Gold and What Moves it.
85.9K views | +0 today
Follow
Gold and What Moves it.
Tracking all things that relate to and affect the price of gold.
Curated by Hal
Your new post is loading...
Your new post is loading...
Scooped by Hal
Scoop.it!

China Gold markets fail to handle Gold plunge

BEIJING(BullionStreet): Lack of diversity and liquidity in Chinese Gold futures markets were responsible for the sudden panic in country's gold markey during the 'gold plunge', analysts said.

 

They said during the period which starts from April 10, when a large number of gold holders want to short the metal to hedge against a further price fall, they have a problem finding enough parties willing to take the bet.

 

As gold trading channels in Chinese market are relatively narrow and the pricing power of country's gold market is weaker than the more mature markets overseas, domestic gold prices are closely linked to movements in international markets with spot gold prices set during the night, Beijing time, when trading is closed.

 

When the Chinese market opens the next day, the deluge of sell orders can push prices down at a rate that triggers a suspension in trading. ...

more...
No comment yet.
Scooped by Hal
Scoop.it!

David Baker: Gold Bear Market…or Physical Gold Discount Sale? - Ed Steer's Gold & Silver Daily

David Baker: Gold Bear Market…or Physical Gold Discount Sale? - Ed Steer's Gold & Silver Daily | Gold and What Moves it. | Scoop.it

For now, all we can conclude is this: There is definitely a striking psychological disconnect growing between the buyers of physical gold and silver, and the financial community that trades precious metals through ETF’s and futures contracts.  While the latter have ostensibly turned their backs on gold (see the plethora of negative sentiment expressed by various pundits over the past three days), the former group has been spurred into action as if they know something the other group does not. Certainly we wouldn’t expect individuals to be buying these metals if they believed the price was going to drop further, or perhaps they don’t care either way and simply want to own something tangible. Nonetheless, it is a wholly peculiar phenomenon, and it is definitely not the same investment behaviour we have seen before. - David Baker, Sprott Asset Management...19 April 2013

more...
No comment yet.
Scooped by Hal
Scoop.it!

Chinese Gold & Silver Exchange Society Runs Out of Gold...Importing from Switzerland and London

Hong Kong’s Chinese Gold & Silver Exchange Society has been in operations for over a century, and it’s President Haywood Cheung was interviewed by Bloomberg news earlier today.  Whoever orchestrated the attack on gold and silver in the last week or so has gravely miscalculated, since the response to the drop has been surging demand for physical gold and silver.  While I tend to be skeptical when I hear about silver shortages since these reports have been so exaggerated in the past, the lack of silver coin availability and premiums are the most extreme I have seen since the financial and economic meltdown of 2008. ...

Hal's insight:

 Click through for the video.

more...
No comment yet.
Scooped by Hal
Scoop.it!

NYC Fund Manager: “Somebody Probably Made $2-$3 Billion Dollars On That Gold Trade Earlier This Week” | Bull Market Thinking

NYC Fund Manager: “Somebody Probably Made $2-$3 Billion Dollars On That Gold Trade Earlier This Week” | Bull Market Thinking | Gold and What Moves it. | Scoop.it

I had the chance to reconnect this afternoon with a NYC metals and mining equity fund manager, whose total firm assets exceed $10 billion. While he can’t be referenced at this time, it was a fascinating conversation worth sharing.

 

What stood out most was his belief that this week’s frightening collapse in gold may have provided the cover for, “excessive stimulus coming out of the U.S., Japan, other parts of Asia, and the U.K.,” with the beneficiaries of the take-down, being the central banks themselves—through both increased monetization and increased gold buying.

 

When asked what the week was like from a fund perspective, he indicated that, “It was a good week. We had a downturn in the market, but I think we’re in a more positive environment going forward. Things have not changed with regard to developments in the global economy that support gold prices, other than the fact that gold prices came down.”


In terms of adding positions, whether it be in metals or mining shares, he stated that, “We tell our clients to be ‘average-costers’—and that’s what we try to do. We don’t buy all at once, sometimes we buy more when the opportunity is there, but I think dollar cost averaging is one of the best strategies there is.” ...

more...
No comment yet.
Scooped by Hal
Scoop.it!

