Investors tapped to fund gold fraud film; Chinese general gives out Mercedes filled with gold

Metals Pop as Dollar, Equities Drop

Posted by on December 9th 2014 in CFTC, China, CME Group, Federal Reserve, Gold, India, Interest Rates, Short Sellers, Silver, USD, Wall Street | Be the first to comment!

MetalsBreakOut

Spot silver and gold gained slightly more than 4% and 2% on Tuesday, while futures surged 5.3% and 3.1%, “as the dollar headed for the biggest drop in a month against a basket of 10 currencies,” reports Bloomberg, adding that “More than $100 billion was wiped from the value of world equity markets yesterday, and global shares are falling again today.”

The Bloomberg article also quotes an options trader as pointing out that “Stimulus from every corner of the global economy is now entrenched, and that’s bullish for precious metals. This is a change of sentiment in a huge way, because investors stopped looking at U.S. interest rates possibly rising next year, to see the fact that every other major economy is easing at a breakneck pace to try and quell the slowdown.”

See also:

Jesse’s Café Américain/Stockcharts:  Gold and silver charts: On the cusp – With all respect to Willem Buiter; Gold breaks out

Zero Hedge/InvestorPlace: Markets turmoiled as 5th Hindenburg looms

Bill Bonner: The next phase of QE will shock you; What do central banking & “twerking” have in common?

Bloomberg/Seeking Alpha: U.S. silver coin sales climb to annual record as prices rebound; Silver – Always a wild ride

Reuters: India should allow banks to hold gold as reserves – World Gold Council report

Metals Said to Have ‘Run Out of Big Sellers’

Posted by on December 6th 2014 in CFTC, China, Federal Reserve, General Economy, Gold, India, Interest Rates, Monetary Policy, Short Sellers, Silver, USD, Wall Street | Be the first to comment!

HeyBigSeller

After the November non-farm payrolls report showed a gain of 321,000 jobs, spot silver and gold came off lows on Friday to end the day down 0.9% and 1.2% respectively, reports Reuters, quoting one analyst as saying, “It will be interesting to see how (gold) develops as we move towards the FOMC meeting on Dec. 17.” He predicts that “If we have a more hawkish Fed, more of an adjustment in interest rate expectations, and a still higher dollar,” it will be negative for gold. Given those prospects, a Mining.com report concludes that “the damage may have been greater” for gold and silver on Friday, but argues that both were spared larger losses because they have “run out of big sellers.” And despite Friday’s downturn, silver and gold still ended up 5.5% and 2.1% on the week.

See also:

GoldSeek/SafeHaven: Gold shorting exhaustion; What’s next for the dollar and gold?

GoldMoney: Alasdair Macleod – Commodities & the dollar; The case for silver

Mineweb: Lawrence Williams – Is Indian gold turnaround a game changer for prices?

GoldSeek/Zero Hedge: New signs gold and silver are returning as monetary assets; Voices grow louder to end the U.S. dollar’s reserve status

Bullion Star: Belgium investigating repatriation of gold reserves; World Gold Council rectifies 2013 Chinese gold demand

Bloomberg: China said to consider scaling back restrictions on gold imports; Shanghai gold trade passes record as China seeks more sway

MarketWatch/GoldSeek It’s official – America is now No. 2; But, with an *

Mining.com: The world’s most corrupt countries ranked

Debt Marches On; Can Gold Regain Ground?

Posted by on December 3rd 2014 in General Economy, Gold, India, Middle East, Monetary Policy, Short Sellers, Silver, U.S. Congress, USD, Wall Street | Be the first to comment!

GoldvsDebt

Spot silver held Monday’s gains on Tuesday, ending unchanged, while spot gold fell about 1% as oil took another spill and the U.S. dollar rebounded. Gold and silver futures didn’t fare as well, falling some 1.5%, but with the U.S. Mint posting sales of 139,000 Silver Eagles on Tuesday, the bullion coins are now less than 500,000 away from hitting a new annual sales record.

With the dollar’s strength, gold is losing ground on U.S. debt, as shown in the above chart dating back to 2001.  This as USA Gold notes “that U.S. national debt very quietly surpassed $18 trillion yesterday,” and “the mainstream financial press seems to have ignored the milestone entirely. Has massive debt become so commonplace that nobody even takes note of big-round-numbers ending in twelve-zeros anymore? If that’s true, then there’s nothing to stop governments from running up even bigger burdens. Bigger burdens that will require more currency debasement to carry. All the more reason to get some gold now.”

