Friday, 28 June 2013
In Gold we Trust 2013: Incrementum AG
"Even though the consensus is
convinced that the gold bull market has ended, we remain firmly of the opinion
that the fundamental argument in favor of gold remains intact.
There exists no back-test for the current
financial era. Never before have such enormous monetary policy experiments
taken place on a global basis. If there ever was a need for monetary insurance,
it is today."
Read the full report here.
Thursday, 27 June 2013
Next 11 Emerging Markets Update
• In the wake of Federal Reserve chief Ben Bernanke announcing that
the U.S. central bank could start winding down its monetary easing
policy Mexican stocks, bonds and the peso all fell. However a
strengthening U.S. economy should support Mexican growth.
• We are keeping with our low exposure to Egypt due to the on-going political tensions that are seemingly holding back attempts to boost the economy.
• The Bangladesh ETF returned a positive figure for the past week. The central bank approved $154 million worth of investment to boost electricity supply and enable a number of textile investments.
Read the full report here N-11 Market Update 21.06
• We are keeping with our low exposure to Egypt due to the on-going political tensions that are seemingly holding back attempts to boost the economy.
• The Bangladesh ETF returned a positive figure for the past week. The central bank approved $154 million worth of investment to boost electricity supply and enable a number of textile investments.
Read the full report here N-11 Market Update 21.06
Wednesday, 26 June 2013
Tuesday, 25 June 2013
Silver Prices to Edge Higher: Analyst - Kitco
http://www.kitco.com/news/video/show/on-the-spot/343/2013-06-24/Silver-Prices-to-Edge-Higher-Analyst
Gold Price Rallies with Silver, Stocks & Commodities as Fed Back-Tracks on "QE Exit" Talk | Gold News
SILVER and gold prices rallied in London trade Tuesday morning, recovering half of yesterday's 1.7% and 3.1% drops as European stock markets also bounced with commodity prices.
The US Dollar eased back on the currency market, as did major government bond yields.
"The gold price [is] trad[ing] erratically without any clear direction," say London bullion dealers Standard Bank in their daily note, "due to residual concerns over the Fed's likely reduction in monetary stimulus, coupled with growing concerns over Chinese banking liquidity."
The People's Bank of China said today it has lent short-term money to some institutions to keep money-market interest rates at a "reasonable level" – its first statement of action since short-term rates in Shanghai jumped above 10% earlier this month.
"There's room for further [gold] price declines before a meaningful consolidation," writes bullion market-maker Scotia Mocatta's strategist Russell Browne.
"Our target for the move is $1155-1156, and there are no big levels of support between here and there."
After major bank analysts last week cut their silver price forecasts, London bullion bank HSBC yesterday cut both its 2013 and 2014 gold price forecasts by 10%, down to $1396 and $1435 per ounce respectively.
"Clearly, recent market events show we did not cut [forecasts] enough" in previous revisions, HSBC added.
Fellow market-maker Deutsche Bank meantime cut its 2013 gold price forecast by 7% to $1431 per ounce, while Morgan Stanley cut its forecast by 5% to $1409.
"This year has seen a significant change in fortunes for the gold market," says Deutsche, "driven by a turn in the US interest rate cycle, an increasingly bullish outlook for the US Dollar and a reallocation among global investors from fixed income into equities."
With foreign money being pulled from investments in India – the world's No.1 market for physical gold – the possible end of US quantitative easing "[is a] big negative for the Rupee as flows dwindle further," says Religare Capital Markets in a note from Mumbai.
Russian government debt today rallied from a sell-off which drove interest rates up to an 18-month high.
Russia added to its gold reserves for the 8th month running in May, new data from the International Monetary Fund showed Tuesday, taking it 996 tonnes – the 7th largest national hoard, ahead of Japan and behind Switzerland.
Gold buying by emerging-market central banks "is one of the underpinnings for gold in the long term," reckons ANZ analyst Victor Thianpiriya.
Amongst Asian households and investors, however, "There is only a slight improvement in demand right now due to the price drop," Reuters today quotes Dick Poon at German refining group Heraeus' Hong Kong office.