100 Years Of Government's Takeover Of The Economy | Zero Hedge

100 Years Of Government's Takeover Of The Economy | Zero Hedge | Gold and What Moves it. | Scoop.it
The ever-encroaching 'might' of the government - or perhaps, put another way, the ever-decreasing need to be gainfully employed or productive...
Hal's insight:

This is an eye-opening chart.

more...
No comment yet.
Scooped by Hal
Scoop.it!

Jesse's Café Américain: Chinese Gold and Silver Exchange Has 'Almost Run Out of Available Gold Bullion' Awaits Imports

Jesse's Café Américain: Chinese Gold and Silver Exchange Has 'Almost Run Out of Available Gold Bullion' Awaits Imports | Gold and What Moves it. | Scoop.it

Hong Kong's century old Chinese Precious Metals Exchange has reportedly almost run out of gold bullion at these price levels and is waiting for imports to come in next week from Switzerland and London.

Apparently they are not able to source from within their region which is a bit of a surprise since China is a major gold and silver producer.  Gold seems to be moving from West to East.

The Hong Kong Gold and Silver market seems to be more of what is called a 'bullion market' rather than a paper speculative market dealing in ...

Hal's insight:

Fascinating! Click through for the video.

more...
No comment yet.
Scooped by Hal
Scoop.it!

Gold bounces back – but for good? — RT Business

Gold bounces back – but for good? — RT Business | Gold and What Moves it. | Scoop.it
Gold is on the rebound after a 4.5% drop this week, and the plunge has triggered serious concern about the condition of the global economy.

 

“We are already seeing a strong response to the fall in prices, with a sharp pick-up in physical gold sales by investors and retail consumers in the two key consumer markets - India and China,” Mark Pervan, head of commodity strategy at Australia & New Zealand Banking Group, wrote to Bloomberg today.

 

While the value of the biggest gold producers declined by $169 billion, jewelers took advantage of the 30-year record-low gold prices to stock up for anticipated high demand retail and jewelry sales.

 

Chinese and Indian jewelers are optimistic that gold will rebound as much as 29% by December 2013, to as high as $1,800 an ounce, as demand increases, according to billionaire Indian jeweler T.S Kalyanaraman, Reuters reported.


“There’s been continued buying interest, particularly into China,” Nigel Moffatt, treasurer of Australia’s Perth Mint said on Bloomberg Television Friday.

 

Americans took advantage of the price dip to buy stock in a historically high yielding investment. ...

more...
No comment yet.
Scooped by Hal
Scoop.it!

Harvey Organ's - The Daily Gold and Silver Report: The USA mint posts a huge 63,000 oz of gold sales/IMF warns Spain that its debt is unsustainable

Harvey Organ's - The Daily Gold and Silver Report: The USA mint posts a huge 63,000 oz of gold sales/IMF warns Spain that its debt is unsustainable | Gold and What Moves it. | Scoop.it

Today we learn that the USA mint sold in one day 63,000 oz of gold or 2 tonnes.  This is without a doubt a record day.

more...
No comment yet.
Scooped by Hal
Scoop.it!

Paper-Gold Holders Flee To Real Metal

Paper-Gold Holders Flee To Real Metal | Gold and What Moves it. | Scoop.it

After the most-massive (paper) liquidation in the history of precious metals markets; we don’t see massive stacks of unwanted gold, only massive stacks of unwanted paper. This brings us to the important question: what has really transpired in the gold market? Just follow the numbers.


We see (simultaneously) a massive liquidation of paper gold occurring along with a “run” on Comex gold inventories. In fact, there is only one explanation consistent with those facts: paper-gold holders have been swapping that paper for real metal. Put into market vernacular; people have been redeeming their units of paper gold – and taking delivery of physical bullion. A flight out of paper. ..

more...
No comment yet.
Scooped by Hal
Scoop.it!

Farage - People Are Lined Up Around The Block To Buy Gold

Farage - People Are Lined Up Around The Block To Buy Gold | Gold and What Moves it. | Scoop.it

Today Nigel Farage spoke with King World News at length about the incredible gold buying binge that is taking place all over the world, as well as what King World News readers globally should be doing with their gold right now.  Farage, who is Britain’s popular MEP, also spoke about a loss of confidence governments and in the financial system.  Below is what Farage had to say in this exclusive interview.


