Buying Gold | And The First Thing Ukraine Will <b>Buy</b> With IMF Money Is... | Zero <b>...</b> | News2Gold |
| And The First Thing Ukraine Will <b>Buy</b> With IMF Money Is... | Zero <b>...</b> Posted: 06 May 2014 05:49 AM PDT A month ago, it was alleged, that Ukraine - under cover of night - loaded its gold reserves onto a plane and shipped them off (for safekeeping) in the US, as the potential price of 'liberation'. So how ironic that, given the massive gas debts that Ukraine owes to Russia (and prepayments pending), and sizable bond maturities pending, the first thing that Ukraine's National Bank governor will be buying with his freshly minted loan from the IMF is... buy a billion dollars of gold. We presume Gazprom still gets its payment and bondholders get paid off - because that seriously impair 'investor confidence' which is, as they note below, is what is crucial to stabilize the nation's economy... but it seems the Central bank has other priorities...
What is odd is that Ukraine's gold reserves have been soaring in recent years - so it's hardly been a confidence-inspiring move for Ukrainian entrepreneurs and foreign investors so far?
So the big question we are left wondering is - whether all the IMF is doing is "giving" Ukraine money so it can buy gold as proxy for the NY Fed... One wonders if this news has anything to do with the fact that since the approval of the IMF "loan" gold has had its best 2 days in 4 months...
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| <b>Buying Gold</b> | Tensions in Ukraine Prompt Safe Haven <b>Buying</b>, <b>Gold</b> Posted: 07 May 2014 12:07 PM PDT | Tensions in Ukraine Prompt Safe Haven <b>Buying</b>, <b>Gold</b> Climbs to <b>...</b> Posted: 05 May 2014 04:21 AM PDT Gold rose 0.9 percent or $11.80 to $1,311.50 per ounce on Monday, according to Reuters. Earlier in the trading day, the metal hit its highest price since April 15. Though London markets are closed for the May Day holiday, other traders are investing in gold as a hedge against potential political trouble as Ukraine tensions continue. "Gold is trading near the highest in three weeks as Ukraine once again attracts some safe-haven demand and the dollar continues to trade on the weak side," Saxo Bank head of research Ole Hansen told Reuters. U.S. gold futures for June delivery were up $8.80 an ounce to trade at $1,311.70, Reuters reported. | <b>Gold</b>, Silver Surge on Wedding Season <b>Buying</b>, Global Cues <b>...</b> Posted: 03 May 2014 02:42 AM PDT New Delhi: Gold staged a strong recovery today by surging Rs 320 to Rs 30,710 per 10 grams in the national capital on emergence of buying by stockists to meet the ongoing wedding season demand amid a firming trend overseas. Silver also snapped its three-day falling streak and spurted by Rs 1,050 to Rs 42,700 per kg on increased offtake by industrial units and coin makers. The white metal had lost Rs 1,750 in the previous three sessions. Traders attributed the rebound in precious metals to buying by stockists for the ongoing wedding season demand. Besides, a firming global trend where gold advanced the most since mid-March as tensions between Russia and Ukraine increased, boosting demand for the precious metal as a safe haven, also boosted the sentiment here, they said. Gold in New York, which normally sets the price trend on the domestic front, rose 1.5 per cent to $1,302.90 an ounce, the biggest gain since March 12 and silver by 2.6 per cent to $19.54 an ounce, the biggest gain since February 14. In Delhi, gold of 99.9 and 99.5 per cent purity spurted by Rs 320 each to Rs 30,710 and Rs 30,510 per 10 grams, respectively. It had lost Rs 195 yesterday. Sovereign followed suit and rose by Rs 100 to Rs 25,100 per piece of eight grams. Silver ready recorded by a whopping rise of Rs 1,050 to Rs 42,700 per kg and weekly-based delivery by Rs 1,105 to Rs 42,080 per kg. On the other hand, silver coins remained steady at Rs 80,000 for buying and Rs 81,000 for selling of 100 pieces. | The International Forecaster Ukraine and <b>Gold</b> and the Flight to Safety Posted: 07 May 2014 01:00 AM PDT With the latest massacre in Odessa, the Ukrainian military's ongoing operations in the country's restive eastern provinces, ongoing demonstrations, marches and counter-marches between pro-Russian and anti-Russian sides, and repeated warnings from international leaders that the country is on the brink of war, the situation in Ukraine remains as much on the knife edge of all out chaos today as it has for the past several months.
And as the entire world knows all too well by now, a civil war in Ukraine is almost certain to spill over into a larger military confrontation involving Russia and the NATO powers. Things are about as tense geopolitically as we've seen them at any time since the end of the Cold War. So whither gold? It is a long-standing truism of the markets that gold and bonds are the go-to places for smart investors to park their money during times of crisis; the rock-solid, low risk, low interest places to take money out of the gain while the markets process the pandemonium. If there is such a flight to safety happening in the gold market right now, though, you wouldn't see it from the spot price. Gold pulled back yesterday after making some gains over the previous two trading days, but when you pull the chart back to look at the six months of the crisis, prices are solidly in the $1300 range, but hardly skyrocketing and not even close to the year-to-date high of $1382/oz. reached in March. So what's really happening? As we've talked about numerous times in these pages, the spot price of gold is highly distorted by the manipulations that take place in the highly-leveraged paper gold market. Sorting out the physical demand from the paper buying makes it easier to understand just how much faith investors really have in the yellow metal. To get a sense of what the real underlying physical demand is, we could look at the gold forward offered rate (GOFO). GOFO is the rate used when gold is put up as collateral against dollar loans, and it's defined as the LIBOR rate minus the Gold Lease Rate. In regular circumstances, GOFO is positive, since it costs more to borrow dollars than to borrow gold. As David Jensen, Jay Taylor, and other analysts are noting now, though, GOFO has been negative throughout much of the past several weeks, meaning it's more expensive to borrow gold than dollars. Although there are numerous forces that can play into this calculation, one obvious source of GOFO turning negative would be panic buying in the physical markets and/or an increase in demand for physical delivery. If this is true, panicked investors wouldn't be the only ones rushing to get their hands on the precious metal. Just last week, the IMF approved a $17 billion stand-by credit facility for Ukraine, and just this past Monday, acting chairman of the National Bank of Ukraine, Stepan Kubiv, announced that the country would be committing $1 billion of its first $3.2 billion portion to buying gold and currency reserves. Ostensibly done to "send a positive signal to foreign investors and domestic entrepreneurs" about the stable investment climate in the country and to prop up the hrvina, there are those speculating that this gold (along with the gold alleged to have been secretly shipped from Ukraine to the US last month for "safekeeping) may in fact be used by the Fed to cover their German gold repatriation deal. Whatever the case, physical gold is still greatly in demand, and all things being equal it's only a matter of time before that is reflected in the spot price. | Why this top technician recommends <b>buying gold</b> now - CNBC.com Posted: 24 Mar 2014 09:53 AM PDT Gold suffered another tough session Monday, dropping nearly 2 percent following a bad week. But one of the most respected technical analysts on Wall Street says it's high time to buy in. Indeed, Sterne Agee chief market technician Carter Worth predicts that gold will rise about 15 percent from current levels. After a painful 2013, bullion was finally finding some strength in the beginning of 2014. The key, for Worth, was that the metal was able to turn around a grim trend. "When you're cascading, you make a low and then you violate it. And make a low, and then violate it. Make a low, and then violate it. Low after low," Worth said Friday on CNBC's "Options Action." "But then, we have this massive low in June, as everyone knows, and again, we have a rally. But this time, we don't violate. So we have a well-defined double bottom." |
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