London gold market quandry

February 5, 2016 at 22:13


There aren’t many places in the UK where you can walk in off the street and buy gold as a retail customer. A new store in London’s St James’s Street a stone’s throw from the Ritz wants shoppers. “There is unquestionably a physical renaissance going on,” says Ross Norman, of Sharps Pixley, flanked by cabinets showing gold roses and gold watches under a large chandelier. “People want the physical [gold], they don’t want the paper. It’s suggestive of an environment where trust is less than it used to be.” Guests drinking champagne at the opening party last week included some of the most influential names in London’s gold market. But while retail demand for gold is surg...

Venezuela pawning more family silver

February 5, 2016 at 21:01


Venezuela's central bank has begun negotiations with Deutsche Bank AG to carry out gold swaps to improve the liquidity of its foreign reserves as it faces heavy debt payments this year, according to two sources familiar with the talks. Low oil prices and a decaying state-led economic model have weakened the OPEC nation's currency reserves and spurred concerns that it could default on bonds as it struggles to pay $9.5 billion in debt service costs this year. Around 64 percent of Venezuela's $15.4 billion in foreign reserves are held in gold bars, which limits President Nicolas Maduro's government's ability to quickly mobilize hard currency for imports or debt service...

Gold to beat stocks?

February 3, 2016 at 16:05


"Stocks beat gold in the long run!" is a 'rallying cry' to buy stocks we have heard lately that gets me riled up. It’s upsetting to me for two reasons: first, an out of context comparison, in my opinion, misguides investors. It might be the wrong assertion in the short to medium term. As background, Wharton School Professor Jeremy Siegel is author of the book Stocks for the Long Run, first published in 1994. I have heard Siegel, who is also the public face of a major ETF sponsor, frequently present the bullish case for stocks. Siegel had yet another bull-speech at a recent conference, in a follow-up discussion on gold that was on the outperformance of stocks versus gol...

Chinese Seen Buying More Gold

February 3, 2016 at 16:00


China’s gold demand will keep expanding as investors seek safe assets and jewelry buying increases, the China Gold Association said. Consumption in the country that vies with India as the world’s biggest user climbed 3.7 percent to 985.9 metric tons in 2015 from a year earlier, according to group data released on Wednesday. Demand rose as prices declined and investors allocated more wealth to the safety of bullion than to other financial assets, according to the association, which represents jewelers, refiners, banks, brokerages and miners. Stock market turmoil, a weakening currency and the lowest global prices in almost six years have helped boost bullion buying in...

Golden origins of the pound in England

February 2, 2016 at 15:01


Speculating on the price of gold bullion is not a new thing – its modern roots can be traced to the European financial panic at the start of the First World War. Before then, gold was used for high value coins and so long as the metal in them was worth less than the face value of each coin nobody was bothered. When German troops marched into Belgium in August 1914 the gold in a British sovereign – with a face value of one pound – was suddenly worth more than three times that as bullion to melt down. Currently a sovereign is worth around £170 to £180 and one dated 1887 in a 9ct gold mount is among lots in the sale on Monday and Tuesday by 1818 Auctioneers at Cro...

Central clearing of LBMA benchmarks best move to increase liquidity

February 2, 2016 at 14:57


To make participation of non-bank entities on the suite of London Bullion Market Association benchmark prices possible, central clearing is needed to allow those without that facility, sources said. There have been some hiccups with the LBMA Silver Price so far this year, which has caused many to question the electronic system's effectiveness. A source said increased participation would be helpful, but also questioned its possibility due to the lack of ability to clear transactions by other counterparties. "Central clearing of the benchmark prices is needed, it has to happen to make these prices work more efficiently," said the source. Sources said that doesn'...

Primary Silver Mining Company To Cut Production 25% In 2016

February 1, 2016 at 10:39


The low price of silver has finally claimed is first victim. Endeavour Silver announced that it will cut silver production by 25% in 2016. The company has three mines working in Mexico and will produce 7.2 million oz (Moz) of silver in 2015. However, Endeavour plans to shut down production of one of their mines by the end of 2016 and put it on care and maintenance. According to Endeavour Silver’s press release: Endeavour’s mine plans for 2016 are focused on minimizing all-in sustaining costs and improving after-tax free cash flow rather than metal output. Silver production is expected to be in the range of 4.9-5.3 million oz, gold production will be in the 47,000...