Precious Metals

Robert P. Murphy: The Economics of Bitcoin

"Some critics (who are often proponents of hard money such as gold) object that Bitcoin is in a perpetual 'bubble' because it has no 'intrinsic value.' Yet these critics often seem to overlook just how much the exchange value of gold and silver is (and was) due to their use as media of exchange. Thus, if Bitcoin is currently in a bubble, then, by the same token, gold bullion in the year 1900 (say) was also in a massive bubble because it was trading for a far higher exchange value than could be explained merely by its industrial and ornamental uses." Continue reading →

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Marc Faber: This Will End In Disaster

"With gold and silver plunging, the US dollar strengthening, and oil still above $100 a barrel, today Marc Faber told King World News this will 'end in disaster.' This is part I of a series of written interviews that will be released today on KWN in which Faber discusses the end game, government theft, how investors can protect themselves, gold, silver, bail-ins, central planner actions, global markets, and much more." Continue reading →

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Jim Rogers: Gold Could Fall To $900, India To Blame For Correction

"What caused it to finally go down, and as much as I love India and Indians, they are the largest buyers of gold in the world. And India has a huge balance of trade deficit. The largest drivers are oil and gold. You can't do anything about oil so the Indian politicians are blaming their problems on gold. And they've taken many measures, and more measures are coming to diminish or even eliminate the import of gold. That was the main catalyst or the straw which broke the camel's back which made gold start going down finally, after 12 years of going up. So you have a lot of governments coming together with measures against gold and silver, but especially the Indians." Continue reading →

Continue ReadingJim Rogers: Gold Could Fall To $900, India To Blame For Correction

Gold jewellery stocks hammered in India

"Gold jewellery stocks are in a freefall in India. The curbs imposed by the Indian government and the Reserve Bank of India to curtail domestic gold consumption and imports, has led to a hammering of stock prices. Some leading jewellers shares have dived by 20% to 50% during the past fortnight. Analysts attribute the mayhem to the fact that most gold retailers in India hold huge inventories of gold. Shares of Gitanjali Gems, touted as India’s largest gold and jewellery company, have slumped more than 60% since mid-June with investors preferring to bail out even on July 4." Continue reading →

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Credit card transactions for gold purchases curtailed in India

"Buying gold in India has got a little more difficult for consumers used to using plastic money to buy large jewellery sets or heavy gold ornaments. India's apex bank has asked banks not to convert gold purchases done through credit cards into equated monthly installments. Continuing its fight against gold consumption, the Reserve Bank of India is leaving no stone unturned to discourage gold buyers in India. The ban on conversion of gold purchases at jewellery stores into equated monthly instalments for credit card purchases has already triggered a slump in sales." Continue reading →

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Singapore opens world’s first physical precious metals exchange

"In yet another attempt to encourage gold trading in the country, Singapore's SGPMX, (Singapore Precious Metals Exchange) on Wednesday launched the world's first physical precious metals exchange with peer-to-peer bullion trading capabilities integrated into the trading platform. As part of the launch, SGPMX also announces the entry into an MOU with Certis CISCO which will act as the custodian for bullion storage. The platform which will operate 24/7 will allow investors and traders to buy and sell physical gold for as little as $1,000. After they have bought it, the exchange will also provide facilities to store the gold with Certis Cisco Singapore." Continue reading →

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Gold at a huge premium as Indian imports dry up; survival of small jewellers at stake

"India's gold imports in June are estimated to have fallen drastically to 35-40 tonne, less than a quarter of what the purchases in May were because of state restrictions, triggering a sharp rise in premiums in the local market and raising a question mark on the survival of small jewellers. The acquisition cost of the yellow metal has shot up as bullion dealers are now charging a premium of up to Rs 350 per 10 grams over and above the metal's international price, up from only Rs 40 two weeks ago. The premium, along with the increase in landed price of gold because of the rupee's depreciation, has denied Indian buyers the benefit of the fall in international prices last month." Continue reading →

Continue ReadingGold at a huge premium as Indian imports dry up; survival of small jewellers at stake

Gold smuggling rampant in India

"Gold smuggling has gone up several notches in India. According to customs officials, after banks stopped selling gold coins and following the hike in import duty, there has been a spurt in demand for the metal prompting people to smuggle. Officials pointed out that smugglers and buyers of smuggled gold tend to save on import duty as well as other taxes like value added tax and income tax. Given the severe curbs on gold buying and selling, other sources are trying to pitch in and take advantage of the situation, by selling gold through illegal means, they added." Continue reading →

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UBS starts Singapore gold-vault service amid bullion rout

"Switzerland’s biggest bank started storing gold for wealth-management clients at a facility in Singapore. The leased vault in the Singapore FreePort is available for clients in the city-state and Hong Kong. UBS joins Deutsche Bank AG and JPMorgan Chase & Co. in offering storage services in Asia. The Singapore government has been promoting the country as a bullion-trading hub, removing a 7 percent sales tax from investment-grade precious metals last year. Millionaires in Asia outside Japan [are projected to] create $7 trillion in new wealth by 2016, boosting the share of global riches from emerging markets to about 37 percent from 24 percent in 2008." Continue reading →

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Bill Bonner: Are We Approaching a “Second Coming” For Gold?

"There are no moms or pops left in the gold market. Even serious, knowledgeable investors have gotten out. From what we read, it seems more like a bottom than a top. The public is not interested. And the professionals hate gold. If we were speculating – and we are not – we would bet that gold is a better buy than a sell. The price could go anywhere. But unlike the Fed's paper, gold won't go away. And, at $1,100 an ounce, gold is likely to be one of those few investments you don't mind telling your children and grandchildren about. If you buy, wait five years. Then let us know how it worked out." Continue reading →

Continue ReadingBill Bonner: Are We Approaching a “Second Coming” For Gold?