Commodity Trade Mantra

Posts Tagged ‘Gold Imports’

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.

Gold Prices Could Hit $1,500 in 2017 Amid Imbalances & Weak Supply

Gold and silver are off to a good start in 2017. We’ve talked earlier about negative real rates supporting prices, and some other potential market movers that could drive demand for the yellow metal specifically. Here’s Frank Holmes on more in terms of potential catalysts that may drive things for the rest of the year & about the more upside in the precious metals.

The Events That Could Spark The Next Gold Bull Market

If the events mentioned here come to fruition, it will likely create uncertainty and panic… and that’s good for gold. Therefore, now could be an excellent time to add some bullion to your portfolio. As gold is known as crisis insurance, doing so buys you protection from the fallout of these events. Along with serving as insurance, it could be an excellent investment given today’s low prices.

Rising Gold Prices & Gold Demand in India - A Major Cause for Optimism

India’s citizens are reportedly turning to gold as a safe haven amid doubts about paper money. It’s actually unusual to see India’s demand growing when gold prices are going up. The fact that prices and demand are rising in tandem could signal an important and positive shift in fundamentals — watch for April import figures in a few weeks to see if the trend continues.

India's Obsession & President Trump to Boost Gold Demand

The return of physical gold demand in India after two successive droughts is a huge cushion for international gold prices and with the ongoing wedding season and the upcoming list of festivals, the prospect of a further rise in gold demand looks bright. Appreciation in the Indian rupee has come as a blessing in disguise for buyers who were postponing gold purchases.

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.

Why is India's Gold Demand, the Best Hope for Gold Prices

The main boost to gold prices in 2017 may well come from India, formerly the world’s top consumer of the precious metal. Indian gold demand was pummeled in 2016, but there are positive signs that India is recovering, with gold imports jumping to 50 tonnes in February, up more than 82 percent from the same month in 2016, according to data provided by GFMS.

Physical Gold Demand is Collapsing - Nothing Could be Further Away From The Truth

The idea that retail bullion sales represents global demand for physical gold and silver & that the demand for physical gold is collapsing is seeded in either ignorance or mal-intent. Nothing could be further from the truth. Retail demand at the margin has no affect on price other than maybe the price premiums in the coin market based on mint supply and retail demand.

Gold Bugs on Watch for Buy Signal & How Gold Prices React to Fed's Rate Hike

Despite gold being under pressure leading up to the next rate hike, Bank of America still sees prices rallying by around $200 by the end of the year. UBS and Goldman Sachs are also seeing opportunity for higher gold prices. Though sentiment conditions in the gold market have improved markedly & we are a lot closer to a contrarian gold buy signal than we were a couple of weeks ago, we’re not there yet.

Massive Debt Pain in China Could Be a Blessing for Gold Investors

Although the economy grew by 6.7% in 2016, the debt is causing a host of problems in China. The main reason many Chinese are buying gold is to preserve wealth against the backdrop of massive fiscal stimulus & lax credit conditions. Never has a big economy piled up so much debt so quickly without serious repercussions. It could be wise to take a lesson from Chinese investors & buy physical gold.

The Surprising Upside For Gold And Silver In 2017

Technically, all of the stars were aligned for a take-down of the gold price using paper derivative gold. But it’s easier to build a false narrative around easily observable data rather than look for the greater truths intentionally hidden from public purview. The gold and silver market is set up for an upside surprise & we are forecasting a better year for the metals in 2017 than in 2016..

Factors That Practically Guarantee Gold Prices to Rise in 2017

It probably comes as little shock that the leading catalyst for physical gold in 2017 is likely to come down to what the Federal Reserve does with interest rates. The Fed will hold a lot of weight on the movement of gold prices in 2017. Another major catalyst is going to be the Donald Trump presidency. But the final catalyst for gold prices is a real wildcard in 2017: India.

Will China & India's Falling Demand Impact Gold Prices? Can Central Bank Gold Demand Help?

The demand for gold has been weak in India & China. The cash crunch in India contributed to the falling demand. In an attempt to constrain the outflows of the Chinese yuan, China has curbed the import of gold. US federal debt is growing at a fast rate. When major central banks increase debt as a percentage of GDP, their gold holdings often rise – a positive for demand & gold prices.

Gold Treads Danger Zone - Yet Why Do Some Feel Optimistic?

The presence of considerable global economic, political, market risks and considering that the longer end of the yield curve and the sky-high USD have already tightened conditions, the Fed is likely to deliver a dovish hike later in December. This could mean the dollar & rates along the curve may slide lower & prompt technical traders to send gold back into $1,200-plus territory.

The Carnage in the Gold Sector Could Be Over

The rally in gold and silver has corrected hard which is not all that unusual for any bull market. The price of gold is approximately $200/oz lower than its June peak of $1375/oz. RSI is down to 20.63 which is the lowest it has been for some time. A reading below the ‘30’ level is considered to be oversold, so we can see that gold is extremely oversold and a bounce from here is not impossible.

India's Shift from Gold to Silver would Result in a Massive Jump in Silver Prices

India has been trying to reduce its demand for imported gold through a number of means & may soon permanently reduce gold imports. A return to silver for consumers in India may be on the cards. Even a small substitution from gold to silver would result in a massive increase in silver prices. A mere 10% reallocation from gold investment to silver in India would nearly double world silver demand.

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!

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