Author Archive: BullionVault

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Interpreting the Sideways Gold Price

Interpreting the Sideways Gold Price

Gold has delivered zero net gains over the last six months. That may point to one rather useful property…read more

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Gold’s Bullish Would-Be Bears

Gold’s Bullish Would-Be Bears

Gold Prices are horribly correlated with the stock market right now. Not that it matters…read more

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Gold’s Hairway to Steven

Gold’s Hairway to Steven

These swings in the Gold Price are less Led Zeppelin, more Butthole Surfers…read more

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Inflation Ahead: Buy Gold or Buy Stocks?

Inflation Ahead: Buy Gold or Buy Stocks?

Buy Gold or buy stocks when inflation looms…?read more

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Speculation in Gold Futures Blamed for 5% Plunge

The price of physical bullion and Gold Futures rallied in Asia and London trade Thursday, at one point recovering more than a third of yesterday’s sharp $100-per-ounce decline to touch $1725. Global stock markets also rallied as commodities rose, but the Euro currency slipped further to new 1-week lows. Silver Bullion briefly rose back above $35 per ounce – a three-decade record when breached in March last year, but still 6% below Wednesday’s early jump to 5-month highs. Yesterday’s plunge in physical and Gold Futures pricing “makes it quite clear that the previous rise…had been driven mainly by speculation,” says today’s note from Commerzbank’s commodities team. Traders and analysts variously point today to Fed chairman Ben Bernanke’s semi-annual testimony on […]

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Today’s Long Term Refinancing Operation is fatter than the world’s biggest lottery El Gordo

The fattest prize in the world’s biggest lottery, El Gordo – the “Fat One” – just keeps getting fatter, according to its promoters. But even the fattest total of prizes to date – some €2.5 billion at Christmas 2011 – looks a tin-ribs next to El Tro, the storm of money now raining down on Europe’s banks. Wednesday’s Long Term Refinancing Operation took the grand total of giveaway money to more than €1 trillion, pumped out by the European Central Bank and known by the acronym LTRO. It is christened El Tro by us here at BullionVault today via the Catalan for “thunder”. Because that’s just what people keep calling it […]

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Gold Drops 3% in 1 Hour After Bernanke Comment

Gold Bullion prices dropped 3.2% to $1727 per ounce in less than an hour Wednesday afternoon in London, after US Federal Reserve chairman Ben Bernanke appeared before Congress. Higher gasoline prices are “likely to push up inflation temporarily while reducing consumers’ purchasing power,” Bernanke told the House Financial Services Committee. Bernanke’s comments “eased speculation the central bank is moving closer to providing more monetary stimulus,” news agency Bloomberg reports. The Fed chairman added however that the Fed’s policymakers judge “that sustaining a highly accommodative stance for monetary policy is consistent with promoting both objectives” of the Fed’s mandate, namely price stability and employment. ORIGINAL REPORT Gold Bullion prices held steady around $1785 per […]

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Gold Prices Consolidating and Silver Hits 5-Month High

Gold Prices hit $1781 per ounce Tuesday lunchtime in London – 0.3% off last week’s high – while stocks and the Euro gained, as Eurozone leaders postponed a decision on whether to increase the size of the single currency bailout fund. Commodities were mixed, while longer-dated UK and German government bonds ticked higher. Silver Prices meantime moved above $36 per ounce for the first time since last September. “Flow wise it has been a quiet day,” said one Hong Kong bullion dealer this morning. “Silver seems to be the most firm amongst all [the precious metals]” Gold Prices “may be entering a period of consolidation,” says a note from HSBC. “The inability of the market […]

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Market Taking a Breather from Buying Gold

The Dollar cost of Buying Gold fell to $1764 per ounce Monday morning in London – a 0.5% drop from Friday’s close – while stocks, commodities and the Euro all fell. Germany’s DAX index was down 1.1% by lunchtime, after G20 finance ministers over the weekend said Germany must do more towards solving the Eurozone crisis. Prices for Buying Silver meantime dropped to $35.07 per ounce – a 1.1% fall on last week’s close. “Precious metals are a bit under pressure this morning,” one Hong Kong bullion dealer noted, adding though that “there seems to be some decent size interest in silver”. Prices for Buying Gold “are taking a breather,” agrees […]

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Gold & Silver Headed for Weekly Gains

Dollar Gold Bullion prices hovered around $1780 per ounce Friday morning in London, after falling slightly from yesterday’s 3-month high. Silver Bullion meantime hit its highest level since September, rising to $35.74 per ounce just after London opened. “Silver has finally broken out of its sideways range,” says Russell Browne, technical analyst at bullion bank Scotia Mocatta. “We have also cleared the previous resistance at $35.16…and this level should now start to act as support.” Stocks and commodities were relatively flat going into this weekend’s G20 meeting, while government bond prices ticked higher. Heading into the weekend, Gold Bullion at Friday lunchtime looked set for a weekly gain of over 3%, with silver looking at a gain […]

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Why China is buying Gold

Why China is buying Gold

FOR OVER three decades, since the start of the country’s “Reform Era” in 1978, China has been exporting more goods than it has imported, writes Porter Stansberry in the Daily Wealth. That’s allowed the nation to stockpile trillions of Dollars – more money than our entire monetary base totaled before the recent financial crisis. The way it works is simple to understand. When a Chinese business earns Dollars by selling overseas, the law requires the company to hand those Dollars over to the country’s central bank, the People’s Bank of China (PBOC). In return, the business gets Chinese currency (called either the “Yuan” or the “Renminbi”) at a fixed rate. There’s nothing fair […]

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Greek Default Risk will keep coming back despite deal

Gold Bullion prices jumped to $1747 per ounce Tuesday lunchtime in London – 1.3% above last week’s close – as US Markets opened for the first time since Friday to the news that European leaders have reached an agreement on Greece. Silver Bullion also spiked, hitting $33.97 per ounce – 1.9% up on the start of the week. European stock markets by contrast drifted lower in Tuesday morning trading, while the Euro gave back most of the gains it made against the Dollar immediately after the Greek deal was announced. Commodities edged higher, while US Treasuries fell. “Market reaction [to the Greek deal] has been remarkably muted so far,” one London Gold Bullion dealer […]

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Asian Gold Investment Driving Today’s Bull Market

Asian Gold Investment Driving Today’s Bull Market

Western Gold Investment demand remains far below levels seen in gold’s last bull market… Below is a useful chart from investment management firm GMO, showing Gold Bullion demand from Emerging Asia over the past decade, writes Gregor Macdonald. I would comment that here in the West, both Gold Trading and Gold Investment demand remain over-focused on quantitative easing, and track more closely the policy decisions of the Federal Reserve. To this point, it bears mentioning that OECD investment demand for gold still remains far, far below historical highs from 30 years ago. But the broader view suggests, in contrast, that reserve-accumulating economies in Asia are the larger drivers of demand, as they must offset their long exposure to OECD currencies. […]

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Who’s Buying Gold in China?

Gold imports to China in the last 3 months of 2011 totaled 227 tonnes or more. China’s gold mining output added a further 100 tonnes of supply. Yet on the best available data, end-user demand in the Middle Kingdom only reached 191 tonnes. You can see the gap – some 136 tonnes or more. Who’s buying the difference? The Financial Times thinks it knows. “China central bank in gold-buying push,” announced the FT in a headline last week. “It does appear the People’s Bank of China has been a significant buyer,” said a Reuters columnist, repeating what he’d just read in the Pink ‘Un. So fill yer boots, Western investors! Beijing has got $3 trillion […]

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