See also:

Sovereign Man/Reason: Five complete lies about America’s new $18 trillion debt level

Seeking Alpha/MarketWatch: Accumulate gold amid bearish sentiments

SafeHaven/Mike Shedlock: What’s driving gold now?; Huge commodity reversals – Is the bottom in?

Short Side of Long: Currencies & metals overview

KWN/GATA: Tocqueville’s John Hathaway – Banks scrambling to find metal to cover shorts; Monetary metals markets likely reversing, Hinde Capital CEO Davies tell KWN;

Sprott Money/SRSrocco Report: India submits to the free market, fails to suppress gold; Massive Indian silver imports – setting up for another big record year

After Swiss Say Non!, Metals Say Oui!!!

Posted by on December 2nd 2014 in China, General Economy, Gold, India, Monetary Policy, Short Sellers, Silver, USD, Wall Street | 1 comment

MetalsJaSwissGoldNon

After falling off in early trading, spot gold and silver soared to end up 4.2% and 6.9% respectively on Monday, reports Reuters, attributing the gains to “the surging oil market, technical buy signals and potential for increased Indian imports… The rally followed a thinly traded move lower, viewed by traders as overdone, after Switzerland voted on Sunday against a proposal to boost its gold reserves.” MarketWatch adds a dollar retreat and a downgrade in Japan’s sovereign debt rating to the list.

See also:

Jesse’s Café Américain:  Metals bears shocked by unusual intra-day reversal

Zero Hedge/Coin News:  Silver soars 17% from intraday lows; Gold rebounds to 5-week high, bullion Silver Eagles top 42 million

SilverSeek:  2014 Silver Eagle & Silver Maple Leaf sales – Five times larger than 2007

Bloomberg/Smaulgld: Surprise end to India gold controls boosts wedding demand; Is India about to set off another gold bull market?

Avery Goodman:  Swiss gold referendum? No… the big news is that India is back!

GoldSeek/Mineweb: Dramatic increase in gold flows into China; China holds the gold price key

Metals ‘Creep Back’ After ‘Leaky’ Poll

Posted by on November 20th 2014 in CFTC, China, General Economy, Gold, Goldman Sachs, India, JPMorgan, Russia, Short Sellers, Silver, Wall Street | Be the first to comment!

SwissGoldPollDoubt

A poll indicating a drop in support for the “yes” vote in the Swiss gold initiative was initially cited for gold futures falling 1.5% Wednesday morning. But as the above chart shows, investors bought the news and futures ended off only 0.3%, as it was observed that “The clearly leaked results sparked considerable weakness in gold and silver, but once the data was released, markets began to creep back – perhaps questioning the plausibility of such a big swing in such a short amount of time.” And while gold ended slightly down, silver futures added 0.7%.

See also:

SRSrocco Report: U.S. Mint reports on Silver Eagles: Huge demand & weekly rationing

Bullion Star/Peak Prosperity: India precious metals import explodes in October; Eric Sprott – Global gold demand is overwhelming supply

Zero Hedge: How central banks use “gold swaps” to boost their holdings

GoldCore/Sprout Money: Unusual Russian central bank gold buying announcement fuels gold’s rise; Gold Wars – Putin’s mining buddies are stepping up to the plate

NY Times:  U.S. Senate report criticizes Goldman and JPMorgan over their influence in commodities market

ProPublica/NY Sun: Secret tapes hint at turmoil in New York Fed team monitoring JPMorgan; “Too-big” banks – Finally time to break ‘em up?

Wall Street on Parade: Book claims stark parallels between JPMorgan & Gambino crime family

Russia/Ukraine Gold — All In vs. All Gone

Posted by on November 19th 2014 in China, Federal Reserve, General Economy, Gold, India, Interest Rates, Monetary Policy, Russia, Short Sellers, Silver, U.S. Congress, Ukraine, USD, Wall Street, Warren Buffett | Be the first to comment!

Russia:UkraineGold

While Reuters pegs Tuesday’s gains in gold and silver to a falling dollar, a Bloomberg article headlines Russia adding to its gold reserves as a major factor in gold topping $1,200 an ounce on its way to a two-week high. “The fact that Russia is buying more gold instead of diversifying into another currency or buying more dollars is a big positive,” said one trader, in response to a report that Russia has purchased about 150 tonnes of gold so far this year, almost twice its 2013 buy, including 35 tonnes since the end of September.

