Gold and What Moves it.
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Gold and What Moves it.
Tracking all things that relate to and affect the price of gold.
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The Worst Economic Numbers In More Than A Year

"With everything else that is going on in the world, a lot of people have failed to notice that we are seeing some of the worst economic numbers that we have seen in more than a year. For example, it was announced on Thursday that initial claims for unemployment benefits have hit their highest level in a year and a half. Hopefully this is just a temporary blip in the data, because initial unemployment claims tend to have a very strong correlation with the overall performance of the economy. We also continue to see poverty statistics rise. According to government statistics released earlier this month, the number of Americans living in poverty and the number of Americans on food stamps are both at all-time record highs. Meanwhile, the Dow and the S&P 500 are both down more than 5 percent since the election and the U.S. government rolled up 22 billion dollars more debt in October 2012 than it did in October 2011. The unfortunate truth is that things are not getting better. The U.S. economy continues to become weaker and more unstable, and there are a whole lot of reasons to be very pessimistic about our economic situation as we move into the winter months. ..."

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Jesse's Café Américain: CME Loosens Margin Requirements On Gold and Silver and other Contracts

Jesse's Café Américain: CME Loosens Margin Requirements On Gold and Silver and other Contracts | Gold and What Moves it. | Scoop.it

"The CME has reduced margin requirements on quite a few of their traded instruments.

 

"In the case of gold and silver futures contracts, the reductions seem designed to bring the margins paid by specs more in line with those required of 'the professionals.' ..."

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Ben Davies - There Is A New Buyer Entering The Gold Market

Ben Davies - There Is A New Buyer Entering The Gold Market | Gold and What Moves it. | Scoop.it

Ben Davies tells King World News:

 

"... And if they (Japan) do it themselves, and if they do it badly, ironically, having not had inflation for such a long time, they could actually cause it (inflation) to ratchet up demonstrably. And, yes, there is a non-negligible risk of hyperinflation.

 

"Now within that prism, clearly hard assets remain a very important part of one’s portfolio. I suspect that Japanese pension funds, insurance companies, banks, although they have to buy government bonds as almost a public edict because they can’t place the bonds, but talking to managers, there are switches going into the precious metals market. They are definitely buying up gold. Pension funds are doing that (buying gold). So there will be allocation shifts there. ..."

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India still the world`s biggest gold market

India still the world`s biggest gold market | Gold and What Moves it. | Scoop.it

India has shot to the top spot again as the world's biggest gold market in Q3, as demand jumped 9%, while demand in China toppled 8%.

 

 

by Shivom Seth

 

MUMBAI (MINEWEB) -

 

"India has toppled China to emerge as the largest gold consumer in the third quarter of 2012. Though global gold demand fell in the Q3 with investors buying fewer bars and coins, India’s gold demand revived in the June-September quarter 2012.

 

"According to data compiled by the World Gold Council (WGC), gold demand totalled 223.1 tonnes, up 9% year on year from 204.8 tonnes in the third quarter of 2011. Demand from China actually slipped in the same quarter. China recorded an 8% drop in demand at 177 tonnes (191 tonnes) due to the economic slow down in the country. Jewellery demand was down 5% at 124 tonnes as retailers reduced their inventory. ..."

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India's $22 billion temple Gold treasure back in limelight

Front line politicians in the country demanded the massive wealth to be utilized for the benefit of the millions of poor people in the country.

 

By Sajith Kumar
KOCHI(BullionStreet): "The World's richest temple, perhaps the richest place for worship in the world , Sree Padmanabhaswamy temple in South India's Kerala state is back again in limelight, one and a half years after the discovery of the great treasure.

 

"Some of the proposals made by Gopal Subramaniam, the amicus curiae appointed by the Supreme Court to render assistance and to represent the expert committee going into the security, inventory and other aspects related to the temple, have received more bricks and brats than flowers.

