Tag - Gold

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Tuesday, October 17 2017

Chartbook “In Gold we Trust 2017“

We are pleased to announce that our new chartbook "In Gold We Trust 2017" has been published. It contains the most exciting charts from this year's "In Gold We Trust Report" in an updated form.

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Saturday, October 14 2017

The psychology of gold and why it has that allure

Humans' fascination with gold is as old as time itself. The scarce material has a certain appeal to it.

Empires have flourished by possessing gold, wars have been fought to control regions harboring rich deposits of the metal and treasure hunters and explorers have spent a lifetime in search of it.

But were they fascinated by the metal or its color? The two can be hard to distinguish, said Peter Oakley from the Royal College of Arts in the UK. There is crossover between gold as a material and gold as a color, he said.

"The two feed off each other. The idea of gold as a color is intimately connected with our idea of gold as a material," he explained. So, when we think of it as a color, we unconsciously relate to the precious metal -- which in turn conjures images of wealth and success.

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Wednesday, October 11 2017

Is Gold Really a Good Hedge?

Given the solid performance of a portfolio including gold and the chance that the comfort of owning some might prevent investors from panicking at the height of a crisis, I have to conclude that the notion of gold as a hedge against serious risk aversion is true.

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Sunday, October 8 2017

Gold Can Help India Set Global Agenda On Monetary Policy

Gold could well be on the cusp of a historic move — not merely from a price action standpoint — but from the perspective of how global monetary policy is conducted.

Gold is money and currencies have to be backed to anywhere between 40 to 100 per cent by gold for them to have legitimacy as legal tender in the free market.

The one complicating factor would be the unfunded liabilities of all major governments that could dwarf the existing currency in circulation by a factor of 10 or more (US unfunded liabilities, according to academic Lawrence Kotlikoff, could be higher than $250 trillion).

Ignoring all of those complexities, the math after making reasonable assumptions for the reserves of the Western central banks would lead to a five-figure price for gold (in $/ounce) where the first digit need not necessarily be 1.

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Saturday, October 7 2017

The Gold Worm on the Yuan Hook

Once the oil exporters accept the deal, they will all be permanently caught. The price of gold will begin to rise, and rise and rise as more and more oil income is exchanged for gold. Thus, the gold income received from prior oil sales will become much more valueable for the oil exporters. I do not see the price of oil going up in terms of yuan. The first sellers of oil to China in exchange for yuan, and then exchangeable for gold, will get a lot of gold for their oil. As the scheme progresses, the oil exporters will get progressively smaller amounts of gold for their oil.

As gold commences a historic rise, the dollar will suffer a historic decline in acceptability, because higher gold means a lower dollar – more dollars will be needed to purchase gold.

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Thursday, October 5 2017

German investment market

Germany’s gold investment market has boomed in the past 10 years. In the face of successive financial crises and loose monetary policy, German investors turned to gold to protect their wealth. In response, new product providers entered the market making it easier for people to invest. Last year, more than €6bn was ploughed into gold investment products in Germany and, encouragingly, there is room for further growth: consumer research indicates there is latent retail demand which the industry can tap into.

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Gold is up this year not just in dollars but in every major currency

As long as the low interest rate environment and concerns about overvaluation in the stock and bond markets persist, asset managers and investors are likely to continue shifting resources to underpriced gold (and silver). Given forward guidance provided by the central banks, it appears those policies and concerns will be with us for years to come.

Thus far, gold's performance against major currencies has flown under the radar in financial circles and outside the notice of the mainstream media. That is not likely to remain the case for long.

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Monday, September 25 2017

Key gold market statistics

Gold returns are competitive compared to major financial assets

Gold has been inversely correlated to stocks and positively correlated to high quality bond performance so far this year

Gold performance should be measured in more than one currency

Gold trades more than many other major financial assets

Financial gold accounts for more than a third of above ground gold stocks

The size of financial physical gold is larger than many stock and bond markets

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Friday, September 22 2017

Marcos gold bars: Fact or fiction?

By the late industrialist Enrique Zobel’s recollections, former strongman Ferdinand Marcos left behind his widow, Imelda, and three children with a cache of gold bars that in 1989 was worth at least $35 billion.

Zobel said Marcos, then weak and ailing, showed him original certificates of the gold bars worth $35 billion, then based on the prevailing price of $400 per ounce,

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Metals Margins - CME Group

Gold margins are bumped up by 8.9% from 4500 to 4900

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Wednesday, September 20 2017

It's the Debt Stupid!

