Commodity Trade Mantra

Posts Tagged ‘Gold Bars’

Gold Jewelry Buying Expected to be Exceptionally Strong

Plentiful monsoon rains in India tend to drive up demand for gold & gold jewelry among rural, income-flush farmers, who make up a third of the country’s consumption of the yellow metal. Gold jewelry sales in India are expected to surge as much as 60% over last year, during this year’s festival season thanks to the fortuitously timed sharp drop in gold prices.

Deutsche Bank Refuses Delivery Of Physical Gold Upon Demand

What was supposedly an ETC which promised physical delivery upon demand, is nothing more than yet another “paper only” play. Is the inability to deliver physical gold an incipient issue with Xetra-Gold, or Deutsche Bank, and if the latter is suddenly unable to satisfy even the smallest of delivery requests by retail clients, just how unprecedented is the global physical gold shortage?

The Significance of the Massive Change in the Gold Market

The significance of the change in the gold market can be better seen by the average annual increase in total gold holdings during the 2009-2012 period which was 15 Moz compared to 25 Moz for the first half of 2016. If demand for gold continues as strong in the second part of the year, we could see upwards of 50 Moz move into these total gold holdings versus 45 Moz for the 2009-2012 period.

Alarming Evidence of Gold Supply Tightness, Chinese Hoarding

China and Russia are acquiring thousands of tons of gold. The Chinese have a huge pile of U.S. Treasury Securities of about $3.2 trillion. They can’t dump the treasuries, but they are worried about inflation destroying the value of the treasuries. So what the Chinese are doing instead is, they’re acquiring gold as a hedge. Where they lose on paper, they make it up on gold.

Who Says You Can't Pay Your Debts with Gold?

The Swiss Federal Customs Administration, reflected that $1.3 billion worth of gold bars were received, believed to be payment on two big bond payments due this month. With a loss of revenue from the drop in the price of oil, Venezuela may have to default on future bond payments. I wonder how the anti-gold crowd will spin this story that gold was used as a payment on debt?

Gold Might Be Down, But Here’s Why You Shouldn’t Frown!

Gold prices are down & we must live with the general price decline over the past few years. Our global economy will sooner or later have to reset in an ongoing environment of unpayable debt. Bottom line is that precious metals will help the world transition in phase from a previous, failing/failed monetary and currency system into something new, something that works.

The Cost of Physical Gold vs. Gold Futures

Amongst many, there is one more advantage to physical gold over gold futures. Futures have counterparty risk. You are extending credit. For a short time frame, I wouldn’t worry about it too much. However for a 10-year period, there is a risk that gold could go into permanent backwardation . In that case, futures contracts could become worthless.

Did the PBOC Covertly Buy 1,747 Tonnes of Gold in London?

Does the PBOC buy 400-ounce Good Delivery bars in London & covertly transport these gold bars to its gold vaults in China mainland, or are they shipped to Switzerland, refined into 1 Kg 9999 gold bars, sent forward to Chinese mainland where they’re required to be sold through the SGE gold exchange, from where they can be bought by the PBOC?

Texas Pulls $1 Billion In Gold From NY Fed, Makes It "Non-Confiscatable"

Effectively, the state of Texas will protect any gold stored in the depository from the federal government. This implicit subordination of The Fed’s gold sends a more ominous signal of rising fears of confiscation and leaves us wondering just how long before every state (and or country) decides to follow Texas’ lead?

PBOC Gold Purchases: Separating Facts from Speculation

PBOC buys gold with their foreign exchange reserves than with renminbi – China’s FX reserves are worth about $3.7 trillion & mostly held in USD. Gold on SGE is quoted in renminbi, so PBOC can’t exchange USD with gold there. PBOC is likely to buy gold abroad & these purchases should be added to the visible gold flows.

The Rehypothecation of Gold, and Why It Matters

Why keep the nation’s gold reserves so mysteriously secret? Maybe rehypothecation isn’t the reason; then what is? Fear of precisely what? Isn’t gold supposed to be a foolish relic? What’s the danger in letting people look at the foolish relic and count the bars and note the serial numbers on the bars? What’s the risk in that?

Gold: Its Time Has Come

Gold is making a determined come-back in financial markets because it is more real than paper fiat currencies backed only by the faith, credit, and the lies of insolvent central banks and sovereign governments. Gold has withstood the test of time, history, the ravages of paper money, and central bank lies.

Russian Bear—or Gold Bull?

Russia announced that it’s central bank bought about 150 tonnes of gold this year. Fact is that Russia has been buying gold for years. This trend has taken Russia’s gold holdings from around 400 tonnes 13 years ago to a fast approaching 1,200 tonnes at the end of 2014. A clear message: Russia prefers to hold gold more than the US dollar.

Eurosystem Increasing Allocated Official Gold Reserves

The Eurosystem is surely up to something with its gold reserves. This can only be seen in advance of a reform of the international monetary system. The global economy and global finance is at the turning point in a way…So, China & Europe are embracing gold prior to the replacement of the US dollar as the world reserve currency.

Gold Shortage, Worst In 21st Century... And India Just Made It Worse

One event that may stretch the already ridiculous disconnect between physical & swap-based gold, is that India scrapped a rule mandating traders to export 20% of all gold imported into the country, in a surprise move that could cut smuggling and raise legal shipments into the world’s second-biggest consumer of the metal after China.

The Secret Reason the SNB Opposes the Swiss Gold Referendum

One of the 3 objectives of the gold initiative is to have all Swiss gold stored in Switzerland. Swiss central bankers maintain it’s imperative to maintain foreign gold storage at major gold trading centers that can be quickly traded in event of a financial crisis. The ‘yes’ campaign counters that its safer to have it’s gold stored in Switzerland.

The Drain Of JPMorgan Gold Inventories Continues

In just one week, JPMorgan lost 41% of its total gold inventories. Not only are a great deal of gold bars leaving JPMorgan’s vault, we are also witnessing a large withdrawal from the total gold warehouse stocks at the Comex. In just one month, nearly a million ounces of gold were removed from Comex inventories.

Does Surging Demand For Gold & Silver Coins Signal a Bottom?

There’s no guarantee that this gold and silver demand, bullion coins buying, encouraging as it seems, is anything more than a blip. But in the aggregate it does seem like a lot of buyers, individual & national, old and new, are finding current prices to be attractive. That’s how bottoms form and new bull markets begin.

Gold, Silver Bullion Coin Sales Robust Despite Sell Off

Despite recent bout of price weakness, American Eagle & American Buffalo gold coin sales from the US Mint have picked up significantly from last month. The latest coin sales figures from the U.S. Mint show a tentative pickup and robust retail bullion demand, with Sept sales stronger for both as well as for American Eagle silver 1oz coins.

I Want To Be Diversified, I Want To Own Some Gold - Faber

Marc Faber commented on possible gold market manipulation and the need to diversify investment portfolios. As part of a diversified investment portfolio, secure precious metals storage in safe and stable jurisdictions such as Singapore and Hong Kong is essential for wealth protection.

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