 

"The eighth century temple shot into fame across the world after a mega treasure consisting of thousands of kilos of gold, diamonds, gems and silver ornaments, found concealed in different cellars, later estimated to cross over a mind-blowing Rs 1,00,000 crore ($22 billion).

 

"In his report, Subramaniam made recommendation to appoint a nephew of the present 'maharaja' Uthradam Thirunal Marthandavarma as the administrator of the temple and also recommended that politicians should be kept away from ..."

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Trader Dan's Market Views: Gold Lower but Holding Above Support

Trader Dan's Market Views: Gold Lower but Holding Above Support | Gold and What Moves it. | Scoop.it

Dan Norcini writes:

 

"Considering what looks more like a non-stop avalanche of selling in the mining sector, the yellow metal is holding relatively well. It has bounced off the first level of support shown on the price chart that comes in very near to the $1700 level.

 

"Failure to remain above this level will allow the market to move lower towards the $1680 region where it can be expected to find some buying support.

 

"To get the least bit of excitement going, gold will have to clear $1740 and remain above that level before it rattles anyone other than the most short-term bears. ..." click through for the rest of his analysis and chart.

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Don’t Let Machines Control Your Emotions « Jim Sinclair's Mineset

Jim Sinclair writes in response to this news item: Banks told by Fed to test for 12% unemployment http://www.marketwatch.com/story/banks-told-by-fed-to-test-for-12-unemployment-2012-11-15?link=MW_latest_news 

 

 

"Gold will trade at $3500 and beyond. The US dollar will test USDX .7200 before heading lower.

 

"Whatever is required, be it time or money, the Euro nations will get. The Fed will, via swaps, backstop the euro. QE will go to infinity both here and there.

 

"The Chinese have publicly said when the gold market takes a hit they will be buying.

 

"Calm down. Emotions are being run by machines, HFT and nerds who hide behind their computer. They will not win.

 

"All hell is going to break lose, and its name is Currency Induced Cost Push Inflation."

 

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Where has all the Risk gone?

Where has all the Risk gone? | Gold and What Moves it. | Scoop.it

Author of THE DEBT GENERATION... writes:

 

"People always say Follow the Money. You might do better to Follow the Risk.

 

"Risk is the pollution created by the process of making money. So where you find people making one you will surely find them hiding the other. You’ll find both at the banks.

 

"Banks have managed to convince the regulatory authorities – their regulatory authorities, and I use the word ‘their’ advisedly – to convinced them to count the creation and storing of risk as part of the banks contribution to the nation’s GDP. I wrote about how our governments count risk creation and storage of as part of the bank’s GVA (Gross Value Added) in What the Banks Contribute to GDP. Our government’s reasoning is that risk is an unavoidable by-product of the financial industry so the industry should get credit for dealing with the stuff. But imagine counting the creation and storage of radioactive waste as part of the value added of the nuclear industry? Would it not seem perverse to celebrate increases in the amount of waste being stored and see it as evidence of what a wonderful industry it was, rather than ask why they produced so much in the first place? Would it not seem odd to talk glowingly (sorry) of the increases in radiation levels being stored, and reward the industry accordingly, rather than ask if there might not be a safer, less radioactive way of generating power? It seems to me this is the situation we are in with banking. ..."

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THE ONLY PROTECTION LEFT…..SILVER & GOLD - The Prospector Blog

THE ONLY PROTECTION LEFT…..SILVER & GOLD - The Prospector Blog | Gold and What Moves it. | Scoop.it

TheProspectorSite.com writes:

 

"Listening to Congress argue over increasing your taxes reminds me of trick I used to play on my boys many years ago. As they crawled into bed I would lean into their room all while hiding the light switch closest to their door. With my free hand I would raise it high in the air asking my boys if dad had the magic to cut the lights with nothing more than a snap of the finger. What they didn’t realize was my other hand, blocked by my body, could flip the switch off simultaneously. The trick worked many times before my oldest let reason supersede the magic of his father. Today, our elected officials play the same cute little trick on the masses as we fall for the same taxation dog and pony show over again. ..."

