Sprott Precious Metals Watch
Precious Metals Watch Report - October 2014
HSBC, Goldman Rigged Metals’ Prices for Years, Suit Says
Goldman Sachs Group Inc. (GS) and HSBC Holdings Plc (HSBA) were sued in New York over claims they conspired for eight years to manipulate prices for the precious metals platinum and palladium in what plaintiffs’ lawyers say is the first class-action lawsuit of its kind in the U.S.
6 reasons to be bullish on gold
Despite gold prices rising as high as US$1,380 in mid-March, the precious metal hasn’t exactly been a good place to be in 2014. After starting the year around US$1,200, spot prices are essentially flat.
Global gold supply in deficit this year, even more so next
In a previous article we have already shown that Indian and Chinese gold demand between them currently account for annual gold consumption levels of perhaps as much as 3,100 tonnes, roughly equivalent to global new mined gold production as recorded by the World Gold Council (3,115 tonnes over the 12 months to end September).
China’s Gold Imports Rise for a Third Month on Jewelry Sales
China’s gold imports from Hong Kong rose for a third month as increasing jewelry sales countered weakening demand for the metal as an investment amid falling prices.
Platinum to palladium shortages seen persisting
Platinum and palladium supply probably will fall short of demand for a fourth year in 2015 as more usage in vehicles helps compensate for rebounding South African mine output, according to Johnson Matthey Plc.
Senate report shows how easily banks can rig gold, copper, and other markets
The heavy involvement of investment banks in commodity trading creates the potential for market manipulation and conflicts of interest in the gold market, and exchange-traded gold funds may be mechanisms of market manipulation contrary to the basics of supply and demand, according to the 396-page report published last week by the Permanent Subcommittee on Investigations of the U.S. Senate's Committee on Homeland Security and Governmental Affairs.
Draghi throws ECB door open to money printing as global prospects dim
European Central Bank President Mario Draghi threw the door wide open on Friday for more drastic measures to prevent the euro zone from sliding into deflation, promising to use whatever means necessary as China also acted to boost its sagging economic growth.
Dutch bring 120 tonnes of gold back to Amsterdam from New York
The Dutch central bank has secretly brought a large part of the national gold reserves being held in a secure depot in New York back to Amsterdam.
Gold Rises After Unusual Russian Central Bank Gold Buying Announcement
Russia’s central bank bought about 150 metric tons of the metal this year, announced Governor Elvira Nabiullina yesterday. The pronouncement immediately created buying in the market, prompting gold to rise to a two week high at $1,200 an ounce.
Senate Report Criticizes Goldman and JPMorgan Over Their Influence in Commodities Market
A two-year Senate-led investigation is throwing back the curtain on the outsize and sometimes hidden sway that Wall Street banks have gained over the markets for essential commodities like oil, aluminum and coal.
Gold bounces back above $1 200 – will it jump higher?
Gold bounced back above $1 200 this morning in London, but before one can be sure that this is the start of the long-expected recovery there could yet be teeth in the bear.
Council to lobby central banks to adopt platinum
SOUTH Africa's platinum producers Anglo American Platinum, Lonmin and Impala Platinum have formed a council that will seek to boost investment demand for the metal including lobbying governments to have it installed as a reserve asset.
Why is Putin buying gold?
Russian President Vladimir Putin is developing a taste for gold. With all of its income from selling oil, Russia is diversifying its reserves by buying massive amounts of gold, said William Rhind, CEO of the World Gold Trust Services.
India Precious Metals Import Explodes In October
Despite all efforts from the Indian government to curtail India’s demand for precious metals – for example a 10 % import duty on both gold and silver, the Indian people continue to put their savings in a store of value they consider being prudent; precious metals.
ECB could buy gold to revive economy
Gold, shares, and exchange-traded funds (ETFs) - the European Central Bank (ECB) may turn to buying any or all of these in an attempt to boost inflation in the currency bloc.
Deutsche Bank Says "Yes" Vote Has "Narrow But Clear Lead" In Swiss Gold Referendum As 1M GOFO Hits Most Negative Since 2001
As we explained over the weekend, should the Swiss gold referendum pass successfully, the price of gold will surge. It was none other than JPM who warned that the "markets under appreciate this event", explaing that "If the referendum is passed, the Swiss National Bank (SNB) will be forced to increase reserves by around 1,500 tonnes over five years, i.e. 300 tonnes per year.
Putin stockpiles gold as Russia prepares for economic war
Russia has taken advantage of lower gold prices to pack the vaults of its central bank with bullion as it prepares for the possibility of a long, drawn-out economic war with the West.
India back to being world’s top gold consumer
India reclaimed its world’s top gold consumer crown from China as demand for jewellery surged almost 60% in the third quarter of the year, fresh data from the World Gold Council (WGC) shows.
Marc Faber on Gold, the US Dollar, China and the Swiss Gold Referendum
- Is the US dollar coming out of a major bear market started in 1995?
- Is it possible for gold to go under $1,000?
- Could Russia and other emerging market central banks sell gold?
UBS Precious Metals Misconduct Found by Finma in FX Probe
Switzerland’s regulator found “serious misconduct” by UBS AG (UBSN) employees in precious metals trading, particularly with silver, as part of its review of the bank’s foreign-exchange business.
Gold demand still running high, so where’s the turning point?
As can be seen from Nick Laird’s (www.sharelynx.com) excellent ongoing chart of gold withdrawals from the Shanghai Gold Exchange (SGE), a further 47.5 tonnes were withdrawn during the week ended October 31.
Swiss Franc Cap Tested as Gold Bugs Push Referendum
The word "Switzerland" sits stamped on the side of a newly manufactured 400 ounce gold bar at a precious metal refinery near Mendrisio. A “Save Our Swiss Gold” victory means Switzerland would face buying the metal at prices that quadrupled since it began selling more than half its reserves in 2000. Switzerland’s referendum on boosting gold reserves is already increasing pressure on the franc’s cap against the euro, even as polls show voters remain undecided.
UBS to settle allegations over precious metals trading
UBS is to settle allegations of misconduct at its precious metals trading business alongside a planned agreement between UK and US authorities and seven banks over accusations of foreign exchange market rigging.
Greenspan's Stunning Admission: "Gold Is Currency; No Fiat Currency, Including the Dollar, Can Match It"
For some reason, the Council of Foreign Relations, where ex-Fed-Chief Alan Greenspan spoke last week, decided the following discussion should be left out of the official transcript. We can perhaps understand why... as Gillian Tett concludes, "comments like that will be turning you into a rock star amongst the gold bug community."
China Gold Buying Means Price Floor to Standard Chartered
The cheapest gold in four years is proving irresistible for shoppers in China and India, where rebounding demand may signal an end to the longest price slump in more than a decade.
Gold and silver: will they get worse before they get better?
It’s easy to say 'don’t panic' but gold’s fundamentals still look good. By well-researched data, Chinese demand is soaring again – the latest Shanghai Gold Exchange figures have had weekly gold withdrawals from the exchange running at the 50-60 tonne levels for almost a month now, which equates closely to global new mined gold supply on its own. Indian demand has been picking up so much that it has the government concerned again.
Because Nothing Says "Best Execution" Like Dumping $1.5 Billion In Gold Futures At 0030ET
For the 5th day in a row, "someone" has decided that 0030ET would be an appropriate time (assuming the 'seller' is an investor who prefers best execution rather than the standard non-economically-rational share-repurchaser in America) to be dumping large amounts of precious metals positions via the futures market.
German Precious Metal Dealers Report Huge Run on Silver Coins
Precious metal dealers in Germany have literally been run down after the latest slump in gold and silver. Wholesalers already expect deferred deliveries.
Insatiable Chinese Gold Demand Continues Unabated
Friday the latest update was published on withdrawals of the Shanghai Gold Exchange (SGE) and Shanghai International Gold Exchange (SGEI). As I’ve written last week this number does not exactly equal Chinese gold demand anymore, but for the time being it’s a very accurate benchmark.
Gold and silver dive yet Chinese demand keeps rising
Gold and silver prices have been on a sharp downwards path since the US Fed went ahead and announced the end of QE – helped by some big sales on the futures (paper gold) markets. Kick the gold bugs while they are down seems to be the mantra of the day.
Gold Miners Plunge to 12-Year Low as Metal Drops
Gold producers including industry leader Barrick Gold Corp. (ABX) declined to multiyear lows as the precious metal plunged. The 40-company Standard & Poor’s/TSX Global Gold Sector Index fell 4 percent to its lowest level since December 2001. Barrick, the world’s largest producer by sales, dropped 2.6 percent to C$13.39, the lowest closing price since October 1991 in Toronto, where the company is based.
U.S. Mint Silver-Coin Sales Jump to 21-Month High
Sales of American Eagle silver coins by the U.S. Mint jumped 40 percent in October to the highest in 21 months, defying a slump in New York futures to the lowest in more than four years. Sales surged to 5.79 million ounces, the most since January 2013, the month that set an all-time high at 7.5 million. Today, sales jumped 33 percent in one of the busiest times this year, Tom Jurkowsky, a spokesman at the Washington-based mint, said in an interview. Last month’s total was 4.14 million.
