Commodity Trade Mantra

Posts Tagged ‘Gold Mines’

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.

The True Value of Gold (Economic Code) Finally Revealed

The true value of gold is much higher than the spot price quoted in the market. This is due to several factors, but the most important reason is misunderstood by just about every economist and monetary scientist in the world today. Those who are able to understand the information in this article, will finally be able see the value of gold (money) in a totally different way.

Peak Gold Production and the Implications for Gold Prices

The global gold output has been contracting since 2013. There are just not that many new mines being found and developed, and this is “very positive” for the gold price going forward. Thomson Reuters too is of the view that global mine supply is set to begin a multiyear downtrend in 2016. Demand for gold, on the other hand, should remain strong, helping to support prices even more.

A Disturbing Warning From UBS: Buy Gold As A 30% Bear Market Is Coming

The bear market started with the energy complex but it is a trend, which is filtering through into other commodity themes, as well as Emerging Markets, Asia and at the end of the day into the Western world. In 2016, we see gold profiting as a safe haven and as of 2017, gold could profit from the US dollar moving in a major top and starting a bear market.

China Starts Snapping Up Gold Mines - Which Gold Miner Next?

Buying Gold Bullion, especially buying in large quantities, can cause the prices to fluctuate significantly. The best bet? Gold Mines! Maybe even patented gold mines where the investors own both the title to the land AND the Gold in the ground. Get ready to see a huge surge in gold mine buyers, especially from China!

‘Stealth Rally’ for Select Gold Stocks to Continue

As we have seen with gold producers, a select group of companies can begin to move higher before the worst companies hit “rock bottom.” Companies now stand to outperform or sink lower based on their individual merits. By the time the overall market is in better shape, the most attractive juniors may no longer be cheap.

Why the Rush into Canadian Gold Mines May Continue

In the last bull market, many big mining companies went after gold mines in higher-risk jurisdictions around the world. Today, investors are retrenching towards areas that are perceived as ‘safe’. Investor preference for safe jurisdiction, coupled with a weak Canadian dollar, make Canadian mining assets especially appealing.

The Simple Test to Determine if Gold Is at a Bottom

The industry can’t produce any more gold at these prices & that impacts the supply side. It certainly meets the test of being a contrarian investment. In our opinion, sentiment is pretty much rock bottom. It has gotten better with this rally, but in the bigger scheme of things, people still scoff at the idea of gold. That is one sign of a bottom.

How to Position Your Portfolio for the Coming Gold Upturn

Although many things could change, macro signs are pointing to a turn in the gold market. Even though the U.S. dollar is still the strongest and most reliable currency in the world, more and more countries seem to be shifting away from the dollar, which would definitely strengthen demand for gold.

China is Effectively Consuming all of the World’s New Mined Gold Supply

With new global mined gold supply averaging around 258 tonnes per month, and with 255 tonnes of gold withdrawals from the Shanghai Gold Exchange in January, China is effectively consuming all of the world’s new mined supply. In addition, the India Trade Ministry is said to be seeking to cut the gold import tax.

Zimbabwe's Gold Mines On Verge Of Collapse Due To Low Bullion Prices

Zimbabwe’s gold mining firms are suffering huge losses due to low gold prices “& could collapse unless the government reduces royalties for producers, the Chamber of Mines said. Zimbabwe is now too reliant on gold mining as gold is its single largest export earner. This would likely result in another major economic & financial crisis.

Is Market Sentiment Shifting to Gold?

When you look at the world economy, there’s no shortage of worries. Most market strategists do not view gold as a currency but only as a commodity. The rule: dollar up, gold down. But on viewing gold as a currency compared to many other currencies, including euro, ruble, yen & rupee, it has been a good place to be in over the last year.

One Of Largest Russian Gold Miners On Verge Of Bankruptcy

Russian gold producer Petropavlovsk, was valued at more than $3 billion four years ago and was a potential candidate to move into the coveted FTSE100. But today the firm is now worth just $60 million and is in a perilous financial situation, with speculation it may even default on $310 million in convertible bonds in February.

Will There Be a New Gold Rush?

Even though the amount of dollars is going up, eventually debt will be wrung out of the system. This causes deflation, which is very bullish for gold. In deflation, both creditors and debtors are in dire straits. They’re facing enormous pressure. People tend to turn towards stores of value like gold.

If Gold Rises a Little, Gold Stocks Could Go Up a Lot

Gold started 2014 with an upswing off the multi-year low of $1,180 in Dec, 2013. By March, gold was trading at nearly $1,400. Silver too rose from a low of $19 last Dec to a high of $22 by mid-March. Many small gold and silver mining companies saw a bigger improvement in share price during this period too.

The Role of China in the Global Gold Market

The gold market in general is very opaque and the Chinese one, in particular, is even more. China has not made public its gold reserves since they announced a doubling of their reserves in April 2009. China will choose the time that is the most appropriate and to have the biggest possible impact for their geopolitical aspirations.

Gold Trade in India Thrives on Uncontrollable Demand

Despite the Indian government having raised the import duty on gold thrice in 2013 to finally at 10%, India’s gold demand is still remarkably high. As a result, gold smuggling is thriving in India – the World Gold Council notes in a recent report that illegal imports came to around 200 tonnes in 2013.

A Gold Price Rally Ahead - Similar to 2005-2008

Royal Bank of Canada Capital Markets analysts have come up with a detailed analysis of the gold market over the next few years comparing it with the big ETF driven gold price rally of 2005-2008. They also note Chinese gold demand may actually be less price sensitive than seen in India & the West.

Gold Price Going Up or Mines Will Close Within 6 Months

If we get to the point where lots of mines are closing, then simple supply and demand fundamentals will start kicking in. We are about six months into a low gold price environment. We will either see lots of mines shutting down or gold prices going up, allowing mining operations to run at a profit.

Are Gold And Silver Prices Manipulated, Or Not?

It is unlikely that gold and silver prices are not manipulated, given that every other market is – Although perhaps the debate should actually be, are the prices manipulated by central banks, governments and the major investment banks in an attempt to control (suppress) prices.

follow us

markets snapshot


Market Quotes are powered by Investing.com India

live commodity prices


Commodities are powered by Investing.com India

our latest tweets

follow us on facebook