Precious Metals

China Gold Output Seen Rising to Record by Mining Group

"Gold output in China, the world’s largest producer, is poised to rise almost 10 percent this year to a record even as bullion prices slump, the nation’s mining association said. Bullion extended its drop this year to 23 percent and hedge funds cut bets on a rally by the most since February after the Federal Reserve said it may slow a bond-buying program that’s been pumping stimulus into global markets. That hasn’t deterred buyers in the second largest economy, which may pass India as the largest gold consumer as early as this year as regulators in Beijing make investing in the precious metal easier." Continue reading →

Continue ReadingChina Gold Output Seen Rising to Record by Mining Group

China’s gold imports still at unprecedented highs

"China will certainly become the world’s No. 1 gold consumer this year – if indeed it was not already. So far net imports through Hong Kong for the first five months of the year have totalled over 413 tonnes – double those of a year earlier when China imported just over 830 tonnes in the full year. China’s own gold production from its mines and as a byproduct from its smelting and refining sector exceeded 400 tonnes last year and is heading to between 420-450 tonnes by 2015 according to official estimates. This suggests Chinese gold imports plus its domestic production will, this year, account for comfortably over 50% of global new mined gold output." Continue reading →

Continue ReadingChina’s gold imports still at unprecedented highs

Central bank decree now runs Vietnam Gold sector

"Vietnam central bank has warned that gold businesses cannot launch programs to accept gold deposits from customers without permission from the central bank. The central bank said these illegal businesses can be inspected and penalized. It also ordered that commercial banks must now have SBV permission to run storage services. There is a very important clause in the decree, which stipulates that all activities other than trading gold by the businesses should be licensed by the central bank and the government, in order not to negatively affect the market." Continue reading →

Continue ReadingCentral bank decree now runs Vietnam Gold sector

Nepal police seize smuggled gold bound for India

"Nepal police seized 35 kilograms of gold on Wednesday, smuggled over the border from China and bound for India, where demand for the precious metal was soaring, officers said. The shipment, worth two million dollars on the black market, was the biggest ever seized by police in Nepal in what is an increasingly lucrative cross-border smuggling racket, the officers said. The gold was discovered in a truck in the capital Kathmandu after police trailed the vehicle following a tip off, superintendent Uttam Kumar Karkee told AFP. He said that smugglers have been using land routes after authorities stepped up customs inspections at airports." Continue reading →

Continue ReadingNepal police seize smuggled gold bound for India

Smuggled Gold worth $5 billion to hit India this year

"India's efforts to curb gold imports are backfiring as the country already started to suffer from illegal gold transactions. Reports said old style gold smuggling is back in the country as series of restrictions by the government makes it difficult for the importers to buy from abroad while smugglers are offering much lower prices. Analysts said smuggling became a lucrative affair after the rise in customs duty on gold imports and people risking their necks to smuggle in gold. They added that smugglers got an opportunity after being sidelined for nearly 15 years due to liberalized policies of the government on gold imports." Continue reading →

Continue ReadingSmuggled Gold worth $5 billion to hit India this year

Rising Lease Rates Show Demand For Physical Gold Remains Strong

"Although the price of gold remains weak, retail investors and industries continue to pay a premium to buy the physical metal now. What appears to be occurring is gold is moving from weak hands, ETF holders and etc, to strong holders, that is physical holders. On Tuesday, one-month lease rates for gold hit a four-year high and rose to 0.3%. The lease rate is important because it in an indication of industry demand. Jewelry stores will borrow gold, which is backed by the future sales of their products. Mining companies will also borrow gold at the lease rate and then pay back the loan with future production." Continue reading →

Continue ReadingRising Lease Rates Show Demand For Physical Gold Remains Strong

JP Morgan is Taking Delivery of Silver. Why?

"The commodity futures market allows speculators to bet against each other on where the prices of commodities are headed. Participants make money by out-guessing their competitors. Only about 3% of the contracts ever result in delivery of the physical commodity. The speculators don’t want the commodities. They just want the price action. All of a sudden, without warning, JP Morgan is demanding delivery of silver — not money. This is never done. Well, almost never. Bunker Hunt tried that in 1979, and the COMEX changed the rules. He was trying to squeeze the silver market. The COMEX opted out. Hunt lost billions of dollars." Continue reading →

Continue ReadingJP Morgan is Taking Delivery of Silver. Why?

One Million Children Labor in Africa’s Goldmines

"The U.S. Department of Labor also is funding a four-year, $5 million project in Burkina Faso, one of the world's poorest nations, to reduce child labor in cotton farming and gold mining. The grant will be used to help raise awareness about child labor laws and build government capacity to monitor and enforce the laws, said Eric Biel, acting associate deputy undersecretary for the Bureau of International Labor Affairs. Small-scale gold mining began here in earnest in the 1980s as droughts and famines forced families from farms and into mines to earn a living. It remains a family affair." Continue reading →

Continue ReadingOne Million Children Labor in Africa’s Goldmines

IRS Reporting Rules for Cash Transactions and Precious Metals

"As you can tell by the title this commentary is our third revision at understanding what the government had in mind when IRS reporting rules for cash transactions came up on the radar screen more than 30 years ago. This subject has to be one of the most misunderstood and misrepresented in the trade today so I can’t figure out why you don’t see more about these rules? The reason might be that these mystical directions while holding sway over dealers are a poorly written mess which should have been avoided or at least provided with updating options. With mistrust of government reaching new highs these famous reporting rules become more important." Continue reading →

Continue ReadingIRS Reporting Rules for Cash Transactions and Precious Metals

Failed Banking System Prompts Iraqis to Hoard Gold

"There is an old Arabic saying that 'gold is both for decoration and storing.' Currently, Iraqis, particularly residents of the Kurdistan Region of Iraq, are taking these words to heart. In the absence of a trustworthy banking system, they are converting their money into gold and stashing it in their homes. The Department of Standards and Quality Control for Gold and Minerals in the Kurdistan Region acknowledges that, indeed, large quantities of gold are being imported and distributed. The entry of such massive amounts of gold into the country is offset by the exit of large amounts of foreign currency, in particular US dollars, in which gold traders often deal." Continue reading →

Continue ReadingFailed Banking System Prompts Iraqis to Hoard Gold