Alan Greenspan, Former Fed Chair, Goes for the Gold
The world has no shortage of doom-saying economists ready to advise investors to stock up on gold against a coming financial catastrophe. Until recently, none of them could claim to be a former Chairman of the Federal Reserve Board
Chinese Gold Demand 1541t YTD
First things first, Chinese gold demand is still very strong and it’s in a uptrend since July. Apologies for my late reporting on the latest SGE withdrawals numbers – which are the best benchmark for Chinese gold demand. I was trying to figure out some details on gold trade rules between the mainland and the Shanghai Free Trade Zone. I still haven’t got confirmation, so will get back to it.
Hong Kong gold exports to China pick up strongly but...
We have just seen a report from Bloomberg entitled: China gold imports rise to 5-month high before holiday sales, with the headline thus suggesting that the wire service has at last got a handle on the Chinese gold import situation. But the report only covers net mainland China imports from Hong Kong which only gives us a part of the picture, and in our view an increasingly small one.
New London gold benchmark to go live in early Q1 2015 -LBMA
A new electronic gold price mechanism is expected to be in operation early in the first quarter of 2015, replacing the century-old gold benchmark, the London Bullion Market Association said on Monday. The gold industry group said it has launched a survey to request further feedback from market participants on the proposed solutions. Participants will be asked to confirm which solution they will be willing to participate in, the LBMA said.
Futures markets keep precious metals prices depressed
I am indebted to Mineweb reader Dr. Fraser Murrell from Melbourne for some thought provoking comments on how the world’s futures markets – notably COMEX and NYMEX – are instrumental in keeping commodity prices down to the advantage of first world nations at the expense of their poorer brethren who provide most of the world’s supplies.
As gold smuggling rises, DRI calls for lower import duty
Seizures of smuggled gold by the directorate of revenue intelligence has risen by an unprecedented 330 per cent during the April-September period as compared to last year, prompting the directorate to call on the finance ministry to bring down the import duty on the yellow metal and make smuggling less lucrative. - See more at: http://indianexpress.com/article/business/business-others/as-gold-smuggling-rises-dri-calls-for-lower-import-duty/#sthash.2CI84FOs.dpuf
The Scariest Number Revealed Today: $1.114 Trillion In Eurozone Bad Debt
As we previously reported, the ECB's latest stress test was once again patently flawed from the start. Why? Because as we noted earlier, in its most draconian, "adverse" scenario, the ECB simply refused to contemplate the possibility of deflation. And here's why. Buried deep in the report, on page 75 of 178, is the following revelation which contains in it the scariest number presented to the public today.
Platinum and palladium price Fixing settled - now for gold
It was announced a week ago by the London Platinum and Palladium Fixing Company Limited (LPPFCL) that the responsibility for administering a new electronic Fixing process for the two metals has been awarded to the now Hong Kong-owned London Metal Exchange (LME).
Blood in the Streets to Create the Opportunity of the Decade
Gold stocks staged spring and summer rallies this year, but haven’t able to sustain the momentum. Many have sold off sharply in recent weeks, along with gold. That makes this a good time to examine the book value of gold equities; are they objectively cheap now, or not?
Time to get back into gold miners
There is nothing quite so satisfying as coming upon an over-turned beer truck on a hot day. In the same spirit, today we gawk at the wreck of the gold miners. They are 70% cheaper than they were three years ago. And they are 25% cheaper than they were just two months ago. What a delight!
Barclays: Swiss Trade Data Suggests Palladium Market Remains Tight
Trade data for Switzerland suggests that the palladium market remained tight in the third quarter, says Barclays. Exports more than doubled while imports fell more than 50% month-on-month in September, the bank says. Meanwhile, Russian shipments into Switzerland, through which much of the world’s platinum group metals pass, were around 6,560 ounces, near the trend of the past few years.
Chinese and Indian gold buyers back in market in a big way
What has been particularly strange about the gold market over the past two years is that the stronger the physical demand appearing for gold, the weaker the gold price has tended to get. In the past few months, the gold price has fallen back from around $1,340 down at one time to $1,190 and now hovering back seemingly trying to breach $1,250 on the upside again, yet by all accounts demand in the two biggest consuming nations has been soaring and they are, between them, taking in virtually everything the world’s gold mines can produce.
Russia’s Central Bank Purchases 1.2 Million Ounces of Gold in September
The gold price got sold down a few dollars in the first two hours of trading after the market opened at 6 p.m. EDT on Sunday evening---and then traded flat until noon Hong Kong time on their Monday. From that point, gold had three tiny rallies, with the last one ending in a vertical spike just a few minutes before the Comex opened in New York. And just minutes after the Comex open, that spike got dealt with in the usual manner. The New York low came shortly before 11:30 a.m.---and from there the price rallied quietly higher into the close. The low and high ticks were recorded by the CME Group as $1,234.90 and $1,249.30 in the December contract.
LME to take over London platinum, palladium fixes
The London Metal Exchange, owned by Hong Kong Exchanges and Clearing Ltd, will take charge of London's platinum and palladium pricing, also known as "fixes", from Dec. 1, replacing a teleconference with an electronic platform. The unexpected move marks a stunning comeback for the LME, which failed to secure administration of the century-old London silver price benchmark - the first to go electronic in a wave of reform for precious metals pricing procedures. It also puts the world's biggest metals marketplace back in contention to take over the much larger gold benchmark.
Singapore Exchange meets demand for physical gold
The big news of the week, which went unnoticed by the mainstream media, was the launch of the new gold kilogram bar contract by the Singapore Exchange. The new Singapore Kilobar Gold contract is for 25kg of 99.99% pure gold and began trading on the Singapore Exchange on Monday, introducing centralised trading and clearing of a physically delivered gold contract in Singapore. The contract is the result of collaboration between International Enterprise Singapore, the Singapore Bullion Market Association, the Singapore Exchange and the World Gold Council.
Gold imports soar 450% in India
The Indian government has been proved right once again in not lifting its curbs on gold. Trade deficit has widened the most in 18 months, as imports of the precious metal have surged. Gold imports jumped about 450% to a new high of $3.75 billion in September (versus $682.5 million y/y). In August 2014, gold imports stood at $2.04 billion. This as the trade deficit widened to $14.25 billion in September, from $10.84 billion a month before.
BIS warns on 'violent' reversal of global markets
The global financial markets are dangerously stretched and may unwind with shock force as liquidity dries up, the Bank of International Settlements has warned. Guy Debelle, head of the BIS’s market committee, said investors have become far too complacent, wrongly believing that central banks can protect them, many staking bets that are bound to “blow up” as the first sign of stress. In a speech in Sydney, Mr Debelle said: “The sell-off, particularly in fixed income, could be relatively violent when it comes. There are a number of investors buying assets on the presumption of a level of liquidity which is not there. This is not evident when positions are being put on, but will become readily apparent when investors attempt to exit their positions. “The exits tend to get jammed unexpectedly and rapidly.”
Expect big silver price surge if gold stays positive
What a difference 10 days makes. A little over a week ago the gold market was all doom and gloom with the yellow metal crashing back below $1200 an ounce. But with a few extraneous geopolitical and global health factors positively impacting the market, and the possibility of a general stock market crash in the minds of investors, gold has seen positive action on the price front in something of a safe haven turnaround. But silver, on the other hand, has hardly moved at all. Compare the 30-day kitco gold and silver charts below – courtesy kitco.com and kitcosilver.com.
Labour strife, safety concerns push S.Africa platinum mechanisation
For decades, production in South Africa's platinum mines has rested on the muscular shoulders of men risking life and limb to drill into the rock face with jackhammers. Three years of labour upheaval and a political push to make the shafts safer and transform the low-wage workforce have set in motion a drive to replace such rock drillers with machines. "Labour militancy is dictating our push to mechanization and boardrooms will rubber stamp this stuff," said Peter Major, a fund manager at Cadiz Corporate Solutions. The costly change is happening despite the obstacles thrown by geology, low platinum prices and capital constraints.
South Africa Union Says Mining Recovery Needs Years
South Africa’s largest mining union said the industry and its workforce will take three years to recover from this year’s strike in the country’s platinum mines that was led by a rival labor group. “When we started we projected that we think 18 months things should be back to normality, we are looking now about over a three year period,” Frans Baleni, secretary-general of the National Union of Mineworkers, or NUM, said in an interview in Johannesburg. The mining workforce divided in 2012 when the the dominant NUM lost members to the Association of Mineworkers and Construction Union, or AMCU, after a strike and the killing by police of 34 workers on one day at Lonmin Plc’s Marikana operations. AMCU became the majority union at Anglo American Platinum Ltd., Impala Platinum Holdings Ltd. and Lonmin, and this year embarked on the longest strike in South Africa’s mining history.
Russia, South Africa Seek to Support Platinum Price in Talks
Russia and South Africa, together holding about 80 percent of the earth’s platinum-group metal reserves, will meet to discuss ways to buoy slumping prices. Officials from Russia’s central bank and OAO GMK Norilsk Nickel (GMKN), the world’s biggest producer of palladium, which is part of the precious-metal group, will attend the meeting next month, according to Natural Resources Minister Sergei Donskoi.
SNB Gold Initiative Would Hamper Policy, Government Says
Asking the Swiss National Bank to hold a fixed portion of its assets in gold would hinder monetary policy, the government said today. Switzerland will vote on the initiative “Save Our Swiss Gold” on Nov. 30 that would force the central bank to hold at least twenty percent of its assets in gold. It would also forbid the sale of any such holdings and require all the gold be held in Switzerland.