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Gold's Relative Strength and What it Means | Jordan Roy-Byrne | Safehaven.com

Gold's Relative Strength and What it Means | Jordan Roy-Byrne | Safehaven.com | Gold and What Moves it. | Scoop.it
Longtime readers of our editorials know that we are big fans of intermarket analysis as well as ardent believers in the real price of gold (real POG) or relative Gold. No this has nothing to do with the paper market versus the physical market.

 

Jordan Roy-Byrne writes:

 

"... Gold is in a healthy bullish position because its trending higher against all major markets with the exception of bonds. In other words, Gold is showing broad strength and is only being held back by the strength in bonds, which happens to be the largest market by a mile. Thus, when we see bonds soften, Gold should have a shot to retest its recent high.


"The strength in the real POG usually reflects economic contraction or deceleration. After all, if things were going well we'd expect equities and economically sensitive commodities to outperform Gold. A rise in the real POG is a negative signal for the economy and asset markets. That in itself is a catalyst for central ..."

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Gold: History Doesn't Repeat Itself, but It Does Rhyme | David Nichols | Safehaven.com

Gold: History Doesn't Repeat Itself, but It Does Rhyme | David Nichols | Safehaven.com | Gold and What Moves it. | Scoop.it
Mark Twain wasn't writing about the gold market when he made his famous quote about historical recurrence, but he could have been, as the gold market has been "rhyming" every 21 months.
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Jesse's Café Américain: Gold Daily and Silver Weekly Charts

Jesse's Café Américain: Gold Daily and Silver Weekly Charts | Gold and What Moves it. | Scoop.it

Jesse's Cafe Americain writes:

 

"The metals and stocks were hit hard today in advance of a weak Philly Fed number and higher than expected unemployment claims. Both results are directly attributable to Hurricane Sandy, in the manner of a no-brainer. One of the more densely populated regions of the US was brought to a virtual standstill for almost two weeks along with $40+ billion dollars of storm damage.

 

"I suspect the selling is winding down as those who have profits take them this year to avoid higher taxes next year. I think it is overdone now. So far this has been fairly 'cool-headed' selling in stocks and shown by the VIX.

 

"The smackdown in the metals today had all the appearances of a well-calculated bear raid timed with a dump in stocks off a predictably weak economic number. This is also known as 'a trading idea.' ..."

 

Click through for the rest and the charts.

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The Golden Truth: Systemic Collapse: The Corzine Factor

The Golden Truth: Systemic Collapse: The Corzine Factor | Gold and What Moves it. | Scoop.it

Dave in Denver writes:

 

"The John Corzine issue has been a perpetual source of disgust and irritation for me (not continuous as I've accepted that our system is entirely corrupt, but it sneaks up on me). Quite frankly, if there was any ONE reason to vote against Obama in the election, it was because of his profoundly abysmal failure to crack down on Wall Street corruption, and specifically his refusal to prosecute Jon Corzine despite the overwhelming evidence of Corzine's overt and blatant role in the collapse of MF Global and the loss of over a billion in dollars in customer assets that were supposed to 100% legally protected. The actual numbers support the fact that Obama has failed to prosecute the financial industry, as litigation by the Justice Department has declined substantially during Obama's tenure even though the evidence of events of lawbreaking and corruption has soared. This, despite Obama's explicit promise in his 2008 campaign to "clean up Wall Street." It's hilarious/pathetic to me that this topic was never any part of any of the debates this year...

 

"The latest irritation stab from the MF Global/Corzine issue surfaced when the House issued a report yesterday which blames Corzine for the collapse of MF Global. What is beyond absurd is that the House Democrats refuse to endorse the findings, saying "ummm, we need ummmm more time to study the findings. ..."

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oftwominds-Charles Hugh Smith: Start Your Own Financial Media Channel with This Template

oftwominds-Charles Hugh Smith: Start Your Own Financial Media Channel with This Template | Gold and What Moves it. | Scoop.it

Hilarity from Charles Hugh Smith:

 

"This secret template enables everyone to launch their own financial "news" channel.