"It's definitely not up to April levels. Part of the reason is weak seasonal [gold] demand. But economic factors and China growth are also hurting."
Longer-term says new analysis from Barclays bank, "The US cyclical position continues to look relatively healthy versus other developed market countries, where central banks are either in easing mode or are not expected to tighten policy any time soon."
"We expect the Dollar rally to broaden as the second half of 2013 progresses," writes the New York head of FX research at Barclays, Jose Wynne.
"Anybody who holds gold in Dollar terms," said trader and newsletter advisor Dennis Gartman to CNBC Monday, "finds himself in a very uncomfortable position."
"Gold needs fuel, [it] needs monetary aggressiveness to push it up."
US Fed chairman Ben Bernanke said last week that the central bank may start 'tapering' its quantitative easing, and perhaps end the program by mid-2014.
Provided that inflation stays low and the US Dollar is strong, says Swiss bank UBS in a note, "Investors are likely to regard QE-insurance [meaning gold] as obsolete."
"You don't walk up to a lion and flinch," said Dallas Fed president Richard Fisher in a speech in London on Monday, commenting on the sell-off in all asset classes following Fed chairman Bernanke's comments.
"Big money does organise itself somewhat like feral hogs," said Fisher. "If they detect a weakness or a bad scent, they'll go after it."
Fisher added, however, that the word "exit" is "not appropriate."
Speaking at a separate event Monday, non-voting Fed member Narayana Kocherlakota of the Minneapolis Fed said the US central bank "[has to] hammer it every time we talk about policy" that interest rates will stay "highly accommodative...for a considerable time after the asset purchase program ends and the economic recovery strengthens" – a key phrase from recent Federal Reserve statements.
Although interest rates and central-bank asset purchases "must return to more normal conditions at some point," said outgoing Bank of England governor Mervyn King to the UK parliament today, "that point is not today."
Read article
Gold Price Rallies with Silver, Stocks & Commodities as Fed Back-Tracks on "QE Exit" Talk | Gold News
Outlook for Gold; Savings and Gold Confiscation – Reuters Q&A Interview: GoldCore
Today’s AM fix was USD 1,548.00, EUR 1,186.30 and GBP 1,008.60 per ounce.
Yesterday’s AM fix was USD 1,555.75, EUR 1,189.59 and GBP 1,012.20 per ounce.
Gold rose $2.50 or 0.16% yesterday to $1,561.00/oz and silver climbed to $27.84 and finished +0.07%.
Cross Currency Table – (Bloomberg)
Gold is down by 2.2% in dollar terms for the week after denied reports regarding Cyprus being forced by the EU and ECB to sell meagre gold reserves contributed to already weak sentiment.
The fact that gold sales limitations are stipulated by the ECB Gold Agreement (CBGA) was ignored by some less informed analysts. This and events in Cyprus shows how the ECB values gold and will not allow gold reserves to flow out of the EU.
The mooted Cyrus gold sale was tiny when compared to the scale of demand from large central banks such as the Bank of Russia and continuing store of value demand globally.
Continuing strong bullion demand from India, China, Asia and creditor nation central banks are positive factors that should put a floor under the market and contribute to higher prices in the coming months.
The interview took place on Tuesday, April 9th in the popular Thomson Reuters Global Markets Forum with Kirsten Donovan Deputy EMEA Editor of Thomson Reuters and was well attended by bullion industry participants, hedge funds, institutions and banks.
Kirsten Donovan, thomsonreuters.com - And as promised, GoldCore director Mark O'Byrne is here with us now, welcome Mark.
Mark O’Byrne, GoldCore.com- Good morning Kirsten and thanks for having me on.
Kirsten Donovan - Let's start with the big question again; gold has had a bit of a rough ride of late, what's your outlook from here, back up, or lower still?
Mark O’Byrne - Short term weakness seems possible as the short term trend is lower and sentiment is as bad as we have seen it in 10 years. However, we remain bullish in the medium and long term due to the global macro, systemic, geopolitical and monetary situation.
On the macro side, while recent economic data has been fairly good we believe that there is a real risk of recessions and double dip recessions in most industrial nations due to the very poor fiscal situation of most nations.
