It is, perhaps, significant that yesterday’s rapid upturn taking the gold price up around $15 to touch the $1,250 level and silver trading comfortably above $19 again, occurred as the U.S. markets opened after the precious metals traded flat to downwards in Europe and this is indicative of sentiment: The European economy is seen by some as being in better shape at the moment than that of the U.S. – indeed latest growth figures out of Germany and the U.K, are relatively promising – although the latter’s economic nightmare time may still be to come. The other significant buying area, Asia, just seems to sit tight for the moment not really moving prices either way.
Gold is attacking $1,250 in European trading and silver is near $19.50. King World News reached James Turk today in Spain to get his thoughts on the strength in the metals. Turk made some fascinating observations ahead of the 3 day weekend.
Silver is one asset class I do not cover very often, but have been largely bullish on since $6 an ounce many years ago. It can be considered “poor man’s Gold” as they say. I believe Silver is about to stage a pretty large advance based loosely on the Elliott Wave pattern I see unfolding after a 9 odd month consolidation. (Obviously, there are also fundamental fiat currency/debt events worldwide that give it the underlying bull chart pattern). Since the average person can’t run out and buy an ounce of Gold for $1,240 tomorrow, as the unfolding of the fiat crises continues to enter the public psyche, you will see a strong populace movement into buying silver, silver coins, etc. To wit, many silver stocks are moving up strongly of late,
Ireland's sovereign borrowing status has once again been downgraded, this time to AA- by the Standard & Poors rating agency (it was the highest AAA rating not long ago).
As the risk of some kind of a debt default or euro devaluation around the eurozone becomes more than just heresay, it isn't unreasonable for ordinary people to wonder about what they can do to protect their savings from the deepening Great Recession.
Part of the answer is to consider more diversification, something every good advisor is recommending these days.
So, starting this week with our readers' last question first: how do you buy gold? And just as importantly, why?
Hols are over, so welcome back to the world of work and to whatever autumn may hold.
It does, for most of us, feel a slightly sombre return, at least as far as economic and financial matters are concerned. Life goes on, and for people whose income is secure the worst that may happen could simply be the continued squeeze on living standards. But I think we all feel that the coming months will not be a bundle of fun.
Congressman Ron Paul is in the news again, this time for calling for an audit of America’s gold reserves. He issued the call in an interview with a news service run by a gold dealer, Kitco News, which reported that the congressman intends to introduce legislation calling for such an audit of what we hold at Fort Knox and other sites, such as the New York Federal Reserve Bank in lower Manhattan. It’s the kind of thing people tend to laugh at, the way they once did when Dr. Paul launched his legislative campaign to audit the United States Federal Reserve. Yet after years of persistence by the Texas Republican, Congress finally passed a law requiring an audit of the Fed. It passed the mandate by a wide margin and a bi-partisan vote. So whatever snickering there
In Part 1 of this series, I discussed the general flaws in analyzing global, gold supply and demand. In particular, I took a closer look at the bullion market of China. In Part 2, I expanded on this theme, and shifted my focus to India's gigantic gold market. In the conclusion to this series, I will look at India's equally important silver market.
With these savvy bullion-buyers quickly adjusting to the "new normal" in the gold market, let's see if there have been any similar adjustments made in the Indian silver market.
The first observation to make is that by weight India's imports (and consumption) of silver have collapsed from levels of a few years earlier. Previously, Indian silver consumption fluctuated at a robust level of between 3,000
The Perth Mint of Australia will soon release the 2011 Silver Kookaburra coins, which feature a fresh interpretation of the native bird. The 99.9% pure silver coins will be available worldwide in three different bullion weights starting on September 14, 2010.
The reverse of the 2011 Australian Silver Kookaburra features an depiction of the bird on a tree stump with wings outstretched. The Kookaburra is a native Australian bird that is known for its distinctive call, which resembles human laughter. The Perth Mint’s “P” mint mark appears near the stump. Inscriptions “Australian Kookaburra”, the date “2011″, the bullion weight, and purity “999 Silver” appear surrounding the image.
Charles Morris, a fund manager overseeing about $2.5 billion at HSBC Global Asset Management’s Absolute Return fund, talks about his decision to sell long-term bond holdings on Aug. 27 and agricultural commodities yesterday. Morris, speaking with Mark Barton on Bloomberg Television's "Countdown," also comments on the outlook for gold.