Gold imports at 16-month high
The festive season rejuvenated the otherwise dull business of the Pitrupaksh period last month as the state saw its highest gold imports in the last 16 months in September - over 20 metric tonnes (MT).
Gold Sales at Perth Mint Reach 11-Month High as Prices Retreat
Gold sales from Australia’s Perth Mint, which refines all the bullion output in the world’s second-biggest producer, climbed 89 percent in September to the highest level in almost a year as prices declined.
U.S. Mint gold coin sales double in September
Sales rose to 58,000 ounces last month, the highest since January, compared with 25,000 ounces in August.
U.S. gold output declines on back of Newmont, Barrick
Canada was the leading exporter of gold to the United States for the first half of this year, according to the U.S. Geological Survey
Why Beijing Is Buying
If China were to convert a relatively modest part of its $4 trillion foreign exchange reserves into gold, the country’s currency could take on unexpected strength in today’s international financial system.
China gold demand surging again
Latest weekly withdrawal figures from the Shanghai Gold Exchange suggest Chinese demand is near 2013 levels.
Currency Wars Deepen - Russia, Kazakhstan Buy 30 Tons Of Gold In August
Russia and ex Soviet States Kazakhstan, Kyrgyz Republic and Azerbaijan continued to accumulate significant gold reserves in August in a trend that we highlighted last month.
Russia CB buys more gold and builds bilateral trade with China
As Russian central bank buys more gold in August, ever-closer trade ties will make them strong players in any future global currency realignment.
Chinese Gold Demand Continues
On wednesday the Shanghai Gold Exchange (SGE) released multiple rule books written in English describing every detail on the workings of the SGE and its brand new subsidiary the Shanghai International Gold Exchange (SGEI). Finally the world can read everything about the Chinese exchange that is strongest force in the physical gold market, but was widely misunderstood because of the language barrier. Though having channeled unprecedented amounts of physical gold into China mainland the SGE has been enjoying little coverage in the mainstream media
The future for gold is physical
Watch closely as Shanghai launches what is set to be the world's largest physical gold exchange.
CNBC - Scots load up on gold as vote gets underway
With uncertainties surrounding the independence referendum, anxious investors in Scotland have been busy adding to their holdings of gold.
Why The Rigging Of The Gold Market Matters
Manipulating the price of gold ultimately destabilises the financial system because it is the highest form of money. This is why nearly all central banks retain a holding. The fact we don’t use it as money in our daily business does not invalidate its status. Rather, gold is subject to Gresham’s Law, which famously states bad money drives out the good. We would rather pay for things in government-issue paper currency and hang on to gold for a rainy day.
China gold group, WGC ink co-operative agreement
The World Gold Council and the China Gold Association look to unlock insight on one of the most poorly understood gold markets in the world - also the most important one.
Platinum Fixing Under The Microscope
Is it honest or is there fraudulent manipulation? First fines have been imposed for manipulation of the gold fixing, the silver fixing is even discontinued entirely. But is everything in order with the platinum fixing? Have there been manipulations – and are they part of a larger manipulation campaign?
China gold demand picking up again?
The latest gold withdrawal figures from the SGE suggest that wholesale Chinese gold demand may be picking up again well after a run of several poor months.
LME confirms cancellation of gold, silver forward curves from Sept 22
Following discussions between the LBMA and the LME, the LBMA has notified the LME that the majority of market makers are no longer in a position to continue contributing data for the purpose of calculating forward curves.
ECB Unexpectedly Cuts Interest Rates as Outlook Darkens
The European Central Bank unexpectedly cut interest rates to spur economic growth and stave off the threat of deflation.
Gold monetisation scheme aims to treat gold as currency in India
Some 20kt gold lie idle in India and gold accounts aim to draw it back into the market.
India unlikely to relax gold import restrictions yet
With a Q2 current account deficit of $7.8 billion, India looks unlikely to significantly reduce its gold import taxes for some time to come.
Palladium Climbs to 13-Year High as Gold Little Changed
Palladium rose to the highest level in more than 13 years as prospects of further sanctions against Russia increased concern that supplies from the largest producer may be disrupted. Gold was little changed.
Is Asian gold demand really slipping so much?
Indian and Chinese gold demand may not be quite as lacklustre as the mainstream media would have you believe, while geopolitical events continue to churn.
China's Hong Kong gold imports drop - fifth month in a row
China’s gold imports from Hong Kong in July fell by 42 percent from a month earlier as an anti- corruption campaign and price declines deterred Chinese consumers.
No rush of investors at gold exchange
Although business is transacted, there are no records and the government can’t levy taxes. This is the character of the underground economy in Korea, where gold is the commodity of choice. Transactions are made through a direct exchange of bullion or by cash, and the total value not subject to taxation is estimated at 300 billion won ($294.8 million) a year.
Russia leading central bank gold buyer, but China - who knows?
Despite the lower gold price – or perhaps because of it – it is apparent that Central Banks outside Western Europe and North America are continuing to increase their gold holdings. Is this perhaps some kind of prelude to a re-evaluation of the world’s monetary system with gold holding an important role in some kind of new world economic order?
Why Aren’t Gold Prices Rising?
In the second quarter of 2014, world central banks bought 117.8 tonnes of gold bullion compared to 92.1 tonnes a year earlier—a jump of 28%. Central banks have been net purchasers of gold bullion for 14 consecutive quarters! According to the World Gold Council, “Economic and geopolitical events throughout the world are sources of ongoing instability and uncertainty. Such events reinforce the requirement for appropriate risk management by central banks through holding gold reserves for asset diversification.”
Is the LBMA Silver Price more transparent than the Fix? Not yet!
The new LBMA Silver Price benchmark setting has commenced to replace the old London Silver Fixing, but it doesn’t seem to be any more open and transparent than the old system.
China Grants Gold Import Licences to Three More Banks
Three more banks have been permitted to import gold to China, as the country's redoubles its efforts to attain pricing power of the commodity. The news, reported first by Reuters, comes as Shanghai's international bullion exchange is on the verge of launching – a flagship initiative in China's attempts to wrest gold pricing power away from London.
Silver Price Going Electronic in Quest for Transparency
An electronic, auction-based mechanism will replace a ritualized negotiation among a few traders that’s been in place for 117 years. Silver becomes the first of the precious-metals markets to ditch a daily “fixing” procedure where dealers agree to a price over the telephone. Revamps also are planned this year for fixings in gold, platinum and palladium.
GATA: Central banks are manipulating gold prices
Chris Powell, Secretary of Gold Anti-Trust Action Committee, says the rigging of gold markets by the U.S. and international central banks has worsened over the years.
UPDATE 1-London gold fix lawsuits to be consolidated in New York
A federal judicial panel on Wednesday ordered that 18 lawsuits alleging a conspiracy to manipulate gold prices be consolidated into one proceeding in New York. The cases will be sent to U.S. District Judge Valerie Caproni in Manhattan, who has already been overseeing more than two dozen cases.
Banks wait on sidelines of new silver benchmark
Build it and they will come. Or that is what participants in London's $1.6 trillion-a-year silver market will be hoping.There are just three trading days before the new, electronic replacement for the 117-year old silver fix goes live and there is still considerable uncertainty over who will be participating on Friday.
Foodflation - Since QE3, Breakfast Is Up Over 24%
Having pointed out the 'surges' in the cost of your 4th of July burger at the behest of Greenspan and Bernanke, we thought a reflection on the soaring costs of 'the most important meal of the day' were in order. As the following chart illustrates in words and pictures even a PhD Fed economist or CNBC pretend-economist could understand - food-flation is here from breakfast through dinner (no matter how many iPads we try and eat).
U.S. gold production continued its decline in May - USGS
U.S. gold production dropped 9% year-over-year from 19,100 kilograms (614,079 troy ounces) in May 2013 to 17,300 kg (556,207 oz), the U.S. Geological Survey reported Monday.
India’s Gujarat gold traders see easy availability of smuggled metal
Despite some minor relaxation in government curbs in May this year, gold imports into Gujarat state have fallen to a record low in July. Data showed that just 3.06 metric tonnes of gold was imported in July 2014, which has been termed the lowest figure for July in the last six years, and as compared to 8.9 metric tonnes in July 2013 – down around 60% year on year. This parallels somewhat similar figures elsewhere in India.
BLOG: Mounting evidence of gold price manipulation tarnishes industry
Mainstream media continue to ignore mounting evidence that gold prices have been and are being manipulated. In recent years one financial market scandal after another about market manipulation has surfaced.
Draghi Says Geopolitical Risks to Economy Increasing
Mario Draghi said risks to the euro area’s economic recovery are increasing because of conflicts such as the Ukraine crisis. “Heightened geopolitical risks, as well as developments in emerging-market economies and global financial markets, may have the potential to affect economic conditions negatively,” he said.
Gold: Been down so long it looks like up to me!
Gold has been down from its peak of 2011 for just about 3 years now and despite all kinds of attacks in the futures markets by big money it has still just managed to claw its way back above $1300 yet again, and silver back over $20. This is becoming something of a pattern and certainly looks like the potential for a forthcoming major ‘up’ to me given some of the dire predictions on price by the bankers’ analysts who may well have a not-so hidden agenda to keep the price depressed.
3 Reasons Why Silver Miners Should Be in Every Investor’s Portfolio
Precious metal prices remain volatile and this has seen the precious metals mining sector fall out of favour with investors. But there are signs that a sustained rally in precious metal prices is imminent.
