Commodity Trade Mantra

Posts Tagged ‘Gold Purchases’

Deemed Necessary but Progressively Ineffective Monetary Injections will Support Gold

In the coming months, the central banks of advanced economies will begin to suffer from monetary exhaustion, possibly starting in Japan where the debt burden is now 250 percent of the GDP. As monetary injections will be seen as necessary but progressively ineffective, investors’ confidence in fiat currencies is likely to decline as they will add their gold purchases.

Significant Trend Changes Will Impact The Gold Market in a Big Way

Different segments of the gold market provide the investor with a different understanding. The total gold investment for Q1 2016 is already 618 mt. During the first quarter of 2016, Global Gold ETF demand surged to 354 mt versus a negative 68 mt in Q4 2015. Going forward, the Global Gold ETF demand will be the key that totally overwhelms the gold market in the future.

Negative Interest Rates Positively Driving Gold Demand

Gold returns in periods of low rates are historically twice as high as their long-run average. Portfolio analysis suggests that gold allocations in a low rate environment should be more than twice their long term average. We believe that, over the long run, negative interest rates may result in structurally higher demand for gold from central banks and investors alike.

Gold Demand Surges As Chinese Seize The Golden Opportunity

Gold demand has surged in China over the last several weeks – a period generally considered out of season. Gold purchases in China are strongly associated with jewelry buying around the Lunar New Year holiday, which fell in early February. But the uncertainty confronting global economies has driven up demand from a different sort of buyer—the hard-nosed investor.

India's Silver and Gold Imports Strong Despite Government's Perpetual Obstruction

While India’s gross gold bullion import in 2015 reached the third highest amount ever at 947 tonnes and gross silver bullion import reached the highest amount ever at 8,504 tonnes, the Indian government is perpetually trying to obstruct the populace from protecting their wealth. Yet the Indian people did not substantially buy less gold – and did buy substantially more silver.

The Gold Market is about to Explode. Stop it if You Can!

This century experienced a big change in the gold market. The gold market is about to explode & even the almighty central banks can’t stop this. Before 2008 global central banks were net sellers of gold. Their policy was to keep the gold prices from moving up higher. When you understand gold is like Dr. Evil to paper currency, you know turning from net sellers to net buyers is a big deal.

Why Central Banks Are Pressing Investors To Hold Gold

Since their lows in March 2009, both the S&P 500 & German DAX have had triple digit gains of almost +170%. At the same time, real economies have more or less stagnated. In the meantime, the price of gold has increased by 21% during the same period. Which asset do you think is more at risk of being in bubble territory? Which one do you think has a bigger upside?

You Should Be Dollar-Cost Averaging Your Gold Purchases

Dollar-cost averaging is a “set it and forget it strategy.” You’re simply committing to pay the average cost for gold per ounce over time. That way, you don’t need to worry about timing the market. All you have to do is make gold purchases of a set dollar amount regularly, no matter the price. This saves you from worrying about whether you’re getting a good price.

Gold Market Is Reaching The Extremes

As per the average gold market estimate in a Bloomberg News survey, the price of gold will drop to $984 per ounce before Jan. That would be the lowest since 2009 & a 10% retreat from Tuesday’s close. ANZ sees gold averaging $1,020 in Dec, Citigroup cut its three-month gold target to $1,000. but Morgan Stanley says gold prices could sink to $800 in its worst-case scenario.

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.

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.

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.

Renewed Estimates of Chinese Gold Demand

For its geopolitical strategy to work China must accumulate large quantities of bullion. Western analysts have always lagged in their understanding of Chinese gold demand & there is now evidence China is deliberately concealing its scale from us & is also happy to let us accept the lower estimates.

Gold Rush by Investors in Japan as Tax Rise Looms

Japanese investors are reportedly hoarding gold bars, aiming for short-term profits, as the country braces for its first sales tax hike in 17 years, seen as crucial for bringing down the massive national debt. Beginning April 1, Japan’s consumption tax will rise from 5% to 8%.

China’s January Hong Kong Gold Imports Soar 326% YoY

Statistics are how you read them and China both imported 326% more gold from Hong Kong in January than it did a year earlier, or 9% less than in the previous month. You can make of these statistics what you may, but to this observer it suggests that Chinese demand remains extremely strong.

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