Tag Archives: Bull Market
Doubling of gold price predicted
May 31st, 2010. Published under News. No Comments.
GOLD might have been hitting all-time highs in terms of dollars and rands, but it is still at only half the peak set in 1980 after adjusting for inflation, the SA Gold Coin Exchange said yesterday. “Then, prices rose to 850 an ounce, equal to 2266 today,” said its executive chairperson, Alan Demby. This phenomenon alone justified a doubling of the gold price from current levels in the next couple of years, he said. He cited a recent Bloomberg analysis which suggested that speculators were buying gold faster than the world’s biggest producers could mine the metal. “Against this background, analysts had been predicting a rally that might extend the longest run of annual gains since at least 1920,” Demby said. Analysts’ predictions for gold included that the yellow metal could go up 5000 to 10000 an ounce in the next five to 10 years. According to Demby, investors should hold a minimum of 15percent of their assets in gold, with two-thirds of that 15% comprising Krugerrands.
A Reuters poll released yesterday confirmed the trend, citing concerns over eurozone sovereign debt and wider instability in the financial markets as the spark behind the demand for a refuge from risk. — Reuters- Sapa
Gold is money
May 13th, 2010. Published under News. No Comments.
The Western financial world is officially in full panic mode. A nearly $1 trillion bailout of Greece confirms that fact. Our very own Federal Reserve is providing billions to the effort, but this is much more than a bailout for Greece. It is a bailout for banks holding Greek debt and the debt of other European nations teetering on default.
This bailout is not a fix or a cure for too much debt. People on both sides of the pond are simply spending more than they earn. The “fix” is a long painful road of consuming less and saving more, but that is not what this bailout represents. What the leaders of the Western World chose was the short painless path of money printing. You have to ask yourself where did they come up with nearly a trillion dollars in such a short amount of time?
If real assets were used for this bailout, it would not be done. Think about this for a minute. Let’s say for the American part of this rescue we had to put up half of New York State for collateral. Does the thought of that much prime land frittered away make you squeamish? How about putting up 500 million barrels of oil out of the Strategic Petroleum Reserve? Too valuable you say? Then maybe a couple thousand tons of gold out of Fort Knox would be okay to use, after all, it’s just sitting there (I hope). Doesn’t this sound absurd? It sure does because these are real assets and printed money is not. This is why the U.S. Fed is using dollars created out of thin air to help bail out its banking buddies in Europe. It is the easy way out, at least at the beginning.
In the end, this kind of reckless desperation will cause every dollar you spend and save to be worth less. If the Fed prints too many dollars, then they’ll be just plain worthless. What do you suppose will happen when California, Illinois, Florida or any one of more than a couple of dozen U.S. states all gets into the same trouble as Greece? Do you think the Fed will let them fail or print more money and bail them out too? I’m going with a giant money printing bonanza right here in America. I covered some of this in a February post called “America Has Its Own PIGS.”
Gold buyers see what’s coming, and prices are being bid up. Gold set a new all time high this week. Why? Money, or the buying power of money, is systematically being destroyed by current and coming bailouts. The new money is gold and Congressman Ron Paul agrees. He said earlier this week, “Gold, all of a sudden, started acting differently. It started acting as a currency rather than just reacting to the value of the dollar or other commodities . . . Gold has been money for 6 thousand years and it’s going to remain that way, and it will rule the roost . . . It’s telling us that the dollar is actually very weak . . . when you measure it against gold.” Silver is also rising in price. When gold rockets high enough in price, then silver will also be considered money.
This so called bailout will just extend the game. The question is for how long? To be frank, I do not know how this will finally shake out. The two things you can count on for sure: there will be some very big inflation–and gold is money. (more…)
A theoretical opinion of what could be ahead for gold should economic turmoil and quantitative easing persist.
May 12th, 2010. Published under News. No Comments.
A theoretical opinion of what could be ahead for gold should economic turmoil and quantitative easing persist.
Author: Lawrence Williams
Posted: Monday , 10 May 2010
WASHINGTON, DC -
I suppose it depends who you listen to whether you believe that gold is going to move on and on to new heights – and maybe test $1500 or higher this year, or whether the recent sharp rise back above $1200, like the even sharper fall in stock markets, is just a blip and it will return to lower levels. The latest European moves to stabilise the Euro and prop up the PIIG economies may temporarily impact the gold priceand bring it back a little. Indeed there are some who believe the combined forces of the U.S and Eurozone will be mobilised against gold to bring it crashing down as they feel that an ever-stronger gold price brings home the global weakness in the major western currencies and the central bankers will be trying to disguise quite how weak these currencies really are. (more…)
Gold forecast to reach $3,000 per ounce as it ‘decouples’ on international debt crisis
May 12th, 2010. Published under News. No Comments.