Gold Investment Sentiment Rises 1st Time Since Feb
Based solely on investor activity, rather than surveyed intentions, BullionVault's Gold Investor Index – calculated from the world's largest pool of real-time physical gold investing decisions online – peaked at 71.7 when the metal hit $1900 per ounce in September 2011. A reading of 50.0 would indicate an equal number of buyers and sellers across the month.
Central banks continuing to boost gold reserves
Given the crisis in Ukraine and deteriorating ties with the West, Russia has been aggressively accumulating gold reserves.
Gold Industry Takeovers Climb to Highest in Three Years
There’s no sign of a let up in gold industry takeovers as a surge in acquisitions by producers, led by Agnico Eagle Mines Ltd. (AEM) and Yamana Gold Inc. (YRI), has pushed deals to a three-year high.
Anti-Dollar Alliance Prepares Launch Of BRICS Bank
Three months ago we discussed in detail the growing anti-dollar hegemony alliances that were building across the BRICS countries (Brazil, Russia, India, China and South Africa). Their efforts at the time, to create a structure that would serve as an alternative to the IMF and the World Bank (which are dominated by the U.S. and the EU), appear to be nearing completion.
Platinum to Palladium Fixings Join Precious Metals Revamp
The company that runs platinum and palladium fixings in London is seeking a new administrator for the price-setting process after similar changes were proposed for rituals in gold and silver.
Giants of mining converge at Sprott Symposium
VANCOUVER – The Sprott Natural Resource Symposium in Vancouver in late July gathered together a remarkable group of industry success stories. Robert Friedland, the highly successful founder and chairman of Ivanhoe Mines (TSX: IVN), opened the conference. Sprott U.S. Holdings chairman Rick Rule, another serially successful investor, spoke several times. And a selection of the sector’s best fund managers, newsletter writers, resource explorers, and corporate leaders took turns at the podium. - See more at: http://www.northernminer.com/news/exploration-and-investment-answers-from-the-giants-of-mining/1003180564/w03r7403WrusvqqM2vx/?#sthash.lda4EtkK.dpuf
Jim Grant: "Gold Is The Ultimate Inoculation Against Harebrained Central Bankers"
"The central bank imposed interest rates are the source of global financial instability now and in the future," warns Grant's Interest Rate Observer's Jim Grant, adding that "The Fed... has manipulated us into a period of quite eerie stability and measured volatility."
Gold miners: Buy juniors now, act later
Cowen analyst Adam Graf urged gold miners to buy juniors with high-quality assets now, given a window of opportunity punctuated by still un-moving valuations despite progress on flagship projects.
Moody's cuts bank outlook to 'negative' on Ottawa's bail-in rule
Investor ratings service Moody’s has changed its outlook for Canada’s biggest banks to negative from stable, citing concerns over the Canadian government’s plan to implement a “bail-in” system in the event of a bank failure.
"London Fix" Gold Rigging By Bullion Bank Exposed In Class Action Lawsuit: The Complete Charts
We uncovered something that was missed several few weeks earlier: a far more informative and detailed class action lawsuit filed by Edward Derksen on July 9, 2014 against the London gold fix member banks: Bank of Nova Scotia, Barclays, Deutsche, HSBC and SocGen.
China’s Hong Kong gold imports continue to dive
The conundrum that is the gold price continues to confound. Last year the gold price dropped dramatically despite an enormous level of ongoing gold flows from West to East – particularly into China. Yet yesterday the reports of the lowest monthly level of net gold imports from Hong Kong into mainland China since January 2013 was followed by the gold price putting on something of a surge – it having been driven down to around the $1290 level during the week, but then shooting up to comfortably above $1300 in late trading Friday.
Deutsche Bank, HSBC Accused of Silver Fix Manipulation
Deutsche Bank AG (DBK), HSBC Holdings Plc (HSBA) and Bank of Nova Scotia were accused in a lawsuit of rigging the price of billions of dollars in silver, an allegation similar to earlier suits involving the London gold fix.
Gold Lockdown Until Options Expiry Monday - New Singapore Gold Contract Threatens Manipulation
Gold fell $12.50 or 0.96% yesterday to $1,292.40/oz and silver slid $0.55 or 2.63% to $20.37/oz.Gold was badly impacted by what appears to be high frequency trading (HFT) or programme trading again yesterday with another bout of concentrated selling on two occasions. First, when Asian markets commenced trading and then just as U.S. stock markets started the trading day.
Escalating Ukraine crisis could blow gold sky high
Far from coming to an end the Ukraine crisis could be far from over and as the West and Russia are embroiled in accusation and counter-accusation over the downing of Malaysia Airlines Flight MH17, the potential for escalation is perhaps getting more serious by the day. It has brought a safe-haven focus back into the gold market which is probably likely to remain given Ukraine is not the only major flashpoint of worry with Syrian, Iraqi and Israeli/Gaza (Hamas) conflicts all raging and building up deep-rooted concerns and polarisation amongst those affected.
3 reasons why every investor should own gold
With Forbes reporting that Sprott now has 90% of his personal wealth invested in gold and silver, the wealthy Canadian certainly has put his money where his mouth is! In one of his recent notes to clients titled: The Ongoing Rot in the Economy, Sprott outlined why he is still so bullish on gold.
Middle East Seen Gaining Gold Share as Trading Expands
The Middle East will take a bigger share of gold demand as buyers from Kuwait to Saudi Arabia to the United Arab Emirates diversify investments and Dubai nears offering a contract for immediate delivery bullion.
Metal ETFs lure investors at fastest pace since ’09
Investors are buying metals from zinc to aluminum at the fastest pace since 2009, betting demand gains will tighten supply, just as Citigroup Inc. and Macquarie Group Ltd. predict this year’s rallies will end.
Hedge Funds Cut Bullish Gold Wagers: Commodities
Money managers trimmed their net-long position by 8.5 percent in the week through July 15, U.S. government data show. Prices dropped 2 percent last week, the first loss since May and helping to erase $1.38 billion from the value of exchange-traded products backed by the metal.
Farmers flock to gold-backed loans in India
Farmers in Andhra Pradesh appear to have taken more loans by pledging gold bars and ornaments, than loans from banks for purely agricultural purposes. Some have even diverted the agri loan and bought gold.
BULLION LATEST – Geopolitical risk mounts; safe haven buying resumes for gold
Gold surged more than 1.8 percent on the day as investors sought out gold in further news of political turmoil in different parts of the world.
Strong Investor Interest and Industrial Usage Lead to Sturdy Silver Demand in 2014
Investor and industrial consumption of silver has advanced at a healthy pace in 2014, reflected in the silver price increasing 5 percent as of July 15 from the beginning of the year.
Third party sought to run London gold fix
London Gold Market Fixing Ltd, the company operating the century-old global price benchmark known as the "fix", said it is seeking a third party to take over administration of the process, possibly signalling a move to an electronic platform.
Gold Imports by India Surging 65% in June Widens Trade Deficit
Gold imports by India, the world’s second-largest user, jumped 65 percent in June after the central bank allowed more banks and traders to buy bullion overseas, widening the nation’s trade deficit to an 11-month high.
Bulls might take heart from latest gold smashdown failure
The second phase of the gold price smashdown took place yesterday with, apparently, a sell order for another $2.3 billion hitting the gold futures market. It knocked the gold price back all of $15!
Yellen says Fed easy money needed even after recovery -report
The Federal Reserve will still need to deliver "unusually accommodative" monetary policy even once the U.S. economy returns to "where we want it to be," Fed Chair Janet Yellen was quoted as saying in a magazine article.
BIS chief fears fresh Lehman from worldwide debt surge
The world economy is just as vulnerable to a financial crisis as it was in 2007, with the added danger that debt ratios are now far higher and emerging markets have been drawn into the fire as well, the Bank for International Settlements has warned.
South Africa’s platinum output falls record 49% due to strike
South African output of platinum-group metals sank the most on record in May after a strike halted production at the world’s three biggest producers.
UPDATE 2-CME, Thomson Reuters win battle to replace century-old silver benchmark
CME Group and Thomson Reuters will operate an electronic silver benchmark when the 117-year-old "fix" is disbanded in August, in a move widely seen preceding sweeping reforms of precious metals price-setting.
Budget 2014: Gold import duty retained at 10 per cent; bullion markets surprised
India surprised bullion markets by keeping the import duty on gold and silver unchanged at 10 per cent in its fiscal budget, a move likely to limit overseas purchases by the second-biggest bullion consumer and further encourage smuggling.
India's gold imports plummet 34% YOY
India’s gold imports declined nearly 34% to 670.4 tonnes in the year ended March 2014, from the April 2012 to March 2013 fiscal period of 1,013.9 tonnes, following the stringent curbs imposed by the government and the Reserve Bank of India on overseas purchases of the precious metal.
Survey: Does the London Gold Fix Need to Go?
When the London Silver Market Fixing announced in May that it will stop administering the London silver fix at the end of the day this August 14, the question for many market participants was: “is the gold fix next?”
Gold Bullion Supply Down, Demand Up
The precious metal has increased 10.2% in price between January and June, while the Dow Jones Industrial Average(NYSEARCA:DIA) climbed by just three percent. Going forward, it will not be surprising to see the precious metal outperform the stock market in the second half of the year as well.
