Posts Tagged: GOLD

 

Gold prices could drop to $1,000 an ounce in 2015 as a strong US dollar is expected to mount further pressure on the precious metal.

As many as seven out of 10 analysts polled in a Kitco Gold Survey said they expected gold prices to fall to $1,000 an ounce in 2015.

More survey participants said it was possible for gold to drop to $1,000 given that the metal continued to trade below the 200-day moving average of $1,268.

US Global Investor’s CEO Frank Holmes told Kitco that noted economist Nouriel Roubini’s 2013prediction that gold will drop to $1,000 an ounce before the end of 2015 may be right because the level was “within the normal DNA of volatility of gold”.

The strong greenback will cause “prevailing pressure” on gold prices in 2015, Holmes added. Demand for dollar-denominated commodities such as gold typically weakens on a stronger greenback as it makes the metal more expensive for holders of other currencies, lowering its hedge appeal.

But Axel Merk of Merk Investments said the only scenario where Roubini’s call could be right was if investors see a “very hawkish” US Federal Reserve, adding that he did not think rate hikes will equate to a hawkish Fed. >> Read More

 

We already know that to at least one, sadly all too prominent, career economist gold is held by central banks simply due to “tradition.” Here is how another professor of economics perceives the value of gold to central banks.

 
 

To Joshua Aizenman, a professor of economics and international relations at the University of Southern California, dabbling in gold is mainly an attempt by bankers and officials to send a message to the world — one that signals an appetite for power or that broadcasts a desire to challenge a rival. “I doubt that the Chinese or the Russians actually believe that gold is such a great investment in terms of pure returns,” Professor Aizenman said. “But if they’re trying to suggest that they’re unhappy with the dollar or that they want to become a global player, then gold is very powerful.

 

“The investment is a symbol,” he explained. “It’s made for political, not financial, gain.”

That explains it: not just tradition, but symbolic tradition. Actually, let’s just combined what all prominent economists have recently said about gold, and we get… 6000-year-old symbolically traditional bubble.

Gold Silver……..Zooms Like Rocket

01 December 2014 - 15:44 pm
 

GOLD-SILVER-TARGET

GOLD-SILVER-SPURTSAbove are Hourly chart of GOLD ,SILVER SPOT

More DETAILS to our MCX Subscribers

 

GAP-DOWN-GOLD

Above is hourly chart of GOLD SPOT -

Yes ,As Expected its PANIC PANIC…………………Will update more to our MCX Traders

An Indian precedent for Switzerland

29 November 2014 - 21:51 pm
 

Switzerland’s “anyone can initiate a referendum if they’ve got enough signatures” society gets to vote on the “Save our Swiss gold” proposal this Sunday, which aims to make it compulsory for the Swiss Central Bank to hold at least 20 per cent of its assets in gold bullion and repatriate all Swiss gold that’s held abroad.

The proposal also plans to make it illegal for the SNB to sell any of the gold it accumulates. Ever.

What’s worth noting ahead of the poll, though, is how the naturally occurring phenomenon of “too many non-productive gold assets in our economy” has struck economies in the past.

A good example on that front is India, which imposed restrictions on gold imports in August 2013, precisely to offset the destabilising effects of nationwide gold over-accumulation.

As Capital Economics’ Shilan Shah wrote in an emailed note on Friday, India’s unending appetite for gold ended up causing the national current account deficit to balloon to about 5.5. per of GDP, putting pressure on the rupee’s valuation against the dollar, which in turn created a capital panic in 2013.

In a bid to stabilise the rupee, the RBI sought to introduce restrictions on national gold imports. These dictated that 20 per cent of the gold imported must be re-exported within a short space of time.

If you judge the RBI as acting as a representative agent for the Indian economy’s asset base (which we think is a fair argument to make), this resulted in exactly the opposite course of action to defend the rupee’s strength to what the Swiss right-wing parties are advocating with their Swiss gold initiative. >> Read More

 

Easing the restrictions on gold imports, the government has done away with the ’80:20′ scheme, freeing incoming shipments of the precious metal from exports.

Under the 80:20 norms, 20 per cent of the imported gold had to be mandatorily exported before bringing in new lot.

“We believe the move will do away with the distortions and calm the market which was anticipating some curbs to restrict gold imports,” an official said, adding this would help reduce imports.

Sources said the 80:20 scheme was “working” as gold imports had slowed, but the shipments surged after certain relaxations were given by then UPA government.

The 80:20 scheme was put in place in August 2013 to curb gold imports, considered a major cause for the wideningcurrent account deficit (CAD).

>> Read More

GOLD MCX :Crucial Update

23 November 2014 - 11:55 am
 

GOLD-MCX-2411

Above is Daily Chart of GOLD MCX

From 25938 level……………….We are Bullish & With Target :26402–26557 & there after 27021-27176

Last Week it kissed High of  26833 level.

missile

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On November 30, Swiss nationals head to the polls on three separate issues: abolishing a flat tax on resident, non-working foreigners, an immigration cap, and a proposal on Swiss gold reserves. As Visual Capitalist notes, the one we are most interested in is the latter section of the ballot, and today’s infographic sums up everything you need to know about the upcoming Swiss gold referendum.

The referendum, if passed, will mean that (1) The Swiss National Bank must hold 20% of all assets as gold, (2) Switzerland will repatriate the 30% of their gold held abroad by England and Canada, and (3) Switzerland may no longer sell any gold they accumulate.

In the most recent polling, 38% of respondents supported the initiative, 47% were against, and 15% were undecided. The poll has a 3% margin of error as well. While support is down from the previous poll, anything is still possible on November 30th.

Switzerland currently holds 1,040 tonnes, or 7.7% of its reserves in gold. The country actually holds the highest amount of gold per capita (4.09 oz per citizen). However, it used to be an even bigger holder of the yellow metal. In 2000, the SNB held 2,500 tonnes of gold and it has also been the biggest national seller since.

The implications of the vote are huge. With a “yes”, the SNB would have to purchase at least 1,500 tonnes of gold to meet the 20% threshold for 2019. That’s about half the world’s annual production. It would also put Switzerland back in the top three for most gold holdings worldwide.

>> Read More

 

Back in March, at a time when the IMF reported that Ukraine’s official gold holdings as of the end of February, so just as the State Department-facilitated coup against former president Victor Yanukovich was concluding, amounted to 42.3 tonnes or 8% of reserves…

... and notably under the previous “hated” president, Ukraine gold’s reserves had constantly increased hitting a record high just before the presidential coup… >> Read More

 

GOLD-SILVER-FIRE

Above are 1 Hour chart of GOLD ,SILVER SPOT

http://www.anirudhsethireport.com/silver-mcx-crucial-update-17/

http://www.anirudhsethireport.com/gold-mcx-crucial-update-7/

MCX Gold ,Silver Trading levels to our Subscribers

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Team ASR,
Baroda, India.