Commodity Trade Mantra

Posts Tagged ‘Gold Supply’

Divide Global Money Supply by Global Physical Gold = Correct Gold Price

It’s true that there’s a limited quantity of gold. But there’s always enough gold to support the financial system. It’s also important to set its price correctly and there can be a debate about the proper gold price. Just take the amount of money supply in the world, the amount of physical gold in the world, divide one by the other, and there’s the gold price. It’s not complicated mathematics.

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.

10 Things Every Economist Should Know About The Gold Standard

If there’s one monetary history topic that tends to get handled especially sloppily by monetary economists, this is it. Sure, the gold standard was hardly perfect & gold bugs themselves sometimes make silly claims about their favorite former monetary standard. But these things don’t excuse the errors many economists commit in their eagerness to find fault with that “barbarous relic.”

These 3 Developments Say New Gold Mine Supply Is Peaking

Because future gold supply will reverse trend and fall for many years, there will be significant long-term consequences for investors—most of which are positive if you’re already positioned. The bottom line is this: a major shift regarding gold supply is underway and will lead to a substantial, long-term decline.

Thoughts On The Price Of Gold

Derivatives can be used by bullion banks and central banks to influence the price of gold. If the paper price goes down & physical demand increases this has to be met by equal physical supply, that is, if the price for physical gold follows the paper price. If the physical price disconnects from the paper price, premiums will appear at one location.

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.

China’s Global Gold Supply "Game of Stones"

“Surrounding” global gold production is just one aspect of China’s grand strategy for achieving political and economic dominance in Central Asia and beyond. The progression of China’s Go game strategy enables it to buy increasing amounts of gold and silver & are positive factors supporting higher precious metals prices.

Watch the Petrodollar - Ron Paul

Want to know when the fiat US dollar will collapse? Watch the petrodollar system & the factors affecting it. This is important, because once the dollar loses its coveted reserve status, the consequences will be dire for Americans. It will be the day when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars.

Hold Onto Your Gold: A Supply Shortage is Coming

Despite a 10-fold increase in the amount of money spent on gold exploration over the last decade, the amount of new discoveries was relatively unchanged. The exploration industry will need to make more new discoveries, despite decreasing capital available, or the supply of mined metals is likely to decline in coming years.

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.

Should Gold Investors Worry About Global Demand?

Many analysts believe gold’s bull market has run its course, but overall gold demand appears to be holding steady as jewelry purchases offset a wait-and-see approach by investors. Amid a financial system, yet trying to recover from the financial crisis of yesteryear, central banks around the globe continue to buy gold.

Data Shows That Gold Shortage Is Coming

Eric Sprott expects a “significant re-rating of the gold price” due to high physical demand from China & India, coupled with a gold supply shortfall. The effect, which he calls the “Chinese Gold Vortex,” is rapidly taking physical gold from West to East. When the West runs out of gold, the price should go much higher.

US Exports 128 Tons Of Gold In Jan, Feb 2014 - Supply Deficit Increases

Not only did the United States export 128 metric tons of gold in the first two months of the year, its supply deficit continues to increase. Hong Kong and Switzerland imported 105 mt of gold in the same period. The overwhelming majority of U.S. gold exports are heading to Asia, India and the Middle East.

The Screaming Fundamentals For Owning Gold

Various factors lead me to conclude that gold is one investment that you can park for the next 10 or 20 years, confident that it will perform well. Timing and logic for both entering and finally exiting gold as an investment are laid out in the full report. – Gold’s largest gains remain yet to be realized.

The Big Gold ETF Turnaround and its Prospective Impact

There are indications this year, although it is early days yet, that outflows from the Gold ETFs may have ended and may even be being replaced by small inflows. Turnaround in ETF sales/purchases, coupled with Asian demand, will be one of the main drivers bringing gold prices back above $1,300

How Long Can The Gold Prices Be Held Down?

How Long Can The Gold Prices Be Held Down? The answer in short is “For as long as demand in the traditional markets is either lower or the same as supply.” This has two aspects, first the potential for rising demand and second, the potential for falling supplies.

New Trend Guarantees Higher Gold Prices

Consequences of debt, money printing & currency debasement, etc are valid, core reasons to hold gold in a portfolio at this point in time. But a new trend is under way, and someday soon it will be just as much a driving force for gold prices as anything else: a good old-fashioned supply crunch.

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