The Gold Chart That Has Central Banks Extremely Worried
Before I get into the details of this gold chart, I would like to let my readers and followers know about my recent interview on TFmetals Report. I sat down with Mr Ferguson (Craig) and discussed a lot of the Gold Market in a live webinar with many of his subscribers. He has now made the interview public:
You can click on the link below to listen to the inteview at the TFmetals Report website:
Shares of gold miners have more than doubled this year, crushing the 20 per cent gain in the precious metal and prompting investors such as billionaire George Soros to increase their bets on the sector.
Soros Fund Management bought a 1.7 per cent stake in miner Barrick Gold in the first quarter, worth $263.7m, according to a filing on Monday. Shares in the Canadian-listed company have surged 139 per cent so far in 2016.
As gold does not pay a yield like bonds or offer a divided like some equities, the precious metal has benefited from the current low and negative interest rate environment. A weaker tone for the US dollar after peaking in late January has also spurred a solid rebound in commodity prices.
Gold miners have also spent the last four years writing down billions of dollars in assets and cutting costs to reduce their debts after gold prices tumbled from their 2011 peak. Barrick Gold has cut its debt by nearly a third over the past 15 months.
“They’ve gone through a bad few years (the gold mining companies) but they seem to come out the other side,” said David Govett, head of precious metals at broker Marex Spectron. “They’re easier to trade and you don’t get the ridiculous fluctuations we see in the commodity price sometimes.”
The World Gold Council today releases its Gold Demand Trends Q1 2016 report [http://www.gold.org/supply-and-demand/gold-demand-trends], which is the leading industry resource for data and opinion on global gold demand. Our quarterly publication examines demand trends by sector as well as geography and this report focuses on the patterns of demand seen in the first three months of 2016.
The key findings from Q1 are as follows:
· Overall demand for Q1 2016 increased by 21% to 1,290t, up from 1,070t in Q1 2015.
· Total consumer demand was 736t down 13% compared to 849t in Q1 2015.
· Global investment demand was 618t, up 122% from 278t in the same period last year.
· Global jewellery demand fell 19% to 482t versus 597t in the first quarter of 2015.
· Central bank demand dipped slightly to 109t in Q1 2016, compared to 112t in the same period last year.
· Demand in the technology sector fell 3% to 81t in Q1 2016.
· Total supply was up 5% to 1,135t in Q1 2016, from 1,081t in the first quarter of 2015. Mine supply was up 8% to 774t.
India’s gold imports could hit a record high this year amid widespread smuggling to sidestep government levies on overseas shipments, Australia and New Zealand Bank, Asia’s biggest shipper of physical gold, said on Wednesday.
The forecast by the bank’s head of precious metals, John Levin, runs counter to tallies that show gold imports in decline in the world’s second-biggest gold market after China.
Mr Levin said he expects 15 per cent of India’s gold this year to be “smuggled in” or arrive via “other unofficial channels” to beat a 10 per cent levy imposed by the government.
Mr Levin also said more semi-refined gold, known as gold dore, was being imported from overseas mining companies because of a lower government levy. The import duty on gold dore is 8.5 per cent.
“You could see a record amount of gold going into India this year,” Mr Levin said, “A lot through unofficial channels and a lot of it going in as semi-refined gold.”
A new electronic exchange for trading diamonds opened last week in Singapore, claiming to be the first of its kind to allow physical trading of the gems on an electronic platform. The hope is that the new exchange will be a game-changer that will bring in new traders to the traditionally closed diamond industry, and boost demand for the precious stone which is facing historically low prices amid plunging demand from big spenders such as the Chinese.
Backed by Singapore’s state investor Temasek Holdings and investor Jim Rogers among others, Singapore Diamond Investment Exchange (SDiX) utilizes an electronic platform designed by engineers who previously created systems for major stock exchanges including the Singapore Exchange. The platform matches buyers and sellers at a speed of more than 500,000 transactions per second. Live prices will be available on the exchange’s website. The trading hours will be between 2.30 p.m. and 6.30 p.m. Singapore and Hong Kong time.
The diamond market has traditionally been closed, with prices based on bilateral trading between buyers and sellers within the industry. “No marketplace existed for people who were not members of the diamond trade,” said Alain Vandenborre, chairman and founder of SDiX, during an interview with the Nikkei Asian Review prior to the opening of the exchange. Vandenborre hopes to break this tradition with the new exchange.
“The important thing is that the baskets are standardized and fungible. It’s like a gold bar; it’s exchangeable for any other gold bar of the same category,” Vandenborre said.
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…
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.