Gold price | Silver and <b>Gold Prices</b>: The <b>Gold Price</b> Leapt $19.50 or 1.5 Percent <b>...</b> |
- Silver and <b>Gold Prices</b>: The <b>Gold Price</b> Leapt $19.50 or 1.5 Percent <b>...</b>
- Is <b>Gold Price</b> Manipulation Good Or Bad For Gold Investors? | Gold <b>...</b>
- Morgan Stanley: <b>gold price</b> won't see $1,300 again | MINING.com
- <b>Gold price</b> drops as holdings of top ETF fall to 5-year low | MINING <b>...</b>
- Silver and <b>Gold Prices</b>: The <b>Gold Price</b> Closed at $1,283.10 if You <b>...</b>
- China Controls The <b>Gold Price</b> :: The Market Oracle :: Financial <b>...</b>
| Silver and <b>Gold Prices</b>: The <b>Gold Price</b> Leapt $19.50 or 1.5 Percent <b>...</b> Posted: 02 May 2014 06:01 PM PDT
Whoa! Today was an unexpectedly strong day for silver and GOLD PRICES. Stocks rose again today but find their progress mired deeper and deeper in mud. White metals gained, while the US dollar index has joined the ranks of the walking dead. Copper still hasn't without qualification confirmed it does not intend to become cheaper than gully dirt. From its March $2.877 low it has continued to rally, got as high as $3.14, but dropped off this week. 200 DMA hovers above at $3.21. Falling copper prices suggest trouble for stocks and "deflation," which ain't been seen in these parts (by which I mean the Earth) since 1933, and won't be as long as those rotten central banks keep inflating. Of course, expecting them not to inflate is like expecting a tick not to suck your blood. The SILVER PRICE ballooned 50.3 cents (2.7%) to end at 1949.2c. The GOLD PRICE leapt $19.50 (1.5%) for a $1,302.60 Comex close. Y'all remember that on last Thursday silver and gold prices both broke into new lows for the move then surged back dramatically to close higher? Something similar happened today, which after this past week was a welcome surprise. Sellers began hammering gold from $1,285 about 9:30, and hit it hard, Gold reeled back to $1,272.90, traded back up within 30 minutes, then sellers hit it again just before 11:00. No good, couldn't break it. About 11:30 gold shot skyward like a 4th of July rocket, all the way to a $1,302.90 high and closed Comex up there. Only thing better would have been a close over $1,305 resistance. But silver was leading the way today. It broke very little against a 9:30 attach, from 1920c down to 1891c. After a pause for breath, sliver took wings and flew to 1970c, then closed at 1949.2. What meaneth this bragging? Simply that both markets surprised sellers with their strength at those lose, which now seem "sold out." By that I mean there are no more sellers lurking around those lows, only buyers. But dealing with markets is like being married to a bad jealous woman, you have to keep proving yourself every day. So, too, silver must pull on its 7-league boots and step out over 1950c, then quickly 2000c. 20 DMA is at 1965c, and that's the first milestone. MACD is trying to turn up. To prove today was not merely a fluke occasioned by shorts covering their positions before the weekend, next week the gold price must better $1,305. Above that gold must pierce the last (April) high at $1,331.40. For the second time this week, the Feds fired their bully blarney cannon, but instead of a bang, 'twas only a burp. FOMC announcement on Wednesday hardly moved markets. Today the lying yankee government made its lying jobless report. To hear them tell it, the jobless rate fell from 6.7% to 6.3%, but that's all guesses piled on speculation and estimates. Yet the lie gained little. Markets feinted a reaction, then went their own way. I know not the cause beneath this, but sure as a dead pig gets high in July, it ain't an America-wide outbreak of rationality. Stock markets are tired, and it takes a lot to get tired folks excited. Government needs to up the ante -- speaking of that, Obama's doing a great job of stumbling toward world war. Maybe that's the fall-back distraction. It's not a sign of wiry strength when during a day markets break to new highs for the move, then close lower. It whispers that resolve and direction are wanting. Dow today high a new high for the move (16,620) but for the second day running closed lower, by 45.98 (0.28%) to 16,512.89. Two days ago the Dow made a new all time high at 16,580.84. So did the S&P500 (1,883.95), but also for the second day closed lower. Both remain, however, broken out over their downtrend lines, so you can expect they will struggle to higher prices in May. That will probably mark the ultimate top. I spent time gawking and gazing at the Dow in Silver Chart today, and have a better target for the ultimate top. It draweth nigh, and should not exceed 917 oz (S$1,185.62 silver dollars). A little more likely is 890 oz (S$1,150.71). Today the DiS fell 2.73% to 845.73 oz (S$1,093.47). Since June last year the DiS has formed a rising wedge. At the reversal the DiS should break down out of that wedge. Dow in Gold may have already turned down at end-December, but that's a long shot because