Time for change in the London bullion market
The London bullion market is an over-the-counter unregulated market and has had this status since the mid-1980s. The disadvantage of an OTC market being unregulated is that change often ends up being driven by a cartel of members promoting their own vested interests. Sadly, this has meant London has not kept pace with developments in market standards elsewhere.
Gold Shines Again as Hedge Funds Boost Wagers on Advance
Gold has rebounded from last year’s 28 percent plunge that was triggered by muted inflation and as investors shunned the metal in favor of equities.
Chinese Gold Demand 947 MT YTD
Chinese gold demand, as measured by SGE withdrawals, accounted for 27 metric tonnes in week 26 (June 23 – 27), year to date the counter stands at 947 tonnes. A quick calculation tells us 639 tonnes (SGE withdrawals – scrap – mining) had to be imported for this, annualized 1278 tonnes.
Palladium price soars to 13-year high
The price of palladium, hitting $865 an ounce on Friday, made a notable record. It hasn't, as Reuters notes, traded so high since February 2001. What's more, it also surged by highs it hit back in 2011 when it traded in the mid-$800s an ounce.
The Stunner From Today's Round Table Debate To "Fix" The London Gold Fix
As those following the saga of the rigged for decades and soon to be history (in its curent incarnation) London gold fix know, today was the date when the World Gold Council held its "Modernising the London Gold Fix: IOSCO and beyond" round table session.
World Gold Council gold fix consultation begins
The way the daily London gold fix – an industry reference price – is set is under scrutiny, with industry experts meeting at the offices of the World Gold Council to discuss its reform or replacement. According to the World Gold Council, the meeting, which has started at their offices near St Pauls in London, will take the form of a round-table debate on the reform of the London Gold Fix and the modernisation of the London gold market.
Now is the time to buy gold – Nichols
Not a ‘gold bug’, but nevertheless ‘super-bullish’ on gold, precious metals analyst Jeff Nichols sees a recovery in the gold price ahead.
The Complete Annotation Of SocGen's Latest Hit Piece On Gold
Gold has held firmly above $1300 for over two weeks, confounding those who said it would never see that key level again, but as the constantly-bearish SocGen explains in this 'astounding' report, gold's downturn is set to return... except their reasoning has a fatal flaw - it's entirely factually incorrect.
Australia’s Perth Mint gold sales hit four-month high
Gold sales from Australia’s Perth Mint, which refines all the output in the world’s second-biggest producer of the precious metal, hit the highest level in four months last month, driven by a rally in prices that stimulated demand.
India looking at ways to monetise its citizens' gold
With India's gold imports having pressured its current account deficit (CAD), two large Indian public sector banks have suggested that there is a greater need to make use of gold available in the country, and that the precious metal should be made more liquid. A government official has seconded the move, laying bare some aspects of the government's intention to monetise the gold stores held in most households across the country.
China Finds $15 Billion of Loans Backed by Fake Gold Trades
China’s chief auditor discovered 94.4 billion yuan ($15.2 billion) of loans backed by falsified gold transactions, adding to signs of possible fraud in commodities financing deals.
Bling for Minister Mastermind Greased Secret Turkey Gold Trade
As the minister in charge of Turkey’s $800 billion economy in 2013, Zafer Caglayan was facing a series of numbers that didn’t bode well for coming elections. Inflation was up, growth was slowing and the lira was weakening. One key measure of financial health was particularly worrisome: the country was importing far more goods, services and capital than it was sending abroad. By October, when he was interviewed by a local CNBC affiliate, Caglayan described the gap as unsustainable and said the government would take steps to improve it. What he didn’t mention was a clandestine export-boosting operation started up more than a year before that was helping to solve the trade imbalance.
Secretive Swiss vaults may hold missing link in platinum price equation
The Zurich Freilager alone could hold around 20 percent of the total stocks of platinum, market players say.
PLATINUM GROUP METALS CPM predicts largest-ever platinum market deficit in 2014
The palladium market is also running a deficit this year, which could total around 367,359 ounces, advises U.S. commodities research firm, CPM Group.
Platinum union declares end to South Africa's longest strike
South Africa's AMCU union declared a five-month platinum strike "officially over" on Monday as thousands of miners roared their approval when leader Joseph Mathunjwa asked if they wanted to end the longest work stoppage in the country's history. "Yes! Yes," the miners chorused as the union boss asked whether they wanted to accept the wage offers from producers.
German Gold Stays in New York in Rebuff to Euro Doubters
Germany has decided its gold is safe in American hands. Surging mistrust of the euro during Europe’s debt crisis fed a campaign to bring Germany’s entire $141 billion gold reserve home from New York and London. Now, after politics shifted in Chancellor Angela Merkel’s coalition, the government has concluded that stashing half its bullion abroad is prudent after all.
Chinese Gold Demand 883 Tonnes YTD
Withdrawals from the Shanghai Gold Exchange (SGE) vaults in week 24 accounted for 33 metric tonnes. Year to date Chinese gold demand, measured by SGE withdrawals, stands at 883 tonnes. A quick calculation (week 1 – 24 SGE withdrawals – mine – scrap) tells us that China net imported 599 tonnes year to date, annualized 1298 tonnes.
Russia’s Central Bank Buys 300,000 Ounce of Gold in May
Since Friday was also the 20th of the month, the good folks over at The Central Bank of the Russian Federation updated their website with the May data. It showed that they had purchased another 300,000 troy ounces of gold for their reserves during the month.
Shanghai to Start International Gold Trading in 4Q
China, the world’s biggest gold user, will start international gold trading in Shanghai’s free-trade zone in the final quarter of this year, according to a city government official. “We will aim to commence trading in the fourth quarter,” Zheng Yang, head of Shanghai’s financial services office, said today in a conference in the city. The nation’s central bank earlier this week approved the trading platform to be included in the zone’s banking system.
Place of gold in a perilous world
With numerous conflict flashpoints around the world and the possibility of market collapses there has never been a better time to hold some gold as insurance.
James Grant: Fed 'Pouring Fire' on 'Glowing Embers of Inflation'
The Federal Reserve's continuation of a highly accommodative monetary policy, even as it tapers its quantitative easing, spells trouble for the economy and financial markets, says James Grant, editor of Grant's Interest Rate Observer. While the Fed is likely to announce another reduction in its bond purchases Wednesday, many economists expect the central bank to keep short-term interest rates near zero until at least mid-2015. And Fed officials indicate they won't trim the central bank's $4.3 trillion balance sheet quickly.
SA gold mining: Endgame?
Predicting the future of gold mining in South Africa has become easy these days. With a lot of conviction, I can forecast that our production will continue to decline. Having peaked in 1970, it has fallen to a 109-year low of 167 tons in 2012, at which point Peru overtook us in the global ranking. Forecasting seems particularly easy at this point in time because, for exactly 20 years now, SA's declining output has followed a distinct linear pattern (if we disregard the effect of the 2012 strike). In itself, this is highly remarkable since it has completely disregarded the law of price elasticity: no supply response at all following bullion's spectacular price increase after 2001.
Mining’s bearish pendulum swinging, in a big way, in other direction - MRG
“In an unprecedented turn of events, only 14% of mining executives now hold a bearish outlook as to the overall strength of the industry over the next 6-12 months,” reported Mining Recruitment Group’s Mining Executive Outlook, Q3 2014 Monday. “This is down remarkably from the 64% of executives who held the same view at this point of last year and the 52% who were bearish as of Q4 13.”
The Bank Of England Lost 487 Tonnes Of Gold In 2013
The Bank Of England (BoE) just came out with their annual report 2014. In the report it’s stated the BoE is the custodian of 5584 metric tonnes of gold (£140 billion pounds measured February 28, 2014).
SGE Chairman: China Should Become First Class International Gold Market
Speaking at the “Fourth Commercial Bank Gold Investment Forum” in Hangzhou, Xu Luode, Chairman of the Shanghai Gold Exchange said the Chinese gold market is an important force, a positive energy in the international gold market but its influence does not correspond to its mass and scale. Therefore to accelerate the development of China’s gold market, he proposed building China’s “Shanghai Gold”.
Platinum Miners Reach Tentative Deal With South African Union
Lonmin PLC Thursday said it has reached a tentative deal over wages and working conditions with the leadership of the union that has brought the South African platinum mining industry to a halt for months. In a statement, the company said the two sides have reached "informal undertakings" in principle on a potential deal. Peers Anglo American Platinum Ltd, part of Anglo American PLC, and Impala Platinum Holding Ltd have received the same in principle undertakings, it added.
China has world’s second largest gold resource
While China has now been the world’s largest producer of gold for the past seven years, there have always been questions asked as to whether the current level of gold output (430 tonnes in 2013) is sustainable. Now figures out of The Bureau of Raw Material from the Ministry of Industry and Information Technology suggest that there certainly are sufficient gold resources available to retain this position for the foreseeable future.
Fed Prepares to Maintain Record Balance Sheet for Years
Federal Reserve officials, concerned that selling bonds from their $4.3 trillion portfolio could crush the U.S. recovery, are preparing to keep their balance sheet close to record levels for years. Central bankers are stepping back from a three-year-old strategy for an exit from the unprecedented easing they deployed to battle the worst recession since the Great Depression. Minutes of their last meeting in April made no mention of asset sales.
