3 Catalysts for a Silver Price Rebound

August 22, 2014 at 07:40


According to Andrew Chanin, co-founder of the PureFunds ISE Junior Silver ETF, while the quarter’s key event was the news that the London Silver Fix would be replaced in August, there are other considerations. Here’s what he had to say. We last spoke with Chanin not long after the end of Q1, at which time he commented that “Q1 showed a very strong reversal in mining stocks from the trend we saw last year,” when precious metals “were one of the most punished sectors.” When asked if mining stocks continued to perform well in 2014′s second quarter, Chanin said that though “we started to see a little bit of a sell off again” in March, “as we approached June, we began to...

3 Reasons why gold is set to rally

August 22, 2014 at 07:30


In recent months there has been renewed investor interest in gold, with the first half of 2014 seeing the gold price rise by 10 per cent.Investors have also tempered their gold ETF selling year on year. Last year saw global gold ETF holdings decline by 33 per cent as investors priced in tapering of QE and higher interest rates, but this year has seen a change in sentiment as year-to-date ETF holdings have only declined by 1.8 per cent.Performance of indices in the first half of 2014  Source: FE AnalyticsWe believe that three primary factors are likely to generate further interest in gold from investors, and subsequently gold ETF inflows, driving the gold price higher: 1....

Coeur Mining at the Heart of the New LBMA Silver Price

August 21, 2014 at 07:17


Couer Mining is the largest US-based primary silver producer and a growing producer of gold, as well, with mines from Alaska to Bolivia. When it came time to replace the 100+year old London silver fix over the last year, Coeur Mining was actively involved in the industry conversation. The LBMA took the lead on the consultation process that would eventually replace the silver fix. “Since the LBMA mainly includes banks and some refiners, we felt strongly that we needed to be as vocal as  possible, as a producer and miner, to make sure our needs were met,” said Courtney Lynn, treasurer of Coeur, who personally participated in the discussions that led the LBMA to pick the CM...

Russia to Become World’s Second-largest Gold Producer

August 20, 2014 at 07:19


Russia's gold producers' lobby has upgraded its 2014 output forecast to 275 tonnes after the industry boosted production by 26.6 percent in the first half of the year, the Gold Industrialists' Union said. That would put it ahead of last year's production figure from number two gold producer Australia, which mined 266.1 tonnes of the metal in 2013, and place it second only to China in terms of primary output of the metal. Global gold prices fell 28 percent in 2013 and are currently up about 9 percent since the start of 2014. "They are increasing production to compensate for a gold price decline," lobby head Sergei Kashuba said. Previously, it expected Russian gold outpu...

Gold's fundamentals look very much like 15 years ago

August 20, 2014 at 07:18


Tocqueville Asset Management sees gold’s fundamentals very much like what it was fifteen years before. According to John Hatahaway and Douglas B. Groh, the gold’s set up is very much similar to what was experienced in 1999. During that time, gold was at the end of a 20-year bear market. Today, the huge drop in gold prices from a high of $1900 per ounce to less than $1200 per ounce in a short span of 2.5 years makes it a similar case, they observed. According to them, geopolitical issues away from the headlines influence the demand for gold. Europeans are probably more conscious of gold today than they might have been six months ago. People want to get their wealth in a s...

China Grants Gold Import Licences to Three More Banks

August 20, 2014 at 07:11


Three more banks have been permitted to import gold to China, as the country's redoubles its efforts to attain pricing power of the commodity. The news, comes as Shanghai's international bullion exchange is on the verge of launching – a flagship initiative in China's attempts to wrest gold pricing power away from London. Currently, the setting of the gold benchmark is determined twice daily on the London bullion market by Barclays, HSBC, ScotiaMocatta (the bullion banking division of Scotiabank), and Société Générale. China – along with Singapore – has been looking for ways to muscle in on the so-called 'gold fix'. Opening the import market to three additional banks – ...

Oklahoma Moves Towards the Gold Standard

August 19, 2014 at 07:35


There is strong opposition to any proposal to end the Federal Reserve and move away from its paper dollar. The Fed has many ideological and, of course, crony supporters. So it’s interesting that there was little controversy in Oklahoma around removing one of the obstacles to the use of gold as money. Republican Mary Fallin, the governor of the Sooner State, signed into law legislation that recognizes gold and silver as money. There was bipartisan support, particularly in the state Senate. Oklahoma doesn’t force anyone to accept gold or silver in payment. It simply exempts them from state sales tax. While sales tax on the metals was probably a minimal source of revenue ...