Although the idea of Classical money — in practice, a gold-based currency — is not popular today in the U.S., it actually has quite a lot of support elsewhere. Both China and Russia are clearly making moves in that direction, even if perhaps in the form of contingency plans should the present dollar-based system become unusable.
However, this trend has been handicapped to some degree by the notion that enormous amounts of gold bullion need to be accumulated in vaults before any new currencies are introduced.
There are two basic reasons for this idea. The first is that this was the way it worked during the last incarnation of the world gold monetary system, the Brett...
Gold investors look set for a bumpy ride during the next year because of the “distinct possibility” of prices falling 15 per cent, before surging by a larger amount and then tailing off again, according to a new report.
Thomson Reuters GFMS, a consultancy that publishes an influential annual gold survey, forecast this week that the average 2014 price would be $1,225 an ounce. That is 6 per cent below Thursday’s price of $1,300, and 13 per cent down on the 2013 average of $1,410.
Prices tumbled by more than a quarter last year as the 12-year bull run in gold came to an end. The fall was started by western investors in gold-backed exchange traded funds, who liquidated 8...
Whichever route private investors chose to get exposure to the precious metal, the past three years have not been an easy rise for gold fans.
Both the bullion price and shares in gold mining companies have fallen significantly. Those who put their faith in a fund manager who specialises in both have racked up huge paper losses.
There are seven gold funds available to British investors, and on average they have lost 68pc over the past three years. An investor who ploughed £10,000 into one of these funds three years ago will today find that their investment has shrunk to just £3,200.
Three year performance - April 2011 to April 2014
You could call him the man with a golden gut. Doctors operating on this 63-year-old businessman literally hit a goldmine, finding as many as 12 gold biscuits weighing a total of 396 grams inside his abdomen.
The Chandni Chowk businessman had come to the private city hospital seeking surgery to remove a "foreign metal". His family claimed he had swallowed a water bottle cap in anger.
The truth turned out to be a little more bizarre. The man had swallowed the gold biscuits, each weighing 33g, to smuggle them into the country from Singapore 10 days ago. This would be worth Rs 12 lakh in all. He even managed to elude security checks at airports.
The plan, however, go...
China’s gold-loving grannies bought enough gold last year to see them through this year, and perhaps longer. Despite prices lower than this time a year ago, when the gold rush in the world’s second-largest economy began, demand is likely to remain level this year, the first time it has not increased since 2002.
“We expect 2014 to be a year of consolidation,” a report from the World Gold Council, the trade group, said Tuesday. “The sudden price drop in 2013 meant some Chinese consumers brought forward jewelry and bar purchases, which may limit growth in demand in 2014.”
Gold prices around the globe dropped suddenly last April. In China, it plunged more than 14 percen...
Gold prices are likely to keep falling through 2015 after a second annual decline this year as US monetary policy normalises and investors switch to higher-yielding assets, the GFMS team at Thomson Reuters said in a report on Thursday.
Physical demand, which hit record levels last year after prices plummeted in the second quarter, is expected to remain firm but will not be enough to offset a continued decline in Western investment, GFMS said in its 2014 Gold Report.
Prices are expected to average $1,225 an ounce this year, down from an average $1,410 in 2013, the first year in which prices had declined in over a decade. They may fall as low as $1,100 in 2014 if gold...
India, the world’s second-largest gold consumer, will probably keep restrictions on imports to control the current account deficit and defend the rupee, said the managing director of the country’s biggest refiner.
The limits would result in shipments of 650 metric tons to 700 tons in the 12 months started April 1 from 650 tons a year earlier, according to Rajesh Khosla at MMTC-PAMP India Pvt. Purchases were 845 tons in 2012-2013, the finance ministry says. While the form of restrictions may change, the government will continue to restrain buying, he said in an interview.
India represented about 25 percent of global demand in 2013, the World Gold Council says. Prime ...