Diwali lifts gold

October 21, 2014 at 08:44


Even after a two-week rally in bullion, Indian prices remain 7.3 percent lower than a year ago just as sales are set to climb for the festival and wedding season. India is the largest gold buyer after China. The All India Gems & Jewellery Trade Federation said fourth-quarter imports of the metal may jump 75 percent, which Barclays Plc said may support prices. “The appetite for gold among physical buyers in India seems to have increased,” said Howie Lee, an investment analyst in Singapore for Phillip Futures Pte. “India’s attachment to gold is unlikely to break. This tradition has lasted for centuries. It’s a symbol of wealth or a form of investment, and the preciou...

Buy signal? Gold Assets Drop Most in a Year

October 21, 2014 at 08:37


Holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by the metal, shrank by the most in 12 months as investors cut assets even after prices rebounded from the lowest level this year. The assets contracted 1.2 percent to 751.96 metric tons yesterday, the least since November 2008, according to data on the fund’s website. Holdings in the fund, in which billionaire John Paulson is the biggest investor, are 5.8 percent lower this year after shrinking 41 percent in 2013. Gold climbed last week as global equities tumbled and the dollar fell on concern that slowing global growth from Europe to China may prompt the Federal Reserve to delay interest-r...

Indian gold smuggling loses its shine

October 17, 2014 at 13:51


Gold smuggling into India, the world's second-biggest consumer of the precious metal, is becoming more risky for couriers following a surge in seizures and less profitable for the gangs behind the practice. At the same time, a drop in the gap between local and global prices also means there is less profit to be made by smuggling in gold, giving banks more business and higher revenue for a government struggling to rein in a fiscal deficit. "Gold smuggling was highly profitable ... but now with the drop in premiums and tight security, legal imports are increasing," said Milind Lanjewar, additional commissioner of customs intelligence at Mumbai international airport. Seizu...

LME has eye on gold

October 17, 2014 at 13:00


The London Metal Exchange, owned by Hong Kong Exchanges and Clearing Ltd, will take charge of London's platinum and palladium pricing, also known as "fixes", from Dec. 1, replacing a teleconference with an electronic platform. The unexpected move marks a stunning comeback for the LME, which failed to secure administration of the century-old London silver price benchmark - the first to go electronic in a wave of reform for precious metals pricing procedures. It also puts the world's biggest metals marketplace back in contention to take over the much larger gold benchmark. "We built (our electronic platform) primarily to participate platinum and palladium but the gold fi...

Expect big silver price surge if gold stays positive

October 15, 2014 at 09:10


What a difference 10 days makes. A little over a week ago the gold market was all doom and gloom with the yellow metal crashing back below $1200 an ounce. But with a few extraneous geopolitical and global health factors positively impacting the market, and the possibility of a general stock market crash in the minds of investors, gold has seen positive action on the price front in something of a safe haven turnaround. But silver, on the other hand, has hardly moved at all. Historically, silver prices have sharply outperformed gold when precious metals prices are rising, and sharply underperformed when they are falling yet this pattern on the upside has just not yet sta...

Silver price-fixing lawsuits consolidated

October 15, 2014 at 08:59


Litigation alleging that Deutsche Bank AG , Bank of Nova Scotia and HSBC Plc illegally fixed the price of silver has been centralized in Manhattan federal court. Lawsuits filed by investors since July over the alleged price-fixing were consolidated on Tuesday in the U.S. District Court for the Southern District of New York, following an order issued last Thursday by the U.S. Judicial Panel on Multidistrict Litigation, a special body of federal judges that decides when and where to consolidate related lawsuits. The panel ruled that the cases should be handled by U.S. District Judge Valerie Caproni in Manhattan, who is already overseeing similar litigation over alleged go...

Chinese banks like silver

October 14, 2014 at 10:16


Several Chinese banks have expressed interest in participating in the new global price setting mechanism for silver, according to the head of the London Market Bullion Association. The LBMA ushered in a new era of electronic benchmarking for London’s precious metals market in August when an algorithm was used for the first time to set the benchmark price for silver. But so far only five participants have signed up to the new process, with JPMorgan Chase joining on Monday. The LBMA Silver Price replaces a closed teleconference run by member banks that was criticised for being opaque and vulnerable to manipulation. Banks and traders have become wary of committing t...