The latest edition of "Gold Demand Trends" from the World Gold Council, using data compiled by independent research house GFMS Ltd., points to a range of elements that should support gold prices in the coming months. The natural seasonal uplift in gold jewellery from now on through to end-year and beyond is bolstered by sustained investor concerns over the euro, while speculative positions have recently turned neutral, removing some of the overhang.
Gold has traditionally been a safe haven in times of trouble, so it's little wonder that over the last couple of years private investors and institutions alike have moved to shore up their portfolios with this most tangible of assets. But enhanced access to gold has also led to a wider group of smaller investors dipping a toe in this market – via small gold bars or gold bullion coins.
...
Mark O'Byrne, director at GoldCore, agrees there has been increased interest in the gold bullion coin market during the crisis, but claims it falls short of a mass mania. "It's definitely beginning to permeate into the mainstream," he says. "But at present, I would say that we are only in the intermediate phase of this market."
Gold prices have risen more than 10% in 2010, closing Wednesday at $1,241 an ounce. Rising unemployment in the U.S., import slowdown in China, weak global economic data and a struggling eurozone have triggered gold's recent surge, but those issues don't tell the whole story.
Gold prices have regained speed in the past weeks as Cisco's CEO John Chambers hinted at a double-dip recession, and a slew of economic data including rising weekly initial jobless claims have brought into question the health of the U.S. economy, which has trumped any merger news and positive earnings. Gold prices have rallied 5% in August during a typically slow buying season while the Dow Jones Industrial Average fell 4%.
Gold prices are volatile, however. When equities plummet, investor
Japan's foreign minister Katsuya Okada issued what amounted to a formal protest at top-level meeting with Chinese officials in Beijing over the weekend, saying the sudden cut-off was "affecting the global production chain".
It is the latest sign of rising pressure after angry complaints by companies outside China that rely on this family of 17 metals for hybrid cars, mobile phones, superconductors, navigation, and a host of high-tech industries.
(Reuters) - Three numbers should suffice to give Chinese economic policymakers a sleepless night: 65.4 million, $28.7 billion and $2.45 trillion.
In order, they are the estimate by a government researcher of how many apartments stand vacant in China, many of them bought as speculative investments; the country's trade surplus in July; and t
The Baird & Co warehouse sits in a dreary business park, half a mile east of London’s City airport. A black Mercedes and a blue Jaguar near the entrance are the sole touch of glamour. Step inside, and men in overalls are fashioning medallions, bars and rings from molten gold, purified in vats next door.
From an office upstairs, Tony Baird, the company’s managing director, and a former coin dealer, presides over the hubbub. “Gold is stable,” he says. “It’s the value of money that goes up and down.” Baird & Co sells gold to everyone from pension funds to jewellers, and as the MD says: “Our machines can’t work fast enough these days.”
James Turk is Chairman and Founder of Goldmoney.com - James has written “The Freemarket Gold & Money Report,” an investment newsletter since 1987. James has specialized in international banking, finance and investments since 1969. His business career began at The Chase Manhattan Bank (now JP Morgan Chase Bank). He subsequently joined the investment and trading company of a prominent precious metals trader based in Greenwich, Connecticut then moved to the United Arab Emirates to be appointed Manager of the Commodity Department of the Abu Dhabi Investment Authority, a position he held until resigning in 1987.
Bond prices fell early Friday after the downward revision to second-quarter GDP wasn't as bad as feared. Still, Treasury yields (which move in the opposite direction of price) aren't far above the lows hit in March 2009, leading to a lot of talk about a "bubble" in bonds. (See: Bullish a Year Ago, Robert Prechter Now Sees "the Biggest Bubble in History").
But "it's hard for me to imagine there's a bubble in an item that is not an all-time high," says John Roque, managing director at WJB Capital Group, who notes the Nikkei, the Nasdaq, housing, financials in 2007 and energy in the 1980s each hit record highs before those bubbles burst.