There has been negative data emanating from the Eurozone, UK and Japan recently and we believe that the poor jobs number in the U.S. Friday was not an aberration but rather shows that the "recovery " in the U.S. is somewhat exaggerated.
John - So a flight to safety once we get a reversal in stock markets?
Mark O’Byrne - Owen, hard to know re flight to safety as gold is correlated with equities in short term but in medium to long term gold is inversely correlated to equities and bonds and therefore reversals should support gold in long term. This is why gold remains an NB DVSCN(diversification).
Gold in USD, Daily – (Bloomberg)
Nikolai - Hello Mark, do u see any other asset that could behave like a safe haven gold in future? And do you think that gold has reached its peak?
Mark O’Byrne - Vladmir, no crystal ball. Do not believe reached peak yet. Since 2003 have said that will reach inflation adjusted record high of 1980 at $2,400/oz and stand by that but people should buy gold as DVSN rather than speculative punt.
Jane - Hello Mark! What can you tell us about how demand for gold bars was affected by the recent financial crisis in Cyprus? Did GoldCore see much fresh buying on the back of that?
Mark O’Byrne – There have been no major additional flows into gold yet. We believe the confiscation of deposits was a watershed moment and will lead to increased demand for gold from nervous depositors across the Eurozone in the coming months.
Jane - Interesting that it doesn't seem to have had more of an impact, considering what a boost European physical gold demand got in 2011. Why do you think it didn't cause more buying?
Mark O’Byrne - So much uncertainty about it and think taking people a while to fully understand it and understand the ramifications of it.
The notion that this was only about Cyprus is erroneous and "bail ins" look to be EU policy as Ollie Rehn said Friday. In future when EZ banks are at risk - deposits of over €100,000 may be confiscated. This is a dangerous policy and could lead to capital flight out of already vulnerable EZ nations.
The confiscation shows again the importance of having an allocation to safe haven gold and to own physical gold and not be an unsecured creditor of a bank or brokerage.
John - Mark what are your thoughts on the QE around the world and the impact on the gold price longer term?
Mark O’Byrne - QE and ultra-loose monetary policies by central banks internationally or the printing and electronic creation of a tsunami of currencies and the debasement of currencies is bullish for gold in the long term.
Conversely it is the primary risk to gold too. Were central banks to return to positive real interest rates then gold's bull market would end. However, see that is being unlikely, indeed impossible in the short and indeed medium term. Current loose monetary policies are set to stay for at least another year or 2 and potentially longer.
Simon - Why does everyone believe that gold is a safe store of wealth and immune to confiscation? The US did it - what would stop it from happening again?
Mark O’Byrne - Simon, the financial academic literature has shown that gold is both a hedging instrument and a safe haven. Numerous academic studies have proved gold’s importance in investment and pension portfolios – for both enhancing returns but more importantly reducing risk.
The importance of owning gold in a properly diversified portfolio has been shown in studies and academic papers by Mercer Consulting, Bruno and Chincarini, Scherer, Baur and McDermott, Lucey, Ciner and Gurdgiev and by the asset allocation specialist, Ibbotson.
Regarding confiscation...We have long acknowledged the risk of confiscation of gold. Today very few people own physical gold in the western world - less than 1% - whereas in 1933, gold was money as every dollar was backed by gold and one ounce of gold was $20. It made economic sense for the US government to order the confiscation of people's gold in the Depression. Today, little would be benefitted by confiscating or ordering people to hand in gold.
However...There is a risk that desperate governments could confiscate large pools of stored gold especially in banks. Thus, an insolvent government or a government faced with the collapse of a large bank might be very tempted to confiscate or expropriate gold stored in that bank.
XAU/EUR Currency, Daily – (Bloomberg)
Simon - What you say may be true gold may be a store of wealth but it is not practical as in transactional terms - also gold needs in a free economy not a managed or one that is leaning / headed to socialism nor a welfare state...
Mark O’Byrne - Simon, gold is a store of wealth ... recent and modern history also shows that clearly. Japanese people who own gold today are realising gold’s importance as a diversification and a hedge against currency devaluation.
The yen has fallen sharply versus gold again overnight and is down some 7% YTD.
