U.S. gold ETF delivers first physical bullion coins

July 24, 2014 at 12:09


Merk Gold Trust, a bullion-backed exchange-traded fund which allows its shares to be redeemed for physical gold, said on Wednesday it has made its first delivery in dozens of U.S. gold coins to an investor. The ETF, launched by Palo Alto, California-based Merk Funds in May to offer a liquid trading product with the benefits of physical gold bullion, has accumulated 40,000 ounces in two months even in a bearish gold market. The fund, trading on the NYSE Arca platform with the ticker OUNZ, owns less than 1 percent of gold held by SPDR Gold Shares , the world's biggest gold ETF. However, many participants are warming to the idea that the product could bridge the gap betwee...

Silver eyed on soaring speculative sentiment

July 24, 2014 at 12:02


The 15% rise in silver from its 14-month lows reached in end of May has been attributed to  inflationary worries over the latest US reports (CPI & PCE) as well as classic short covering of a consolidation period that lasted far too long. There are also the usual chatter about the planned de-dollarization from Russia’s Putin and the creation of the new BRICS Development Bank with $100 bln in seed money.  China’s internationalisation of its currency may not be a direct threat to the US dollar, but its operation of 20 different currency swap centers in Western Europe and Asia may not be ignored in the long run. Yet, these are all speculative and long term issues. ...

A Chinese Gold Standard?

July 24, 2014 at 11:56


While the 70th anniversary of D-Day last month received a lot of attention, another event, in July 1944 — the Bretton Woods conference, named for the mountain resort in New Hampshire where it was held — was perhaps even more significant in shaping the modern world. It not only led to the creation of what are now the International Monetary Fund and the World Bank, but it also confirmed the central position of the United States dollar in the international monetary system. Why does this matter for us now? Just as America displaced Britain as the world’s pre-eminent economic power in the interwar period, so, too, the large debts and fiscal pressures confronting the West, and...

2 companies for the silver rally

July 23, 2014 at 10:11


Silver may mean second place when it comes to the Olympics, but that doesn’t mean it should take a back seat in your portfolio. When you think of silver you might automatically picture jewelry, coins, or the fancy cutlery you only use when you need to impress someone. Yet much like gold, silver has more uses than you would think. Silver actually has the highest electrical conductivity of any element, making it very attractive for many of today’s high-end consumer and industrial electronics. It has the highest thermal conductivity of any metal. Silver is also used as a catalyst in several types of chemical reactions, and as part of an alloy to make regulating control rods...

Silver fix helped suppress price

July 23, 2014 at 10:08


The best part of the London Silver Price Fixing is that it will soon disappear, a researcher at the University of Western Australia and a subject matter expert has said. Andrew Caminschi is the author of a newly published report that looks at the silver market and the daily price fixing process. Caminschi analyzed 14 years of silver market data and said his research shows the fix creates “statistically lower prices.” “This study finds a 10-12 (basis point) downward bias in the intraday price of silver around the time of the fixing. This represents three times the average daily return on silver over the same period,” Caminschi wrote in his paper as one of his five key fi...

Bet Like George Soros and Cash in on a Silver Rally

July 22, 2014 at 12:57


There are growing signs that now is the time for investors to take the plunge and make a bet on silver. Already the top end of town is making some big bets on silver with Wall Street investment managers and institutional investors leading the charge. Billionaire investor George Soros has already made some big bets on precious metals and silver miners in particular. He invested $9.4 million in precious metals streamer Silver Wheaton (TSX: SLW)(NYSE: SLW) and $10.7 million on miner Pan American Silver(TSX: PAA)(Nasdaq: PAAS). Why will silver rally? A range of indicators are pointing out that silver is undervalued particularly in comparison to gold, which has rallied this...

Worst for gold may be over: Bank of America Merrill Lynch

July 22, 2014 at 12:54


On the heels of a 2.1% loss for gold last week and news that hedge funds have gone way short, gold bugs could perhaps use some cheer. Enter analysts at Bank of America Merrill Lynch who say the worst days for the precious metal may be over. In a note to clients, metals strategist Michael Widmer notes how gold prices have stabilized this year thanks to steady physical demand from emerging markets — China and India absorbing mine and scrap supply — which has helped compensate for investor selling. In the future, he says, that balance will sway in gold’s favor: “We believe that physical demand from emerging markets will gain further clout in the medium term as countrie...