But in Ukraine, according to a Zero Hedge post, the head of the country’s central bank said during a TV interview that “in the vaults of the central bank there is almost no gold left,” adding that there’s “a small amount of gold bullion left, but it’s just 1% of reserves.” Earlier this year the IMF put Ukraine’s gold holdings at 42.3 tonnes, or 8% of total reserves. Zero Hedge concludes: “now that the disappearance of Ukraine’s gold has been confirmed, perhaps it is time to refresh the “unconfirmed” story that a little after the current Ukraine regime took power the bulk of Ukraine’s gold was taken to the United States.”

See also:

Mineweb/SilverSeek: Gold bounces back above $1,200 – will it jump higher?; Gold and silver supply is very tight

Dan Norcini/Sprout Money: Gold taking cues from forex market movements; When will gold’s fundamentals rise to the surface?

Bloomberg: Gold lending rate most negative since 2001 on longer refining

Acting Man/TradePlacer: Wrinkles of the Swiss gold referendum; Impressions of the latest TV debate

Mauldin Economics/Peak Prosperity/Wolf Street: Correction? What correction?; John Hussman – The stock market is overvalued by 100%; Warren Buffet is dumping stocks out the backdoor

Confounded Interest: Fed’s FOMC speeches become more complex over time as Middle Class feels more abandoned

Rutherford Institute/LA Times: Are ‘We the People’ useful idiots in the digital age?; NSA surveillance bill defeated in Senate

Silver’s Million Ounce Monday

Posted by on November 18th 2014 in CFTC, China, ECB, Euro, General Economy, Gold, India, Monetary Policy, Short Sellers, Silver, USD, Warren Buffett | Be the first to comment!

MillionOunceMonday

Although spot gold and silver ended off 0.1% and 0.7% respectively on Monday, as the dollar rose on news overnight, that Japan fell into a recession, more than a million Silver Eagles were sold on the first day the coins were available since going dark almost two weeks ago. “At 40,393,000 coins sold in 2014 so far,” reports Coin News, “there is now just one stronger year in the Silver Eagle’s 29-year history — 2013 at 42,675,000 coins.”

And an argument that silver is showing “Signs of Life,” suggests that despite the “demoralizing” price action since July, recent technical and fundamental activity “could be screaming at us that this is about to change. Increasing physical demand highlighted by a lack of availability of and rising premiums for silver coins and bars coupled with an extension and overbought condition in the gold-silver ratio is significant. Add to that a pair of bullish key-reversal days on consecutive Fridays validated by the same action in gold.”

See also:

Mineweb:: Elliott Wave analyst sees big gold and silver price surge ahead

Mining.com/Bullion Star: India back to being world’s top gold consumer; Who’s feeding China’s gold hunger?

Jesse’s Café Américain/GATA: How many potential owners per ounce of registered Comex gold?; Four key observations from Deutsche Bank’s report on the Swiss gold initiative

BullionVault: Eurozone’s QE “could include gold bullion” to boost inflation

Zero Hedge: Here is your “global recovery” in 24 charts; Mission accomplished – Stocks and homeless kids hit all-time highs

Reuters/PBS NewsHour: The COLA crunch: Why Social Security isn’t keeping up with seniors’ costs; Laurence Kotlikoff’s Social Security advice archive

Silver Bears Melting Away? Swap Gold for Silver?

Posted by on November 13th 2014 in CFTC, CME Group, General Economy, Gold, India, JPMorgan, Quants, Short Sellers, Silver, Wall Street | 1 comment

SilverBearsMeltingAwayAs it’s argued that the silver bears are running out of steam, or already have, but with the gold/silver ratio still above 74 as of Wednesday, Numismaster‘s Patrick Heller raises the prospect of swapping your gold for silver. He points out that the ratio “has been in the 50s much of the time over the past few years,” and he expects “a long-term equilibrium to hit somewhere around 35:1 to 40:1 between the two metals.” That said, Heller presents a number of well thought-out factors to consider, and comes down on the side of “a definite maybe,” depending on the circumstances of the trade and your current holdings. And he concludes by emphasizing that the swapping question “is different than asking if one should own any precious metals at all. A decision to own physical gold or silver is what I think of as buying insurance against the risk of calamities with paper assets such as stocks, bonds and currencies.”

