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Fri, 29th April 2016

Anirudh Sethi Report

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Archives of “GOLD” Tag

Next Comes GLOBAL Lehman Moment!

The desperation is obvious, palpable, incredible, fascinating, and unmistakable. History is being made, as the last ditch is overrun. The banker cabal wishes to defend an indefensible $1300 gold price and to defend an indefensible $18 silver price.
The Gold price will find its true value and price over $10,000 per ounce. The Silver price will find its true value and price over $300 per ounce.
Silver will be part of the new asset backed global currency system.
NEXT COMES A GLOBAL LEHMAN MOMENT WITH BANK FAILURES AND A THREAT TO THE ENTIRE WESTERN BANKING SYSTEM…

Click Here For Jim Willie’s Full MUST READ Hat Trick Letter On The GLOBAL Lehman Moment & $10,000 Gold:

 

Precious Metals Tumbles – ‘Someone’ Dumps $2 Billion Of Gold Into Futures Markets

What goes up… must not be allowed to…

Someone just decided this was the perfect time to dump over $2 billion worth of notional paper gold onto the markets…

Over 16,000 gold contracts (and 7,500 silver) were dumped in that 5/10 minutes segment.

It appears Draghi did not like the impression of his impotence that precious metals were suggesting.

It appears the Gold/Silver ratio at 72x was a big buying opportunity?

As the longer-term trendline holds support…

Russia Relies On Gold To Push Reserves Back Over $380 Billion

Whether you define gold as a barbarous relic, a pet rock, “tradition”, or “doomed”, Russia surely refers to it as a saving grace. As Russia’s foreign reserves dwindled to just under $350 billion in early 2015, many predicted Russia was going to burn through all of their reserves in the not too distant future as they dealt with a depreciating Ruble and plummeting oil revenues.

However, this dire prediction did not pan out mainly due to one thing: Russia’s strategic decision to load up on as much gold over the past few years as it possibly could.

As we have shown in the past, Russia has shown an insatiable desire for Gold, and as Bloomberg points out, has increased their holdings more than 12% since last July.

Russia Becomes Globe’s Top Buyer of Gold Bullion, Boosting Reserves

The Central Bank of Russia became the world’s leading purchaser of gold when it bought 356,000 ounces of the precious metal in February, according to the International Monetary Fund (IMF).

Gold

At least 356,000 ounces of gold were bought by the Central Bank of Russia last month, making it the largest buyer of the precious metal among the world’s central banks, an IMF report said.

China took second place; its Central Bank purchased about 320,000 ounces of gold in February, according to Chinese Central Bank officials.

Central banks raised gold reserves faster in H2 2015

Latest World Gold Council reserve figures show CB’s were liking the shiny stuff

  • Total Q4 2015 gold demand +4.0% y/y
  • Q4 2015 Central bank demand +25.0% y/y
  • 2015 Central bank purchases +1% y/y to 588.4t
  • Q4 2015 Investment demand +15% y/y

Central banks took on 336.2t in the second half of 2015 compared to 252.2t in H1.

BI also note who the top 10 countries holding gold are.

It’s probably a surprise to most who is in the top 4

It’s Official: Canada Has Sold All Of Its Gold Reserves

One month ago, when looking at the latest Canadian official international reserves, we noticed something strange: Canada had sold nearly half of its gold reserves in one month. According to the February data, total Canadian gold reserves stood at 1.7 tonnes. That was just 0.1 per cent of the country’s total reserves, which also include foreign currency deposits and bonds. 

As we noted, the decision to sell came from Finance Minister Bill Morneau’s office.

“Canada’s gold reserves belong to the Government of Canada, and are held under the name of the Minister of Finance,” explained a spokesperson for the Bank of Canada on Wednesday. “Decisions relative to gold holdings are taken by the Minister of Finance.”
Reached by Global News on Wednesday evening, a spokesperson for the finance department said the sale “was done in the normal course of business for the government. The decision to sell the gold was not tied to a specific gold price, and sales are being conducted over a long period and in a controlled manner.”

This latest sell-off is indeed part of a much longer-term pattern of moving away from gold as a government-held asset. According to economist Ian Lee of the Sprott School of Business at Carleton University, Ottawa has no real reason to keep its gold reserves other than adhering to tradition.

“Under the old system, (gold) backed up currencies,” Lee explained. “The U.S. dollar was tied to gold. One ounce was worth US$35. Then in 1971, for lots of reasons I won’t get into, Richard Nixon took the United States off the gold standard.”

Over 15 % of global copper mines are losing money at current prices

Over 15 per cent of global copper mines are losing money at current prices, according to research from consultancy CRU.

