Commodity Trade Mantra

Posts Tagged ‘Gold ETFs’

You know why You need Gold Investment, Here's how You go about Investing in Gold

Not everyone has a demat account to buy gold ETFs, nor are all comfortable of storing physical gold bars and coins. With investing in gold jewellery, besides the cost of gold, consider making charges, charges on stones, if any, purity and buyback offer. If you plan on investing in gold, there are many options. Here are the major gold products so that you can see what suits you best.

Can't Afford to Miss Buying Physical Gold Now, Soon Most Won't Really Afford It

The conditions that are favorable for gold, will prove fatal for overvalued stocks that are looking for a trigger to tumble. Remember, diversification is crucial to any investment strategy. As a fraught 2017 unfolds, consider re-balancing your portfolio to accommodate the likely economic, business and market volatility ahead. You can hedge your bets, with physical gold.

Definitely No Dearth of Catalysts for Gold & Gold ETFs

Friday’s rally in gold brought the ETFs close to their 200-day moving averages & year-to-date gains of just under 9%. Political risk is seen as a potential catalyst for gold & gold ETFs. Gold prices could move modestly higher with some help from emerging markets, namely China and India. However, the dollar has recently retreated in noticeable fashion, helping aid gold’s ascent along the way.

Are Gold ETFs Gearing Up for a Rally on the New-found Optimism?

The inflationary outlook is finally looking up in the developed economies. Political risks in Europe including Brexit worries, French elections and talks of Scotland’s independence vote have brightened the prospects for higher gold prices. So, investors intending to profit out of the new-found optimism in the gold space may consider gold ETFs like SPDR Gold Shares GLD, etc.

Falling Mine Supply will Trigger Panicked Gold Buying & Higher Gold Prices

Once the price of physical gold starts to move up on basic supply and demand fundamentals & imbalances in the paper gold market, the stage is set for corresponding increases in paper gold prices. As more & more paper gold holders turn from the paper market to obtain physical gold, which is already in short supply in the physical market, we’ll see the beginning of a price super-spike.

The Reasons For Owning Gold Bullion Are As Strong As Ever

Given its recent surge, is gold still a “buy?” With the Fed in a tricky situation regarding interest rates—and ambiguity likely to continue to surround the political arena—we may be in for a wild ride in 2017. Given the uncertain outlook and improving fundamentals for gold, now is a great time to add the yellow metal to your portfolio.

Gold Prices To Move Higher Even If & When The Fed Hikes Rates

It’s very interesting to see gold prices going up despite a challenging environment of higher rates & a manipulated paper market. That tells me that there’s more to the story, that there’s more going on behind the scenes that’s driving the gold price higher. I’m very impressed with the present gold action & here’s why I expect gold prices to really take off going forward.

Is Gold still a Buy? - 5 Reasons You Should Increase Allocation to Gold

Gold is up almost 8% since the beginning of the year & the outlook for 2017 is bright. Net bets on higher future prices have almost doubled since January. Assets held by gold ETFs are up 34% from their Dec lows. Given its recent surge, is gold still a “buy?” Here are 5 compelling Reasons. Given the uncertain outlook & improving fundamentals for gold, now is a great time to add gold to your portfolio.

The Next Market Correction Will Trigger Record Gold ETF Demand

Once the Great Hyped Trump Rally runs its course and the lousy fundamentals are allowed to kick in, the broader stock markets are going to experience one hell of a correction. And with that correction, we will experience another big surge in Retail Gold ETF demand. Even though Gold ETF demand is paper driven market, it is instrumental in pushing the gold price considerably higher.

Investors Shift Back into Gold as Trump’s Honeymoon Period Ends

Following the Nov election, outflows from gold ETFs & other products accelerated. But now, just two weeks into Trump’s term as president, the gold bulls are banging the drum, with several large hedge fund managers taking a contrarian bet on the precious metal. Following Trump’s comment that it was “too strong”, the U.S. dollar declined, helping gold prices rise.

Gold ETF Investors Skeptical Of Gold Prices Despite Rally

The price of gold is up 6.1% year-to-date, making it one of the outperforming assets in the first three weeks of the year. Unlike last year, it’s not ETF investors that are driving gold prices higher in 2017. In the year-to-date period ending Jan. 18, the SPDR Gold Trust (GLD) & iShares Gold Trust (IAU) the two largest physically backed gold ETFs have had combined net outflows of $440 million.

A Correction-Grade Stock-Market Selloff & Investors will Rush Back to Gold Buying

Gold has managed to rally sharply in recent weeks without any capital inflows from American stock investors. They not only weren’t buying GLD shares, they continued to aggressively sell them as evidenced by a couple big GLD-holdings draw days so far in January. The situation implies the investment gold buying hasn’t even started yet & that means big gold buying is still coming.

Gold Investment Amid Fears of Govt. Crackdown & Weakening Prices

Domestic gold prices are expected to remain range bound with a weaker bias in the next quarter because the dollar is strengthening against the Indian rupee. Local gold demand has come down drastically after demonetisation. Gold sales from wholesalers to retail jewellers have come down by around 90%. The situation is expected to remain like this till 31 December.

India to Step up Measures to Control It's Gigantic Physical Gold Demand

India’s physical gold hoard is estimated to be 20,000 tonnes and at current market price, this works out to be a massive Rs 60 lakh crore – 4 times the total value of the withdrawn Rs 500 & Rs 1,000 notes. The government’s focus will be on a permanent reduction in domestic gold demand & not just on import of gold. Be ready for more restrictive measures in coming days.

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.

The Major Catalysts That Influence Gold Prices

Physical gold had its best quarterly gain in 30 years during the first quarter, and year-to-date, even with its recent swoon, physical gold is higher by roughly $200 an ounce. Gold has firmly reestablished itself as being in a bull market. The factors that move gold prices are largely unknown or overlooked. Let’s have a look at the seven most common factors that influence physical gold prices.

Gold Bull Market Intact Regardless of Short Term Price Gyrations

Gold remains the asset Wall Street loves to hate. Currently the fundamental drivers of gold are mixed, which makes a sideways move the most likely prospect, barring new developments. We remain convinced that the monetary experiments of recent years will end quite badly, and that the long term case for gold remains intact regardless of short term price gyrations.

Has Gold Deviated from Long-Term Upward Trajectory or Again a Bout of Paper Manipulation?

Much of the recent selling has come from large-scale speculators operating in futures markets. Meanwhile, physical demand from retail investors, most importantly, hedge funds & other large-scale institutional investors has remained firm. When Chinese investors return, their buying alone should be enough to stabilize & re-launch gold on its long-term upward trajectory.

Surging Silver Demand Ensures Higher Prices for Bullion & Mining Shares

In 2015, the global silver deficit — more silver demand than mine supply — was about 130 million ounces, made up by selling stockpiles & inventory. According to Société Générale, silver supply in 2016 is likely to decrease another 9%. As the magnitude of the problem sinks in, I expect that more of the big-money players will rush into silver. And it’ll make for a pricing tsunami.

The New Gold and Silver Forecasts - Alternative Scenarios

The prospect of Fed rate hikes will weigh on gold and silver prices. As soon as Fed rate hikes for 2016 and 2017 are fully priced in, we expect gold and silver prices to rally again because of higher demand from investors. But if Trump becomes President and/or if investor sentiment deteriorates sharply, this would result in sharply higher gold and silver prices sooner.

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