Author Archive: BullionVault

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Has the Recovery Started

Is the recovery finally here? Or, are we just getting used to a punky economy…where even a little improvement looks like a boom? asks Bill Bonner in the Daily Reckoning. As far as we know, the US economy is still in a Great Correction…with plenty more correction ahead. But people get used to correction…and used to the feds pumping in cash and credit to keep things from getting too rough. It is not exactly “normal” for a central bank to lend money below the rate of consumer price inflation. And it is not exactly “normal” for the government to run a deficit equal to 8% of GDP…or for it to spend $1.50 […]

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Who’s Buying Gold in China?

The People’s Bank is Buying Gold! Or Beijing’s SAFE agency perhaps. Or maybe private wholesalers…or investors?read more

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Gold Bullion In Consolidation Phase as China Shows Growth is Priority and Europe Reaches Time to Deliver

Gold Bullion prices held steady above $1730 per ounce Monday morning in London – in line with where they have spent much of February – while European stocks and commodities gained amid hopes that Greece’s second bailout might finally be approved. US markets are closed for a holiday. Silver Bullion prices were also fairly flat this morning around $33.50 per ounce. Earlier on Monday, Gold Bullion prices jumped $14 an ounce in Asian trading after China’s central bank eased its monetary policy stance over the weekend. “The rally lasted only for a very short period of time,” says one Gold Bullion dealer in Hong Kong. “Once we traded [higher], resting [sell] orders took over and stabilized […]

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Gold Coins Discount for India Rail Employees

INDIA’S LARGEST commercial bank, the State Bank of India, has turned out a special salary package for railway employees. Though employees can avail themselves of car loans, home loans and personal loans at reduced interest rates, the biggest draw is the discount offered on purchases of Gold Coins, writes MineWeb‘s Shivom Seth in Mumbai. For a country where the love for gold is almost a religion, the State Bank of India, which is the largest lender in the country, has decided to discount the purchase of Gold Coins for every salary holder. “Gold has become an inseparable part of the Indian society and fused into the psyche of every Indian. The special privileges will be offered […]

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Price of Buying Gold Flat in Quiet Session ahead of Euro Meeting

The Dollar price of Buying Gold hovered just above $1730 per ounce throughout this morning’s London trading, as speculation continued over whether a Greek bailout will be agreed next week. Prices for Buying Silver were also very flat – hovering above $33.50 per ounce – as were those for commodities and stocks ahead of President’s Day in the US on Monday. “A quiet session,” said one Hong Kong gold dealer this morning. Heading into the weekend, the price of Buying Gold was up less than half of one percent on the week by Friday lunchtime, with silver also showing very little movement from last Friday’s close. German finance minister Wolfgang Schaeuble has reportedly called for Greece […]

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Demand to Buy Gold Rising Amongst Central Banks, Asia & US as Greek Euro-Exit Rumored Again

Prices to Buy Gold fell further Thursday lunchtime in London, dropping towards 3-week lows beneath $1710 per ounce as the Dollar rose following a raft of positive US data, which contrasted with fresh rumours of a Greek debt default or even Eurozone exit. The Moody’s rating agency today warned it may downgrade the status of 17 global and 114 Eurozone banks and financial services firms. Wednesday’s teleconference of European finance ministers concluded that Greece must submit itself to greater external oversight of taxes and spending if it is to receive further bail-out funds before the critical bond-repayment deadline in mid-March. US crude oil prices meantime held near 5-week highs above $101 per […]

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China’s Gold Imports – a Worry for Beijing?

China’s Gold Imports – a Worry for Beijing?

Private gold demand has suited Beijing’s aim to date. But what now that imports are surging…?read more

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Gold Prices “Still Supported by Eurozone Crisis” as German Doubts Grow over Greek Bailout

Gold Prices rose to $1732 per ounce Wednesday lunchtime in London, slightly above where they started the week, as European stock markets dipped amid ongoing uncertainty over Greece’s second bailout. Silver Prices tested $34 per ounce – 1% above last Friday’s close. “Critical support [for Gold Prices ] is in the $1706 area and we would be bearish if this level fails to hold,” says the latest technical analysis from bullion bank Scotia Mocatta. “Resistance is last week’s high around $1752.” Euro Gold Prices meantime jumped to €42,528 per kilo (€1322 per ounce), as the Euro fell sharply against the Dollar Wednesday lunchtime, after German finance minister Wolfgang Schaeuble expressed concern over whether Greece can be […]

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Buy Gold? Or Follow Warren Buffett?

