Central banks are at the forefront of this buying, but as we see in the gold Exchange Traded Funds other large institutions are joining the fray. If this selling is sending good volumes of gold into the market, it will be absorbed quickly, even as gold prices fall below $1,200. Full Story
Over the next 30 months, says Barclays Capital, maturing debt will cost Eurozone banks €1.5 trillion.
This month's "stress tests" on Eurozone institutions will force up to 20 banks to raise some €30 billion between them to meet capital requirements, the Financial Times reports. Full Story
Gold and safe havens will continue to benefit from safe haven capital. Fiscal mess cannot be cleared overnight, it will take many months and quarters before positive results start to pour in. Till that time the overall bullish trend in safe havens will remain intact. Full Story
Latest IMF data, which encompasses 2/3 of global foreign exchange reserves, shows that both the euro and dollar became a smaller proportion of global currency reserves in the first quarter of 2010 according to Reuters.The dollar's share fell to 61.54% from 62.17% in the fourth quarter of 2009. The euro's share dropped to 27.19% from 27.30% at the end of 2009. On a longer-term basis, the euro still remains a higher share of reserve assets than before. In 1999 it only accounted for 18.1% of assets. The yen and other currencies gained share this year, with the yen now comprising 3.14% of reserve assets and other miscellaneous currencies accounting for 3.7%. The British pound's global share held steady in the first quarter, at 4.3%. Full Story
As a percentage of global financial assets, investible gold has gone from 17% in 1982 to 4% today, notes J.P.Morgan Private Bank's chief investment officer Michael Cembalest. Full Story
By: Peter Grandich and The Gold Report - 1 July, 2010
The foundation of my bullishness on gold has been a few key points I've hammered home. Two of the main ones used to be big negatives for gold. It wasn't that many years ago that central banks were net sellers of gold. After the Washington Agreement, they started to measure their sales, and they've actually become net buyers in recent years. So one key bullish factor was the fact that a group that had been a major seller no longer was. Full Story
Eventually investors will realize the finances of the U.S. have reached the point of no return. This will coincide with a loss of confidence that will spur a sell-off in the dollar and bonds. In reality, a revaluation of the dollar is pretty much our only option. This is negative for bonds. All of the capital that blindly fled to bonds will go to gold, which will fuel a rally that will be amazing. Full Story
It was the Battle of the Fleas yesterday in the final hour, with the Industrial Average’s maidenly virtue at stake. Earlier in the day, the broad averages had traced out the EKG of a motorcycle victim lying brain-dead on a gurney. Then, when the NYSE’s clock struck three, stocks broke lower, impelled perhaps by an anxiety attack over payroll data due out Friday. Selling commenced in earnest, with an initial pitch that threatened to put the Indoos into a 250-point kamikaze dive. Full Story
We now live in a world after the information revolution. This means that policies or announcement of policy intentions affect consumers, banks, markets and business in general, rapidly. Most importantly, it affects confidence from top to bottom. Government actions of late have damaged confidence and by extension the robustness of developed world economies, such as it was. Full Story
Gold has now recorded seven quarterly gains on the run, Mitsui notes, outrunning both silver (now with six consecutive gains) as well as platinum group metals (breaking their run of 5 quarterly gains with a drop of 6.5%).
Crude oil and base metals today rallied from Tuesday's hard sell-off, but broad commodity indices remained 7% lower for the April-June quarter. Full Story
Gold is likely to hold in the $1,230 area as part of the ongoing consolidation. It is at the bottom end of its trading range now and the trend is still up today. No surprising and urgent news has broken over the market today, but if it does gold is in a mood to respond quickly to it. Full Story
No matter, markets will do what they do best, which is make profits for the least number of participants possible, and based on the current set-up, this appears to still be the case as most individual investors are long stocks and risky bonds again. This is of course a necessary precondition for stock market declines within the scope of the discussion above, where although investors have been desensitized to all the bad news out there they discover once again that fundamentals actually do matter, and that trusting politicians, business leaders, and the financial industry can be hazardous to your financial health. Full Story
Allocations to "alternative assets" (which would include gold bullion) slipped in 2009 to 6% of high-net-worth portfolios, the report says, but are expected to reach 8% during 2010. Full Story
The G-8 meeting was a disappointment, like most of the times before. However, this time it needed to be a success in tackling a global approach to Sovereign debt, bank regulation and growth. It was described as papering over the cracks only. The I.M.F. warned that without coordination of policies to tackle the key global financial problems, trillions of U.S. Dollars could be lost alongside millions of jobs. No such coordination came forward instead the divisions on how to tackle the problems remain. In stronger economic times this may be bearable, but should growth shrink, such divisions will tip the developed world economies into a far worse time than is coming soon. Where from? Full Story
With both Europe and Japan abandoning deficit spending as means of spurring their moribund economies, the U.S. dollar can only fall, and gold rise, as the former confronts a perfect storm of tough comparisons and bad tidings. This will happen even with the support of a dying coterie of money managers who may pretend for yet a little while longer that black is white and that 1 + 1 = 3. It is predictable that they will all have their epiphany at once. When that day arrives, investors who are hedged with gold will be able to ponder the consequences with serene detachment. Full Story
Last Thursday, gold-and-silver miner Coeur d'Alene said that China is buying and processing production from the company's new Kensington Gold Mine in Alaska.
State-corporation China National Gold – the No.1 gold miner in what it now the world's No.1 gold mining nation – will process ore delivered from Kensington in the first such deal between the People's Republic of China and a US precious metals mine. Full Story
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