 

"You've probably noticed the cookie-cutter format of most financial media "news":a few key "buzz words" (fiscal cliff, Bush tax cuts, etc.) are inserted into conventional contexts, and this is passed off as either "reporting" or "commentary" depending on the number of pundits sourced. ..."

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Batch Gold buying to lift China demand in fourth quarter

Shanghai Gold and Jewelry Trade Association said they expect a surge in jewelry demand during the rest of this year and start of next, as the Christmas and New Year holidays approach.

 

BEIJING(BullionStreet): "A day after a World Gold Council report said China's gold demand dropped 8 percent in the third quarter, experts are hopeful of a recovery in the fourth quarter.

 

"According to Albert Cheng, WGC managing director in charge of the Far East region, Chinese demand will recover in the fourth quarter, as the new leadership in the country is expected to roll out stimulus measures, and as the holiday gift-giving seasons approach.

 

"He said despite the dip, consumer demand as a whole stayed 23 percent above the five-year quarterly average, confirming the long-term strength of the world's second-biggest gold market.

 

"Shanghai Gold and Jewelry Trade Association said they expect a surge in jewelry demand during the rest of this year and start of next, as the Christmas and New Year holidays approach.

 

"Association sees changes in Chinese buying habits, as consumers tend to buy gold jewelry in batches, as an investment. Investment managers said they had seen more demand for gold bars and commemorative coins, than for gold-backed exchange-traded products. ..."

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Germany may repatriate 10% of Gold stored in the US

For decades around half of the German government's gold reserves worth some $80 billion has been stored in a vault deep below the US Federal Reserve building.

 

BERLIN(BullionStreet): "German politicians are applying more pressure on authorities to repatriate country's huge gold reserves stored in the US.

 

"They demanded that the Bundesbank is required to count and weigh the gold it holds every year but those kept in the US have not been weighed or counted once in three decades.

 

"They added that the present scenario of financial crisis, Germans feel anxious about their national wealth and want to be sure they can count on their gold.

 

"The euro crisis forms the background to what is a slight paranoia in Germany right now, analysts said ..."

 

Just 10%? why not all?

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Soros raises gold ETF holdings by half, nearly triples Freeport stake

Soros raises gold ETF holdings by half, nearly triples Freeport stake | Gold and What Moves it. | Scoop.it

While the Soros and Paulson funds remain bullish on gold, major gold ETF shareholder Windhaven dropped its SPDR Gold holdings during the third quarter.

 

by Dorothy Kosich:

 

RENO (MINEWEB) -

 

"Billionaire fund manager George Soros increased his stake by half in the SPDR Gold Trust while fellow billionaire fund manager John Paul maintained his holding in the world’s largest gold bullion-backed ETF.

 

"However, Paulson reduced his position in Gold Fields, while Soros Fund Management nearly tripled its position in Freeport-McMoRan Copper & Gold, SEC filings showed Thursday.

 

"During the third quarter, Soros Fund Management raised its interest in SPDR Gold shares from 884,400 shares in the second quarter to ..."

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Reassessing the global financial status quo - INDEPENDENT VIEWPOINT - Mineweb.com Mineweb

Reassessing the global financial status quo - INDEPENDENT VIEWPOINT - Mineweb.com Mineweb | Gold and What Moves it. | Scoop.it

Julian Phillips writes:

 

"... Much as we might hunger for reform in so many areas, we must be pragmatic in looking forward. The world is not pure –far from it— so it is realistic to look at what is here today that will shape tomorrow. Looking at the future through these leader’s eyes gives us a clear perspective.

 

"Underlying the developed world society is the state of the family, which underpins the state of the nation. This in turn describes the state of national and global cohesion within world structures. For instance, by contrasting the progress of China’s economy with that of the developed world, we get a focused picture of the economic and monetary capabilities of civilization in the two blocs.