Eric King:  “As I told you, Nigel, there was massive demand over in Canada (at) ScotiaMocatta, people literally lined up for hours and hours to get physical gold and silver.  And that was confirmed also in Keith Barron’s interview here on KWN that this was happening in Switzerland at UBS.  People aren’t being fooled here (by the recent takedown), and they are just trading in fiat money for real money.  I’m just curious what your thoughts are because they (central planners) don’t seem to be fooling anybody?”

 

Farage:  “No they are not.  We are now incredibly cynical about our government, about our central banks, about all of the things that we are told.  They are sure signs, if people are queued up around the block to buy physical gold, that people are scared. ...


Hal's insight:

Click through for the rest. But I got to tell you that that cynical about our governments is very much the case particularly when politicians say one thing and turn around and do another.

more...
No comment yet.
Scooped by Hal
Scoop.it!

10 Signs The Takedown Of Paper Gold Has Unleashed An Unprecedented Global Run On Physical Gold And Silver

10 Signs The Takedown Of Paper Gold Has Unleashed An Unprecedented Global Run On Physical Gold And Silver | Gold and What Moves it. | Scoop.it

The crash of the price of paper gold on Monday has unleashed an unprecedented global frenzy to buy physical gold and silver.  All over the planet, people are recognizing that this is a unique opportunity to be able to acquire large amounts of gold and silver at a bargain price.  So precious metals dealers now find themselves being overwhelmed with orders in the United States, in Canada, in Europe and over in Asia.  Will this massive run on physical gold and silver soon lead to widespread shortages of those metals?  Instead of frightening people away from gold and silver,the takedown of paper gold seems to have had just the opposite effect.  People just can't seem to get enough physical gold and silver right now.  Those that wish that they had gotten into gold when it was less than $1400 an ounce are able to do so now, and it is absolutely insane that silver is sitting at about $23 an ounce.  If the big banks continue to play games with the price of gold, we are going to see existing supplies of physical gold and silver dry up very quickly.  And once reports of physical shortages of gold and silver become widespread, it is going to absolutely rock the financial world.  But this is what happens when you manipulate free markets - it often has unintended consequences far beyond anything that you ever imagined. ...

Hal's insight:

Click through for the list.

more...
No comment yet.
Scooped by Hal
Scoop.it!

Trader Dan's Market Views: Random Thoughts

Trader Dan's Market Views: Random Thoughts | Gold and What Moves it. | Scoop.it

Reports coming in from nearly all corners of the planet, but especially from Asia, continue to reveal massive buying of physical gold. Last evening, what was obviously a huge bear raid that occurred during the early Asian session, was repulsed by very large buying above the recent low. 

That is very interesting and has my attention. In a sense, we seemed to have gotten our second test of the low, a test in which that low held once again. With the wild price swings being made in this market, it is hard to be too dogmatic, but the way this market is acting, based on the news of strong physical offtake down near the $1350 level, I am greatly tempted to say that a low is in.

Here is what I am currently seeing here. We certainly have the strong demand for physical - the big question I have is whether or not this is sufficient to take the market higher WITHOUT the strong investment demand from the hedge fund crowd that we have seen for so many years. Remember, that crowd is selling right now in the paper markets. 

What spooked a lot of the gold analysts were those speculative outflows from the gold ETF, GLD. There was also large scale buying of put options ...

Hal's insight:

Click through for the rest.

more...
No comment yet.
Scooped by Hal
Scoop.it!

oftwominds-Charles Hugh Smith: The Silent Epidemic in a Broken, Deranged System: Stress

oftwominds-Charles Hugh Smith: The Silent Epidemic in a Broken, Deranged System: Stress | Gold and What Moves it. | Scoop.it

It's not only the individual who needs help adjusting to chronic stress--the deranged system he/she inhabits needs to change.


