Commodity Trade Mantra

Posts Tagged ‘Gold Imports’

Gold Bullion Flows Reverse Back into the West - What does it Mean?

U.S. has become a significant gold importer. Gold is flowing from vaults in London, Switzerland & even Dubai to the U.S. In May, U.S. imported over 50 times the monthly average amount of gold. Investor demand was the largest component of gold demand for Q1 and Q2 – the first time this has ever happened. This means that more U.S. investors are diversifying their assets into gold.

Supplies of Physical Gold are Tight - A Super Spike in Gold Prices is Coming

The key to seeing a gold-buying panic in advance is to follow the flows of physical gold. Once the price of physical gold starts to move up on basic supply & demand, there are increases in paper gold prices. As soon as demand begins to overwhelm supply, then it’s “game on” for significantly higher physical gold prices followed by the toppling of the inverted pyramid of paper gold contracts.

Surge in Smuggled Gold Hits Indian Gold Refiners, Gold Jewelers & Banks

Smuggled gold could account for over a third of demand this year in India – the world’s second-biggest buyer of gold – potentially costing the government over $1 billion in lost revenue. Gold refiners have less than a 1% margin. If smugglers offer 4 or 5% discounts, they have no choice but to close operations. All 32 refineries in the country have stopped buying dore until market conditions normalize.

Will India Revive It's Love Affair With Gold Anytime Soon?

India’s gold demand fell significantly in the first half of 2016. World Gold Council data show the combined demand for jewellery and investment at only 247 tonnes. Import during January-June was 248 tonnes, 42% lower than the corresponding period last year and lowest since 2009. Clearly, many variables are at work. Only time will tell if India’s love affair with gold revives!

Record Swiss Gold Flows Into US. Are Americans finally Acquiring a lot of Gold?

While Switzerland has been a major source of U.S. gold exports for many years, the tables turned in May as the United States imported a record amount of Swiss gold – 50 times more than their monthly average. Why the big change? Could this have had something to do with the huge gold price rise since the beginning of 2016? Are wealthy Americans finally acquiring a lot more gold?

Silver Takes the Gold Prize: Commodities Half Yearly Report 2016

Caused by worries of a summer interest rate hike and uptick in the U.S. dollar, gold and silver both stalled in May but have since rallied on the back of Brexit and with government bond yields in freefall. This has been highly constructive for gold and silver, as yields and precious metals tend to be inversely related. As for silver, some forecasters place it at between $25 and $32 an ounce by year’s end.

India's Gold Imports Drops 51% in May, Gold Demand Takes a Hit

Indian gold imports have tumbled for fourth straight month in May this year, while gold demand remains muted over the past several months. India’s gold imports during the month are believed to have dropped sharply by 51% year-on-year to 31 tonnes in May. But, when matched with the April ’16 imports of 22 tonnes, the monthly imports in May rose higher by over 40%.

China Embraces Gold In Advance Of Post-Dollar Era

To challenge the US dollar hegemony & increase its power in the global realm of finance, China has firmly embraced gold in its economy. With a staggering pace the government has developed the Chinese domestic gold market, stimulated private gold accumulation, increased its official gold reserves to ensure financial stability & support the internationalisation of the renminbi.

A Long-Standing Love Affair Between India And Gold

India has never experienced a bear market of any consequence in gold. Since 1970 the Indian rupee has lost 88.7% of its purchasing power compared to the U.S. dollar. But the people’s purchasing power has been maintained thanks to gold. Maybe that is why people are reluctant to give up gold for a piece of government paper. Westerners may have something to learn from India’s love affair with gold.

Regarding Gold - You Should Think Like an Indian

All Indians own gold & keep it as close as possible, as jewellery, since “wearing wealth” means that it can be kept very close. Throughout the ages, there have always been governments that have attempted to part people from their wealth. It may well be that the first step for each of us succeeding in retaining our wealth might be to think more like an Indian.

The U.S. Exports More Gold To Hong Kong Than It Produces

The U.S. continues to export more gold than it imports or produces from domestic mines. For the first nine months of the year, the U.S. suffered a 24 mt deficit as it exported 380 mt of gold versus 155 mt from its domestic mine supply and 201 mt it received in gold imports. Not only the U.S. exported more gold than it produces, Australia is doing the very same thing.

The Screaming Fundamentals For Owning Gold

Gold is one of the few investments that every investor should have in their portfolio. We are now at the dangerous end-game period of a very bold but very reckless & disappointing experiment with the world’s fiat currencies. If this experiment fails, gold will provide one of the best forms of wealth insurance. Insurance only works if you buy it before you need to rely on it.

The War between Physical Gold vs Paper Gold Bullion Hots up

Investors in gold ETFs such as GLD are liquidating dismayed by the negative trend. Some of the physical gold released is simply migrating east, but this is small in comparison to the increase in demand from value buyers around the world. Considering all the factors, the odds favour a gold price recovery from current levels, if only to call a halt to the underlying redistribution of bullion.

Comex On The Edge? Paper Gold Dilution Hits A Record 124 Per Ounce Of Physical

The 43.5 million oz of paper gold open interest represents the total potential claims on gold if exercised, has to be observed in conjunction with the physical gold that backs such potential delivery requests. With record low 351,519 oz of registered gold imply that as of Friday’s close there was a whopping 123.8 ounces in potential paper gold claims to every ounces of physical gold.

How Large Was US Gold Market Trade Deficit In Q1 2015?

The U.S. Gold Market deficit in 2015 may surpass its full-year shortfall in 2014 of 69 mt (2.2 million oz) by a wide margin. Furthermore, with the heightened financial turmoil stemming from the Greek situation in Europe during the summer, I would imagine U.S. gold market deficits may be even higher in the second and third quarter.

Gold Is Not Only Money, But Now Also Pays Interest In India

India could allow individuals deposit a minimum of 30 grams of gold with banks in return for interest payments to help monetise 20,000 tonnes of unproductive gold lying with households, a step that is aimed at cutting expensive imports. In short it proves that in India, gold is the only real money.

China’s Stealth Gold Reserves To Quadruple as IMF Seek Answers

Bloomberg speculates that PBOC may have increased its gold reserves 3 fold since 2009 to over 3,000 tonnes. China would therefore have the 3rd largest gold reserves in the world, second only to U.S. & Germany. China’s ambition to make the yuan a dominant, if not the dominant reserve currency is now beyond dispute.

Could Gold Production Peak in 2015 as Exploration Spending Drops?

Metals Focus predicted that 2015 could mark the end of the bear cycle for gold as demand looks “broadly balanced. A recent forecast by Goldman Sachs shows that 2015 will be the year when gold production peaks. Standard Chartered and Bank of America say gold will likely advance in 2015 even as Fed raises interest rates.

Gold, Governments and Central Banks

Governments and central banks are frequently criticized by goldbugs for being anti-gold. Examples include the Indian government restricting gold import, the US government refusing to carry out a full audit of the US Treasury’s gold holdings and the Swiss government and central bank strongly opposing the “gold initiative” demands.

Indian Gold Imports Exploding In March

March has not even ended, though preliminary data indicates India has already imported over 130 tonnes of gold this month. A conservative estimate suggests total gross import can reach 150 tonnes this month. A new scheme the India government is looking at to obstruct gold import is through monetizing gold.

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