China gold demand surging - ignore Hong Kong figures

September 30, 2014 at 08:42


Gold followers should ignore the mainstream media reports, based on Hong Kong gold export figures to mainland China, that Chinese gold demand has plummeted by anything between 30% and 50% this year. Hong Kong is now no longer the principal port of entry for gold into the Chinese mainland. When it was still so, gold exports into China were extremely high at the beginning of the year, but since then the Hong Kong figures have tailed off as China effectively opened up gold import routes through other entry points – notably Shanghai and Beijing , resulting in the Hong Kong net gold exports falling back month by month from a peak of 111 tonnes in February to a mere 21 tonne...

Gold price obscures long-term opportunities – Kosowan

September 30, 2014 at 08:36


 Gold’s long-term prospects were positive and current market conditions presented an opportunity to buy into discounted junior mining companies with the potential for impressive returns, Sprott Private Wealth senior investment adviser Michael Kosowan told attendees at the Global Chinese Financial Forum at the weekend. But given current market conditions, the careful assessment of a company’s strengths and weaknesses is critical for success, he cautioned. This includes an in-depth evaluation of management teams and project dynamics. Kosowan considered the yellow metal’s fall over the past three years, charting its decline from highs of around $1 900/oz in 2011, to its cu...

‘Painful period’ for sector could be over

September 29, 2014 at 10:11


When investors think of precious metals it is usually gold that springs to mind, whether it is direct exposure to the commodity or indirect exposure through mining stocks. However, there are other precious metals that investors can be exposed to, which used to more commonly form part of a long-term investment portfolio. Silver, palladium and platinum are perhaps the most well-known of the precious metals. This year has been difficult for gold, so have investors abandoned other precious metals? How have the prices of palladium, platinum and silver fared in 2014? It is fair to say that precious metal prices have been under pressure this year as the dollar strengthens. ...

The world's wealthy are snapping up bullion

September 29, 2014 at 10:03


Gold may be lingering at nine-month lows but demand for the precious metal is growing among the super rich. The world's wealthy are buying record numbers of gold bars, similar to the ones held in reserve banks across the globe and featured in the 1969 British caper film, The Italian Job. But don't expect a convoy of Mini Coopers hauling their precious cargo through sewer drains. This is no heist. According to BullionByPost, sales of the 12.5 kilogram bars – worth about $US537,000 each based on current gold prices - have soared 243 per cent this year. "More and more central banks are starting to print money now as well," he said. "All the reasons are there for p...

Rational look at gold: Time to scale in

September 25, 2014 at 15:47


The fundamentals that drive Gold prices higher are in full force and improving. Central banks are buying more of the precious metal -- to reinforce their reserves -- while countries that are known to be big consumers of gold bullion post increased demand. According to the India Bullion & Jewellers’ Association, India’s monthly gold bullion imports are expected to rise by as much as 50% in the coming few months -- in the range of 70 to 75 tonnes per month compared to an average of 50 to 60 tonnes now.  That is mainly due to the festival/wedding season fast approaching in India. If India continues to import 70 tonnes of gold bullion each month, then the total impo...

More mine closures expected

September 25, 2014 at 15:42


The price of gold, down more than a third in three years, is approaching the tipping point where the mining industry would see a spike in the number of producers reducing output or even shutting down operations. Several mines globally have already suspended output in the past 18 months, but not as many as industry watchers expected as producers focused on slashing costs and reworking mine plans to extract more profitable, higher-grade ounces. But with bullion's slide this week to a nine-month low of $1,208.36 an ounce, those defenses may not be enough. "$1,200 is a critical level. The industry has geared itself around $1,200," said Joseph Foster, portfolio manager at i...

Hulbert index second lowest in history, indicates buy gold

September 24, 2014 at 12:53


  It was two weeks ago when we reported that sentiment analysis, at long last, was on the side of the bulls — at least for a tradeable rally. Yet, far from rallying, bullion today is $18 per ounce lower — a nine-month low — than it was then. Does this mean contrarian analysis was wrong? Have contrarians reconsidered their bullish turn? No is the answer, on both counts. Consider the average recommended gold market exposure level among a subset of short-term gold market timers tracked by the Hulbert Financial Digest (as measured by the Hulbert Gold Newsletter Sentiment Index, or HGNSI). This average currently stands at minus 46.9%, which means ...