As the international debt crisis seems to gain added momentum, gold has been surging in all currencies.
Posted: Friday , 07 May 2010
DUBLIN (GOLDCORE.COM) -
The sharp sell off on Wall Street and with equities internationally saw gold decouple and surge in all currencies yesterday. Oil, commodities and bonds also fell sharply in incredibly volatile trading.
Gold was up by more than 2% in dollar terms and by more than 3.5% in euros and pounds as the euro and pound fell sharply on contagion fears, hung parliament and economic concerns respectively. Gold reached new record nominal highs in sterling, euros and Swiss francs and 27 year highs in Japanese yen, also reaching a five-month high in dollars (more…)
Gold hits record high
May 12th, 2010. Published under News. No Comments.
Hong Kong – Gold hit a record high of $1 235.50 ounce by midday in Hong Kong Wednesday, as investors sought a safe-haven over deepening concerns about the eurozone debt crisis. The precious metal closed in Asia on Tuesday at $1 209.00 but later climbed as high as $1 224.82 an ounce in European trade. Analysts said the commodity was likely to maintain its safe haven role while other markets remained vulnerable. It opened at $1 229.00, just up from a previous record of $1 226.56 for the metal set on December 3 last year. “The response of the central banks and the IMF to the southern European mess is almost guaranteed to ensure continued volatility in world markets,” said Capital Spreads analyst Simon Denham. Investors had on Monday welcomed the European Union and International Monetary Fund aid package worth €750 bn to resolve the debt and budget deficit crisis in Europe. However, the euphoria faded on Tuesday amid resurgent doubts over countries’ ability to reduce their deficits (more…)
After rallying toward record gold slips back below $1,200
May 7th, 2010. Published under News. 1 Comment.
After rallying toward record gold slips back below $1,200
The price of the yellow metal edged down in early trade on Friday after rising toward an all time high yesterday on escalating debt concerns and falling US stocks
Author: Lewa Pardomuan (Reuters)
Posted: Friday , 07 May 2010
SINGAPORE (REUTERS) -
Gold edged down on Friday after rising toward an all-time high the previous day on Europe’s escalating debt woes and tumbling U.S. stocks, but strong safe haven demand is likely to help the metal test new highs.
Gold has gained as much as 10 percent this year as investors spooked by potential contagion from the eurozone debt crisis rushed to buy to the precious metal, whose safe haven appeal tends to increase in times of economic and geopolitical crises.
Spot gold was at $1,199.50 an ounce at 0301 GMT, down $7.75 cents from New York’s notional close on Thursday, when it jumped 3 percent to its highest since December 2009 at $1,210.35 an ounce — marking its biggest one-day gain in more than a year. (more…)
Gold still moving up
November 26th, 2009. Published under News. No Comments.
Tokyo – Gold hit a record high above $1 192 on Thursday as the dollar stumbled further and sentiment remained solid on expectations of more central bank buying of bullion.
The dollar extended losses on Thursday, falling to its lowest in 14 years against the yen and hitting a fresh 15-month low against a basket of six major currencies.
Gold prices have risen about 15 percent since the beginning of November, with demand fuelled by expectations of further reserve diversification, prospects for a sickly US currency and fears about inflation in 2010.
The market is highly sensitive to speculation of more bullion buying by central banks looking to diversify foreign exchange reserves, particularly in Asia, after a newspaper report that India is open to buying more gold from the International Monetary Fund following its purchase of 200 tonnes earlier this month.
The IMF had no comment on the report.
Late on Wednesday, the IMF said it had sold 10 tonnes of gold to the Central Bank of Sri Lanka, a part of 403.3 tonnes of sales approved by the fund’s executive board in September. The fund has already sold 202 tons of gold to the Reserve Bank of India and the Bank of Mauritius.
“Everybody is bullish on gold, and everybody is looking at the signal central banks are sending,” said Dick Poon, manager of precious metals at Heraeus in Hong Kong.
“It’s not just India or China, but most of the central banks, as well as funds, have changed their portfolios to include gold. So, everybody is looking at how much money they will invest in gold,” he said.
He said there was a lot of physical demand despite high prices, with Asian buyers seen in the market.
Spot gold hit a fresh record high of $1 194.70, up from New York’s notional close of $1 190.30.
US December gold futures also rose to a fresh high of $1 194.80 per ounce. Futures settled up $21.20, or 1.8%, at $1 187.00 an ounce on the Comex division of the New York Mercantile Exchange.
Vietnam’s central bank has granted quotas for the import of 10 tonnes of gold since lifting an import ban earlier this month, and 6.8 tonnes had already come in, state broadcaster VTV said on Wednesday.
