Archive
China Prepares To Launch Gold ETFs As Utah Becomes First State To Make Gold And Silver Legal Tender
Following Friday’s news that China has now surpassed India as the world’s largest buyer of gold, it is becoming increasingly obvious that the country is trying to capitalize on the popular interest in the precious metal by transferring the trading infrastructure away from US to domestic capital markets. First, it recently launched a 1 kilo gold futures contract on the HK Merc in an obvious attempt to undermine the Comex monopoly in the space, and next it seems that China has the GLD plain in its sights, as it plans to start exchange-traded funds, tapping rising demand in China, the world’s biggest investment market for the precious metal. Often blamed for the recent volatility in the price of gold, precious metal ETFs have been primarily an instrument available to those with access to the US market. That appears to be ending, and with an entire nation suffering from gold fever (as inflation continues to be goalseeked by the China politburo above expectations in what appears to be a programmed attempt by the Chinese central planners to push its population into gold hoarding) and about to be offered a simple way of investing in (paper) gold, it is likely that the price of gold (and soon thereafter all other commodities) will see unprecedented spikes in price in either direction as millions more are given direct exposure to trading the non-dilutable currency equivalent.
From Bloomberg:
“There are some complexities, as the central bank is in charge of gold management, while we still need to go through the procedures for launching new exchange products,” Wang Zhe, chairman of the bourse, said at a Shanghai forum. There is no timetable and the exchange is working with regulators on the plan, Wang said. China is the world’s largest gold producer and second-largest in overall consumption.
China doesn’t have gold ETFs and investors usually choose to buy physical gold, or invest through contracts traded on the Shanghai Gold Exchange, the Read more…
Silver to Surge to $450/oz and Gold to $12,000/oz – Cazenove’s Robin Griffiths
Gold and silver are higher this morning with the dollar, the British pound and commodity currencies falling in value. It is too early to tell whether the recent margin driven, paper sell off on the COMEX is over but physical supply remains limited while demand remains robust, particularly in China, India and wider Asia.
Cross Currency Rates
Knowledgeable experts continue to urge investors to own gold and silver due to the likelihood of much higher prices, currency and inflation risk.
One of the most respected global technical and macro strategists in the world, Robin Griffiths has said that silver and gold could rise to $450 and $12,000 per ounce respectively due to the debasement of Read more…
How Far Does Silver Fall?
With silver dropping roughly 19% in the last three days, a correction is clearly under way. Let’s take a quick look at how far it might drop.
I’ve updated the “corrections” chart, which shows all major pullbacks in silver since our bull market began in 2001. The data measure any clearly visible drop in price greater than 10%, regardless of time length. As you’ll see, some drops occurred over short periods of time, while others were prolonged.
It’s clear that silver has had some large and scary sell-offs. But the “silver” lining to that fact is the realization that our current volatility is perfectly normal.
The average of all corrections is 19%. Applied to our high of $48.70 on April 28, silver would fall to Read more…
Why Investors Are Buying Silver As If There Is No Tomorrow
The price of silver has been absolutely exploding lately. It has reached heights not seen since the Hunt Brothers attempted to corner the silver market over three decades ago. But this time there are no Hunt Brothers to blame for the stunning rise in the price of silver. So exactly why are investors buying silver as if there is no tomorrow right now? Well, the truth is that there are a lot of reasons. Investors have been flocking to precious metals such as gold and silver as the value of paper currencies has declined. The euro is incredibly weak right now and the U.S. dollar appears to be on the verge of a major collapse. In fact, the entire financial system is highly unstable right now. In such an environment, investors seek some place safe to park their money, and right now gold and silver are seen as safe harbors. But gold and silver have not been going up in price at the same pace. So why is silver outperforming gold so significantly?
The price of silver has increased by more than 150% over the past 12 months. But the price of gold has only gone up about 30%.
If you invested $100 in the S&P 500 ten years ago it would be worth about Read more…
Gold and silver: through the roof
All that glitters is gold, and silver… at least that’s what the market thinks. The price of spot silver jumped 5 per cent to hit $49 a troy ounce, and gold hit a record high for the seventh consecutive session, at $1,517.71 a troy ounce in early trading on Monday. Meanwhile, the US dollar fell to a three-year low.