Kirsten Donovan - What about the central banks bringing their gold home, is that an indication of a lack of trust?
Mark O’Byrne - Yes Kirsten - it shows a lack of trust in the monetary system and heightened risk aversion.
This highlights the importance of owning allocated gold in a safe depository in a safer country - we offer bullion accounts in the Perth Mint of Western Australia (AAA) and Via Mat in Zurich.
Deepak - Mark, I am from India where people are obsessed with gold...and that is even severely affecting India's current account deficit. But people have made very steady returns on gold in the past 15 years compared to most other asset classes. What do you the govt can do to reduce this infatuation?
XAU/GDP, Daily – (Bloomberg)
Mark O’Byrne - Indian people will be seen as wise in time ... much wiser than those who do not own any gold whatsoever. The India government needs to manage the economy better and rein in inflation and make the rupee a store of value that people will trust.
Deepak - Agree with you Mark. Anecdotally, last week's gold correction has seen a rush into Indian jewellery shops. So trust Indian imports to hold up gold prices for some time!
Mark O’Byrne - I accept that it is a problem from the C/A point of view but gold is the messenger and should not be shot. Rather a healthy economy and more efficient capital markets and safer banks will gradually lead to Indian people reducing allocations to gold and trusting the rupee and other financial assets.
Kirsten Donovan - Mark, we've kept you longer than planned - one last from me if I may: What are your forecasts for physical demand this year? Are you expecting it to pick up?
Mark O’Byrne - We try as much as possible to stay out of the prediction game as is not knowable. Could fall marginally, could rise marginally. Last year’s fall was actually healthy as the rate of increase in global demand was not sustainable and risked sending prices even higher than they had gone - risking a bubble.
Think that central bank demand will continue, as Soros said overnight, and potentially they will increase given the huge scale of FX reserves out there and the Chinese having over $3 trillion in FX reserves alone.
Also think that Chinese demand will continue to rise. The unrealised important fact is that the people of China were banned from owning gold bullion by Chairman Mao in 1950. This prohibition continued until 2003 and it means that the per capita consumption of over 1.3 billion people is rising from a very small base.
Simon – Mark, I understand your stance that gold is a store of wealth - and as gold collapsed from $800 to $260 1980 / 1999 I'm sure everyone that held their wealth in gold took comfort in the studies.
Mark O’Byrne - Simon, U have just engaged in data mining. Why pick 1980 to 1999 rather than 1971 to 1980 or 2000 to today? Better to look at 1971 to today to get proper data to aid research and understanding and gold since 1971 has outperformed most stock indices internationally and is even close to matching returns in the S&P 500.
People from all over the world who had euro deposits in banks in Cyprus have realised gold’s importance as a diversification and a hedge against counter party and systemic risk.
Simon – Mark, a store of wealth is a store of wealth - clearly gold is subject to the same market forces as equities or currencies - and subject to violent losses in value.
Mark O’Byrne - Global diversification and an allocation to gold (5% to 10%) remains fundamentally important for savers and investors internationally and will protect from inflation and currency devaluation in the coming years.
Kirsten Donovan - Mark, we should probably let you go.............with a big thank you for staying so long and taking members' questions.
Mark O’Byrne - Absolute pleasure Kirsten. Thanks for having me on.
Read article
Yesterday’s AM fix was USD 1,555.75, EUR 1,189.59 and GBP 1,012.20 per ounce.
Gold rose $2.50 or 0.16% yesterday to $1,561.00/oz and silver climbed to $27.84 and finished +0.07%.
Cross Currency Table – (Bloomberg)
Gold is down by 2.2% in dollar terms for the week after denied reports regarding Cyprus being forced by the EU and ECB to sell meagre gold reserves contributed to already weak sentiment.
The fact that gold sales limitations are stipulated by the ECB Gold Agreement (CBGA) was ignored by some less informed analysts. This and events in Cyprus shows how the ECB values gold and will not allow gold reserves to flow out of the EU.
The mooted Cyrus gold sale was tiny when compared to the scale of demand from large central banks such as the Bank of Russia and continuing store of value demand globally.
