Indian Gold bond scheme gets 63,000 applications

November 27, 2015 at 13:35


The gold bond scheme has evoked “excellent response” with the Indian government claiming to have received 63,000 applications for purchase of bonds in the first tranche, a top official has said. “Gold Bond Scheme: 63,000 applications for 917 kg. Gold amounting to Rs 246 crore in first tranche. Excellent response for an innovative product,” Economic Affairs Secretary Shaktikanta Das tweeted. Aimed at providing an alternative to buying physical gold, the government had sold gold bonds through banks and post offices between November 5-20. The allotment will take place on November 30. The gold bond scheme will offer investors an interest rate of 2.75 per cent and a c...

Hedge funds bail on Gold

November 27, 2015 at 13:32


Here's another sign that investors are getting tetchy about the performance of precious metals such as gold and that a short squeeze is around the corner. According to Bank of America Merrill Lynch's weekly flows report, investors yanked $1 billion from precious metals funds in the week to Nov. 25, the chunkiest outflow in 17 weeks. Data this week were based on four days of fund flows as opposed to the normal five due to Thanksgiving holiday, the bank said. Precious metal funds typically focus investments in companies that mine, explore or deal in gold and other metals such as silver and platinum, the prices of which have been under the cosh recently. Gold is cur...

Sell gold because of Draghi? Ridiculous

November 26, 2015 at 13:53


European Central Bank President Mario Draghi has been promising to pursue inflation with a vengeance. He recently vowed to "do what we must to raise inflation as quickly as possible." Draghi's efforts, which have driven down the euro, have somehow been taken by Wall Street as a great opportunity to sell gold. That's ridiculous. Most investors will tell you that the primary driver for the price of gold is the direction of the U.S. Dollar Index (DXY). Therefore, the only due diligence Wall Street recommends regarding the direction of the gold market is to take a perfunctory glance at the DXY, and to hit the sell button on paper gold ETFs if it is up. While it is true ...

Scientists create new form of Gold as light as air

November 26, 2015 at 13:50


The lightest form of gold has been produced by researchers in Switzerland, consisting of 98 percent air, 20-carat gold, and milk protein. While it retains the metallic sheen of its regular form, this new gold aerogel is made almost entirely of air, and it has a range of curious properties that give it potential far beyond the jewellery cabinet. "The so-called aerogel is a thousand times lighter than conventional gold alloys," says materials scientist Raffaele Mezzenga from ETH Zurich. "It is lighter than water and almost as light as air." Mezzenga and his team produced the gold aerogel by making a three-dimentional mesh of gold that’s almost entirely made up of por...

Have Silver Prices Reached a Bottom?

November 25, 2015 at 11:20


There is no doubt that silver has taken cues from the recent free fall in gold prices amid concerns of an interest rate hike by the Fed in their December meeting. A rising interest rate environment lowers the appeal for zero-yielding precious metals like silver. Spot silver prices were recovering for most of October but started dropping from the end of the month following the Fed’s hawkish meeting and stellar jobs report. After enjoying a short-term spike in the wake of the gruesome Paris terror attack last Friday, spot silver prices fell again to its three-month low this week and are currently down more than 9% year to date and below the one-year high by 22%. The...

Why gold may finally be nearing a bottom

November 25, 2015 at 11:15


George Milling-Stanley, head of gold investment strategy at State Street Global Advisors, said gold should find solid support around $1,050 an ounce—the bottom end of its recent trading range. Milling-Stanley offered his thoughts on gold’s trading patterns, the impact of the Paris terror attacks and his outlook for prices. Question: Gold recently settled at a more than 5-year low. Where would you say gold sentiment is right now? Gold sentiment is very mixed right now. ETFs have experienced outflows in 2015, although at nothing like the levels seen in 2012 and 2013. But investor flows into small bars and coins have grown significantly, both world-wide and here in the...

Indian smuggling defies steep drop in gold prices

November 24, 2015 at 11:02


The steep drop in gold price - over the past two years has failed to put brakes on the smuggling of the yellow metal into Hyderabad. The reason - the continuing high margin of profit coupled with increase in quantity of smuggled gold. In 2013, when the gold price in India touched a peak of $1900 per oz, smugglers pocketed a hefty profit. Now, with the price dropping, the earnings of smugglers too have taken a southward turn especially after clearing all `commissions' - to carriers and other associates including government or private employees at airports. While that, on paper, indicates a slump in business, senior cops argue how the money made through gold smuggling...