it stands above all its moving averages. Momentum is upward, even though MACD and stochastics are not optimistic. Closed down 1.5% at 12.70 oz (G$262.53 gold dollars). US dollar index reminds me of one of those silent movies where the hero is hanging onto the lip of a cliff by his fingernails, and they start breaking. Since February it has bounced off the narrowing sides of an even-sided triangle. Thrice now hath it touched the bottom boundary, thrice bounced. That increases the odds it won't bounce again. This is my arcane and obscure way of saying that the US dollar index must turn and climb soon or fall off that cliff. Lo, y'all may observe the Dollar's flakiness in today's chart. On that prevaricating jobs report it shot clean up about 8:30, from 79.60 to 79.85, traded sideways a couple of hours, then fell like Congressman Wilber Mills when he went swimming in that Washington fountain with his girlfriend, stripper Fanne Foxe. Has all the flavor of an island reversal without the gaps. Meanwhile the euro rallies, but without conviction. UP 0.8% today after a near nasty fall, to close at $1.3879. Yen also reacted in mirror image to the dollar, with an initial fall followed by sudden rise. Closed up 0.11% at 97.85 cents/Y100. Ten year treasury yield fell today to its lowest level this year, 2.591%. That suggests investors are crowding into bonds, scared by stocks. Y'all enjoy your weekend! Aurum et argentum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger © 2014, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose.  | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Is <b>Gold Price</b> Manipulation Good Or Bad For Gold Investors? | Gold <b>...</b> Posted: 01 May 2014 11:26 AM PDT Even if banks and governments are manipulating the day-to-day price of gold, the metal's long-term fundamentals are stronger than ever. In fact, the reasons for them to suppress the gold price are the same reasons for us to buy gold in the first place. Below are the actions of large institutions which affect the gold price and Peter Schiff's view on the impacts for the long-term gold investor. Flash Crashes There are two prominent suspected methods of gold price manipulation. The first is through massive short-selling of COMEX gold futures in the United States. Paul Craig Roberts, former Assistant Secretary of the Treasury under Reagan, is perhaps the best-respected voice calling attention to this controversy. Roberts argues that large banks, like JP Morgan and Goldman Sachs, wait for periods of low activity in the gold futures market to sell large quantities of futures contracts. This selling drives down the actual spot price of gold, which in turn scares away weak longs and encourages other short-sellers to join in on the action. These "mini-flash crashes," as they've come to be known, allegedly knock gold down a peg or two right when it is primed for a rally – thereby stealing its momentum. More importantly, Roberts claims, these flash crashes provide support for the US dollar when it looks weak. The most recent example is a series of mini-flash crashes in March, when the US Dollar Index dropped below the key level of 80. Gold was steadily rising towards $1,400, but after the attack, began falling again. Sure enough, the Dollar Index recovered above 80. The Foggy London Fix The other suspected method of gold price suppression is through the London gold fix. This set price is used by large gold owners, including refineries, miners, and central banks, to account for the value of their holdings.The London fix has been around since 1919 and is so old-fashioned it's no wonder it's coming under more scrutiny. Five member banks of the London Bullion Market Association get on the phone every weekday at 10:30 am and 3 pm London time. They discuss how much gold they and their clients want to buy or sell, then adjust the price until the buy and sell orders are within 50 gold bars of each other. The price is then "fixed" for publication in US dollars, British pounds, and euros. The whole process can take anywhere from few minutes to over an hour. At any time, the member banks can pause the proceedings to speak with clients. This basically means that information about the gold price trickles into the general market before the fix is officially set. Economists and academic researchers have begun looking into irregular gold price movements during the afternoon fix, which might indicate collusion to drive gold down. Researchers found that between 2004 and 2013, whenever the gold price made a large move during the afternoon fix, two-thirds of the time it was a decline. The UK Financial Conduct Authority has started investigating the London fix more closely, while earlier this year a US lawsuit was filed against the five member banks based upon this research. Tellingly, Deutsche Bank has resigned its seat on both the gold and silver fixing boards. While such a seat sold for a million dollars during the last transfer a decade ago, apparently it is now given up for free. If That's