Monthly Archives: January 2011

31
Jan
2011

Gold Bar Premiums at 17-Year High in Hong Kong – Safe Haven Bid on Inflation and Egypt Concerns

The geopolitical ramifications of the revolution in Egypt and the likelihood that it will spread throughout the Middle East, North Africa and possibly further afield is leading to volatility in markets. Equity indices in the Middle East and Far East were mostly down (except for China) overnight. European bourses were under pressure this morning but have recovered somewhat.

Continue Reading
27
Jan
2011

Gold Investment Digest – Fourth Quarter and Full Year 2010

The World Gold Council released their excellent quarterly ‘Gold Investment Digest’. 

The research has some interesting facts and important charts and shows that global demand was robust and broad based for both the final quarter and the year. Those continuing to call gold a bubble, often based on a lack of knowledge of the gold market, and failing to advise diversification, should read the report.

Continue Reading
26
Jan
2011

Stagflation in UK a Real Risk to US and Western Economies

 What were termed "shock" UK GDP figures yesterday, led to falls in the FTSE and the pound sterling which fell against the dollar and gold. Sterling’s fall saw sterling gold prices rise from £833 per ounce to over £842 per ounce after the news. 

Economists were once again surprised by the very poor UK GDP figures which showed the economy has contracted by 0.5% rather than growth of 0.5%. This clearly shows that the UK is now experiencingstagflation or high inflation and very low or contracting economic growth. 

Continue Reading
25
Jan
2011

Obama’s State of the Union Address – Gold Bar Shortage in Hong Kong

Gold and silver’s sell off has continued this morning. Despite gold’s 3.75% and silver’s nearly 8.4% fall in January and the continued sell off in futures markets, physical demand remains robust and supply tight. While speculators are taking profits and some shorting, investors and those who see gold as a store of value continue to accumulate physical.

Continue Reading
24
Jan
2011

Physical Bullion Market Tight – Paper Sell Off Due to “Momentum Monkies”

 After gains in Asia, the precious metals have come under pressure in Europe. The recent sharp sell off has seen gold fall 5.7% in January. Nothing whatsoever has changed regarding the fundamentals of the precious metal markets and long term buyers are again buying on the dip. As long as interest rates remain near historic lows and real interest rates continue to punish savers, gold’s bull market remains sound.

Continue Reading
21
Jan
2011

Chinese Silver Demand Surges Incredible Four Fold in Just One Year

Gold is flat and silver marginally lower despite dollar weakness this morning. Some market participants are blaming the precious metal sell off on speculation that China may take more monetary action to curb surging inflation. This is unlikely to be the reason for the sharp selloff, rather it looks like another paper driven sell off in the futures market by leveraged players on Wall Street with various motives. 

Continue Reading
20
Jan
2011

Gold and Silver Open Interest Show Speculators Have Reduced Positions

GOLD
Gold has fallen by 1.7% and silver by 4% as the US dollar has bounced from 2 month lows. Some are attributing the sell off to interest rate hikes in Brazil and the bounce in the dollar. However, it is more likely due to further selling by momentum-driven traders who see that the short term trend is down and they are sticking it to under pressure longs.

Gold is currently trading at $1,347.73/oz, €1,004.19/oz and £850.12/oz.

Continue Reading
19
Jan
2011

Silver Up as US Mint Reports January Eagle Sales Reach Record High

GOLD
Gold is slightly higher in the US dollar and other major currencies. Spot silver has given up early gains but the futures market has seen longer term contracts fall more in price so that while spot is up $0.09 to $28.96/oz, the July 11 contract is only trading up $0.01 to $29.00 and and the December 11 contract has fallen by $0.084 to $29.01.

The dollar has fallen to 78.42 on the US Dollar Index and is looking technically vulnerable of falling to long term support at 76.0. 

Continue Reading
18
Jan
2011

Silver Bar Shortages to Lead to Price “Tipping Point”?

*** BullionVault Clarification ***

Continue Reading
14
Jan
2011

George Soros’s Biggest Buy is Gold – $64 Million in the Last Quarter

Gold

Gold and silver have fallen in most currencies today but are higher in the “commodity currencies” of Canadian, Australian and New Zealand dollars, and flat in Swiss francs. Gold and silver are both slightly higher for the week in US dollar terms but weaker in terms of other currencies.

Gold is currently trading at $1,365.95/oz, €1,023.11/oz and £861.20/oz.

Continue Reading