Delusional deflationists right from the Bank of England MPC, through to the mainstream press for well over a year have pushed the mantra of ongoing debt deleveraging deflation everywhere, everywhere that is than appears in where it counts i.e. the actual INFLATION indices, where inflation is on the rise right across the world as illustrated in the UK by the persistent failure of the Bank of England to control UK inflation that remains above the banks CPI 3% upper limit. Even Greece that really is in an depression is experiencing inflation at above 3%, whilst the US CPI continues to inflate at a more modest 1.2% as summarised below for key world economies.
(Reuters) - An ill wind blowing through financial markets is breathing vigor into gold, which could mark record highs for the third time this year in September -- or sooner -- as fundamental and technical factors align.
A spate of unimpressive economic data from the United States has raised expectations the world's biggest economy will keep interest rates low for an extended period, and may have to extend its quantitative easing program to buoy growth.
Dublin has played by the book. It has taken pre-emptive steps to please the markets and the EU. It has done an IMF job without the IMF. Indeed, is has gone further than the IMF would have dared to go.
It has imposed draconian austerity measures. The solidarity of the country has been remarkable. There have no riots, and no terrorist threats.
3
September
Gold and silver analysis: Showing upside promise, with serious downside risk looking limited
Sep 03 2010 Stockopedia
It is, perhaps, significant that yesterday’s rapid upturn taking the gold price up around $15 to touch the $1,250 level and silver trading comfortably above $19 again, occurred as the U.S. markets opened after the precious metals traded flat to downwards in Europe and this is indicative of sentiment: The European economy is seen by some as being in better shape at the moment than that of the U.S. – indeed latest growth figures out of Germany and the U.K, are relatively promising – although the latter’s economic nightmare time may still be to come. The other significant buying area, Asia, just seems to sit tight for the moment not really moving prices either way.
Continue Reading
3
September
Big Money Buying Pullbacks In Gold & Silver
Sep 03 2010 King World News
Gold is attacking $1,250 in European trading and silver is near $19.50. King World News reached James Turk today in Spain to get his thoughts on the strength in the metals. Turk made some fascinating observations ahead of the 3 day weekend.
Continue Reading
3
September
Silver About To Break Out Big
Sep 03 2010 The Market Trend Forecast
Silver is one asset class I do not cover very often, but have been largely bullish on since $6 an ounce many years ago. It can be considered “poor man’s Gold” as they say. I believe Silver is about to stage a pretty large advance based loosely on the Elliott Wave pattern I see unfolding after a 9 odd month consolidation. (Obviously, there are also fundamental fiat currency/debt events worldwide that give it the underlying bull chart pattern). Since the average person can’t run out and buy an ounce of Gold for $1,240 tomorrow, as the unfolding of the fiat crises continues to enter the public psyche, you will see a strong populace movement into buying silver, silver coins, etc. To wit, many silver stocks are moving up strongly of late,
Continue Reading
2
September
Diversify your savings and protect your wealth
Sep 02 2010 Offaly Express
Ireland's sovereign borrowing status has once again been downgraded, this time to AA- by the Standard & Poors rating agency (it was the highest AAA rating not long ago).
As the risk of some kind of a debt default or euro devaluation around the eurozone becomes more than just heresay, it isn't unreasonable for ordinary people to wonder about what they can do to protect their savings from the deepening Great Recession. Part of the answer is to consider more diversification, something every good advisor is recommending these days. So, starting this week with our readers' last question first: how do you buy gold? And just as importantly, why?
Continue Reading
2
September
The debt mountain is the backdrop to the bankers' bash in the Rockies
Sep 02 2010 The Independent
Hols are over, so welcome back to the world of work and to whatever autumn may hold.
It does, for most of us, feel a slightly sombre return, at least as far as economic and financial matters are concerned. Life goes on, and for people whose income is secure the worst that may happen could simply be the continued squeeze on living standards. But I think we all feel that the coming months will not be a bundle of fun.