See also:

SilverSeek: Gold and silver end slightly lower; Gold loses luster as retail investors look to silver

Bloomberg/GATA/Jesse’s Café Américain:  Six banks to pay $4.3 billion in first wave of currency-rigging penalties

Reuters/Arabian Money:  Swiss regulator flags attempt to manipulate bullion benchmarks; UBS fined for silver price manipulation, so this is now a matter of fact not speculation

BullionVault/Bullion DeskGood news for gold bulls from the LBMA’s near bears; Fragmentation of precious metal markets could lead to some headaches

Bloomberg/WSJ:  Swiss franc cap tested as gold bugs push referendum; Swissie close to crunch point in runup to gold referendum

Resource Investor/Mineweb:  India’s gold import bill triples to $3.5 billion in October; Scottia-Mocatta – India gold imports to rise into 2015

Metals Tumble as GOP Wins Boost Dollar

Posted by on November 6th 2014 in CFTC, Federal Reserve, General Economy, Gold, India, Interest Rates, Russia, Short Sellers, Silver, U.S. Congress, USD, Wall Street | Be the first to comment!

GOPdollar

Spot gold and silver ended off 1.8% and 3.6% respectively on Wednesday, reports Reuters, as the U.S. dollar rose, “extending multi-year highs after Republicans in mid-term elections won control over both chambers of the U.S. Congress for the first time since 2006, lifting investor expectations for more pro-business policies.”

While one analyst suggested that “Conservatives by nature are more hawkish and that is pushing the dollar higher. People do not see the need for gold,” another said that “Republicans might be harder on the Fed and loose policy. There’s little reason to hold gold when forward interest rates are going in one direction.”

And in response to a Wall Street Journal article, headlined “Good Morning, Ms. Yellen, Rand Paul on Line One,” USA Gold points out that “Yellen will advocate aggressively for continued Fed ‘independence,’ but I remind you of the recent statement made by former Fed chair Alan Greenspan: “I never said the central bank is independent!

See also:

Reuters/Coin News:  U.S. Mint temporarily sold out of Silver Eagles amid huge demand

GoldCore:  “Global scramble” for silver – coins “hard to get”, “premiums likely to jump”

Zero Hedge:  Paul Singer – Gold, bonds and “maybe history has stopped”; Russian ruble plunges to new record low as central bank hints at gold sales

Forex Live/Bloomberg View:  BOJ Minutes: Will keep easing until 2% inflation stable; William Pesek – Is Bank of Japan’s governor a genius or a madman?

Resource Investor/Market Realist:  Indian gold bullion imports hit 17-month high; Why India’s gold imports are increasing

Mineweb/Reuters/Politico:  U.S. miners may profit from GOP election blow-out; Energy seen getting biggest boost from Republican Senate; Elections give Keystone a filibuster-proof majority

Metals Quiet Ahead of Fed

Posted by on October 28th 2014 in Bart Chilton, CFTC, China, Federal Reserve, General Economy, Gold, Goldman Sachs, India, Interest Rates, Janet Yellen, Monetary Policy, Short Sellers, Silver, USD, Wall Street | Be the first to comment!

MetalsQuietAheadOfFed

Silver and gold futures inched up and down respectively on Monday, with the market said to be in “a wait-and-watch mode” ahead of this week’s FOMC meeting. One reason that gold “came under pressure” on Monday, reports Reuters, was “a sharp pullback in crude oil after Goldman Sachs slashed its price forecasts, citing lackluster global demand.” But it was also “underpinned” by China’s net gold imports from Hong Kong hitting a five-month high in September. This as the Times of India reports that annual Swiss gold exports to India have hit a record high level in advance of Switzerland’s gold referendum on November 30.

See also:

Mining.com/Mining Feeds:  Will the Fed turn off the QE tap?; What will the end of QE mean for the precious metals?”

Motley Fool CA/Market Sanity:  3 reasons why I remain bullish on silver; Rick Rule – Why to love the silver bear market

SafeHaven:  Gold and silver – Respect the trend but prepare for a reversal

Telegraph/BullionVault: BIS warns on ‘violent’ reversal of global markets; Gold as investment insurance

SRSrocco Report:  China- 10,000 tons of gold reserve? Could have been done with ease

Zero Hedge:  How China & gold will shape the future; Caption contest – Bart Chilton salutes you