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…)

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…)

If it’s not the Chinese, what’s driving the price of gold?

September 7th, 2009. Published under News. No Comments.

If it’s not the Chinese, what’s driving the price of gold?

ALEC HOGG: Well, that gold price is now trading at $990/oz. It has suddenly come to life. Paul Walker is the chief executive of GFMS, and he joins us from Paris. Paul, on Mineweb, Moneyweb’s international website today, Lawrie Williams wrote a story about China pushing the idea of buying gold to its 1.3bn population. There was a programme on Central China Television explaining to the public how easy it is to buy gold, and this is being interpreted – in some quarters, anyway – as part of the reason why the gold price seems to be sprinting towards $1000. Is that wishful thinking?

PAUL WALKER: Well, I don’t think as much as wishful thinking – it’s actually been a story that’s been around for some time. If you have a look at GFMS data on China, it’s been the one outstanding growth market throughout this bull rally. It’s outperformed every other gold market both in value and, most important, quantity terms from the perspective of supply and demand balances in this market. So it’s already to an extent in the price and there’s no doubt that growth in China, ongoing (more…)

we could see $1200 by end of 2009

September 3rd, 2009. Published under News. No Comments.

Bullish on gold since it carried a $400-per-ounce price tag, Blue Phoenix Chief Investment Strategist John Licata expects the king of metals to ring in the New Year with a $1,200-per-ouncecrown. Interview with The Gold Report.

TGR: Speaking of metals, your outlook for gold?

JL: I continue to maintain that we could see $1,200 gold prices by year-end. I think gold is very much on the way to hitting that pretty aggressive price target. The miners themselves seem pretty confident on the upside for gold. We’ve been hearing CEOs from various gold companies, including Goldcorp (TSX:G) (NYSE:GG) and Agnico-Eagle Mines (TSX:AEM), saying that we’re probably going to end the year with gold north of $1,000.

TGR: In April, you described gold as one of the best asset plays in the world and your recommendation to investors was to focus initially on physical gold. Have you changed that viewpoint? (more…)

WGC study shows gold outperforms other traditional inflation hedges

July 23rd, 2009. Published under News. No Comments.

The Word Gold Council has released its latest Gold Investment Digest and a report on gold as an inflation hedge.

Author: Lawrence Williams
Posted:  Wednesday , 22 Jul 2009

The World Gold Council, in its regular quarterly appraisal of the gold market, noted that the yellow metal increased modestly in the second quarter, supported by, among other things, ongoing inflation fears. Traditionally an inflation hedge, gold was sought by investors who had growing concerns about central bank’s exit strategies and the implications of a reversal in quantitative easing measu

On gold’s inflation hedge credentials, Natalie Dempster, Head of Investment, North America, World Gold Council commented:

“Fears of future inflation drove investor interest as seen by the continued demand for the ETFs during the quarter. Traditionally, gold has been an effective inflation hedge, and as our recent study shows, also performs well during low to medium inflationary environments.” (more…)

Alarm bells ring for Gold

April 11th, 2009. Published under News. No Comments.

Johannesburg – Investment in gold will be the driver to push the price to $1 100 or more this year, further damaging an already battered jewellery sector and increasing scrap supplies into the market. Prices will come off over the next five years as that investment dries up and retreats, says GFMS CEO Paul Walker.

It’s difficult to be too definitive about what will happen in the gold market, with a number of variables feeding into forecasts for the price. What benefits one side of the equation has a negative consequence for the other.

Investment in gold in a period of tremendous economic upheaval pushes the price up to record highs but the consequence is that a “bedrock” sector of the market, the jewellery making and retail business, takes a pounding as buyers look for cheaper alternatives or stay out of the market until prices come back down.

“Over the last two or three years, the only thing that sustained the gold prices we’ve seen has been investment demand,” Walker said. “Investment demand has been strong and consistent enough to take metal off the market to sustain those prices.” (more…)

Gold, gold, gold

March 23rd, 2009. Published under News. No Comments.

Massive Gold Sales!

From the early 1980’s and for the next 20 years gold was under the threat of massive sales from the world’s central banks.  Many commentators reported that the overhang of gold above the ‘open’ market was so great that such sales would eventually lead to central bank reserves in the developed world having no gold at all.   Central Banks had further worsened the situation by loaning gold to mining companies, through the bullion banks, allowing them to finance gold production to a far greater extent than warranted by the price of gold during that time.   This acceleration in the production of gold allowed the gold price to be pressed down $850 to $275, the point at whichBritain, at the instruction of the current Prime Minister Gordon Brown instructed that Britain sell the bulk of its gold reserves.   From the turn of the millennium this perspective changed dramatically. (more…)