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Monthly Archives: November 2014

Gold prices tumble as oil collapses after OPEC decision

Gold prices fell sharply in electronic trading on Friday, in tandem with collapsing crude-oil prices after OPEC decided to leave its production targets unchanged. Gold for December delivery GCZ4, -0.16% slid $12.80, or 1%, to $1,183.80 an ounce, while silver for the same month SIZ4, -0.15% dropped 46 cents, or 2.9%, to $16.12 an ounce. Copper prices for December delivery HGZ4, -0.81% fell 3 cents, or 1%, to $2.93 a pound. January platinum PLF5, +0.26% was down $14.30, or 1.2%, to $1,214.10 an ounce, while December palladium PAZ4, +0.53% was off 60 cents to $801 an ounce.

LBMA takes stake in gold, platinum, palladium benchmarks

The London Bullion Market Association will take on intellectual property rights for gold, platinum and palladium price benchmarks when they are launched by new administrators, the industry body said on Friday.

London’s bullion price benchmarks, or fixes, were transformed this year as regulatory scrutiny and accusations of market manipulation made price-setting among a handful of banks untenable.

ICE Benchmark Administration was named as the new operator of what will become the LBMA Gold Price early next year after the previous precious metals benchmarks, known as the fixes, were wound down.

The Chicago Mercantile Exchange and Thomson Reuters were named as administrators of an auction-based silver price in August, while the London Metal Exchange will run the platinum and palladium fixes from December. (more…)

Russia’s Gold Monetary Solution

The hypothesis that follows, if carried through, is certain to have a significant effect on gold and the relationship between gold and all government-issued currencies. The successful remonetisation of gold by a major power such as Russia would draw attention to the fault-lines between fiat currencies issued by governments unable or unwilling to do the same and those that can follow in due course. It would be a schism in the world’s dollar-based monetary order.

Russia has made plain her overriding monetary objective: to do away with the US dollar for all her trade, an ambition she shares with China and their Asian partners. Furthermore, in the short-term the rouble’s weakness is undermining the Russian economy by forcing the Central Bank of Russia (CBR) to impose high interest rates to defend the currency and by increasing the burden of foreign currency debt. There is little doubt that one objective of NATO’s economic sanctions is to harm the Russian economy by undermining the currency, and this policy is working with the rouble having fallen 30% against the US dollar this year so far with the prospect of further falls to come. (more…)

Condor Gold’s La India Project Will Produce Gold At Less Than US$700 Per Ounce, Whichever Development Option Is Selected

“There are no red flags at La India”, says Condor Gold’s Mark Child. “We’ve recently completed a Prefeasibility Study and two updated Preliminary Economic Assessments”

In fact, the latest NI 43-101 compliant, independent economic studies from Condor’s La India gold project in Nicaragua presents a very favourable picture indeed, always assuming that the gold markets don’t completely crater.

The company took the slightly unusual route of working up two preliminary economic assessments alongside a smaller-scale pre-feasibility study in order to lay out several possible development scenarios and demonstrate the relative attractions of each in turn.

The absolute base case scenario involves developing a single open pit at La India which will produce an average of 79,300 ounces of gold over seven years, with a further two years of mine life mining at a lower rate. For this scenario all-in costs are estimated at an attractive US$690 per ounce. (more…)

Greenspan Is Thinking About Gold At The Right Time

Former Federal Reserve Chair Alan Greenspan is on a gold roll. In September, Greenspan published a thought piece in Foreign Affairs musing on the indubitable monetary qualities of gold. “If, in the words of British economist John Maynard Keynes, gold were a ‘barbarous relic,’” Greenspan wrote, “central bankers around the world would not have so much of an asset whose rate of return, including storage costs, is negative.”

Then earlier this month, at the home of the magazine’s sponsor, the Council on Foreign Relations, Greenspan was at it again. In response to questions, Greenspan reminded his audience that the last time the world got together to reform the monetary system, in 1944 at the Bretton Woods resort in New Hampshire, the level heads opted for gold.

“The real intellectual debate [was] between those who wanted an international fiat currency which was embodied in John Maynard Keynes’s construct of a banker, and he was there in 1944, holding forth with all his prestige, but couldn’t counter the fact that the United States dollar was convertible into gold and that was the major draw,” Greenspan said. (more…)

Glimmers of hope for gold investors

Just counting the major currency blocs, the world managed to survive only 36 hours—count ‘em—without a big quantitative easing program somewhere in the world. The Federal Reserve stopped buying bonds on Wednesday, October 29. The Japanese began buying more yen on the following Friday.

