Commodity Trade Mantra

Posts Tagged ‘World Gold Council’

India’s Hunger for Gold is Legendary - But who are these Gold Buyers?

India’s hunger for gold is not surprising – people have been complaining about the “drain of gold” into India for ages. In Q1, 2017, India’s demand for gold jewellery was 92.3 tonnes, v/s 22.9 tonnes from the US & demand for gold bars and coins was 31.2 tonnes in Q1 2017 v/s 16.2 tonnes from the US. But where in India does the gold go to? And who are the people who buy all this gold jewellery?

Investors Should Prepare for Flight to Gold - Deutsche Bank

Deutsche Bank published a special report on the global gold sector, stating “investors should prepare for a flight to gold” in the uncertain global climate. It also emphasizes the importance of looking for the gold stocks that offer better value, growth or leverage. Concerns over terrorism, probes into Trump’s links to Russia and doubts that the Fed will raise rates in June may drive investors to gold.

Gold also in Demand for Environmental Cleaning & Energy Production

Research has shown that a stable and effective formulation can be obtained using a combination of gold, palladium, and platinum. Cleaning up auto emissions is just one of several new ways the yellow metal is helping clean up the environment. Gold is an important component in the development of renewable energy sources. This demonstrates the multi-faceted value of gold.

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.

Gold Prices Setting Bullish Chart Pattern - Gold Stocks Set To Soar in 2017

If you look at gold prices from a technical analysis perspective, it’s projecting a bullish outlook. Also from a fundamental perspective; there are bullish developments that shouldn’t go unnoticed. As it stands, odds are in favor of higher gold prices ahead. As the precious metal soars in price, gold stocks could skyrocket and provide leveraged returns.

Gold Investment is now Insurance for Long-Term Protection against Inflation

Inflation just got another jolt, rising as much as 2.5% YoY in Jan. Significant increases in inflation will ultimately increase the price of gold. Investment in gold now is insurance for long-term protection. Major stock indices continued to hit fresh all-time highs & it’s important to temper the exuberance with a little prudence, making gold’s investment case even more attractive.

India's Gold Bullion Demand Hit by Demonetisation - A Temporary Phenomenon

Gold bullion demand from India’s huge jewelry sector is set to recover from last year’s plunge according to dealers & retailers, as consumers make delayed purchases & the industry adapts following November’s shock demonetisation. The World Gold Council believes, this is a temporary phenomenon. The market is picking up & things are starting to normalize.

Trump Will Be Great For Gold And Silver (If Nothing Else)

If somehow Trump manages to get Congress to pass his border control and excise tax proposals, consumer prices on the products being imported at prices much lower than the same products can be produced domestically will soar. In addition, various price inflation reports are starting to emerge. Let’s not forget, gold loves inflation.

Investors Shift Back into Gold as Trump’s Honeymoon Period Ends

Following the Nov election, outflows from gold ETFs & other products accelerated. But now, just two weeks into Trump’s term as president, the gold bulls are banging the drum, with several large hedge fund managers taking a contrarian bet on the precious metal. Following Trump’s comment that it was “too strong”, the U.S. dollar declined, helping gold prices rise.

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..

Gold Price Forecast: The Factors Influencing Gold Prices in 2017

Here are three things that are currently taking place that could have significant positive impacts on gold prices. They shouldn’t be ignored by investors, whatsoever. Every day that gold prices remain subdued, the precious metal becomes an even better opportunity. Keeping everything in mind, I am not ruling out $2,000/ounce gold prices in the next few years. It’s possible.

A More Robust Understanding of the Price of Gold & Gold Valuation

A combination of a top-down and bottom-up approach is required to develop a more robust understanding and valuation of gold. Certain inputs put together, this recommended framework allows investors to use current variables and easily available economic forecasts to form a consistent, self-contained and intuitive view on the price of gold.

Gold Jewelry Buying Expected to be Exceptionally Strong

Plentiful monsoon rains in India tend to drive up demand for gold & gold jewelry among rural, income-flush farmers, who make up a third of the country’s consumption of the yellow metal. Gold jewelry sales in India are expected to surge as much as 60% over last year, during this year’s festival season thanks to the fortuitously timed sharp drop in gold prices.

Gold Edging Close to Triggering a “Buy” Signal. Will You Buy?

Banks added 27 tonnes to their reserves in August in an effort to diversify their assets and hedge against their own policies. In a survey of 19 central bank reserve managers, the WGC found that close to 90 percent of them have plans either to increase their gold reserves or maintain them at current levels. Investors might consider doing the same, for the very same reasons.

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!

Due to Financial Cancer of Debt, Devastation is Our Future- Gold the Only Remedy

The fact that demand for gold is soaring says a great deal about investors’ combined frame of mind these days. People are scared. I fear devastation is in our future. If central bankers had succeeded in their efforts, we would have no need for negative rates. There is simply too much debt (financial cancer) in the system to save it. And buyers of gold know this.

Does the Current Gold Price Justify the Big Gains in Gold Stocks?

Despite the 25% decline in the gold price since 2013 to $1,050, profit margins only fell by 12% as the industry responded by cutting costs and restructuring their operations. With gold now trading at $1,350 per ounce and AISC holding steady, net profit margins for the industry have increased from $220 to over $500 per ounce – an increase of 127% in just 7 months.

Most Asset Classes at All-Time Highs. Gold Yet 50% Below - Get It Now

The US dollar is at a multi-decade high, and both US stocks and bonds are at all-time highs. It’s generally not the greatest investment strategy in the world to buy assets at their all-time highs. Unlike stocks and bonds, gold is NOWHERE NEAR its all-time high, at least in US dollar terms. In fact gold can still appreciate nearly 50% before it breaks its previous price record. So?

A Perfect Storm Brewing for Gold Prices to Storm Ahead

So far this year, gold prices have moved up by just under 30%. There appears to be solid, market-based support for gold prices. New gold supply is contracting. Plus, there’s continuing demand for gold from China & the U.S. for investment reasons. I think in this cycle, gold prices will ultimately set an all-time high. There’s still a tremendous amount of debt in the system.

Gold Investment Necessitated by Failed Monetary Policies

Many analysts are interpreting weak Japanese Government Bond demand as a signal that investors are starting to lose confidence in the effectiveness of unconventional monetary policies, following increasingly desperate bids by the world’s central banks to reflate the global economy. In this environment, we believe investors are using gold to hedge portfolio risk as they add more stocks.

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