Author Archive: BullionVault

rss feed

Author's Website

Poor Monsoon and Summer Doldrums Hit Demand to Buy Gold

Poor Monsoon and Summer Doldrums Hit Demand to Buy Gold

US dollar prices to Buy Gold rose 1.3% from yesterday’s 1-week low Thursday morning in London, recovering $1590 per ounce as world stock markets also rallied. Silver Prices outpaced gold, adding 2.2% to $27.55 per ounce, but the Euro failed to rise above $1.23 for the fourth time in a week. Spain had to pay 5.2% per year to raise new loans due to mature in 2014 – up from 4.3% at June’s auction of 2-year bonds. German Bunds meantime continued to offer investors less-than-zero as prices rose further, squashing the yield on Berlin’s 2-year debt to minus 0.05%. German inflation was last seen at 1.7% per year. Brent crude oil today rose to a 7-week high […]

Continue Reading

Playing the Gold Price Averages in Summer 2012

Playing the Gold Price Averages in Summer 2012

It’s a hardy perennial for anyone studying the gold market, writes Adrian Ash at BullionVault. And with the British summer being more like November this year, very hardy perennials are just what is needed. But will the Gold Price blossom on schedule? Greener than George Monbiot’s socks, we’re happy to recycle this fact yet again. The Gold Price tends to display a seasonal pattern – rising in spring, slipping or flat-lining in summer, only to rise once more in the fall and then winter. No, the pattern was shot in 2011 as we noted last July. But such profitable “summer sales” have occurred most frequently during longer-term bull phases, as we told the Financial Times in 2009. For Dollar investors, Buying Gold even […]

Continue Reading

QE uncertainty sees Gold Prices drift lower

QE uncertainty sees Gold Prices drift lower

Gold Prices drifted lower during Wednesday morning’s trading, dropping below $1580 per ounce, while stocks and commodities were broadly flat on the day and US Treasuries gained, as markets continued to digest yesterday’s testimony to Congress by Federal Reserve chairman Ben Bernanke. Like gold, Silver Prices also eased, falling as low as $27.04 per ounce in Wednesday morning’s London trading. A day earlier, Gold Prices fell 1% in an hour on Tuesday after Bernanke began his testimony. Although the Fed chairman said monetary policy is “still on a loosening cycle”, there was no clear mention of a third round of asset purchases, known as quantitative easing. “The bull camp in gold wanted to see more […]

Continue Reading

Gold Prices Could Break $1600 if Bernanke Hints at Easing

Gold Prices Could Break $1600 if Bernanke Hints at Easing

Dollar Gold Prices rose as high as $1598 per ounce Tuesday morning in London, their highest level so far this week, as markets prepared for Federal Reserve chairman Ben Bernanke’s appearance before Congress later today. “Gold is trading in a range between $1550 support and downtrend resistance, currently at $1614,” say technical analysts at bullion bank Scotia Mocatta. “The trend has been sideways since early June, but the downtrend from the March highs remains intact.” Silver Prices also saw gains this morning, hitting $27.70 per ounce, while commodities in general were broadly flat. European stock markets edged higher – with the exception of the FTSE in London. A day earlier, Dollar Gold Prices saw a […]

Continue Reading

Gold Price: Flat from a Year Ago

Gold Price: Flat from a Year Ago

Friday the Thirteenth saw the Gold Price in Dollars do something it’s managed only 7 times in the last 11 years, writes Adrian Ash at BullionVault. Gold traded flat from 12 months before. If you bought on 13 July 2011, you hadn’t made a dime by the time New York got itself showered and brushed its teeth this morning. You held just the same Dollar-value one year later – basis the London AM Fix – at $1579 per ounce. Between then and now, in fact, anyone Buying Gold to insure, hedge or speculate-to-accumulate with their Dollar savings was more than likely to have paid a higher price, too. The Gold Price in Dollars has been higher than it […]

Continue Reading

Buying Gold for Wealth Preservation

| July 12, 2012 | Articles: Insights
Buying Gold for Wealth Preservation

So how o you preserve wealth in this crazy economic environment? asks Greg Canavan for the Daily Reckoning Australia. A few weeks ago we quoted from Richard Duncan’s latest book, The New Depression: ‘The hard truth is that it is not easy to preserve wealth. If it were, the families who were wealthy 200 years ago would still be wealthy today – and generally, they are not. In the very harsh economic environment that is likely to prevail over the next ten years, it is likely that a great deal of wealth is going to be destroyed.’ We suggested Buying Gold could be a way of preserving wealth. In response, we received this thoughtful […]

Continue Reading

Gold Price Slips on Fed Disappointment But $2000 Still the Right Number on Forecasts for Fresh QE

Gold Price Slips on Fed Disappointment But $2000 Still the Right Number on Forecasts for Fresh QE

The Gold Price continued to weaken Thursday morning in London, dropping to new 2-week lows beneath $1565 per ounce on what analysts called “disappointment” with the latest monetary policy minutes from the US Federal Reserve. Asian and European stock markets fell hard, while wheat and corn prices again bucked a further drop in the commodities market. Following the US Fed minutes – which showed only a “few” policy-makers wanting to expand the central bank’s quantitative easing money creation scheme – the Euro currency today dropped to its lowest level since June 2010 below $1.21. Silver Bullion also gave back the last of July’s rally to date, trading back below $27.75 per ounce. “We […]