The Sage of Omaha reckons those who Buy Gold are making a sterile investment. But his alternative looks like a terrible bet… SORRY Warren Buffet. This is where we part company, writes Bill Bonner in his Daily Reckoning. Here’s the Sage of Omaha, explaining, in Fortune Magazine, why bonds are dangerous: Investments that are denominated in a given currency include money-market funds, bonds, mortgages, bank deposits, and other instruments. Most of these currency-based investments are thought of as “safe.” In truth they are among the most dangerous of assets. Their beta may be zero, but their risk is huge. Over the past century these instruments have destroyed the purchasing power of investors in many countries, […]

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Physical Demand “Supporting Gold Price” in Sideways Trading

The Dollar Gold Price dipped to $1713 per ounce Tuesday lunchtime – 1.1% down on the previous day’s high – while stocks and commodities were broadly flat despite much of Europe being hit by ratings downgrades and warnings. The Silver Price dipped to $33.37 per ounce – a 0.8% fall on last week’s close. Following falls Tuesday’s Asian session, the Gold Price rallied in early London trading, at one point touching $1721 per ounce. “Physical demand continues to place a floor on prices,” reckons Standard Bank commodities strategist Marc Ground, who expects the Gold Price “to continue tracking Euro/Dollar movements today”. “As gold has been trading sideways since the correction on February 3,” adds the latest technical analysis […]

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The First Step Toward Hyperinflation?

Moody’s has threatened to downgrade the UK. It could be the first step on a horrible journey…read more

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Gold Prices gain as dollar weakness boosts demand after Greek deal

Dollar Gold Prices hit $1733 per ounce Monday morning – 0.5% up on Friday’s close – as stocks, commodities and the Euro also gained following the Greek parliament’s vote in favor of an austerity deal. Silver Prices meantime hovered around $33.90 per ounce – 0.8% up on the end of last week – while government bond prices dipped and the Dollar fell on the currency markets. “The weakness in the Dollar…creates a bit of demand for gold,” reckons Bernard Sin, head of currency and metal dealing at Swiss precious metals refiner MKS. By Monday lunchtime, Euro-denominated Gold Prices were roughly where they ended last week, at around €42,000 per kilo (€1306 per ounce). Greek lawmakers […]

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Gold Prices fall after weak Greek reforms rejected

Gold Prices were heading for their second weekly fall Friday lunchtime in London, as they drifted down towards $1700 per ounce following European ministers’ rejection yesterday of the latest austerity proposals from Greece. Silver Prices also traded lower, hitting $33.27 per ounce – 1.4% down on last week’s close. Stocks, commodities and the Euro all fell, while the Dollar gained along with prices for major nation government bonds. “Gains in the US Dollar and consistent disappointment from the European Union regarding the Greece debt deal are curbing any gains in gold,” reckons Pradeep Unni, senior analyst at commodity brokerage Richcomm Global Services in Dubai. “People are just throwing in the towel because […]

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Gold Price Will Easily Hit $2000 on Central-Bank Liquidity

The Gold Price slipped $10 per ounce to $1730 in London trade Thursday morning, before regaining most of that dip as the European Central Bank kept its key lending rate on hold and the Bank of England extended its purchases of UK government bonds to £325 billion ($515bn). On completion, this Quantitative Easing will see the Bank owning nearly one-third of the UK’s outstanding national debt. “The growing consensus among central bankers is that their experiment with QE is still working,” wrote Gavyn Davies, now of Fulcrum Asset Management and previously a policy advisor to the UK government, as well as head of global economics at Goldman Sachs until 2001 and chairman […]

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