Precious Metals

Shortages, warehouses and misinformation: Comex gold explained

"There has been a lot of misinformation recently about Comex warehouse gold stocks. Most notably, there's confusion about how this year's sharp drop in the quantity of gold bullion held in Comex warehouses might point to some looming shortage of metal to settle gold futures contracts, or even signal an outright default by sellers to buyers. But there is no mystery or hidden agenda of how Comex works. In this article our goal is to explain how the Comex works in the simplest fashion. Having been involved in the physical gold markets for thirty years, I hope I'm in a position to share a true 'insider' view, the better to inform this debate properly." Continue reading →

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Colombia Illegal Gold Mines Prosper in Global Rout

"Investments by companies are being held back as ambiguous local regulations exacerbate the effects of the global gold slump. In contrast, informal operations in remote rivers and jungle areas are flourishing. The government acknowledges that the number of producers without licenses probably has risen from the last census in 2010-2011, when they accounted for 87 percent of all gold mines. While authorities are shutting down unregulated producers at an unprecedented rate, the growth of new operations shielded from environmental and labor restrictions is even faster, police say. Armed groups can reap more profit from illegal gold mining than cocaine." Continue reading →

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Gold Scrap Supply to Drop Up to 25% as Lower Prices Deter Sales

"Recycling accounted for 37 percent of total supply last year, according to Barclays Plc, which forecasts recycled sales of the metal to fall by 174 tons this year. Gold is heading for the first annual drop in 13 years after some investors lost faith in the metal as a store of value, cutting bullion-backed fund holdings to the lowest since May 2010. Prices rebounded 13 percent from an almost three-year low last month as demand for jewelry and coins rose. Bullion dropped a record 23 percent in the second quarter as the Federal Reserve indicated it may slow its monthly debt buying if the economy improves." Continue reading →

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Amagi Metals to Lose Bank Account Over Accepting Bitcoin

"Precious metals purveyor Amagi Metals announced on Friday that as of mid-August, their current bank account with San Francisco headquartered Bank of the West would be closed. In the latest case of banking aversion to bitcoin, Amagi Metals stated that the basis for the account closure is the fact that Amagi Metals accepts bitcoin as a payment method, which Bank of the West views as a risk. While it is the prerogative of a bank to choose not to do business any entity based on a risk assessment, a decision to cut off a customer based on the fact that they accept a specific method of payment is unusual." Continue reading →

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The Gold Roller Coaster

"Gold is not a stock. It does not behave as a stock, and its rewards are not delivered in the manner of stocks. In watching the ups and downs of gold, this is the most important fact to remember. To be sure, some investors treat gold in the same way as a stock – trying to guess its fluctuations – selling after a rise and buying following a correction. However, gold is not like a stock, in that it does not pay dividends. It does not rise and fall based upon the performance of any company. And it is relatively finite. There can be no stock splits. Gold's true value is not as a trading commodity, but as a means to preserve wealth." Continue reading →

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The Curiously Uncurious Ben Bernanke

"If I were chairman of the Federal Reserve and didn't understand the forces that move gold, learning about them would be near the top of my to-do list, if for no other reason than a large swath of the investment community uses gold as a barometer to evaluate how good a job I'm doing. Bernanke's clueless quote paints a stark contrast between the academic and real world. Upon observing the recent correction in the price of gold, how many asset managers do you think threw their hands up in confusion and proclaimed that no one can possibly know what's going on, so why even try?" Continue reading →

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Doug Casey: Fact Gold Went Down is Marvelous

"Kitco News catches up with Doug Casey to talk about gold, the Fed, inflation and the future of the US. 'Gold is a way you save, it is a way to put capital aside for further use,' said Casey. He is glad gold prices are down and will continue to buy the metal. Casey also talks about the importance of diversifying assets internationally and talks about his book 'Totally Incorrect.' Watch now to hear his thoughts on the markets and precious metals." Continue reading →

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