Continue Reading

Unscary reasons for investing in gold

| July 11, 2012 | Articles: Insights
Unscary reasons for investing in gold

Gold Investing is for the loons, writes Adrian Ash at BullionVault – the kooks and monetary nuts, apparently – those doomsdayers who, bothering to read history, think printing money risks massive inflation, and who also fear banking default too much to hazard every last penny of their savings on a deposit account. As we’ve learnt since the record peaks of summer 2011, gold does much more than go up in a straight line. But that’s why it’s also for other folk too – better-paid, less wild-eyed folk like professional investors. Or at least it would be. If only they studied the data, like the doomsdayers read history, when they decide their asset allocation. “Asset […]

Continue Reading

Gold Bullion will be Supported By Loose Monetary Policies

Gold Bullion will be Supported By Loose Monetary Policies

Gold Bullion rose to $1597 per ounce Tuesday morning in London – its highest level so far this week – as stock markets also ticked higher following news that Spain should receive some financial assistance for its banks later this month. Silver Bullion also gained, climbing as high as $27.61 per ounce, while other commodities were broadly flat. US, UK and German government bond prices fell, while on the currency markets the Dollar gave back early gains against the Euro, with the latter rallying back above $1.23. “Loose monetary policies, with a scope for more aggressive balance sheet use in the US and Europe, will keep real [interest] rates in most reserve […]

Continue Reading

Fragile Sentiment Leaves Gold Prices Unsure Which Way to Go

Fragile Sentiment Leaves Gold Prices Unsure Which Way to Go

Gold Prices held above $1580 per ounce during Monday morning’s London trading – broadly in line with where they ended last week – while most European stock markets were broadly flat on the day, with the exception of Spain’s. Gold Prices ended down last week, falling back below $1600 on Friday, following the release of June’s US nonfarm payroll data, which showed the economy added 80,000 private sector jobs last month. Although this was lower than many analysts’ forecasts, it was higher than a month earlier. April and May’s nonfarms figures were revised higher, while unemployment held steady at 8.2%. “[Last week was] the ninth consecutive week where gold has alternated between […]

Continue Reading

Investors Urged to Buy Gold Ahead of QE3

Investors Urged to Buy Gold Ahead of QE3

US dollar prices to Buy Gold fell from a new 2-week high of $1624 per ounce Thursday lunchtime as New York returned from the Fourth of July holiday, easing 0.5% lower as the Euro currency fell hard following a weakening of central-bank policy in Frankfurt, London and Beijing. The European Central Bank today cut its key lending rate by 0.25% to a new record low of 0.75% as widely expected. It also cut the interest rate paid to commercial banks holding cash on deposit at the ECB to zero. European stock markets rose and commodity prices jumped on the news, pushing Brent crude oil back above $100 per barrel. Silver Prices retreated 1.2% […]

Continue Reading

A Dow/Gold Ratio for Independence Day

| July 4, 2012 | Articles: Insights
A Dow/Gold Ratio for Independence Day

A lot of people pay close attention to the Dow/Gold Ratio, writes Adrian Ash at BullionVault. You might want to take a look this Fourth of July, too. This blunt measure of stocks versus stuff gets nearly 5 million results on Google, posting some 650 unique stories on the Dow/Gold Ratio. Search volumes for the term “Dow Gold” don’t quite match “Kim Kardashian” say, over the last 5 years (nor even “Reggie Bush”). But spiking in late 2008 and mid-2011, they very nearly matched search volumes for “Treasury bonds” – a market priced at twice the value of all the gold in the world. So why the interest? The Dow/Gold Ratio maps, over time, how the Dow index […]

Continue Reading

ECB Ponders Uncharted Territory, Monetary Policy Will Push Up Gold Prices

ECB Ponders Uncharted Territory, Monetary Policy Will Push Up Gold Prices

Gold Prices held steady around $1615 per ounce Wednesday morning in London – 1.1% up on the week so far – while European stock markets edged lower and the Dollar gained, amid speculation that the European Central Bank will cut interest rates tomorrow. A day earlier, Gold Prices rallied as high as $1624 per ounce during Tuesday’s US trading, the last trading day before today’s Independence Day holiday. “Short covering and bargain hunting helped support the rally,” says a note from Commerzbank, referring to the practice of traders who have bet on gold going lower closing their position by Buying Gold futures or options. Spot Silver Prices meantime climbed as high as $28.41 per ounce this morning […]

Continue Reading

Why a $10,000 Gold Price is Less Crazy than You Think

| July 3, 2012 | Articles: Insights
Why a $10,000 Gold Price is Less Crazy than You Think

Believe it or not, there is a plausible path to a $10,000 an ounce Gold Price. And it doesn’t require a breakdown in civil society, writes Dan Amoss for the Daily Reckoning. Speculators see central bankers as modern-day superheroes, able to push markets around with a single phrase. In the minds of most investors, Ben Bernanke, Mario Draghi and Masaaki Shirakawa might as well be wearing tights, masks and capes. These superhero central bankers continuously swoop down into the financial markets to defend them from downticks…and to insure that they always deliver capital gains. The reality, of course, is that these superheroes are frauds. They have no superpowers…other than the power of mass […]

Continue Reading