Longtime readers know that I see our system not just as financially sick but as spiritually and psychologically deranging. The illnesses are related, of course--a distorted economic system (i.e. financialization) that rewards parasitic sociopathy and political predation cannot help but make its participants physically and psychologically ill. ...
more...
No comment yet.
Scooped by Hal
Scoop.it!

Gold, Silver and the currency chronicles

Gold, Silver and the currency chronicles | Gold and What Moves it. | Scoop.it

LONDON(BullionStreet): The Forex market may actually be seeing the beginning of the crack up boom where traditional currencies like silver and gold will naturally reassert themselves just as world monetary expansion begins to truly accelerate.

The big shorts in the precious metals markets have acted as the governor, preventing the true expression of the paper currency value of real money for decades.

It seems to be no coincidence that their market dominance was enabled in large part by the luxury of interested parties enjoying cheap access to the world’s main reserve currency. ...

more...
No comment yet.
Scooped by Hal
Scoop.it!

Gold, Silver Plunge on Week; US Gold Bullion Coins on Fire

Gold, Silver Plunge on Week; US Gold Bullion Coins on Fire | Gold and What Moves it. | Scoop.it
US Bullion Coin Sales in April

In attesting to strong physical demand for gold, U.S. Mint sales of gold bullion coins raced for the highest weekly total in years. Yet, silver bullion coins moved the slowest since mid-February. In weekly sales breakdowns:

Gold bullion coins soared to 131,500 ounces for a 292.5% increase over last week’s total of 33,500 ounces, which was a solid weak itself. Splits were 117,000 ounces in 22-karat American Gold Eagles and 14,500 ounces in 24-karat American Gold Buffalos. For the Gold Eagles, April sales with still more than a week left are at 167,500 ounces. That is the highest level for a month since the December 2009 total of 231,500 ounces.

American Silver Eagles totaled 675,000 for a 25% decline from the prior week’s 900,000. At 16,610,000 for the year-to-date, the bullion coins stay on pace for a new annual sales record. 2011 now holds that record at 39.8+ million. Sales in that year reached 15,248,000 at the end of April.

more...
No comment yet.
Scooped by Hal
Scoop.it!

Gold, Silver sell-offs - been here before but this time is different

Gold, Silver sell-offs - been here before but this time is different | Gold and What Moves it. | Scoop.it

This time, physical demand had been surging just before paper price declines led by the manipulated futures market. Also, hedge funds have also been piling in to short the market to a historic degree based on the negative technical picture.

In contrast, J. P. Morgan Chase et al have been slowly exiting or reducing their notable precious metal short position over the last month without a drop in the market’s open interest. Normally, heavy downside direction in price tends to be accompanied by a reduction in open interest.

Frankly, the most recent selloff seems like just an orchestrated opportunity for the big shorts to cover. ...

more...
No comment yet.
Scooped by Hal
Scoop.it!

Refiners Can’t Keep Up With Massive Global Gold Demand

Refiners Can’t Keep Up With Massive Global Gold Demand | Gold and What Moves it. | Scoop.it

Today Egon von Greyerz spoke with King World News about the massive global demand for gold and the incredible strain it is putting on refiners.  Greyerz also talked about retail gold buyers queuing up all over the world.  Below is what Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this tremendous interview. 


Greyerz: “I will tell you some very important reasons why investors should not worry about the recent turbulence in the gold market.  First of all it was a smash in paper gold.  If you look at our company, as just one example, we did not have one single seller in the last few weeks.

 

So during this takedown in gold and silver there wasn’t one single seller, only buyers....


Hal's insight:

Click through for the rest of the interview.

more...
No comment yet.
Scooped by Hal
Scoop.it!

G20 gives 'currency war' stamp of approval — RT Business

G20 gives 'currency war' stamp of approval — RT Business | Gold and What Moves it. | Scoop.it

Finance ministers and central bankers from the G20 have approved Japan’s aggressive stimulus program at the final day of their conference in Washington, D.C. The leaders also addressed economic growth and unemployment.

 

Japan reassured other finance ministers that it isn’t intentionally weakening the yen with its stimulus plan.

 

According to the Japanese Finance Minister Taro Aso, his colleagues understand that Japan is pursuing“price stability and economic recovery,” rather than competitively weakening the yen.