the Fix, Where's the Catch? I certainly cannot argue that flash crashes and private phone calls between bankers are not suspicious. But what's the real takeaway for the physical gold investor? The evidence of manipulation for both COMEX gold futures and the London fix are large, downward movements in the price of gold at suspicious times of the trading day. More than anyone else, this is going to affect gold speculators who are looking to turn a quick profit. I've always warned serious investors against the risky world of gold futures and other paper gold derivatives. Besides the complexity of the market itself, attempting to become a short-term trader puts the small investor in a league with powerful interests and shady practices. As the father of value investing Benjamin Graham was known to say, "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." This means that short-term, the market is like an election or other popularity contest – with all the corruption that implies. But over time, what matters most is underlying value. [My views on the present undervaluation of gold are well established, so I won't re-hash them here. For those curious, please read through past editions of my newsletter.] The important question is: could these manipulations affect the long-term value of gold? The Big Picture The research suggests that London fix manipulation could have been occurring since 2004. So the claim is that throughout gold's greatest bull market in living memory, banks were colluding to drive the price lower. Clearly they were incapable of stopping gold's rise altogether, if that was truly their intention. I think it is more likely that either they were simply trying to game the market to buy gold at a discount for their clients, or perhaps they had a vested interest in slowing gold's rise. Since gold is still widely recognized as a safe haven, investors use it as a gauge of the health of the underlying economy. If gold shot up too quickly, these banks may have reasoned, it could trigger a panic flight from fiat currencies. In fact, that is what happened in the credit crisis of '07-'08. As we saw, major Western banks quickly turned from highly profitable to completely insolvent. Since then, coordinated government intervention has done its best to re-create the tenuous situation prior to the crash – so the incentive to suppress gold remains. Paul Craig Roberts has made the same point – the gold price is being manipulated to make the dollar appear stronger, rather than to cripple the gold market. If over the last several years, the Dollar Index had continuously fallen and the gold price steadily risen, it would have undermined the Federal Reserve's claims that quantitative easing had saved us from the brink of collapse. Viewed this way, a self-interested collusion between major banks and their patrons in government makes sense. Imagine if you were facing the destruction of your wealth, power, and status – and had the means to forestall it. Fortunately for gold investors, forestalling is not the same as correcting. Just as any manipulation prior to the credit crisis didn't prevent it from occurring, today's tactics will not lessen massive public debts nor return value to an inflated currency. A Second Chance If gold price manipulation is true, then these banks and governments have done a tremendous favor to those who understand the gold market. Unexpected volatility and bull market corrections shake out those speculators who are trying to make a quick buck or who do not have the courage of their convictions. Investors have been given a multi-year free pass to learn about monetary policy, commodities, and investing while gold waits at affordable prices to be bought. Perhaps absent these manipulations, gold would have grown into a frenzied mania as the whole Western world attempted to safeguard their wealth at once. In fact, I believe this is a likely outcome as the various schemes that are keeping the West afloat start to come apart. If you're skeptical of big banks and big government, gold manipulation shouldn't put you off investing in sound money. Instead, consider it as you would a gift horse. Instead of looking it thoroughly in the mouth, smile and graciously accept your good fortune. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Morgan Stanley: <b>gold price</b> won't see $1,300 again | MINING.com Posted: 29 Apr 2014 10:52 AM PDT The gold price on Tuesday continued to hover below the $1,300 an ounce level, down more than $80 an ounce from 2014 highs reached mid-March. US investment bank Morgan Stanley added to the negative sentiment, forecasting the gold price to average $1,250 this quarter, decline to an average $1,168 in the second half of 2014 and weaken further to $1,138 next year. The commodity analysts at Morgan Stanley are quoted in Barron's blog that record demand from China "won't be enough to keep gold's price above $1,200 per ounce in the coming year, much less help it rise". The bank blames a slide in the value of the Chinese