Commodity Trade Mantra

Posts Tagged ‘World Gold Council’

Despite Incredible Purchasing-Power Protection, Why Doesn't Gold Get The Respect It Deserves?

The empirical data suggest a modest gold allocation provides tangible portfolio diversification benefits in any investment climate. Given the unprecedented monetary, financial & asset-valuation risks now confronting investors, gold’s potent benefit of purchasing-power protection, which essentially accrues for free & portfolio-insurance value has rarely been more compelling. So what is it about gold’s performance that is so difficult to embrace?

Pay Greater Attention to Gold - Here comes a Perfect Storm for Higher Gold Prices

If the peak gold hypothesis is proven true, then gold prices could likely soon reach record highs. Here’s everything you need to know, and how you can take advantage of this historic event in the gold market. Only one thing can happen when supply/production fall while demand rises: Gold prices go through the roof. And that’s exactly what will happen when ‘peak gold’ finally arrives.

This Explains the Current Manipulated take-down in the Price of Gold

This explains the current manipulated take-down in the price of gold despite rising seasonal demand from India & China. There is a direct correlation between this sudden leap in the amount of gold swaps conducted by the BIS between July and August and the price attack on gold. The outstanding balance is now higher than it was in 2011, leading to the violent take-down of the price of gold then.

Why Investing in Gold is more Attractive after Prices Break above $1300

Gold is showing decent strength going into the end of summer breaking above strong psychological and technical level of $1300 per ounce which can finally confirm the beginning of long-term bull market. There is no lack of fundamentals supporting the move upwards. Here are the 13 most important drivers of the coming long term precious metals bull cycle.

Fundamental Change - Gold Scrap Slump will Tighten the Gold Market Supply

Normally, when the gold price increases, individuals take advantage by selling old jewelry or scrap into the market. This trend changed in 2017 as global gold scrap supply declined 20% to 563 mt, even as the gold price increased. This suggests that the market is now holding onto its gold rather than sell it into the market… even at higher prices. This is a very POSITIVE indicator for future gold prices.

Gold Demand in India is Bound to Rise - Here Is Why

One of the major drivers for demand is the growing middle class & the popularity of gold jewelry during wedding seasons. Acceptability of gold in banking and financial transactions is also on the rise. Also, 60% of gold jewelry demand comes from weddings. We have 10 million weddings every year on average. And more than 60% of India’s people are below the age of 25.

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.

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