Continue Reading
2
September
The Gold Audit
Sep 02 2010 The New York Sun
Congressman Ron Paul is in the news again, this time for calling for an audit of America’s gold reserves. He issued the call in an interview with a news service run by a gold dealer, Kitco News, which reported that the congressman intends to introduce legislation calling for such an audit of what we hold at Fort Knox and other sites, such as the New York Federal Reserve Bank in lower Manhattan. It’s the kind of thing people tend to laugh at, the way they once did when Dr. Paul launched his legislative campaign to audit the United States Federal Reserve. Yet after years of persistence by the Texas Republican, Congress finally passed a law requiring an audit of the Fed. It passed the mandate by a wide margin and a bi-partisan vote. So whatever snickering there
Continue Reading
2
September
Bullion-Buying in China and India
Sep 02 2010 The Street
In Part 1 of this series, I discussed the general flaws in analyzing global, gold supply and demand. In particular, I took a closer look at the bullion market of China. In Part 2, I expanded on this theme, and shifted my focus to India's gigantic gold market. In the conclusion to this series, I will look at India's equally important silver market.
With these savvy bullion-buyers quickly adjusting to the "new normal" in the gold market, let's see if there have been any similar adjustments made in the Indian silver market.
The first observation to make is that by weight India's imports (and consumption) of silver have collapsed from levels of a few years earlier. Previously, Indian silver consumption fluctuated at a robust level of between 3,000
Continue Reading
2
September
2011 Australian Silver Kookaburra Coins
Sep 02 2010 Coin Update News
The Perth Mint of Australia will soon release the 2011 Silver Kookaburra coins, which feature a fresh interpretation of the native bird. The 99.9% pure silver coins will be available worldwide in three different bullion weights starting on September 14, 2010.
The reverse of the 2011 Australian Silver Kookaburra features an depiction of the bird on a tree stump with wings outstretched. The Kookaburra is a native Australian bird that is known for its distinctive call, which resembles human laughter. The Perth Mint’s “P” mint mark appears near the stump. Inscriptions “Australian Kookaburra”, the date “2011″, the bullion weight, and purity “999 Silver” appear surrounding the image.
Continue Reading
1
September
HSBC’s Morris: Sold Bonds; Likes Gold
Sep 01 2010 Bloomberg.com
Charles Morris, a fund manager overseeing about $2.5 billion at HSBC Global Asset Management’s Absolute Return fund, talks about his decision to sell long-term bond holdings on Aug. 27 and agricultural commodities yesterday. Morris, speaking with Mark Barton on Bloomberg Television's "Countdown," also comments on the outlook for gold.
Continue Reading
1
September
Germany, the world's largest retail gold investor
Sep 01 2010 Mineweb
The latest edition of "Gold Demand Trends" from the World Gold Council, using data compiled by independent research house GFMS Ltd., points to a range of elements that should support gold prices in the coming months. The natural seasonal uplift in gold jewellery from now on through to end-year and beyond is bolstered by sustained investor concerns over the euro, while speculative positions have recently turned neutral, removing some of the overhang.
Continue Reading
31
August
Coining It In (GC in BNE)
Aug 31 2010 Business New Europe
Gold has traditionally been a safe haven in times of trouble, so it's little wonder that over the last couple of years private investors and institutions alike have moved to shore up their portfolios with this most tangible of assets. But enhanced access to gold has also led to a wider group of smaller investors dipping a toe in this market – via small gold bars or gold bullion coins.
...
Mark O'Byrne, director at GoldCore, agrees there has been increased interest in the gold bullion coin market during the crisis, but claims it falls short of a mass mania. "It's definitely beginning to permeate into the mainstream," he says. "But at present, I would say that we are only in the intermediate phase of this market."
Continue Reading
31
August
Top 5 Reasons Gold Prices Move
Aug 31 2010 The Street
Gold prices have risen more than 10% in 2010, closing Wednesday at $1,241 an ounce. Rising unemployment in the U.S., import slowdown in China, weak global economic data and a struggling eurozone have triggered gold's recent surge, but those issues don't tell the whole story.
Gold prices have regained speed in the past weeks as Cisco's CEO John Chambers hinted at a double-dip recession, and a slew of economic data including rising weekly initial jobless claims have brought into question the health of the U.S. economy, which has trumped any merger news and positive earnings. Gold prices have rallied 5% in August during a typically slow buying season while the Dow Jones Industrial Average fell 4%.
Gold prices are volatile, however. When equities plummet, investor
Continue Reading
31
August
Backlash over China curb on metal exports
Aug 31 2010 The Telegraph
Japan's foreign minister Katsuya Okada issued what amounted to a formal protest at top-level meeting with Chinese officials in Beijing over the weekend, saying the sudden cut-off was "affecting the global production chain".
