TruthInGold''Dollar is not your friend''

Demand for silver jewellery and coins has dropped by almost 40% in the last month even though prices have fallen. The metal has also lost its flavour as an investment product and the trade says this bearish trend will not be over soon. Suresh Hundia, a Mumbai-based bullion dealer said: "There is no demand for silver in the market now. The industry can expect some demand only in August. There is a huge stock of silver with traders now. They will first have to offload this and then place fresh orders." Investors who bought the metal when it soared to 60,000 - 70,000 per kg are waiting to offload it if prices go up although analysts say there is no positive trigger in ...

How high can the price of gold go? Former Congressman and presidential candidate Ron Paul thinks it could go to infinity. Appearing on CNBC's "Futures Now," Paul explained that "excessive spending and excessive computerized money" is driving down the dollar, and in turn raising the price of gold. "Eventually, if we're not careful, it will go to infinity, because the dollar will collapse totally," Paul said. So how could gold actually be worth infinity? Paul explained that if the dollar collapses, and he fears it might, no amount of dollars could purchase any amount of gold, making gold essentially worth infinity — at least in terms of dollars. Considering h...

India the world’s biggest consumer of gold, could implement more measures to curb imports, a top economic official said as the country seeks to narrow a record current-account deficit and check the currency’s drop. “We are not at the end of our wits as far as gold imports are concerned,” Economic Affairs Secretary Arvind Mayaram said in an interview yesterday. “If required, there are other measures that can be taken and they will be considered at the appropriate time.” India this month increased a tax on gold imports as it tries to curb demand for the metal that’s contributed to the current-account gap and hurt the currency. The rupee dropped the most in a week yest...

Gold has emerged largely unscathed from the sharp selloff that's gripped markets in recent weeks, helped by a combination of factors from physical demand from the world's largest consumers India and China, to a slowdown in selling by investors, analysts say. While almost every other asset class from currencies to equities and bonds succumbed to the market rout that started in late May, bullion has managed to stay in a trading range of $1380-$1410. "Selling abated a little as the opportunity cost decreased. Both the Dow and Nikkei started to give up their gains, so there was less need to sell gold in order to buy equities," said Warren Gilman, chairman & CEO of i...

Silver prices are trading on the defensive despite declines in the dollar which  generally make commodity prices more attractive. With the world bank cutting its  long term growth prospects for global growth, precious metals such as silver are  feeling the brunt of lackluster economic growth. On Thursday, the World Bank reduced its global growth forecast for this year to  2.2%, down from its original forecast released in January of 2.4%. The Bank  reduced its forecast for Emergin Market growth, and sees the euro zone shrinking  0.6%. For the US and Japan, the World Bank increased its forecasts which was  helped by fiscal and monetary stimulus. The World Bank also reduc...

Huaan Asset Management Co. aims to attract as much as $400 million in initial funding for one of China’s first two gold exchange-traded funds as a drop in prices attracts buyers in the second-biggest consumer of bullion. The product, to be listed on the Shanghai Stock Exchange, will track the performance of spot contracts on the city’s gold bourse, Xu Yiyi, the fund manager who will run the ETF, said in a telephone interview. Shanghai-based Huaan has yet to set a date to market the fund to investors, he said. Gold sank into a bear market in April, after rallying for 12 years, amid bets the Federal Reserve may taper stimulus. While the rout hurt investors including h...

Australia’s gold production fell by some 5% during the three months to March, compared with the quarter ended December, to reach some 63.5 t, or around two-million ounces. In its latest gold survey, mining consultancy Surbiton Associates noted that despite the quarter-on-quarter production decline, the March quarter’s production figures were still slightly higher than the previous corresponding period. “It is the same old story for the March quarter. It’s the shortest quarter of the year and also covers the Christmas/New Year holiday period. In addition, there was the usual dislocation due to wet weather from the summer cyclones,” said Surbiton director Dr Sandra Cl...