Precious Metals

Ask the Expert – Marc Faber – Sprott Money News

"In this exclusive interview, Marc Faber answers questions from our readers about the gold and silver markets and his outlook on the economy. Marc Faber is a leading investment advisor and director of Marc Faber Ltd. He is known notably for his monthly investment newsletter, 'The Gloom Boom & Doom Report', which highlights unusual investment opportunities. He is also an author of several books, including Amazon.com best seller Tomorrow's Gold, and a regular contributor of leading financial publications worldwide. A regular speaker at various investment seminars, Dr. Faber is well known for his 'contrarian' investment approach." Continue reading →

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The Gold Lease Story You Haven’t Heard

"A recent article in the Financial Times described a shortage of so-called 'leased' gold. According to the Times, the cost of borrowing gold 'has risen to the highest since the post-Lehman Bros. scramble for supplies as bullion markets adjust to a new era in which Western investor demand is less dominant.' The numbers are small, but the trends are intriguing. The one-month gold leasing rate rose from 0.12% in early June to 0.3% in early July. That’s a 150% rate rise in one month! It’s the highest gold lease rate since 2009, although still well below the peaks of previous eras." Continue reading →

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80% dip in India gold imports linked to rampant smuggling

"Customs officials recently apprehended a gold consignment at Delhi's IGI Airport coming from Dubai where the smuggler had converted gold bars into staple pins with silver coating. These pins were stapled on the boxes of TVs he was legally importing. In another case, DRI officials apprehended a consignment where capacitors of picture tubes of TV sets were made of gold. 'Unless you have specific information you can't catch such consignments. Who would break open a TV and look at the capacitor of its picture tube for smuggled gold. Though we have had good success, we believe a lot of consignments are finding their way into the country,' said the officer." Continue reading →

Continue Reading80% dip in India gold imports linked to rampant smuggling

India witnesses spurt in Gold smuggling

"Customs officials foiled the attempt by a passenger hailing from Koyilandy to smuggle 3.99 kg of gold concealed in his baggage. The gold, in the form of gold bars, was hidden in a metal box in the rear side of a TV. The gold bars were detected during the X-ray scan. Assistant commissioner Rohit Kumar led the search and seizure operation. Meanwhile, some of the airports have upgraded the scanners and x-ray machines to detect gold smuggling which has risen following the increase in import duty to 8% and differential in gold prices in India and abroad, market analysts said." Continue reading →

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Central bank further restricts gold imports in India

"In a late evening development, the Reserve Bank of India has once again tightened gold imports in the country mandating that 20%, or one fifth, of every lot of imported gold has to be used for the purpose of export. Exporters will henceforth be required to retain 20% of the imported quantity in the customs bonded warehouses, and would be permitted to undertake fresh imports of gold only after the exports have taken place to the extent of at least 75% of the gold remaining in the customs bonded warehouse. Any import of gold into the country would henceforth have to follow the 20/80 principle set out by the apex bank." Continue reading →

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India Department of Post to stop gold coin sales

"Following the Centre's decision to halt the import of gold coins and bars in the country, the department of post will stop their sales from its counters from August 1. So, if you want to buy 24-carat gold coins with India Post logo, better hurry up. Otherwise, you will miss the last chance - for the time being - to buy them. The department has so far been selling gold coins from 0.5gm to 50 gm in weight. India Post had entered into a tie-up with a private sector company to sell gold Suisse which were certified by the Switzerland-based International Gold Council. The government has asked India post, banks and other financial institutions to stop the supply of gold." Continue reading →

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John Paulson: Rationale for owning gold is valid

"CNBC's Carl Quintanilla speaks to John Paulson, founder and president of Paulson & Co., about his firm's investments, and his level of concern about the Fed's monetary policy. 'Although the Fed has printed a lot of money, to date there is little inflation,' he says in discussing the gold market." Continue reading →

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Bill Bonner: Can a credit system last in the modern world?

"When you have a system based on credit rather than bullion deals are never completely done. Instead, everything depends on the good faith and good judgment of counterparties - including everybody's Number One counterparty: the US government. Its bills, notes, and bonds are the foundation of the money system. But they are nothing more than promises. A credit system cannot last in the modern world. Because as the volume of credits rise the creditworthiness of the issuers declines. The more they owe the less able they are to pay. As time goes by, the web of credit spins out in all directions, entangling not just the present, but the future too." Continue reading →

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Gold Sector: A Small Fish in a Big Pond

"The conclusion we can draw from these two charts is rather obvious: gold stocks are a tiny constellation in a big universe. That's important, because it shows just how very crowded this little area could get when the larger universe of investors turns to the gold sector. If they invest in the bigger companies, there won't be that many to choose from, which could swell stock prices. In the meantime, gold stocks remain deeply undervalued. Let me build on Jeff's argument that gold stocks are cheap on an historical basis and compare them to other industries' price-to-book values as of July 17. How long will gold stocks continue to be so undervalued?" Continue reading →

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