Precious Metals

Consumer demand for gold jumps 53%

"According to WGC there is renewed interest in gold due to its falling prices, which has brought total purchases of gold jewellery, bar and coins to 1,083.2 metric tons. Jewellery demand reached its highest level in 5 years, increasing by 37% to 576 tonnes. Chinese demand was up 54% compared to the same period last year, while India bought 51% more gold ornaments than in 2012. Bar and coin investment surged by a significant 78% across the world and topped 500 tonnes in a quarter for the first time. The WGC statistics come on the heels of India’s recent measures to curb gold purchases because it is the most costly non-essential item that the country imports." Continue reading →

Continue ReadingConsumer demand for gold jumps 53%

Playing The Surge In Precious Metals, II

"The top buys in the PM sector in my view are SAND, ABX, Goldcorp (GG), Yamana Gold (AUY), TAHO, SILJ and SLW. The top performer since the June 26 bottom has been FNV, a gold and energy royalty company with no debt and $900 million cash and equivalents. They can fund distressed miners and then sell their inexpensive gold into a rising market. They have excellent management and are a top pick. and should be strong going forward, as should Eldorado Gold (EGO) which has producing sites in Turkey and China and sites nearing production in Greece and Romania. Like them, SSRI and IAG remain good choices to buy on a dip with limit orders." Continue reading →

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Funds Build Bullish Positions In Precious Metals Futures, Options

"A price rally inspired speculators to build bullish positions in precious metals futures and options traded on the Comex division of New York Mercantile Exchange and the Nymex, confirming many market participants’ expectations that speculators shed short positions when prices rose. The gains in the data released Friday by the Commodity Futures Trading Commission came via a mix of short covering, that is buying back of previously sold positions, and newly added long positions as noted in both the disaggregated and legacy reports. In copper, speculators sheared short positions, and [..] turned net-long for the first time since February." Continue reading →

Continue ReadingFunds Build Bullish Positions In Precious Metals Futures, Options

Peak Gold

"The resource sector has had a sober awakening, and now we see many companies changing their priorities from expansion to profitability, which depends on many parameters in addition to grade. As for Peak Gold, if that does indeed turn out to be behind us, the big, bulk-tonnage low-grade deposits that are falling out of favor today will become prime assets in the future. It'll either be that or go without. Times may be tough, but the story of the current gold bull cycle isn't done being written. The better companies will survive the downturn and thrive in the next chapter. Identifying these is the ongoing focus of our work." Continue reading →

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Jim Rogers: Why I’m shorting India

"Hedge fund manager Jim Rogers, who moved to Singapore in 2007 because he thought the centre of the world is shifting to Asia, says India is set to miss out on the Asian century. The chairman of Rogers Holdings says that if there is one country an individual must visit, it has to be India for its 'spectacular sensory feast, beautiful, food, colour and religions', but it is also the worst country to do business in. Rogers also slammed the Indian government’s recent curbs on gold imports, saying Indian citizens had no choice but to buy the metal because they had very little faith in investing in other sectors of its economy." Continue reading →

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Paulson’s out… But JP Morgan and Goldman Sachs Are in: Go Long Gold!

"Billionaire John Paulson, who lost over $700 million after April’s gold crash, has cut his holdings by half. As one of the last major institutional holders of gold ETFs, Paulson & Co.’s exit may signal the bottom in the gold market we’ve been waiting for. Two major institutional players also give us reason to be enthusiastic. JP Morgan is advising its customers to go long on gold 'with a four-five week time horizon,' citing further supply squeezing in South Africa and seasonal pickup in India. And Goldman Sachs recently increased its position in SPDR Gold Trust to 4.4 million shares… more than six times what it held at the end of March." Continue reading →

Continue ReadingPaulson’s out… But JP Morgan and Goldman Sachs Are in: Go Long Gold!

Gold, Silver Product Demand Is ‘Very Strong:’ Royal Canadian Mint

"Demand for the Royal Canadian Mint's gold and silver bullion products remains 'very strong,' said an official from the mint on Wednesday. 'Year-to-date, after the second quarter, we've had record volume for silver Maple Leafs, the greatest we've had in the over 25 years that we've produced them. We've seen near-record volume, only second to 2000, year-to-date, for our gold Maple Leafs,' said Chris Carkner, managing director, sales, for bullion, refinery and exchange-traded products at the Royal Canadian Mint. Volatility in the precious metals markets helped demand, he added." Continue reading →

Continue ReadingGold, Silver Product Demand Is ‘Very Strong:’ Royal Canadian Mint

Casey’s Louis James Warns: ‘Don’t Try to Time the Market’

"The wisdom of not trying to time the market is tried and true. Benjamin Graham said the same thing 60 years ago. I shouldn't have to defend this premise. Even though investors all know it, they fervently wish it weren't so; they just can't help themselves. You can't time the market. A bureaucrat in Washington can open his mouth and send the price of gold up or down 5% in an afternoon. Fortunately, we can look for value. However, there are things that we can look for. We can compare companies to their peers. We can look at the ounces in the ground and see if something is out of whack. We can look at cash in the bank." Continue reading →

Continue ReadingCasey’s Louis James Warns: ‘Don’t Try to Time the Market’

Aye, Me Hearties—Why There’s Still Old-Fashioned Treasure Out There

"There are literally thousands of mineral exploration companies, and MOST of them will never discover anything. The money these companies raise in the market will be poured into the ground, and chances are that it won't ever do any good. This is what makes identifying companies likely to make a significant discovery so difficult—and therefore so enormously profitable when you do. When an exploration company goes from having nothing to having proven and probable mining reserves of calculable value, share prices can go through the roof... pennies turn into dollars… and dollars into fortunes." Continue reading →

Continue ReadingAye, Me Hearties—Why There’s Still Old-Fashioned Treasure Out There

The sweat of the sun, the breath of god: Gold through the centuries

"The Aztecs called gold 'the sweat of the sun.' And the Egyptians: 'the breath of god.' To display his imperial glory, Napoleon gilded Paris in gold. Hitler sought to control all of Europe's gold as support for his '1000-year Reich.' Now, at the outset of the 21st Century, with gold miners on their knees as even the great gold bulls are filled with doubt, this may be an appropriate moment to look at the precious metal with a touch of historical context. Here are some of the statistics gold has racked up over the centuries, courtesy of our friends at the World Gold Council." Continue reading →

Continue ReadingThe sweat of the sun, the breath of god: Gold through the centuries