Continuing strong bullion demand from India, China, Asia and creditor nation central banks are positive factors that should put a floor under the market and contribute to higher prices in the coming months.
The interview took place on Tuesday, April 9th in the popular Thomson Reuters Global Markets Forum with Kirsten Donovan Deputy EMEA Editor of Thomson Reuters and was well attended by bullion industry participants, hedge funds, institutions and banks.
Kirsten Donovan, thomsonreuters.com - And as promised, GoldCore director Mark O'Byrne is here with us now, welcome Mark.
Mark O’Byrne, GoldCore.com- Good morning Kirsten and thanks for having me on.
Kirsten Donovan - Let's start with the big question again; gold has had a bit of a rough ride of late, what's your outlook from here, back up, or lower still?
Mark O’Byrne - Short term weakness seems possible as the short term trend is lower and sentiment is as bad as we have seen it in 10 years. However, we remain bullish in the medium and long term due to the global macro, systemic, geopolitical and monetary situation.
On the macro side, while recent economic data has been fairly good we believe that there is a real risk of recessions and double dip recessions in most industrial nations due to the very poor fiscal situation of most nations.
There has been negative data emanating from the Eurozone, UK and Japan recently and we believe that the poor jobs number in the U.S. Friday was not an aberration but rather shows that the "recovery " in the U.S. is somewhat exaggerated.
John - So a flight to safety once we get a reversal in stock markets?
Mark O’Byrne - Owen, hard to know re flight to safety as gold is correlated with equities in short term but in medium to long term gold is inversely correlated to equities and bonds and therefore reversals should support gold in long term. This is why gold remains an NB DVSCN(diversification).
Gold in USD, Daily – (Bloomberg)
Nikolai - Hello Mark, do u see any other asset that could behave like a safe haven gold in future? And do you think that gold has reached its peak?
Mark O’Byrne - Vladmir, no crystal ball. Do not believe reached peak yet. Since 2003 have said that will reach inflation adjusted record high of 1980 at $2,400/oz and stand by that but people should buy gold as DVSN rather than speculative punt.
Jane - Hello Mark! What can you tell us about how demand for gold bars was affected by the recent financial crisis in Cyprus? Did GoldCore see much fresh buying on the back of that?
Mark O’Byrne – There have been no major additional flows into gold yet. We believe the confiscation of deposits was a watershed moment and will lead to increased demand for gold from nervous depositors across the Eurozone in the coming months.
Jane - Interesting that it doesn't seem to have had more of an impact, considering what a boost European physical gold demand got in 2011. Why do you think it didn't cause more buying?
Mark O’Byrne - So much uncertainty about it and think taking people a while to fully understand it and understand the ramifications of it.
The notion that this was only about Cyprus is erroneous and "bail ins" look to be EU policy as Ollie Rehn said Friday. In future when EZ banks are at risk - deposits of over €100,000 may be confiscated. This is a dangerous policy and could lead to capital flight out of already vulnerable EZ nations.
The confiscation shows again the importance of having an allocation to safe haven gold and to own physical gold and not be an unsecured creditor of a bank or brokerage.
John - Mark what are your thoughts on the QE around the world and the impact on the gold price longer term?
Mark O’Byrne - QE and ultra-loose monetary policies by central banks internationally or the printing and electronic creation of a tsunami of currencies and the debasement of currencies is bullish for gold in the long term.
Conversely it is the primary risk to gold too. Were central banks to return to positive real interest rates then gold's bull market would end. However, see that is being unlikely, indeed impossible in the short and indeed medium term. Current loose monetary policies are set to stay for at least another year or 2 and potentially longer.
Simon - Why does everyone believe that gold is a safe store of wealth and immune to confiscation? The US did it - what would stop it from happening again?
Mark O’Byrne - Simon, the financial academic literature has shown that gold is both a hedging instrument and a safe haven. Numerous academic studies have proved gold’s importance in investment and pension portfolios – for both enhancing returns but more importantly reducing risk.
The importance of owning gold in a properly diversified portfolio has been shown in studies and academic papers by Mercer Consulting, Bruno and Chincarini, Scherer, Baur and McDermott, Lucey, Ciner and Gurdgiev and by the asset allocation specialist, Ibbotson.