 

Expert are split on whether the meeting will bring significant positive results. Some believe the communiqué will repeat February’s decision, when the group agreed to avoid using competitive currency devaluation to gain advantages in trade, the Associated Press reports.

 

US Treasury Secretary Jacob Lew spoke of the intention to put more pressure on Europe to boost efforts to support growth, and on Japan and China to avoid lowering the value of their currencies in order to improve exports. ...

Hal's insight:

Did anyone expect different?

more...
No comment yet.
Scooped by Hal
Scoop.it!

Peter Schiff Blog: Rates Are Going To Go Up And When That Happens, The Party Is Over

"It feels pretty good right now. The Fed(eral Reserve) is spiking the punch bowl with all this monetary alcohol. But the problem is when the hangover wears off, we are going to be able to convince the world to keep lending us money at ultra low interest rates. Rates are going to go up and when that happens, the party is over." - in CNBC

more...
No comment yet.
Scooped by Hal
Scoop.it!

Swiss to vote on whether their central bank can sell gold reserves

Swiss to vote on whether their central bank can sell gold reserves | Gold and What Moves it. | Scoop.it
Initiative also seeks to force the bank to keep at least 20% of its assets in the metal.

 

A rather popular initiative by the Swiss Peoples Party, or SVP, has gained traction in Switzerland, and the country is now getting ready to hold a referendum on whether its central bank can sell gold reserves.

 

The “Save our Swiss Gold” measure also seeks to force the Swiss National Bank (SNB) to keep at least 20% of its assets in the metal, repatriate gold reserves held abroad and keep them at home.

 

The news comes one week after reports that Cyprus could sell 10 tons of its central bank gold reserves to help fund its bailout. While the amount is not big enough to have a material impact of the balance of the global gold market, the news contributed to gold's record-breaking tumble to two-year lows this week. ...

more...
No comment yet.
Scooped by Hal
Scoop.it!

Bloomberg News inadvertently explains the gold smash | Gold Anti-Trust Action Committee

Bloomberg News inadvertently explains the gold smash | Gold Anti-Trust Action Committee | Gold and What Moves it. | Scoop.it

Dear Friend of GATA and Gold:

 

Without trying to, the Bloomberg News story from Tuesday appended here explains exactly what has happened with gold this month:

 

Western central banks needed to create the impression that there's no inflation so they could continue monetizing debt and buying junk assets. Gold is an indicator of inflation and so had to be smashed to clear the way for more money creation.

 

Bloomberg reporters were assigned to query all the usual establishment types to fill in the blanks while the actual mechanism of the gold plunge -- the unprecedented dumping by a single entity to create panic amid enormous offtake of real metal from commodities exchanges, threatening the general rigging of the currency markets -- was never examined. Nor was any dissenting voice quoted.

 

This isn't journalism but propaganda in the style of the totalitarian house organs Pravda, Volkischer Beobachter, and Granma. Even China Daily isn't this subservient to its masters in the Communist Party.

 

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

more...
No comment yet.
Scooped by Hal
Scoop.it!

Rick Rule: "It's Wartime Right Now"---So Much Money Can Be Made As A Consequence Of This Market | Bull Market Thinking

Rick Rule: "It's Wartime Right Now"---So Much Money Can Be Made As A Consequence Of This Market | Bull Market Thinking | Gold and What Moves it. | Scoop.it

It was a fascinating interview, as Rick discussed exactly what he’s doing right now in the resource sector, and why so much money is madeas a consequence of “selective and aggressive buying during these market bottoms.”  

 

Speaking toward fund “disintermediation” of mining and natural resource shares, Rick stated that, “What’s happening now…[is] the small hedge funds and mutual funds…are experiencing redemptions. When you are experiencing redemptions as a manager, you don’t sell what you want to sell…you sell anything that has a bid, [as] you have to raise cash to fund your investor redemptions…One of the weaknesses of the mutual fund model in a cyclical industry like precious metals or natural resources, is that although the industry itself requires a contrarian technique, you’re at the mercy of the mob, and you’re at the mercy of the market. We’re seeing this in the capitulation selling that we’ve been [watching] this week.”


