If the political unrest in the Middle East and North Africa continues and debt – namely the U.S. – to find a bear increases between the gold and silver bulls is becoming increasingly difficult. Gold settled Thursday morning at $ 1,430.50 / oz from a record high Wednesday afternoon fix of $ 1,435.50 / oz. At night it hit an all-time high of $ 1,440.10 / oz.
Still, one strategist said: “Given the settlement in futures contracts and assets under management in exchange traded funds is a bear to be there somewhere.”
The world’s largest ETF – SPDR’s US-listed – companies continued Thursday to 38,933,618 oz. COMEX warehouse inventories dipped 133,000 ounces at 11,146,957 ounces. In the UK, physically-backed gold ETF Securities’ fund was 10,477 grams lower at 4,050,577 oz.
A second trader hit a slightly bearish note, saying: “It is up but still slow with capped rallies – I would have expected at $ 1,450 now, certainly Why can not gold attracting the frenzied buying – it is postponed Investors? Are massively in silver on a more basic safe harbor, because it is seen as a poor man’s gold. “COMEX silver warehouse was at 103.53 million ounces to 954,200 ounces Thursday.
In a research note issued Wednesday, Deutsche Bank analysts pointed out some of the key drivers for silver industrial demand including: “Global growth is expected to remain a priority for the authorities over the coming years, given the obvious negative impact that would have a slow growth particularly in the West. Key applications such as solar and electrical / electronics impressive growth profiles of the world economy. ”
Analysts also noted fixed investment demand in the western world: “While the political risks are increased due to the events in the Middle East / North Africa, drawing some interest in the precious metals, we have the financial imbalances Western economies can be seen as a more important long-term and ongoing risk. ”
EYES DEUTSCHE $ 2,000 / oz GOLD AND SILVER $ 50/OZ in 2012
Deutsche reiterated its view that the silver price could average $ 50/oz in 2012. “We expect the gold / silver ratio to less than 40 fall in the next 12 months and believe that gold will be $ 2,000 / oz approach over the same period.” A source said the U.S. may want gold to go higher to its growing budget deficit. The USA 8133.5 mt of gold, 75.2% of its total reserves.
A third trader said: “The [U.S. gold reserves] are unaudited at Fort Knox since 1960 … What is their fault I guess if they are valued at some 150 million ounces – $ 35/oz [regarding the? old gold standard] – so yes that could help. “He added that the story for gold is the same as it was in the financial crisis, plus many more – the world is a more volatile environment and the financial mess worse, you can measure the importance of gold, I think, by the. recent change made by JP Morgan, who said they would accept gold as collateral, that tells you something of what people have assets and they are now -. not short-term investments ”
Pete Gardner, CFO at gold producer Gold Cluff, said: “The U.S. should inflation – there is no other way, the huge loans stretching on a permanent basis to repay That’s why the Federal Reserve is not interested in . combating it. This will also underpin the price of gold, even if the current crisis is decreasing. ”
Indian market has always been
Search on the ground floor interest in India, Nilesh Parekh, chairman of the Indian jewelry house, Shree Ganesh, told Platts: “It’s simple, gold and silver seem a safe haven for all types of investors as equity markets are currently very unstable and volatile.. Once these markets are stable commodities [such as gold] need to find their true level for what will be the next high is hard to predict – but go long is a good option.
Indian markets have always been long. “India is the world’s largest gold consumer, followed by China, now the largest producer in the world. It is believed that China’s gold demand will grow to 40% in 2011.
Marcus Grubb, MD, the investment in the World Gold Council said: “After a healthy consolidation in January, caused by a portfolio rebalancing by investors in Western markets after a strong 2010, gold resumed its upward trend, the resumption of power of gold is driven. by a number of factors, including continued support of key Asian markets, particularly China, as the gold price has reacted to latent demand, the strong physical premiums in Asian gold markets. ”
source:platts
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