Regarding confiscation...We have long acknowledged the risk of confiscation of gold. Today very few people own physical gold in the western world - less than 1% - whereas in 1933, gold was money as every dollar was backed by gold and one ounce of gold was $20. It made economic sense for the US government to order the confiscation of people's gold in the Depression. Today, little would be benefitted by confiscating or ordering people to hand in gold.
However...There is a risk that desperate governments could confiscate large pools of stored gold especially in banks. Thus, an insolvent government or a government faced with the collapse of a large bank might be very tempted to confiscate or expropriate gold stored in that bank.
XAU/EUR Currency, Daily – (Bloomberg)
Simon - What you say may be true gold may be a store of wealth but it is not practical as in transactional terms - also gold needs in a free economy not a managed or one that is leaning / headed to socialism nor a welfare state...
Mark O’Byrne - Simon, gold is a store of wealth ... recent and modern history also shows that clearly. Japanese people who own gold today are realising gold’s importance as a diversification and a hedge against currency devaluation.
The yen has fallen sharply versus gold again overnight and is down some 7% YTD.
Kirsten Donovan - What about the central banks bringing their gold home, is that an indication of a lack of trust?
Mark O’Byrne - Yes Kirsten - it shows a lack of trust in the monetary system and heightened risk aversion.
This highlights the importance of owning allocated gold in a safe depository in a safer country - we offer bullion accounts in the Perth Mint of Western Australia (AAA) and Via Mat in Zurich.
Deepak - Mark, I am from India where people are obsessed with gold...and that is even severely affecting India's current account deficit. But people have made very steady returns on gold in the past 15 years compared to most other asset classes. What do you the govt can do to reduce this infatuation?
XAU/GDP, Daily – (Bloomberg)
Mark O’Byrne - Indian people will be seen as wise in time ... much wiser than those who do not own any gold whatsoever. The India government needs to manage the economy better and rein in inflation and make the rupee a store of value that people will trust.
Deepak - Agree with you Mark. Anecdotally, last week's gold correction has seen a rush into Indian jewellery shops. So trust Indian imports to hold up gold prices for some time!
Mark O’Byrne - I accept that it is a problem from the C/A point of view but gold is the messenger and should not be shot. Rather a healthy economy and more efficient capital markets and safer banks will gradually lead to Indian people reducing allocations to gold and trusting the rupee and other financial assets.
Kirsten Donovan - Mark, we've kept you longer than planned - one last from me if I may: What are your forecasts for physical demand this year? Are you expecting it to pick up?
Mark O’Byrne - We try as much as possible to stay out of the prediction game as is not knowable. Could fall marginally, could rise marginally. Last year’s fall was actually healthy as the rate of increase in global demand was not sustainable and risked sending prices even higher than they had gone - risking a bubble.
Think that central bank demand will continue, as Soros said overnight, and potentially they will increase given the huge scale of FX reserves out there and the Chinese having over $3 trillion in FX reserves alone.
Also think that Chinese demand will continue to rise. The unrealised important fact is that the people of China were banned from owning gold bullion by Chairman Mao in 1950. This prohibition continued until 2003 and it means that the per capita consumption of over 1.3 billion people is rising from a very small base.
Simon – Mark, I understand your stance that gold is a store of wealth - and as gold collapsed from $800 to $260 1980 / 1999 I'm sure everyone that held their wealth in gold took comfort in the studies.
Mark O’Byrne - Simon, U have just engaged in data mining. Why pick 1980 to 1999 rather than 1971 to 1980 or 2000 to today? Better to look at 1971 to today to get proper data to aid research and understanding and gold since 1971 has outperformed most stock indices internationally and is even close to matching returns in the S&P 500.
People from all over the world who had euro deposits in banks in Cyprus have realised gold’s importance as a diversification and a hedge against counter party and systemic risk.
Simon – Mark, a store of wealth is a store of wealth - clearly gold is subject to the same market forces as equities or currencies - and subject to violent losses in value.
Mark O’Byrne - Global diversification and an allocation to gold (5% to 10%) remains fundamentally important for savers and investors internationally and will protect from inflation and currency devaluation in the coming years.