Shrouding China's gold trade, more imports go under radar
SINGAPORE, June 11 (Reuters) - Banks have started trial gold imports directly into the Shanghai free trade zone ahead of the launch of a gold exchange there, threatening to further obscure the level of buying by the world's top consumer. The bulk of gold bought by China used to flow through Hong Kong, making its export data a useful proxy for Chinese demand as Beijing treats data about imports of the precious metal as a state secret.
Palladium soars on strike news
Palladium, the emission-scrubbing cousin of platinum, has soared to a 39-month high as the South African government failed to end a 19-week strike.
Gold price benchmark open to manipulation – LME CEO
LONDON – The global gold price setting benchmark or "fix" is open to manipulation, said the head of the London Metal Exchange (LME), which is competing to offer an alternative to the silver fix when the system is disbanded in August. The gold and silver fixes, along with other commodity benchmarks, have come under increasing scrutiny by regulators in Europe and the United States since a London Interbank Offered Rate (Libor) manipulation case last year.
Steve Forbes: We Will Return to Gold Standard
Business mogul Steve Forbes says that not only is a return to the gold standard a realistic option, but "circumstances" in our economy will necessitate it. "We were on the gold standard for 180 years in this country's history — did very well with it," Forbes told J.D. Hayworth, John Bachman and Miranda Khan on "America's Forum" on Newsmax TV on Monday.
Asian gold strategy clarifying
The Russians came up with an extraordinary statement recently, central to why Russia and China are buying gold, the importance of which was missed by the media. President Putin said that "Russia and China need to secure their gold and foreign reserves." He may have been overstepping the mark in making comments about China's monetary policy, but he was unlikely to have done so without good reason. Furthermore it is impossible to secure foreign currency reserves, because they are at all times under the control of the issuing central banks. So what Putin was actually implying was that China and Russia need to secure their gold.
Platinum prices will still take some time to peak
Even if the South African platinum strikes were to end tomorrow, it will take a long time for the industry to regain its old output levels leading to a substantial deficit this year and next.
One Ton Gold Shipment Into Hong Kong Revealed To Contain Just Worthless Metal
Two years ago, stories of fake tungsten-filled gold coins and bars began to spread; it appears, between the shortage of physical gold (after Asian central bank buying) and the increase in smuggling (courtesy of India's controls among others) that gold fraud is back on the rise. As SCMP reports, a mainland China businessman, Zhao Jingjun, discovered that HK$270 million of 998kg of gold bars he bought in Ghana had been swapped for non-precious metal bars. What is perhaps even more worrisome, given the probe into commodity-financing deals and the rehypothecation evaporation; these gold bars were shipped to a Chinese warehouse before Zhao was able to confirm the fraud.
The World Gold Council’s New Clothes
On this blog I’ve repeatedly questioned the Chinese gold demand figures from the World Gold Council, or “the global authority on gold” as they call themselves (which is weird when you think about it, how can any institution be the global authority on gold?). In 2013 Chinese wholesale gold demand was 2197 tonnes, though the World Gold Council claims demand was 1066 tonnes. All their arguments that should explain the difference appeared to have been untenable after researching them.
The Gold Conspiracy
As increasingly more conspiracy 'theories' become conspiracy 'facts', The History Channel discusses "The Gold Conspiracy" in this brief documentary.
Banks routinely rigged gold fix to defend their positions, Financial Times reports
When the UK's financial regulator slapped a L26 million fine on Barclays for lax controls related to the gold fix, it offered more ammunition to critics of the near-century-old benchmark. But it also gave precious metal traders in the City of London plenty to think about.
Ecuador Transfers Half Its Gold Reserves To Goldman Sachs In Exchange For "Liquidity"
This is a great example of how the game works. In a world in which every government on earth needs “liquidity” to survive, and the primary goal of every government is and always has been survival (the retention of arbitrary power at all costs), the provider of liquidity is king. So what is liquidity and who provides it?
China and India consuming more gold than the world mines
In opening last week’s precious metals forum in London, Bloomberg Industries Global Head of Metals and Mining, Ken Hoffman, kicked off with some of the latest stats which showed that China and India between them are consuming more gold than the world is actually mining. The Bloomberg figures suggested that China was consuming gold at a rate of 5.15 million ounces a month and India - even at a reduced rate through import restrictions - 2.85 million ounces a month, making a total of 8 million ounces a month. And these figures may even understate the case given the Bloomberg figures for China are based on gold imports through Hong Kong and China’s own production, whereas gold is also imported through other points of entry.
Platinum finally seen rising as producers' metal stocks near end
Platinum prices, undisturbed by a South African mine strike now in its fifth month, could soon begin to rise as the metal stocks built up by producers in anticipation of the strike finally run low. While market watchers estimate that the strike - the longest and costliest in South African history - could cost a million ounces of lost output this year, spot platinum remains where it was when the strike broke out in January, at $1,450 an ounce.
Major metals exchanges vie for London Silver Fix 2.0
Major metal exchanges emerged as contenders in developing an alternative to the London silver price benchmark, or "fix", after the century-old system for setting the globally recognised price is disbanded in August. The Chicago Mercantile Exchange (CME) and the London Metal Exchange (LME) both said on Thursday they were working with the London Bullion Market Association (LBMA) and the precious metals industry to find an electronic-based solution.
Full transparency needed in gold, platinum price determinations
Full transparency is needed in the determination of the gold and platinum prices following the worrying manipulation finding of the UK’s Financial Conduct Authority (FCA) in the case of gold.To restore credibility, a bright searchlight needs to be kept on both pricing systems, which impact the lives of particularly mineworkers, who risk their lives daily in circumstances that are often dangerous, only to be cheated by the lack of proper oversight by in this case Barclays Bank.
Switzerland last year exported $132 billion of gold
Latest data from the World Gold Council shows demand from top gold consumers China and India slowed dramatically in the first quarter of this year. While clearly calming down from the torrid pace last year, the movement of gold and silver from West to East continue to transform the global gold market in fundamental ways.
Austria sending auditors to check gold held by Bank of England
January last year Germany's central bank, the Bundesbank, said it will ship back home all 374 tonnes of gold it had stored with the Banque de France in Paris, as well as the 300 tonnes held in Manhattan by the US Federal Reserve, by 2020. Fast forward a year and Buba, as the Federal Bank of Germany is sometimes referred to, has only managed to bring home a paltry 37 tonnes of gold.
LBMA Receives Over 250 Responses So Far On Alternative To Silver Fixing
The London Bullion Market Association said Friday it has received more than 250 responses so far as part of its “market consultation” process on developing a new mechanism for the London silver fixing, and it will continue an online survey until May 30.
Caught Red-Handed: This Is What Zoomed In Gold Manipulation Looks Like
Now that gold manipulation is no longer conspiracy theory and has joined every other "tinfoil" narrative into the realm of conspiracy fact, we urge readers to catch up on both what was the story of the day, namely the UK regulator cracking down on exactly one (1) Barclays trader for manipulating the gold price in a way that prevented him from paying out a substantial fee to his counterparty (and also being the absolutely only person in all of Barclays and every other bank to manipulate gold, of course), as well as reading the full explanation of just how said manipulation was conducted.
Barclays Fined For Manipulating Price Of Gold For A Decade; Sending "Bursts" Of Sell Orders
It was almost inevitable: a week after we wrote "From Rothschild To Koch Industries: Meet The People Who "Fix" The Price Of Gold" and days after "Barclays' Head Of Gold Trading, And Gold "Fixer", Is Leaving The Bank", earlier today the UK Financial Conduct Authority finally formalized what most in the "tin-foil" hat community had known for years, when it announced that it fined Barclays £26 million for manipulating "the setting of the price of gold in order to avoid paying out on a client order." Furthermore, the FCA confirmed that those inexplicable gold raids which come as if out of nowhere, and slam gold with a vicious force so strong sometime they halt the entire market, had a very specific source: Barclays, whose trader Daniel James Plunkett, born 1976, "sent out a burst of orders aimed at moving the price of the yellow metal."
Carmaker Hype Sends Palladium To Highest Against Gold In 10 Years
Gold is trading at the lowest level relative to palladium since 2004 as Bloomberg notes that prospects for a record shortage has lured investors to the metal used in pollution-control devices for cars amid concern that supply will be disrupted. As the chart below shows an oz of gold buys only 1.54 oz of palladium (less than a 3rd of the 5oz gold could buy in 2009) as supply problems (mining strikes and Russian sanctions) collide with demand expectations (the 'recovery' of the global car market). Despite GM's problems, record levels of channel-stuffed inventories, and a still stagnant consumer (showing no interest in big purchases), IHS expects a record level of auto sales this year at 85 million. Seems like this ratio is an interesting derivative play on the excessive exuberance in the world's car market expectations.
Platinum market deficit seen widening in 2014
The platinum market is expected to post a deficit of 1.218 million ounces this year, a report from Johnson Matthey showed on Tuesday, the largest shortfall since it began compiling data in 1975.
Will central banks need to buy Gold back from the Market?
There is a belief that central bank gold in the custody of the world’s leading central banks such as the Fed, the Bank of England and the Banque de France has been leased out to the market. Central Banks have confirmed this, but it remains a source of contention. Even where the gold of the world’s central banks are held in the world’s leading central banks in a custodial arrangement this is so and it is reasonable to assume that this could not be done without the gold’s owner’s permission.