Copper prices have fallen over 1 per cent this year, and touched a low of $4,311 a tonne in January. At that price, more than 15 per cent of producers would be making a loss, even after sales of by products from their mines

The analysis looked at over 350 mines in the world that produce copper.

Miners have benefited from the strong US dollar, which has reduced their wage bill in local currency. For example, in Chile, the world’s largest copper producing country, labour costs in copper mining have fallen by around 20 per cent in US dollar terms in the last two years, CRU said.

“More than 100 per cent of the reduction has been due to the depreciation of the Chilean peso – wages in domestic currency in Chile have actually continued to increase,” it said.

Copper is off 0.44 per cent today to trade at $4,647 a tonne on the London Metal Exchange.

Just see What Happened in COMEX ?

There had been an eerie silence at the Comex in recent weeks, where after registered gold tumbled to a record 120K ounces in early December nothing much had changed, an in fact the total amount of physical deliverable aka “registered” gold, had stayed practically unchanged at 275K ounces all throughout January.

Until today, when in the latest update from the Comex vault, we learn that a whopping 201,345 ounces of Registered gold had been de-warranted at the owner’s request, and shifted into the Eligible category, reducing the total mount of Comex Registered gold by 73%, from 275K to just 74K overnight.

This took place as a result of adjustments at vaults belonging to Scotia Mocatta (-95K ounces), HSBC (-85K ounces), and Brink’s (-21K ounces).

Meanwhile, the aggregate gold open interest remained largely unchanged, at just about 40 million ounces.

Barrick Gold, the world’s largest Gold miners say output has peaked

Gold output has peaked in this commodities cycle, according to mining industry leaders and analysts who say few big projects will reach the point of production amid falling prices.

The lack of new assets and declining output at existing mines is expected to curb gold supply, a glimmer of hope for surviving producers of the precious metal in an industry coming to terms with a rush of investment when prices were far higher.

Kelvin Dushnisky, president of Barrick Gold, the world’s largest gold miner by annual output, said: “Falling grades and production levels, a lack of new discoveries, and extended project development timelines are bullish for the medium and long-term gold price outlook.”

Gold has been one of the commodities hit by the worst environment for mining in more than a decade. The price has declined more than 40 per cent from its 2011 peak, to a level where many gold miners struggle to recoup the costs of extraction.

This year some had expected gold to be under pressure from higher interest rates in the US, after the Federal Reserve began to tighten monetary policy last month.

However the gold price has risen 2.7 per cent so far in 2016, while stock markets around the world have tumbled. A controversial investment with a variety of competing theories for what determines the price, gold has provided comfort for investors who see the inert metal as a haven amid economic and political turmoil.

Miners hope limits to fresh gold supply will increase the chances of longer-term recovery.

INDIA- Gold import bill up 12%, reaches $35 bn in 2015

Gold import bill up 12%, reaches $35 bn in 2015India’s gold import in December 2015 is estimated to have crossed 100 tonnes following sharp increase in demand for the precious metal during the first and the last week of the month when prices fell sharply world over.

With 105 tonnes of estimated imports in December, total gross import in 2015 crossed 900 tonnes which was 25 per cent more than 2014. In terms of value, it was up about 12 per cent at around $35 billion, as December import bill was around $3.7 billion. India imported $31.17 billion worth gold in 2014.

Sudheesh Nambiath, lead analyst, GFMS Thomson Reuters said, “Gold demand increased in December when prices were at the lowest level in 2015, and as retailers increased their inventory to optimum levels. Our estimate for December import is 107 tonnes.” In 2015, just over 700 tonnes gold was net import as rest was duty-free imports for re-export after value addition.

Despite sharp spurt in quantity imported, import bill went up by only 12 per cent because of low prices ininternational market. Average international gold price fell by 8 per cent in 2015 while the price oscillated in a $246 range. In other words, gold prices in international market fell by nearly 20% from the annual high. The import bill low also because more imports took place when prices fell below $1,100 per ounce.

On the other hand, significant increase in import of unrefined or dore gold happened at a premium pricing, which at times was a percentage over the LBMA price. Its share in total supply increased from some 15% to 30% in 2015. Mostly dore is imported at a premium over the LBMA gold PM price because of heavy competition at sourcing, given the 2 per cent differential that refiners in excise-free zone enjoy. Dore gold import in net gold purity terms was more than 200 tonnes as per estimates of GFMS Thomson Reuters.

Gold import in November was 98 tonnes. In March and August 2015, gold import had crossed 100 tonnes mark as prices were lower, according to GFMS.