 

"If you doubt what we have said, look back to the start of the credit crunch in 2007 and see that it has been over five years since it began. The problems that exploded on us then –have they been resolved? Has the political system been reformed? Is the developed world showing a clear direction forward or is it a mélange of contradicting power bases, in dispute with one another. Has the financial system been reformed? Or is it reliant on a series of rescue operations attempting to hold together structures that have failed so far to provide what we are looking for in our future? Are the fundamental structures of government and finance working cohesively to provide solutions that will lead the developed world to a growing future? It does seem that political parties keep promising a solution to our problems (with little to no details) and manage to avoid letting us see that the problems we face are a consequence of past actions by the same dominant structures. ..."

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Silver To Climb 38% In 2013 - "Possibly Over $50/oz" Say GFMS | ZeroHedge

Silver To Climb 38% In 2013 - "Possibly Over $50/oz" Say GFMS | ZeroHedge | Gold and What Moves it. | Scoop.it

Posted by Tyler Durden on www.zerohedge.com

 

 

"... Thomson Reuters GFMS has published research that says they project silver prices to rise 38% in 2013 from current levels, as a sluggish global economy increases safe haven demand.

 

"The bullish silver GFMS forecast was published on the Silver Institute website yesterday and is unusual as the GFMS have been quiet bearish on silver in recent years despite rising prices.

 

"Philip Klapwijk of GFMS said that “a rebound in investment demand stemming from continuing loose monetary policies is expected to drive silver prices towards and possibly over $50 during 2013.”

 

"Spot silver has risen over 17% this year overtaking gold’s 10% gain, and paving the way for its third consecutive rise in four years.

 

\"Strong investment demand, higher gold prices on ..."

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gold market analysis | Anna Coulling

gold market analysis | Anna Coulling | Gold and What Moves it. | Scoop.it

Anna Coulling writes:

 

"An interesting day for the gold market yesterday, as December gold futures sold off initially, only to recover later in the session to close at $1714.50, as the precious metal continues to trade in this narrow range, and holding just above the $1700 per ounce level, which was tested once again. The current price action is far from straightforward at present, driven as it is by a combination of factors including safe haven status, dollar strength, and demand for the metal which has fallen in China recently, and which was cited as a primary driver in yesterday’s market. The US dollar is also contributing to the current weakness, and with the currency of first reserve now looking to extend it’s recent bullish run higher on the dollar index, gold is likely to come under pressure once again. However, given the negative sentiment for risk assets now clearly in evidence, investors may seek the safe haven status of gold in the short term, particularly if the VIX breaks about the key 20 level on the daily chart.

 

"Moving to the daily chart for gold, the isolated pivot high posted on the 9th November is now adding pressure to the current move lower, with the market having failed to ..." Click over for the rest of her analysis and chart.

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Eric De Groot: Gold Follows The ABCD Cycle

Eric De Groot: Gold Follows The ABCD Cycle | Gold and What Moves it. | Scoop.it

Eric De Groot writes:

 

"Gold follows an A(minor up), B(minor down/consolidation), C(Major UP), and D(Major DOWN) cycle. The last major buy signal for gold came July 27th 2012 after the D-wave "hook". This buy signal is marked in the chart below.

 

"We're in the middle of an AB transition, but today's aggressive selling in the gold shares sector suggests that a large number of ..." click through for the rest and the large chart.

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oftwominds-Charles Hugh Smith: Welcome to the Nuthouse: How Private Financial Fiat Creates a Public Farce

oftwominds-Charles Hugh Smith: Welcome to the Nuthouse: How Private Financial Fiat Creates a Public Farce | Gold and What Moves it. | Scoop.it

Zeus Yiamouyiannis, Ph.D.

 

"Nothing succeeds like failure when you are a big bank. We’ve already seen that. Too many articles have already been written about that.

 

"Heads, the big banks win through their hugely profitable derivatives and other fake wealth vehicles on the way up the phony growth curve.