Flooded By Gold Smuggling, India's New Cabinet Prepares To Lift Gold Capital Controls
Recall that India is a country which, in order to keep its current account deficit at bay, instituted the most draconian gold capital control measures in history to prevent its population from taking refuge from scorching inflation and parking its fiat in gold. Here is an incomplete summary of the measures taken in 2013 by India.
Russia Buys 900,000 Ounces Of Gold Worth $1.17 Billion In April
The Russian central bank has again increased its gold reserves by another 900,000 ounces worth $1.17 billion in April. Russia's gold reserves rose to 34.4 million troy ounces in April, from 33.5 million troy ounces in March, the Russian central bank announced on its website yesterday. The value of its gold holdings rose to $44.30 billion as of May 1, compared with $43.36 billion a month earlier, it added.
Latest ECB gold sales agreement raises questions
The latest European Central Bank statement on the next ECB central banks gold sales agreement is raising some serious questions among gold followers.The new ECB gold sales agreement will come into force for a five-year term in September. We have published the official ECB statement on this, alongside that released five years ago for the 2009 agreement here on Mineweb and the not-so subtle difference has already raised concerns – particularly among those who believe strongly that central bank gold policy is all about controlling the price of the yellow metal.
Gold Price Manipulation Goes Mainstream On German TV
Public TV channel 3sat, which is a cooperation between Germany, Austria and Switzerland, broadcasted a short documentary on gold price manipulation on May 9, 2014. More and more mainstream news outlets are covering the allegedly gold price manipulation, after evidence is pilling up and many other market manipulations, like LIBOR, are coming out.
Gold demand in India to rise, Modi seen easing import curbs
India's gold demand is likely to pick up in the second half of the year as curbs on bullion imports are expected to be eased by the country's new government, the World Gold Council (WGC) and other industry officials said on Tuesday.
Barclays' Head Of Gold Trading, And Gold "Fixer", Is Leaving The Bank
Last week, for the first time ever, in "From Rothschild To Koch Industries: Meet The People Who "Fix" The Price Of Gold" Zero Hedge shone a spotlight on the mysterious, and "without any permanent employees" company known as The London Gold Market Fixing Limited which for 117 years has served as the corporate face of the London bankers who "fix" the price of gold twice daily. Since then, more than one of the LinkedIn pages we profiled of the bankers among the 5 gold fixing banks has quietly been taken down. However, the biggest surprise took place moments ago when none other than the head of spot gold trading at Barclays, Marc Booker, did what so many heads of spot FX trading in the past few months have done over fears of being caught in the ongoing manipulation probe: he exited stage left from Barclays HQ at One Chruchill Place.
World Gold Council: First-Quarter Demand Holds Steady With Year-Ago Levels At 1,074.5 Tons
Gold demand in the first quarter was 1,074.5 metric tons, on par with bullion demand the first quarter of last year, the World Gold Council said Tuesday. Compared demand in the first quarter of 2013 of 1,077.2 tons, gold demand in the first quarter of this year was down 0.25%. The WGC said jewelry demand rose 3% because of lower prices versus the first quarter of last year, along with season factors such as Chinese New Year. China saw record first-quarter jewelry demand, the group said.
The Birth of a New Bull Market
Underneath the headlines lies an irreparable situation with the PGM (Platinum Group Metals) market, one that will last at least several years and probably more like a decade. This market is teetering on the edge of a supply crunch, one more perilous than many investors realize. As the issues outlined below play out, prices will be forced higher—which signals that we should diversify into the “other” precious metals now.
Greenspan: Taxpayers on the Hook to Rescue JPMorgan in Crisis
Former Federal Reserve Chairman Alan Greenspan said JPMorgan Chase & Co. is akin to Fannie Mae and Freddie Mac because taxpayers would shoulder the burden of its rescue in an emergency, rather than let it collapse.
World top 20 silver producers – countries and companies
Mexico comfortably retained the World No. 1 producer slot for silver in 2013, while that country’s Fresnillo moved into the top spot among silver miners.
From Rothschild To Koch Industries: Meet The People Who "Fix" The Price Of Gold
Earlier today many were stunned when the historic, 117-year old, London Silver Fix announced that in three months it would no longer exist. However, silver is only one half of the world's two best known precious metals. Which is why we decided to take a long, hard look at that other fix: gold.
AMCU strikers block South African platinum mine
About 1,000 stick-wielding strikers gathered outside Lonmin's Marikana platinum mine in South Africa on Wednesday.
Physical silver demand hit record high in 2013 - GFMS
Thomson Reuters GFMS reports that total silver physical demand rose 13% in 2013 to an all-time high of 1,081.1 million ounces.
The Beginning Of The End Of Precious Metals Manipulation: The London Silver Fix Is Officially Dead
The London Silver Market Fixing Limited (the 'Company') announces that it will cease to administer the London Silver Fixing with effect from close of business on 14 August 2014. Until then, Deutsche Bank AG, HSBC Bank USA N.A. and The Bank of Nova Scotia will remain members of the Company and the Company will administer the London Silver Fixing and continue to liaise with the FCA and other stakeholders.
Gold demand double whammy
The gold price has been rising and falling with the changing perceptions of what is happening, or likely to happen in the Ukraine – but there should be other factors at play too which are just as relevant.
India's gold imports plunge in April
As gold smuggling in India surges, official imports continue to wither. According to trade figures revealed by the government at the end of last week gold imports declined over 74% to $1.75 billion in April, as compared to the same month a year ago, given the government's large scale import restrictions.
Load of bullion: new gold-backed bitcoin is a disaster in waiting
Minacoin sounds like a libertarian dream, but it doesn't make sense
Gold set to surge or slump?
In the past couple of weeks, the price of gold again dipped below $1,300 and silver temporarily slipped below $19. As this happened, at least two major brokerage houses forecast a sharp decline in the price of gold. One went so far as to predict that gold would not top $1,300 for the balance of 2014 (which was quickly proved incorrect).
And The First Thing Ukraine Will Buy With IMF Money Is...
Kiev will use the first portion of the International Monetary Fund (IMF) loan for augmenting its gold and currency reserves in order to stabilize the financial situation in the country, National Bank Chairman Stepan Kubiv said on Monday, May 5.
Downturn in gold exploration will hit future production
This year’s opening keynote at the Denver Gold Group’s European Gold Forum in Zurich was presented by Michael Chender of SNL MEG who came up with some very interesting statistics on gold exploration and their likely impact on gold output going forward. Chender’s Metals Economics Group (MEG), which was taken over by SNL about two years ago, has been one of the foremost researchers into mineral exploration trends for many years and the group’s analyses carry considerable weight in the analysis sector.
Shipwreck Hunter Odyssey Recovers Gold From Atlantic
Odyssey Marine Exploration Inc., a marine salvager specializing in extracting cargoes from sunken ships, recovered its first gold from a 19th-century vessel lying more than a mile beneath the Atlantic Ocean. Odyssey recovered almost 1,000 ounces (31 kilograms) on April 15 during its first reconnaissance dive to the wreck of the SS Central America. The precious metals included five gold ingots and two $20 Double Eagle coins, Tampa, Florida-based Odyssey said today in a statement.
Gold bullion coins buying peace of mind
Throughout 2013, as the big boys were jettisoning their gold holdings, the little guys were increasingly buying gold bullion coins, specifically the American Eagle.
U.S. Senate Aging Committee probes precious metals fraud
Precious metals fraud remains the sixth-most significant form of financial fraud in the United States, says the Enforcement Section Committee of the North American Securities Administrators Association (NAASA).
Union Says S. Africa Platinum Strikers Rejecting Pay Deal
The biggest union at South Africa’s platinum mines said members are rejecting the latest pay offer from the world’s largest producers to end a more than three-month strike at most of their operations.
Deutsche Bank resigns gold, silver fix seat with no buyer
Deutsche Bank has resigned its seat on the London precious metal fixes without finding a buyer, a spokesman for the lender said on Tuesday, leaving four banks to set the global gold price benchmark under increasing regulatory scrutiny.
Bank of Nova Scotia to get visit from British watchdog as scrutiny of London gold fixing grows, sources say
Regulators are stepping up their scrutiny of how gold prices are set, with officials from Britain’s Financial Conduct Authority visiting all five member banks including the Bank of Nova Scotia to observe the so-called London fixing process, two people with knowledge of the matter said.
U.K. Gold Demand Seen Rising as Regulator Reviews Pensions
U.K. gold demand will get a boost from investors saving up for retirement if the U.K.’s Financial Conduct Authority adds bullion to its list of “standard assets,” brokerage GoldCore Ltd. said. “It should lead to an increased demand for gold and to gold being on the radar of more mainstream investors,” Mark O’Byrne, a director at Dublin-based GoldCore, which manages more than $200 million in bullion, said in a phone interview yesterday. “If that happened, it would contribute to gold being seen almost as a mainstream asset.”
CME plans to launch physically settled Asia gold futures-sources
CME Group Inc plans to launch a physically deliverable gold futures contract in Asia, three sources familiar with the matter said, as the world's No.1 futures exchange targets rising hedging and investor demand in the top gold-consuming region.
TABLE-Swiss platinum imports from South Africa slump in March
Switzerland's platinum imports slumped in March as shipments of raw metal from strike-hit major producer South Africa plummeted to their lowest level in 5-1/2 years, data from the Swiss customs bureau showed on Thursday. Raw platinum imports to Switzerland from South Africa fell to 157 kg in March, their lowest of any month since July 2008 and down 95 percent year on year, the data showed.