currency, the yuan, against the US dollar for weakening demand. Signs of a drop-off in the world's top importer of gold are already visible: Mainland China's net imports totaled 80.6 tonnes in March, a 27% drop compared to the 111.4 tonnes imported in February. Compared to the same time last year the drop-off was even more stark – down 38% from the record 130 tonnes in March 2013. Another indication that there are fewer buyers in China is the disappearance of premiums paid on the Shanghai Gold Exchange. From premiums that topped out at $37 when gold was trading around $1,200 last year, during March traders on average offered gold at a small discount to the quoted London spot price. March was the first month since September 2012 that gold did not attract a premium. Driven in part by a weakening yuan, discounts on gold widened to as much as $9 an ounce below when the price were headed towards $1,400 in March. Apart from Asian demand issues, factors that have helped gold gain some 8% in value this year compared to a 28% fall in 2013 will also be fading in importance over the course of 2014. Morgan Stanley argues geopolitical tensions and worries about the US and Chinese economy won't attract safe-haven buying of gold like it did early this year. And tepid interest from futures traders and ETF investors will see the metal drift lower this year and next. Image of gold bear by The Scott | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| <b>Gold price</b> drops as holdings of top ETF fall to 5-year low | MINING <b>...</b> Posted: 01 May 2014 04:10 PM PDT The gold price fell by more than $10 on Thursday after confidence in the US economy expressed by the Federal Reserve overshadowed the escalation of the conflict in Ukraine. On the Comex division of the New York Mercantile Exchange, gold futures for June delivery last traded at $1,285.20 an ounce, near the lows of the day and down $11 from yesterday's close. Gold's status as a hard asset and safe-haven during times of turmoil did not translate into buying despite news that Ukraine has re-instated military conscription after saying that it is in danger of losing the east of the country to pro-Russian forces. The US central bank on Wednesday decided to continue to scale down its stimulus program following indications that growth in economic activity picked up recently after the weather-related slowdown in the first quarter saw GDP growth barely positive at 0.1%. The news boosted the dollar and diminished gold's allure as a hedge against inflation and storer of wealth. Investors also continued to pull money out of the SPDR Gold Trust (NYSEARCA:GLD), the world's largest physically-backed gold ETF accounting for over 40% of total holdings in the industry. Holdings in GLD dropped more than 2 tonnes to 785.55 tonnes or 25.2 million ounces on Thursday, the lowest level since January 2009 and down 24 tonnes during April. After an atrocious 2013 when GLD recorded only 17 days of inflows and almost 540 tonnes left the fund, the tide seemed to have turned early in 2014. But after peaking at 821 tonnes in March, GLD became a one way bet again. Buying of gold ETFs trust – fondly referred to as the people's central bank – since 2003 when the first of its kind was launched in Australia played a huge part in gold's 12-year bull run. Gold bullion holdings in global ETFs hit a record 2,632 tonnes or 93 million ounces in December 2012. But last year the world's more than a 50 physically-backed exchange-traded gold funds and scores more gold futures-based trusts experienced net redemptions in excess of 800 tonnes collectively. As gold declined 28% over the course of 2013 precious metals investment vehicles suffered depreciation in value of close to $80 billion. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Silver and <b>Gold Prices</b>: The <b>Gold Price</b> Closed at $1,283.10 if You <b>...</b> Posted: 01 May 2014 04:26 PM PDT
The GOLD PRICE lost $12.50 to close Comex at $1,283.10. Silver gave up 13 cents to end at 1,898.9c. With today's low at 1868 cents, silver had given up 100% of its gains since end-December. Given silver's volatility, that's not unusual, but under the context -- a 3 year correction -- it implies silver will move lower. This lower low today wipes out last week's dramatic upward reversal. The SILVER PRICE has not, however, traded below its downtrend line from last April. To be clear, if silver is not bottoming here, it might lose its grip and fall to 1750c. It would have to close above 1950c then 2000c in rapid progression to reverse upward. This brings up my alternate interpretation, that the silver and GOLD PRICE make one last fast spike down before they finally reverse. I have been working on the "double bottom" interpretation, namely, that silver and gold prices made a double bottom with the June and December 2013 lows, and that those would hold. Should gold fail to hold $1,270, it could easily fall $100. Will it? I don't know. If I could answer questions like that, I'd be sitting on the Riviera