All of which, logically, ought to be hopeful news for those who are long on the one currency that cannot be printed ad infinitum—namely, gold.

Less than a month ago, the world’s oldest currency seemed in near free fall. The price per ounce, nearly $1,400 at one point in the spring, had slumped to around $1,150. Money management friends who are gold bulls, and who own the metal in their portfolios, tell me they are getting a lot of capitulative pressure from clients. Some are walking. Others are threatening to do so.

So far gold has picked up about $50 an ounce, standing at just under $1,200. (more…)

Gold and Silver Market Morning

The gold price closed up at $1,204 in New York on Friday.  London took it down to $1,195 ahead of the Fix. It was Fixed at $1,196.00 up $42 from the 13th November and in the euro at €964.672 up €38.36, while the euro stood at $1.2405. The volumes of net gold traded were three sellers selling 80,000 ounces and one buyer buying 60,000 ounces before the pro-rata process kicked in. Ahead of New York’s opening, gold was trading at $1,196.00 and in the euro at €964.13.

Silver Today – The silver price ahead of New York’s opening was trading at $16.36 up nearly a dollar since the 13th November.

Gold

The gold price will consolidate around $1.200 in New York, today.

Silver

Silver will consolidate alongside gold, in New York, today. (more…)

Gold price fails to hold $1,200, fresh catalyst sought

The gold price dipped back below $1,200 on Monday morning when investors turned to the dollar, reflecting the divergence in monetary policy measures between the US, Europe and Asia.

Spot gold was last at $1,195.50/1,196.40 per ounce, down $5.20 on Friday’s close despite closing that day above $1,200.

Investors continue to trade the disparity between the Federal Reserve’s tightening of monetary policy and easing measures by other major central banks around the world. (more…)

Gold Price Drop “Sparked Strong Asia Demand”, Reducing London Stockpiles & Sending Borrowing Cost to 15-Year High

GOLD PRICES slipped half-a-per-cent below last week’s finish in Asia and London trade Monday morning, holding below $1200 per ounce as world stock markets rose in quiet trade ahead of the US Thanksgiving holidays.

Gold’s recent drop to new 4.5-year lows beneath $1200 per ounce has seen “a strong physical demand response from Asia” says Jonathan Butler at Japanese conglomerate Mitsubishi in his weekly analysis, pointing to trade data from Switzerland – the world’s major producer of smaller gold investment bars.

“The west to east trade in [large, wholesale] Good Delivery bars, after conversion to kilobars at Swiss refineries, is alive and well,” says Butler, “and is therefore reducing the available supply of good delivery metal” in London. (more…)

Why gold is still a solid long-term investment

We have been bearish on gold prices since January 2013, when it was trading above $1,650 an ounce. Since then, the price of gold has declined by almost 30%. There are three main reasons for this underperformance over the last two years:

1. Gold GCZ4, +1.02%  as an investment hedge has become less attractive to Europeans as the chance of a break-up of the European Monetary Union declined after Spain, Portugal and Greece were bailed out by the EMU’s richer members, such as Germany.

2. Gold has become less attractive to Americans as the U.S. dollar DXY, -0.36%  strengthened and recently hit a four-year high.

Tony Robbins on the keys to wealth(5:17)

Tony Robbins, author of “Money: Master the Game,” discusses his own rags to riches story and how anyone can achieve wealth.

3. India, which accounts for one-quarter of the world’s gold consumption, slapped a 10% import duty on gold during August 2013. Indian gold demand dropped by close to 40% year-over-year in the fourth-quarter of 2013 and did not recover until this summer.

Many analysts are still bearish on gold prices. For example, Goldman Sachs and Credit Suisse have 2014 year-end target prices of $1,050 an ounce and $1,000 an ounce respectively. Some are even expecting gold prices to plunge to below $1,000 an ounce in 2015. (more…)

Why Does Gold Have to be so Barbaric? Where has All the Gold Gone?

Gold, that “barbaric relic” from yesteryear just won’t go away even though the central banks around the world would like just that.  I believe it was Keynes who first coined the phrase ”barbarous relic” which has stuck for more than half a century.  But why does it have to be so barbaric?

Gold as you know has had a very long history, some 5,000 years or more.  Wars have been fought over it, kings and queens have won or lost over it, coup de ‘tat’s have occurred because if it, entire governments have been swept because of gold …or the lack of.  Gold has been hidden, buried, swept away and stolen over the years.  Maybe JM Keynes called it the “barbarous relic” because the of ugly lengths man has gone to throughout history to attain it?  Yes I know, I was only kidding, he was demeaning gold and tried to tar it as useless versus our “new fangled” fiat money of the time (more…)