A Silver Lining for Gold: A Triple-Bottom on its Chart

October 1, 2014 at 08:07


Now that gold is testing its key $1,200 support level again, it begs two very obvious questions… First, why has gold fallen so hard when there’s still so much economic, political and military chaos sweeping the globe? And second, has gold finally surrendered its role as the money of last resort in today’s modern world of paper money? Let’s Start with What Drove Gold To New Highs in the First Place … Gold’s ascent to $1,900 an ounce began with the 9/11 attacks 13 years ago, and was fanned by all the military conflicts that followed. The costs, risks and danger of waging these wars provided enough paranoia to keep gold steadily rising. Next came the econom...

Gold production: Too much of a good thing?

October 1, 2014 at 07:56


Russia is the world’s third-largest gold-producing country. Over much of the past decade, the rising price of gold made it a safe haven for investors put off by the volatility of stock markets. But in 2013, gold prices began to fall, and many market forecasters today think this trend is set to continue – due in part to a glut of gold on the market. Russian gold producers remain undeterred. By the end of 2013, for the first time in 25 years, Russia surpassed the U.S. in the total output of mined gold, reaching third place among gold-producing countries. Gold mining in Russia has been growing rapidly in recent years. According to the Federal State Statistics Service...

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...