sipping expensive wine instead of writing this. Next few days will tell the tale, and test your mettle. If you like bottom picking, you can buy dips here. If not, give it a couple of days to see how metals sort out. Don't make a mistake. Even if metals make another spike down, you are watching both silver and gold turn up, and the end of the long correction. The rally that comes next will climb further and faster than anything we have seen so far. Y'all really have little choice: either trust Mother Janet the Money Fairy, or trust silver and gold. Complacency rules markets still. Stocks backed off slightly but without significance. Silver and gold are about to make me change my mind about their near-term course. And national fiat currencies are still a disgusting affront to all just men and the ambitions of all honest people. But one day before too long the complacency will break. Stock investors still believe in the Money Fairy, Mother Yellen. That is, they apparently believe the stock market is rising for economic reasons rather than merely a rising tide of newly created money. This is what they wish is so, but . . . Dow Industrials today fell 21.97 (0.13%) to 16,558.87 and the Sandp500 inched back 0.27 (0.01%) to 1,883.68. That leaves both still broken out above their short term downtrend lines so they should head higher. No sooner did I speak of the bearish rising wedge in the Dow in silver than it broke out upwards. Wedges sometimes break out contrary to usual expectation, normall the opposite direction they point. Today the Dow in Silver hit a new high for the move, higher than the December 2014 peak at 853.15 oz (S$1,103.06 silver dollars). Closed today at 869.55 oz (S$1,124.27), up 0.56%. More upward movement will come. Dow in gold closed above the downtrend line at 12.84 oz (G$265.43 gold dollars). Implies higher prices still. US dollar index bounced slightly, up 0.1 basis point to close at 79.57. It appears only to be waiting for some signal to fall to 79 and lower. Euro and Yen were flat today. On 1 May 1707 was created the United Kingdom of England, Scotland, and Wales. It was part of a CENTRALIZING social trend that began about 1600 with the rise of the corporate nation state (as opposed to kingdoms) and sucked power away from localities and peripheries to the center. That 400 year trend has peaked with the ascendancy of a single world empire, the United States. The rest of our lifetime and for another several hundred years, power will flow AWAY from centers and back to localities. You can readily see that in the United Kingdom. This fall Scotland will hold a referendum on independence and secession from the UK. Fifty years ago that would have been unthinkable -- treason even. Soviet empire fell apart, Catalonia wants free from Spain, Bavaria differs from Germany, Venice voted to secede from Italy, Normandy's not too happy in France, and it's the same all over the world. People are fed up with meddling, bureaucratic central governments. Oh, the trend change is only at the margins now, but it will move fast, even in the United States. And not a moment too soon. Aurum et argentum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger © 2014, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| China Controls The <b>Gold Price</b> :: The Market Oracle :: Financial <b>...</b> Posted: 30 Apr 2014 11:49 AM PDT
What has come through the pages of this and other reports on the gold market there is that China is not only the main force in the global gold market, but they control the gold market. With the acquisition of so much gold in the last year and an ongoing persistent demand in the future, they have effective control of the gold price and the market. They play their control very cleverly so that it is not apparent. You may be asking, so why isn't the gold price at $2,000 or much, much, higher? It's because they have found a way to buy gold without pushing up the gold price. If we are to believe the numbers being put out by the Shanghai Gold Exchange, plus local gold production, government and local buyers absorbed just 400 tonnes short of the entire world's newly mined gold. This leaves just scrap [a diminishing number at these prices] and all disinvestment [including the 880 tonnes from U.S. gold ETFs plus the 400 tonnes of physical gold sold by Goldman Sachs and J.P. Morgan Chase and both their clients, in 2013] left for the rest of the world. 