Burglars dig tunnel to jewellery shop

March 30, 2015 at 13:36


A gang of thieves dug a tunnel to a jewellery shop and decamped with a large quantity of silver articles worth thousands of dollars in the city of Mysuru in the early hours of Sunday. However, the incident only came to light later on Sunday morning. The burglars had targeted the Sri Lakshmi Bankers, a jewellery cum pawn shop, at Yeraganahalli on Mysuru-Bannur Road under Nazarbad Police limits. A hole 2ft wide and 5m long was dug perpendicular to an underground drainage tunnel in front of the shop. Police said the incident happened at around 3am and came to light only when shop owner Jayaram, resident of Yeraganahalli, opened the shop on Sunday morning. According ...

Silver's outperformance versus gold set to continue

March 30, 2015 at 13:28


Gold eased back after a strong run that had seen the spot price rise for seven straight days. Uncertainty over the situation in Yemen, Greece and a rare bout of the wobbles for the dollar spurred the rise, but some profit taking saw spot gold ease US$5 to just under US$1,200. Even so, it was a good week for the metal, but even more so for near neighbour silver. It has risen by 8% in dollar terms in 2015 to date, whereas gold is up barely 1% said Capital Economics. Julian Jessop, Head of Commodities Research, said silver normally does better when prices of both metals are rising, but this time it has also proved more resilient in bouts of weakness. Jessop ha...

Volcker: Gold is the enemy as he doubts Fort Knox gold exists

March 27, 2015 at 06:30


As a chairman of the Federal Reserve in the early ′80s, he was single handedly responsible for quashing stagflation by raising interest rates to an unheard of 20 percent by June 1981. What ensued was an unprecedented economic expansion and bull market in stocks, which was only seriously stopped by the Internet bust in 1999, caused by the lax monetary policy of Volcker’s successor Alan Greenspan. As part of a meeting of the Committee for Monetary Research and Education, Volcker (88) gave rare insights into his story, the working of the Fed, and current financial issues at the University Club in New York. Volcker served under both Democratic and Republican presidents...

HSBC: Gold likes deflation to

March 27, 2015 at 06:22


With the world currently experiencing a slew of deflationary pressures, gold prices have been falling – deflation is classically considered negative for bullion, James Steel said in a note.   But this may not always be the case if pressures intensify – heavy deflation typically forces central banks into introducing new monetary policy measures and/or negative interest rates.   Sweden recently became one of the latest central banks to react to deflation, introducing a -0.25 percent rate and expanding its quantitative easing programme. Switzerland and Denmark also have negative interest rates.   “Deflation, while ostensibly negative for gold...

Short Squeeze? SocGen massively bearish call already underwater

March 26, 2015 at 09:45


Analysts at the French Bank Societe Generale (SocGen) in their latest research report have forecast that the gold price, having given away all its early year gains, is headed sharply lower, as it saw the dollar continue its gain in strength. They thus expected the bear market in gold to continue further and saw the price as falling to average only $925 an ounce between 2016 and 2019. The timing of this report is unfortunate in that the forecast for a virtually immediate downturn in gold, together with dollar strength, has seen the reverse occur. Gold bulls will be fervently hoping that the bank’s analysts are equally incorrect in their forecast of gold’s longer-term prosp...

China to relax gold imports rules

March 26, 2015 at 09:36


China’s move to allow more companies to import gold into the country from next month will likely bring down the premium over international prices that domestic buyers there have traditionally paid, Albert Cheng, managing director of World Gold Council’s Far East office said Thursday. China currently allows only 15 banks to import gold, but effective from April 1 domestic miners that have assets overseas will be allowed to bring the precious metal directly into the country. “There will be more competition and that will drive down premiums,” Mr. Cheng said in an interview. Though China’s central bank has announced the rule changes, final guidelines are likely to be...

China should boost gold reserves to 5% says WGC

March 26, 2015 at 09:32


China should increase its gold holdings to around 5 per cent of its total foreign exchange reserves to help diversify currency risks, the World Gold Council (WGC) said. China currently holds about 1.6 per cent of its foreign exchange reserves in gold, which is relatively low compared with developed countries and some developing countries, WGC China managing director Roland Wang said. "The ideal amount should be at least 5 per cent of its total forex reserves," Wang told Reuters in an interview in Hong Kong. China last raised its gold holdings in April 2009, when reserves rose to 33,890,000 troy ounces (about 1,054 tonnes), from 19,290,000 troy ounces, according t...