It is the latest sign of rising pressure after angry complaints by companies outside China that rely on this family of 17 metals for hybrid cars, mobile phones, superconductors, navigation, and a host of high-tech industries.
Continue Reading
31
August
Analysis: Bears bet time is running out for China to change
Aug 31 2010 Reuters
By Alan Wheatley, China Economics Editor
(Reuters) - Three numbers should suffice to give Chinese economic policymakers a sleepless night: 65.4 million, $28.7 billion and $2.45 trillion.
In order, they are the estimate by a government researcher of how many apartments stand vacant in China, many of them bought as speculative investments; the country's trade surplus in July; and t
Continue Reading
30
August
The True Value of Gold
Aug 30 2010 The Financial Times
The Baird & Co warehouse sits in a dreary business park, half a mile east of London’s City airport. A black Mercedes and a blue Jaguar near the entrance are the sole touch of glamour. Step inside, and men in overalls are fashioning medallions, bars and rings from molten gold, purified in vats next door.
From an office upstairs, Tony Baird, the company’s managing director, and a former coin dealer, presides over the hubbub. “Gold is stable,” he says. “It’s the value of money that goes up and down.” Baird & Co sells gold to everyone from pension funds to jewellers, and as the MD says: “Our machines can’t work fast enough these days.”
Continue Reading
30
August
Bubble is in dollar, bonds, not gold, Turk tells King World News
Aug 30 2010 King World News
James Turk is Chairman and Founder of Goldmoney.com - James has written “The Freemarket Gold & Money Report,” an investment newsletter since 1987. James has specialized in international banking, finance and investments since 1969. His business career began at The Chase Manhattan Bank (now JP Morgan Chase Bank). He subsequently joined the investment and trading company of a prominent precious metals trader based in Greenwich, Connecticut then moved to the United Arab Emirates to be appointed Manager of the Commodity Department of the Abu Dhabi Investment Authority, a position he held until resigning in 1987.
Continue Reading
30
August
There's No "Bubble" in Bonds ... or Gold, John Roque Says
Aug 30 2010 Yahoo News
Bond prices fell early Friday after the downward revision to second-quarter GDP wasn't as bad as feared. Still, Treasury yields (which move in the opposite direction of price) aren't far above the lows hit in March 2009, leading to a lot of talk about a "bubble" in bonds. (See: Bullish a Year Ago, Robert Prechter Now Sees "the Biggest Bubble in History").
But "it's hard for me to imagine there's a bubble in an item that is not an all-time high," says John Roque, managing director at WJB Capital Group, who notes the Nikkei, the Nasdaq, housing, financials in 2007 and energy in the 1980s each hit record highs before those bubbles burst.
Continue Reading
27
August
Deflation Delusion Continues as Economies Trend Towards High Inflation
Aug 27 2010 Market Oracle
Delusional deflationists right from the Bank of England MPC, through to the mainstream press for well over a year have pushed the mantra of ongoing debt deleveraging deflation everywhere, everywhere that is than appears in where it counts i.e. the actual INFLATION indices, where inflation is on the rise right across the world as illustrated in the UK by the persistent failure of the Bank of England to control UK inflation that remains above the banks CPI 3% upper limit. Even Greece that really is in an depression is experiencing inflation at above 3%, whilst the US CPI continues to inflate at a more modest 1.2% as summarised below for key world economies.
Continue Reading
27
August
Analysis: Financial storm clouds set gold on course for history
Aug 27 2010 Reuters
(Reuters) - An ill wind blowing through financial markets is breathing vigor into gold, which could mark record highs for the third time this year in September -- or sooner -- as fundamental and technical factors align.
A spate of unimpressive economic data from the United States has raised expectations the world's biggest economy will keep interest rates low for an extended period, and may have to extend its quantitative easing program to buoy growth.
Continue Reading
26
August
If I were Irish I would be a little annoyed
Aug 26 2010 The Telegraph
Ireland must now pay more than Greece to borrow.
Dublin has played by the book. It has taken pre-emptive steps to please the markets and the EU. It has done an IMF job without the IMF. Indeed, is has gone further than the IMF would have dared to go.
It has imposed draconian austerity measures. The solidarity of the country has been remarkable. There have no riots, and no terrorist threats.
Continue Reading