Amid such fervor for U.S. financial assets, gold’s solid year-to-date gains have been somewhat counter-intuitive. After trading in a tight $100-range for seven months, spot gold broke upwards through resistance at $1,300 in late August and touched an intraday high of $1,357.64 on 9/8/17 (up 17.8% year-to-date). Most investors are unaware that gold’s performance during this span exceeded the total-return of the S&P 500 (+11.51%) by some 55%! Conventional wisdom attributes gold’s recent strength to North Korean provocation and Mother Nature’s wrath, but this narrative ignores the fact that gold broke through $1,300 (on its third attempt in five months) before Chairman Kim’s 8/28 Hokkaido missile launch. We believe gold’s unheralded price-performance in 2017 carries an important signal for investors. Much to the Fed’s chagrin, economic and financial imbalances are bubbling to the surface (once again), placing consensus expectations for further FOMC tightening in jeopardy.

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Gold Investor

London has a long and rich history within the global gold market. Home to a number of world-renowned gold market institutions, London sets a global price benchmark and is the international centre for over-the-counter (OTC) trading. The market is deep, broad, highly liquid and strategically positioned between global time zones. London vaults also house more than 7000 tonnes of gold, second only to Fort Knox.

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Tuesday, September 19 2017

Treasury sets eye on 2,200 tons of gold ‘kept under mattresses’

The Turkish Treasury will issue two types of bonds to attract 2,200 tons of gold stashed under mattresses into the economy, which has a market value of around 300 billion Turkish Liras, Deputy Prime Minister Mehmet Şimşek has said.

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Sunday, September 3 2017

China sees new world order with oil benchmark backed by gold

China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into gold in what analysts say could be a game-changer for the industry.

The contract could become the most important Asia-based crude oil benchmark, given that China is the world's biggest oil importer. Crude oil is usually priced in relation to Brent or West Texas Intermediate futures, both denominated in U.S. dollars.

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Friday, August 25 2017

Precious Metals Drivers

The World Gold Council (WGC) published data on supply and demand in 2Q and 1H 2017. The WGC reported Q2 gold demand of 953.4t was 10% lower than 2016, while 1H demand slowed 13% to 2,026.1t. Year-on-year comparisons were affected by record ETF inflows in 2016: demand from this sector slowed dramatically after last year’s 1H surge. Central bank net purchases of 176.7t were also slightly lower in 1H 2017 (-3%). By contrast, bar and coin investment improved, as did jewellery demand, although the latter remains weak in a long-term context. Total gold supply declined 10% yoy in 1H: mine production was steady while recycling levels continued to drop back after the 2016 surge.

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Thursday, August 17 2017

Brien Lundin: If They Don't Want You To Own It, You Probably Should

We're living through the most extraordinary period of monetary printing in all of human history. It’s as widespread as it is delusional.

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Monday, August 14 2017

Collecting metal: the inner and outer worlds of jewelry, coins, bullion bits, and odd shiny things

Our two stars, fortuitously set into collision course by two separate supernovae, approached each other and then, captured by each others’ gravity, entered a death spiral. They collided in an unimaginable explosion, unleashing a power density far greater than that of a mere supernova and trillions of times greater than if a mere mountain-sized asteroid had hit the earth. The collision was so intense that it created a black hole and a burst of extremely high energy light called gamma rays. Escaping the black hole along with the gamma rays was a spray of new, heavier metals, including gold. This gold-rich cloud in part expanded and in part coalesced, participating in the subsequent formation of new solar systems, including our own. Due to this collision of rare intensity, our unusual solar system was seeded with astronomically rare heavy metals such as gold along with the more common supernova products such as copper and silver

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Saturday, August 12 2017

BullionStar Presentation on Real Vision TV - Bullion Banking, ETFs & Physical Gold

The video presentation, which was filmed in London in June 2017, covers the fractional-reserve world of bullion bank trading in the London Gold Market, and also some concerns and risks of gold-backed Exchange Traded Funds. It then wraps up by discussing the benefits and attractions of physical gold ownership in light of the dangers and risks of today’s synthetic gold trading market.

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Sunday, August 6 2017

How Many Gold Bars Do London Vaults Hold

Courtesy of UBS, below we present extended observations on what the LBMA data reveal, and the implications for the broader gold market in general, as well as investing in the precious metal in particular.

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Thursday, August 3 2017

Gold Demand Trends Q2 2017

Q2 gold demand of 953.4t was 10% lower than 2016, while H1 demand slowed 14% to 2,003.8t. Y-o-y comparisons are affected by record ETF inflows in 2016: demand from this sector slowed dramatically after last year’s H1 surge. Central bank net purchases of 176.7t were also slightly lower in the first half (-3%). By contrast, bar and coin investment improved, as did jewellery demand, although the latter remains weak in a long-term context. Technology demand also made modest gains.

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