E-trading pulls gold into forex units as commodity desks shrink
The increasing use of technology on financial trading floors is driving a trend for banks to roll precious metals operations into their forex businesses as a separate unit from other commodities activities. Barclays on Tuesday followed similar moves by rivals Deutsche Bank, UBS, JPMorgan Chase & Co and Morgan Stanley by announcing that it would keep its gold trading business while hiving off most of its global commodities operations.
China allows gold imports via Beijing, sources say, amid reserves buying talk
China has begun allowing gold imports through its capital Beijing, sources familiar with the matter said, in a move that would help keep purchases by the world's top bullion buyer discreet at a time when it might be boosting official reserves.
Gold bars removed from Indian man's stomach
Twelve bars of gold have been recovered from the stomach of a businessman in the Indian capital, Delhi, a surgeon treating him has said.
India's pain is UAE's gain - Indian expats buy up gold jewellery
If any nation is happy about India' gold import curbs it is the UAE, where bullion traders are registering brisk sales given the restrictions on the import of the precious metal in India.
China's gold market: progress and prospects
A major report published by the World Gold Council "China's gold market: progress and prospects" suggests that private sector demand for gold in China is set to increase 20% from the current level of 1,132 tonnes(t) per year to at least 1,350t by 20171. Following the record level of Chinese demand in 2013, which saw the country become the world’s largest gold market, the report suggests that while 2014 is likely to see consolidation, the succeeding years are likely to see sustained growth.
A Gold Obsession Pays Dividends For Indian Women
It's indestructible. It's fungible. It's beautiful. And for Indians, gold – whether it's 18-, 22- or 24-carat — is semi-sacred. The late distinguished Indian economist I.G. Patel observed, "In prosperity as in the hour of need, the thoughts of most Indians turn to gold." No marriage takes place without gold ornaments presented to the bride. Even the poorest Indian outfits girls in the family with a simple nose ring of gold. The India of old was known as "sone ki chidiya" or "golden sparrow," so opulent were the jewels of its rulers from the Moghul dynasty to the princely states. For Indian women who were not formally educated, gifting them gold was their social security. Today, whether Hindu, Christian, Buddhist, or Muslim, bedecking the bride in gold invests her with good fortune, according to anthropologist Nilika Mehrotra.
Palladium at Highest Since 2011 on Ukraine as Gold Gains
Palladium rose to the highest price since 2011 in New York on concern supply may be restricted as tension escalated over Ukraine. Gold reached a three-week high.
Hugely outnumbered – Western gold bears by Asian gold enthusiasts
Western citizenry is hugely outnumbered by a rapidly growing Eastern middle class with gold purchasing aspirations which has to be having a strong cumulative effect on the long term gold price.
Pressure on India to cut gold duty mounts
The stage appears to be set for India to reduce import duty on gold. Government data released on Friday showed that gold and silver imports have declined 40% to $33.46 billion in 2013-14, as compared to the $55.79 billion in 2012-13. India's exports have jumped a bit, while imports dipped by over 8% narrowing the trade deficit.
U.S. mined silver output continues to fall
U.S. mines produced 80,900 kilograms (2,600,995 troy ounces) of silver in November 2013, a 14% decrease from the 94,300 kg (3,031,815 oz) produced in November 2012, the U.S. Geological Survey reported. Monthly silver production continued on a downward trend that began in June 2013, the USGS observed. Average daily U.S. silver production in November 2013 was 2,700 kg (86,807 oz), compared with 3,140 kg (100,953 oz) in November 2012.
Prepare for bull market to shock even most ardent goldbugs
Jay Taylor understands why investors in gold and gold equities are consumed with caution. But the publisher and editor of J. Taylor's Gold, Energy & Tech Stocks and host of the radio show "Turning Hard Times into Good Times" urges them not to lose sight of the big picture. The big, bull-market picture. Gold juniors with cash and good projects are trading at tiny fractions of their worth. But not for long. In this interview with The Gold Report, Taylor argues that we are on the cusp of a bull market for the ages and suggests eight junior candidates for mind-blowing multiples.
China's Demand for Gold Has Trapped The West's Central Banks
In this week's Off the Cuff podcast, Chris and Alasdair Macleod build on the insights laid out in Chris' recent mega-report last week on gold: The Screaming Fundamentals for Owning Gold. And specifically, they delve deeply into the poorly-understood topic of why Chinese demand has become such a game changer in recent years.
Chinese Gold Demand 559 MT YTD, Up 16 %
In week 13 (24-03-2014/28-03-2014) 36 metric tonnes of gold were withdrawn from the vaults of the Shanghai Gold Exchange. This is the fourth week in a row withdrawals are below the weekly average year to date, which is currently is 43 metric tonnes. Chinese physical demand is dropping from extremely high at the beginning of this year to high in recent weeks. The weekly average of the last four weeks was 35 metric tonnes.
Ted Dixon: What Gold Stock Insider Trading Tells Us
Despite the recent big gains in gold stocks, company insiders and institutional investors are still 2.5 times more likely to be buyers than sellers. According to Ted Dixon, cofounder and CEO of INK Research, this shows that those in the know are still quite bullish, despite the pullback in March. In this interview with The Gold Report, Dixon names the top insider buyers by dollar amount and by volume, and explains how investors should interpret this data.
March gold imports jump to 10-month high in India
India’s gold imports in March rose to nearly 50 tonnes, the highest since the Reserve Bank of India’s import curbs came into force in May last year, according an estimate by the the All India Gems and Jewellery Trade Federation, an organisation that caters to more than 300,000 jewellers. Last month, Indian imported around 25 tonnes of gold, despite the curbs on the precious metal.
The Screaming Fundamentals For Owning Gold - Updated 2014 edition
The punch line is this: Gold (and silver) is not in bubble territory, and its largest gains remain yet to be realized; especially if current monetary, fiscal, and fundamental supply-and-demand trends remain in play.
Gold manipulation – ex US Treasury top gun tells us how and why
Former U.S. Treasury Under Secretary, Paul Craig Roberts, asserts that the Fed and its banker allies do indeed manipulate the gold price to their own ends and describes how this is achieved.
Lend us your gold: Indian banks push farmers to back loans with gold
With agricultural loans turning in the highest numbers of bad loans, banks in India are asking farmers to pledge their gold.
THE 2014 GOLD SERIES: PART 2 OF 5
“Unearthing the World’s Gold Supply”
Boosting forex reserves: Pakistan refuses to sell $2.7b worth of gold says IMF
ISLAMABAD: Pakistan has refused to sell gold worth $2.7 billion, citing national security reasons, as the International Monetary Fund (IMF) pushes Islamabad to convert the precious metal into cash to build foreign currency reserves, revealed the global lender’s report on Friday.
Gold clear benefactor should US, EU and Russia wage financial war
As the Ukrainian crisis unfolded threats of financial war came from Russia and to a lesser extent from the E.U. and the U.S. They were not carried out except a few sanctions targeting key personnel in Russia. These were shrugged off and the crisis appears to have dropped to a series of posturing by both sides. A sigh of relief crossed the developed world and investment life went back to normal. In the past we have had similar events that were defused in a similar way. But history teaches us that that the world can suppurate easily and quickly in tense situation like this. The First World War started because of one shot from a pistol. The Second World War was preceded by trumpeting of ‘peace in our time’ as mistaken politicians thought they had made peace with Germany.
ECB considers printing more money
The European Central Bank over the next months will consider various options of 'quantitative easing' - also known as money printing - to counter a very low inflation rate, ECB chief Mario Draghi said Thursday (3 April) in a press conference.
The dirt on India's latest gold-smuggling seizures
Gold smuggling continues to plague India despite official efforts to curb it with reduced tarriffs and new enforcement initiatives. Looking back over the past week our corrrespondent in India reports a series bold smuggling attempts. These seizures surely represent but a small part of the amount of illegal gold that actually crosses the border, some of which looks to be playing a role in funding India's coming general election.
Precious Metals: 6 Degrees Of Separation As HFT Goes Mainstream
The metals HFT trading is used by the large commercial banks to push the market in whatever price direction they deem “necessary” to affect a profit.
Why are platinum and palladium not meeting analyst expectations?
While every now and again some analyst or other comments that perhaps palladium is outperforming gold, or platinum is, on the year to date both the pgms have moved up pretty well pari passu with gold overall. All three metals are around 7-8% up since the beginning of the year. Indeed gold moved up substantially further during the height of the Ukraine crisis and while the pgms followed they did not quite do so to the same extent. As gold has fallen back though, the pgms have caught up again.
American Silver Eagle Bullion Sales Jump in March, Platinum Eagles Debut
Sales of the United States Mint's American Silver Eagle bullion coins experienced strong sales during the month of March, exceeding the levels of both the prior month and year ago period. American Gold Eagle sales were decidedly lower for the month, and American Platinum Eagles saw their return after more than a five year gap in availability
Recent gold price decline surprising – Nichols
With gold slipping back another $10 yesterday to the $1,280s – nearly $100 down on its brief peak during the peak of the Russia/Ukraine/Crimea crisis – it remains around 7% up on the year to date but, as Nichols points out, as it slips back below its 200 day moving average the technical picture has been damaged and the short term momentum is negative.