According to reports from Reuters, much of the interest looks to be coming from India and China.
“Everyone is buying… there is stop-loss buying, as well as a good buying interest from China,” Reuters reported, citing a trader in Hong Kong.
Gold has been at all time highs since the start of the year when oil prices jumped and geo-political concerns in the Middle East began to shake confidence in a global economic recovery. According to the FT’s Jack Farchy, investor holdings in gold through exchange traded funds have risen 1.38 per cent in April this year – the strongest monthly gain since August 2010.
But it’s not just gold that has generated interest in recent months. Holdings in iShares Silver trust, the Read more…
Dollar keeps sinking while gold tops $1,500
Silver, Gold up 49% 6% respectively on the year while Dollar keeps tumbling
The dollar is getting trashed again, driving a key index of the U.S. currency’s value to its lowest level in more than two years.
And as the greenback slumps further, gold and silver — the hard-money alternatives to paper currencies — are hitting new highs. Gold closed above $1,500 an ounce for the first time.
The DXY index, which measures the dollar’s value against six other major currencies (including the euro, the yen and the Swiss franc), slid to 74.10 on Thursday, down 0.4% from Wednesday and the lowest since August 2008.
Year-to-date the DXY index (charted at left) is down 6.2%.
“It’s a ‘sell the dollar, buy everything else’ market,” said Win Thin, a currency strategist at Brown Bros. Harriman in New York.
The euro hit a new 16-month high of $1.454 on Thursday, up from $1.451 on Wednesday. The dollar also hit a record low of 6.52 Chinese yuan, down from 6.56 yuan a month ago, as the Chinese government allows its currency to steadily strengthen.
The buck’s slump this year has been fueled in large part by the widening gulf between U.S. interest rates and Read more…
Gold Price, Silver Price As Well As Silver Dollar Values Will Profit From World Mishaps!
I am sure it will most likely to take really a few weeks or even months to obtain the complete impact from the crisis in Japan. The initial surge in volatility will most likely pave the way for particular possibilities in precious metals and beyond. Any impetus coming from a renewed interest in commodities as the nation rebuilds will bring whatever trading is not boosted by fears from the total score of the disaster. It may not occur right away, but the world’s third biggest economy will restore itself like a phoenix and till then there’s feasible in these markets. Maybe not an improve in jewelry buying or something that may be deemed a frivolity, but investment option demand and provide creating in Read more…The Truth About Silver and Inflation
Silver futures surged today to a new 31-year high of $43.05 per ounce. Silver is up 146% since NIA declared silver the best investment for the next decade on December 11th, 2009, at $17.40 per ounce. All we need is for silver to rise by another 15.5% and silver will reach its all time high set in 1980 of $49.45 per ounce.Silver soars to 31-year high
Gold rose over 1 per cent to a near-record and silver surged Thursday as dollar weakness, inflation worries and a European debt crisis powered bullion to its biggest one-day gain in about seven weeks.
Silver futures soared to their highest since 1980, rising more than 4 per cent for their biggest one-day gain since November, as strong investment and speculative buying sent the gold/silver ratio to a low.
Gold received a boost from inflation worries triggered by a crude oil rally and data showing rising U.S. core producer prices in March, and as higher-than-expected jobless claims knocked the dollar.
“The combination of higher oil prices, weaker dollar and the resurrection of discussions of Greek sovereign risk problems has galvanized the gold market. It’s particularly impressive because we ran into selling above the market yesterday,” said James Steel, chief commodity analyst at HSBC.
Spot gold rose 1.4 per cent to $1,474.30 an ounce by 4:02 p.m. ET, within striking distance of its record $1,476.21 set on Monday. U.S. gold futures for June delivery settled up $16.80 at $1,472.40 an ounce.
Investors grew jittery on talk of debt restructuring by Greece, the first euro zone member to receive a bailout a year ago in the crisis Read more…
![[Most Recent Quotes from www.kitco.com]](https://i0.wp.com/www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](https://i0.wp.com/www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
crisisboom
CRISISBOOM 
You must be logged in to post a comment.