Kirsten Donovan - Mark, we should probably let you go.............with a big thank you for staying so long and taking members' questions.
Mark O’Byrne - Absolute pleasure Kirsten. Thanks for having me on.
Read article
Russia, Kazakhstan Join Turkey in Raising Gold Holdings in May: Bloomberg
Russia and Kazakhstan expanded their
gold reserves for an eighth straight month in May, buying the
metal to diversify assets even as investors lost faith in
bullion amid the outlook for reduced stimulus.
Russian holdings, the seventh-largest by country, climbed 6.2 metric tons to 996.2 tons, taking gains this year to 4 percent after expanding by 8.5 percent in 2012, International Monetary Fund data show. Kazakhstan’s hoard grew 4 tons to 129.5 tons, taking the increase to 12 percent this year after a 41 percent expansion in 2012, data on the website showed.
Gold fell 6 percent in May, extending a 7.6 percent drop in April when the metal entered a bear market. Prices are down 24 percent this year and plunged last week to the lowest level since September 2010 after Federal Reserve Chairman Ben S. Bernanke said the central bank may slow its bond-buying program if the U.S. economy continues to improve.
“It’s really encouraging to see central banks continue to view current price levels as attractive,” Victor Thianpiriya, an analyst at Australia & New Zealand Banking Group Ltd. (ANZ), said by phone in Singapore. “That’s going to be one of the underpinning things for gold in the long term.”
Gold for immediate delivery traded at $1,279.60 an ounce at 3:45 p.m. in Singapore. Bullion is heading for its biggest annual drop since 1981 after advancing for 12 years. Continued central bank buying will not be sufficient to offset the decline in prices, Goldman Sachs Group Inc. said in a June 23 report.
Turkey’s holdings rose 18.2 tons to 445.3 tons in May, increasing for an 11th month as it accepted gold in its reserve requirements from commercial banks. Azerbaijan and Kyrgyz Republic were among nations that bought bullion in May, while Brunei and Nepal added gold in April, according to the IMF data, which update as countries report.
Mexico cut its gold reserves for a 13th month while Czech Republic also reduced holdings, the data showed.
Read Article
Russian holdings, the seventh-largest by country, climbed 6.2 metric tons to 996.2 tons, taking gains this year to 4 percent after expanding by 8.5 percent in 2012, International Monetary Fund data show. Kazakhstan’s hoard grew 4 tons to 129.5 tons, taking the increase to 12 percent this year after a 41 percent expansion in 2012, data on the website showed.
Gold fell 6 percent in May, extending a 7.6 percent drop in April when the metal entered a bear market. Prices are down 24 percent this year and plunged last week to the lowest level since September 2010 after Federal Reserve Chairman Ben S. Bernanke said the central bank may slow its bond-buying program if the U.S. economy continues to improve.
“It’s really encouraging to see central banks continue to view current price levels as attractive,” Victor Thianpiriya, an analyst at Australia & New Zealand Banking Group Ltd. (ANZ), said by phone in Singapore. “That’s going to be one of the underpinning things for gold in the long term.”
Gold for immediate delivery traded at $1,279.60 an ounce at 3:45 p.m. in Singapore. Bullion is heading for its biggest annual drop since 1981 after advancing for 12 years. Continued central bank buying will not be sufficient to offset the decline in prices, Goldman Sachs Group Inc. said in a June 23 report.
Turkey’s holdings rose 18.2 tons to 445.3 tons in May, increasing for an 11th month as it accepted gold in its reserve requirements from commercial banks. Azerbaijan and Kyrgyz Republic were among nations that bought bullion in May, while Brunei and Nepal added gold in April, according to the IMF data, which update as countries report.
Mexico cut its gold reserves for a 13th month while Czech Republic also reduced holdings, the data showed.
Read Article
Platinum Set to Rise: Castlestone Management
Precious metals have seen a significant decline YTD but with a supply deficit estimated at 400,000 ounces and ongoing disruptions in South Africa, Platinum prices are likely to rise over the course of the year.
http://castlestonemanagement.files.wordpress.com/2013/06/investment-insight-platinum-set-to-rise-june-2013.pdf
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