 

"Tails, you, the citizen, loses as you are forced to redeem this toxic trash for real money in the form of government bailouts and Federal Reserve purchases as fake value collapses.

 

“O, the inhumanity, O the injustice.”

 

"Hey, we get it. You can stop pounding the drums. Bring on Act II: “The current anti-capitalist farce and its riotous effects.”

 

"Capitalism turned on its head

 

"What happens to functioning capitalism when its core operating principles of value and money, risk, private property, profit, supply and demand, price discovery, transparency and accountability, productivity, and exchange of worth can selectively be erased on the whim of self-interested, politically connected players? ..."

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Gold, Paper, and a Train Wreck | GE Christenson | Safehaven.com

Gold, Paper, and a Train Wreck | GE Christenson | Safehaven.com | Gold and What Moves it. | Scoop.it
We know that the United States (and the rest of the world) uses an unbacked paper currency which has lost perhaps 90% of its value in the last 40 years. We know that the official US government debt exceeds $16 Trillion ...

 

Good read from GE Christenson. Here's a snippet:

 

"... We know that the United States (and the rest of the world) uses an unbacked paper currency which has lost perhaps 90% of its value in the last 40 years. We know that the official US government debt exceeds $16 Trillion and is growing rapidly - approximately 12% per year for the past five years. We also know that the present value of unfunded obligations of the US government for Social Security, Medicare, Medicaid, military pensions, and other commitments is $100 Trillion to $220 Trillion depending upon who is counting. It does not matter which calculation is correct since it is impossible for the US government to fund and pay either present value estimate.

 

"The current debt exceeds $16 Trillion and will increase at current growth rates to about $25 Trillion in another four years. Interest rates on the national debt are historically low because the Federal Reserve continues to "print money" and then makes huge purchases of government bonds. Assume a modest 5% interest rate on $25 Trillion of national debt in 2016. Do you believe that our economy can generate $1.25 Trillion in annual taxes just to pay the interest on the debt? How about funding a 6% interest rate on $35 - $45 Trillion in national debt by the year 2020? The interest payments would be about $2.4 Trillion - approximately the entire revenue for the government in 2012. "If something cannot go on forever, it will stop...."

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India Gold demand recovers, Global, China drop in Q3

The Indian market is showing signs of recovery, up 9% to 223.1 tons from 204.8 tons in Q3 2011 following increases in both jewellery and investment demand.

 

LONDON(BullionStreet): "Global demand for gold dropped in the third quarter this year but demand in world's largest consumer India recoverd to register a 9% increase during the period.

 

"According to World Gold Council's latest report, Global gold demand in Q3 2012 was 1,084.6 tonnes,down 11% from the record Q3 2011 figure of 1,223.5 tons.

 

"WGC said demand fell in the third quarter as investors bought fewer bars and coins and buyers in China held back because of an economic slowdown.

 

"The Indian market is showing signs of recovery, up 9% to 223.1 tons from 204.8 tons in Q3 2011 following increases in both jewellery and investment demand. ..."

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Hong Kong Gold and Silver Exchange seeks warehouse in China | Gold Anti-Trust Action Committee

Hong Kong Gold and Silver Exchange seeks warehouse in China | Gold Anti-Trust Action Committee | Gold and What Moves it. | Scoop.it

By Polly Yam
Reuters 

 

HONG KONG -- Hong Kong's Chinese Gold & Silver Exchange Society (CGSE) is in initial talks with Chinese officials to set up a bonded warehouse on the mainland in a bid to boost business with exchanges and traders there, its president said on Tuesday.

 

The CGSE is a leading physical gold marketplace in Asia. President Haywood Cheung said the CGSE was seeking to set up a warehouse for gold and silver in Qianhai, a new financial zone in the southern city of Shenzhen.

 

"We are definitely interested in setting up warehouses in the mainland," Cheung told Reuters in an interview. "Officials for Qianhai have said that initially this can be considered and is a good idea."

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