2014 will be a different matter because the 1,280 tonnes sold out of the U.S. last year has gone and we do not expect it to return. This has reduced supply back to slightly more than 4,000 tonnes. Just this alone creates a demand bottleneck, which has to shrink if the gold price is to remain at current levels. If, of course, India eases gold import restrictions, then demand will expand by another 500 tonnes, thereafter. That supply is not available at current prices! If the World Gold Council's number of 1,132 tonnes of gold imported into China is correct, the gold price is likely to trade higher because of the loss of U.S. supply. If we are to believe the numbers delivered by the Shanghai Gold Exchange then the gold price cannot remain at current levels and 2014 will prove a watershed year for gold! As well as being inscrutable, the Chinese are canny buyers. There have been no reports of Chinese central bank buying, because the People's Bank of China does not buy gold directly. It uses agents who, when the P.B.O.C. decides it is in the national interests to revise their gold reserves, deliver the gold, bought on their behalf, through S.A.F.E., the agency buying for them. We are certain China, through their selected bullion banks, are buyers of gold both for the retail market and for the 'official' in both London and New York 'on the dips'. This ensures they are only seen by their bankers, when their dealers have stock to sell. We do not believe that China chases prices. As a result, the bullion banks, licensed to import gold into China, are not visible as Chinese buyers, but just as another professional acting for unknown clients, leaving China's presence in the market almost unnoticed. To ensure prices stay low, the gold they buy comes mainly from 'off-market' sources. And this is the key to getting volume at the right price. As you noted in our last article, the gold price is not an accurate reflection of demand and supply. If China can source gold directly from refiners, gold miners and other markets and use a 'reference' price to price that gold, then there is no danger that the sheer volume of gold they buy will disturb the markets where gold is priced. Many gold miners and refiners use the p.m. Gold Fix as a price used for contracts. It is no strange matter for this to happen. It by-passes markets and lowers costs. More importantly there are no on-market rumors inciting professionals to ramp up prices to make it difficult for the Chinese to buy. China has been a buyer of gold mines across the world. The gold mined there will follow the direct route to China. What this pattern of buying does is to draw in a huge volume of gold, taking stock out of the market and away from traditional buyers. A vital point that we need to make regarding China is;
If this is best achieved by lower prices, then China will act to ensure lower prices. If higher prices are what it takes they will act accordingly. The only word of caution here is that low prices enable the available discretionary savings of consumers in the retail market to buy a greater volume of gold than higher prices would. While the leading U.S. banks believe they control the gold price and that it will move in the opposite direction to the state of the U.S. economy, the reality is that if China decides to lift prices because it can access more gold, it can easily do so. If it prefers lower gold prices it can engineer the situation to leave them low. They have full control in this regard. Neither U.S. banks, nor High Frequency Trading has the power to lower their control. Indeed it appears that the Chinese are taking full advantage of those in the U.S. who want to see lower gold prices and making room for them. What these market players are doing is ensuring that gold in the developed world is moving from west to east ahead of a time coming, in the near future, that will require as much gold as possible to be accessible to nations in a changing, turbulent, financial world. Hold your gold in such a way that governments and banks can't seize it! Enquire @ admin@StockbridgeMgMt.com Gold Forecaster regularly covers all fundamental and Technical aspects of the gold price in the weekly newsletter. To subscribe, please visit www.GoldForecaster.com
By Julian D. W. Phillips Copyright 2014 Authentic Money. All Rights Reserved. What is Gold-Authentic Money all about ? Our business is GOLD! Whether it be trends, charts, reports or other factors that have bearing on the price of gold, our aim is to enable you to understand and profit from the Gold Market. Disclaimer - This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Gold-Authentic Money / Julian D. W. Phillips, have based this document on information obtained from sources it believes to be reliable but which it has not independently verified; Gold-Authentic Money / Julian D. W. Phillips make no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Gold-Authentic Money / Julian D. W. Phillips only and are subject to change without notice.
© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication. |
In addition to the latest excellent study of the Chinese gold market by the World Gold Council, we have received other reports on the Chinese gold market that differ with the conclusions drawn by the World Gold Council. But we shouldn't be surprised by this, not only because of the opaque nature of the Chinese gold market and the dearth of accurate statistics that are accessible. Which ones are right is critical for the conclusions each draw paint very different pictures of the future of the gold price.
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