China brings forward gold launch

September 16, 2014 at 08:59


China will launch its international gold exchange 11 days ahead of schedule, sources said on Tuesday, racing ahead in the scramble to set up an Asian bullion benchmark as rival Singapore is forced to delay its gold contract due to technical issues. Asia, home to the world's top two gold buyers - China and India, has been clamouring to gain pricing power over the metal and challenge the dominance of London and New York in trading. The state-run Shanghai Gold Exchange (SGE) will launch the global gold bourse in the Shanghai free-trade zone on Thursday, two sources familiar with the matter told Reuters. The SGE had initially planned the launch for Sept. 29. The change was...

China adds to reserves

September 16, 2014 at 08:58


China may join other emerging countries in boosting gold reserves as the precious metal makes up a smaller share of its foreign-exchange holdings compared with developed economies, said a London-based researcher. The country hasn’t announced any changes to state gold reserves since authorities in 2009 said holdings totaled 1,054.1 metric tons. While China holds the world’s biggest foreign-exchange reserves, bullion accounts for 1.1 percent of the total, compared with about 70 percent for the U.S. and Germany, the biggest gold holders, World Gold Council data show. “It is clear that western central banks over time will be reducing their reserves and China and other A...

Zimbabwe cuts tax to boost gold production

September 16, 2014 at 08:45


Zimbabwe will cut the royalty imposed on gold producers to 5 percent from 7 percent to boost production because companies are struggling with low prices, the government said. "International prices of precious metals, in particular, gold, remain subdued, thereby threatening the viability of most of the mining houses," Finance Minister Patrick Chinamasa said in a statement. "I, therefore, propose to review downwards, royalty on gold produced by primary producers from 7 percent to 5 percent. These measures take effect from 1 October 2014." Zimbabwe's gold production fell 26 percent to six tonnes during the January-July period this year, according to official data...

Third of gold mines losing money at current prices

September 15, 2014 at 11:21


The gold industry, recovering from the worst slump in prices in 30 years, needs more mergers to help improve investor returns and eliminate unprofitable mines, Fidelity Investments said. About a third of gold production is probably money-losing when the price of the metal is lower than $1,250 an ounce, said Joe Wickwire, who manages more than $1.8 billion of assets including the Fidelity Select Gold Portfolio. (FSAGX) With gold trading at about $1,230, it “might not be a bad thing” if the number of producers was reduced by a third. “It’s part of the life cycle of industries that every so often you need to have a cleansing of that which is not working,” Wickwire said in ...

Who is doing the selling of gold & silver?

September 15, 2014 at 11:05


When back in 1851 Stephen Foster penned into the song "The Old Folks at Home" the lyric "Way down upon the Swanee River", ' its doubtful he was clairvoyantly discerning the disturbing market event of some 157 years hence in 2008, (especially given the correct spelling for the Floridian river is "Suwannee"). However, the infamy of such event is that, save for the dollar everything went down. We hasten to point this out, as it is not just gold that's back on the skids of late, for rather once again, save for the Dollar, everything is down. The only missing elements this time 'round are the ferocious velocity and range by which markets were beaten down some six years ago....

Indian traders sit & wait in the short term

September 12, 2014 at 08:51


Domestic gold buyers may be missing out on softening prices of the metal in the international market thanks to a weaker rupee but punters are still mounting bearish bets on the metal in the local commodity bourse to gain from the downside.Gold and silver futures contracts on the MCX witnessed a sharp jump in bearish bets as the yellow metal in the overseas market, which local markets track, fell to a near nine-month low and silver plunged to a 15-month low. However, unlike in the overseas market, both MCX gold and silver futures traded above their lows because of a weaker rupee.Overseas spot gold made a nine-month low and silver dipped to a 15-month low on expectations of...

September is the time to buy gold, history suggests

September 12, 2014 at 08:14


For those who like to follow investment trends there is a new one that is growing in popularity – buying gold in September. Over the past 20 years, as the chart below shows, the gold price tends to shine in September. On average bullion has delivered returns of over 3pc, which is by far the best performing month for the precious metal. Fans say there is a good reason for the trend - September marks the start of India’s gold gifting season. During September a huge amount of gold jewellery is bought by Indians as gifts for family members during the Diwali festival. India is the second biggest buyer of gold, behind China, so when India...