Russia’s central bank bought 15.6 tonnes in October and has said it aims to increase gold’s share in its reserves this year.
“These moves further add to market speculation that central banks will continue to buy gold,” said Wakako Harada, a senior trader at Mitsubishi Corp in Tokyo.
US markets will be closed on Thursday for the Thanksgiving holiday.
“Reserve diversification moves by non-G7 central banks underscore investor detachment from dollar assets and is clearly reflected in gold’s rally,” said Shuji Sugata, a manager at Mitsubishi Corp Futures’ research team.
Traders said volume was not large, with many players kept to the sidelines due to the Thanksgiving holiday.
Yuichi Ikemizu, Tokyo branch manager for Standard Bank, said he did not expect strong follow-through buying, as players were likely to become cautious with the US on holiday.
“But sentiment is underpinned by speculation about central bank buying of gold, with many believing India will buy more from the IMF. And the dollar’s weakness is also supportive,” he said.
With many market players expecting gold’s bull run to continue, investment in gold increased.
The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1nbsp;127.860 tonnes as of November 25, up 5.489 tonnes, or 0.5 %, from the previous day and just shy of a record 1 134.03 tonnes hit on June 1.
- Reuters
Gold hits record above $1120
November 12th, 2009. Published under News. No Comments.
Tokyo – Gold rose above $1 120 per ounce to hit a record high on Thursday for the second straight day as investors focused on the precious metal’s appeal as a hedge against a weakening dollar.
Improvements in the economic outlook also lent support to the precious metal. Gold is often seen as a hedge against energy price-led inflation.
Spot gold was at $1 119.65 an ounce as of 02:32 GMT after rising to a record $1 121.60, compared with New York’s notional close of $1 117.45.
Bullion has now renewed record highs for six out of the past eight sessions.
US gold futures for December delivery traded at $1 120.30 an ounce, up 0.5%. The contract earlier rose to a fresh record of $1 122.20. (more…)
Gold hits all-time high
October 7th, 2009. Published under News. No Comments.
Wed, 07 Oct 2009 07:46
Gold’s popularity as an alternative to the slumping US dollar saw the precious yellow metal surge to a fresh all-time high of $1036 on Tuesday afternoon.
Gold first broke through its 18-month high of $1024 an ounce touched in September and then surged through its previous record high of $1032.70 reached in March 2008 and was last at $1036.55 an ounce, $19.63 from $1016.62 at JSE’s last close.
Analysts said the weak dollar continued to be the greatest driver and concerns over the devaluation of world’s most revered currency has sent investors rushing into the arms of waiting gold traders.
The dollar declined to a one-year low on Tuesday after newspaper reports that that Gulf nations were considering a profound financial change in the currency in which they trade oil — a move that means oil will no longer be priced in dollars.
Later denied, the exclusive report published in the UK by The Independent stated Gulf Arab states — along with China, Russia, Japan and France — were considering replacing the greenback with a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Cooperation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.
“News on gold’s expected future role in oil transactions between these trading partners has sent the price past $1020,” said Peter Spina, chief investment analyst at GoldSeek.com.
Spina was quoted by MarketWatch as saying that trading gold and other currencies in exchange for oil would “establish gold as a recognised medium of exchange, returning it a step closer to its role as money on a world trade system.”
HSBC analyst James Steel was quoted by Dow Jones Newswire as saying a constant feature of the gold rally had been persistent dollar weakness, accompanied by occasional questioning of the dollar’s status as the world’s reserve currency.
Mitsubishi analyst Tom Kendall said it was also ongoing concerns about the US deficit, the longer-term potential for inflation and overall higher commodities that were leading gold prices higher.
At 3.09pm the rand was bid at 7.4037 to the dollar from 7.4590 at its previous close while the euro was bid at $1.4736 from $1.4648 overnight.
15 Reasons Why Gold Should Reach $1500 in 15 Months
October 1st, 2009. Published under News. No Comments.
Beaumont, TX (PRWEB) October 1, 2009 — Mike Fuljenz, President of Universal Coin & Bullion in Beaumont, Texas points out that in September, 2009, Standard & Poor’s (S&P) Global Investment Policy Committee predicted that gold prices “could rise to the $1,200 to $1,500 ounce range over the next 9-12 months.” Can it happen? Will we see gold at $1,500 by year-end 2010 – about 15 months from this writing? Considering that gold was only $250 in early 2001, a rise to $1500 would cap a 500% gain in the first decade of the 21st century.
Mr. Fuljenz says, “Yes, it COULD happen. Here are 15 universal reasons why gold bullion might reach $1,500 within 15 months: (more…)