When asked if we’re finally seeing the spasmodic, event-type selling which marks major, historical bottoms, Rick said, “Yes sir. We’re coming right into it now. We’ve been experiencing it, [and] I expect we’ll continue to experience it for a while. I expect the spasmodic sell-off to give way to the summer doldrums, where the market drifts a little bit lower through the summer, albeit on no volume. Then I expect the market to begin to pick up in September, in a stealth bull market that nobody notices, where the sellers are simply exhausted, [and where] weak buying volume overcomes weaker selling volume.” ...

Hal's insight:

Click through for the rest of the inteview.

more...
No comment yet.
Scooped by Hal
Scoop.it!

Gold bears suddenly appear, more emboldened than ever

Gold bears suddenly appear, more emboldened than ever | Gold and What Moves it. | Scoop.it
Do central banks buy Gold because they think the end of the world is coming? If Gold is an “end of the world” investment, then why the hell do western central banks own the vast majority of their reserves in Gold?

 

By Jordan Roy-Byrne
Congrats to the gold bears and stock bulls! After being slaughtered for the majority of the last decade and more, they finally won a victory. Golf clap for you gentlemen. Now you can have your day in the sun once again. US stocks are at all-time highs and Gold sucks again! You won’t have to listen to your clients bitch and moan about how you ignored, avoided or were underweight the bull market of our time. Time to crow!

I awoke on Monday to a link from a subscriber. It was an editorial titled, “The Day that Gold Died.” The author cited the usual, clueless and baseless arguments both to why folks buy gold and why gold sucks as an investment. It is nothing more than a flimsy rant. He also cited a “marvelous takedown” by Barry Ritholtz, a formerly humble and generally impartial commentator who is now enjoying mainstream notoriety.

The worst and most natural, instinctive error these chaps and all gold haters make is to immediately refer to gold is an end of the world investment. This would be the most bizarre and ridiculous argument for gold. If the world ends, then how do you collect on it? If society breaks down for a period of time, then what good will Gold do for you, ahead of a farm? ...

more...
No comment yet.
Scooped by Hal
Scoop.it!

Pento - Gold Reveals Global Markets On Thin Ice

Pento - Gold Reveals Global Markets On Thin Ice | Gold and What Moves it. | Scoop.it

Pento tells King World News:

 

"To understand the real reason behind gold’s selloff, investors first need to acknowledge that it’s not just gold coming under pressure.  Industrial and growth stocks are plummeting across the board.  For example, Caterpillar (CAT) is down 20% in the last 30 days, base-metal commodities are headed into bear market territory.  Copper is also down 15% since February and is now trading at a over a 52-week low.  Oil is dropping sharply of late, falling down to $86 per barrel from the mid-90’s a few week ago. Also, the recent stock market rally has been very narrowly based.  Those equities that have been working are defensive in nature like healthcare and consumer staples … that is not representative of a healthy market. 


"So it comes down to this; investors should not make the same mistake they did during the fall of 2008, namely ..."

Hal's insight:

Click through for the rest.

more...
No comment yet.
Scooped by Hal
Scoop.it!

Lear Capital: Enough of Gold’s Fair Value of $800/oz. | Lear Capital Blog

Lear Capital: Enough of Gold’s Fair Value of $800/oz. | Lear Capital Blog | Gold and What Moves it. | Scoop.it

OK!  I’ve had enough!  This idea that Gold’s fair value is only $800 an ounce is causing my reason meter to redline.  It’s making me a little cranky, so bear with me.  This all started with a report that stated:

 

Claude Erb and Campbell Duke figured out the ratio between the price of gold and the stated price inflation from a historical perspective and determined gold was over-priced based on their numerical analysis. 

 

I took this quote from a Daily Bell article.  The Daily Bell does not take a position on any specific numerical analysis of the gold price, but did question the claim.

 

I will raise a new question.  Did Erb and Duke consider the effect government subsidies have on the price of every day goods and services?   I am familiar with the numbers likely used in the analysis and wrote about this very topic on January 30, 2013.  I took my numbers directly from ...

Hal's insight:

Click through for the rest.

more...
No comment yet.