• Tag Archives India
  • Market Talk- November 17, 2017

    The tax reform bill passing the US House yesterday certainly added to sentiment, after great earnings releases for markets but Asia need more help for cash today. Having opened strong all core markets then drifted and even saw the Nikkei trade negative. For the week it closes down 1.3% which has broken a two month rally. The Hang Seng performed well all day closing up around +0.6% but only off-set the decline in the Shanghai (-0.5%). India traded well following Thursday’s credit upgrade eventually adding an additional +0.7% onto yesterdays gain. All eyes are still on the DXY as we approach the weekend as just below we have the 50 Day Moving Average at 93.50. Oil has bounced following comments from potential output cuts led by OPEC.

    This post was published at Armstrong Economics on Nov 17, 2017.


  • Mueller Subpoena Spooks Dollar, Sends European Stocks, US Futures Lower

    Yesterday’s torrid, broad-based rally looked set to continue overnight until early in the Japanese session, when the USD tumbled and dragged down with it the USDJPY, Nikkei, and US futures following a WSJ report that Robert Mueller had issued a subpoena to more than a dozen top Trump administration officials in mid October.
    And as traders sit at their desks on Friday, U. S. index futures point to a lower open as European stocks fall, struggling to follow Asian equities higher as the euro strengthened at the end of a tumultuous week. Chinese stocks dropped while Indian shares and the rupee gain on Moody’s upgrade. The MSCI world equity index was up 0.1% on the day, but was heading for a 0.1% fall on the week. The dollar declined against most major peers, while Treasury yields dropped and oil rose.
    Europe’s Stoxx 600 Index fluctuated before turning lower as much as 0.3% in brisk volumes, dropping towards the 200-DMA, although about 1% above Wednesday’s intraday low; weakness was observed in retail, mining, utilities sectors. In the past two weeks, the basic resources sector index is down 6%, oil & gas down 5.8%, autos down 4.9%, retail down 3.4%; while real estate is the only sector in green, up 0.1%. The Stoxx 600 is on track to record a weekly loss of 1.3%, adding to last week’s sell-off amid sharp rebound in euro, global equity pullback. The Euro climbed for the first time in three days after ECB President Mario Draghi said he was optimistic for wage growth in the region, although stressed the need for patience, speaking in Frankfurt. European bonds were mixed. The pound pared some of its earlier gains after comments from Brexit Secretary David Davis signaling a continued stand-off in negotiations with the European Union.
    In Asia, the Nikkei 225 took its time to catch up to the WSJ report that US Special Counsel Mueller has issued a Subpoena for Russia-related documents from Trump campaign officials, although reports pointing to North Korea conducting ‘aggressive’ work on the construction of a ballistic missile submarine helped the selloff. The Japanese blue-chip index rose as much as 1.8% in early dealing, but the broad-based dollar retreat led to the index unwinding the bulk of its gains; the index finished the session up 0.2% as the yen jumped to the strongest in four-weeks. Australia’s ASX 200 added 0.2% with IT, healthcare and telecoms leading the way, as utilities lagged. Mainland Chinese stocks fell, with the Shanghai Comp down circa 0.5% as the PBoC’s reversel in liquidity injections (overnight net drain of 10bn yuan) did little to boost risk appetite, as Kweichou Moutai (viewed as a bellwether among Chinese blue chips) fell sharply. This left the index facing its biggest weekly loss in 3 months, while the Hang Seng rallied with IT leading the way higher. Indian stocks and the currency advanced after Moody’s Investors Service raised the nation’s credit rating.

    This post was published at Zero Hedge on Nov 17, 2017.


  • Precious Metals: Patience Is Golden

    Without growth in Western gold ETF holdings, the ‘decent but not spectacular’ demand from China and India is not strong enough to move the gold price higher. Please click here now. The SPDR (GLD-nyse) fund gold holdings currently sit at about 843 tonnes. There has been very little change in the total tonnage for several months. That’s neutral for the gold price. Governments don’t like their citizens to own much gold. Restrictions they impose (like India’s import duty as a recent example) dampen demand enough so that the price rises very slowly most of the time. Economic growth in China and India are increasing demand (the love trade) and mine supply is contracting, but the process is essentially ‘Chindian water torture’ for investors who want to see the price skyrocket like it did in the late 1970s. Investors that want ‘big action’ in the gold price need to wait patiently for the US business cycle to peak. For the price of gold to really sizzle, the business cycle needs to have aninflationary peak. That hasn’t happened since the 1970s. Many gold price analysts have used overlap charts that suggest the gold market now is akin to the 1976-1978 period. I look at fundamentals first, and charts second. From an inflationary standpoint, the US economy looks more akin to the late 1960s than the late 1970s. The winds of inflation are beginning to blow, but they won’t become a hurricane for some time. Having said that, I’ve noted that the St. Louis Fed has calculated that the QE program would have sent the US inflation rate above 30% if money velocity had been at normal levels.

    This post was published at GoldSeek on 14 November 2017.


  • Optimistic Signs in Indian Gold Market Despite Q3 Demand Drop

    If you saw the headlines last week, you know overall global gold demand fell steeply in the third quarter of this year. But as we reported, there was a lot of good news for gold buried beneath the gloomy headlines.
    Slumping Q3 gold demand in India was a big driver in the overall global decline, but even there, we see some signs of optimism. Indian gold-buying dropped off primarily due to new taxes and regulations imposed by the Indian government over the summer. There are already signs the market is adjusting
    On July 1, the Indian government replaced a labyrinth of taxes with a nationwide 3% Goods & Services Tax (GST). New anti-money laundering legislation also impacted the jewelry market.
    After three consecutive quarters of growth, gold demand in India fell 24% year-on-year in Q3 to 146 tonnes compared with 192.8 tonnes in Q3 2016. The drop in jewelry demand was most significant, likely a byproduct of the new taxes and regulations. Jewelry demand fell by 25% to 115 tons in the third quarter compared to 152.7 tons in the previous year.

    This post was published at Schiffgold on NOVEMBER 13, 2017.


  • SWOT Analysis: Turkish Demand for Gold Near a Four-Year High

    Strengths
    The best performing precious metal for the week was palladium, 0.41 percent. CenterraGold is set to buy Aurico Metals for $1.80 per cash share for a 38-percent purchase price premium on the Toronto Stock Exchange. Centerra currently holds more than $350 million in cash and has now secured a $125 million acquisition facility, according to Bloomberg. Gold prices rose after Saudi Arabia said a recent attempted missile strike at Riyadh’s airport could be an act of war by Iran. Additionally, Turkish investors are continuing to buy gold with demand expected to reach the highest since 2013. According to Google Trends, global searches for ‘buy bitcoin’ have overtaken ‘buy gold’ demonstrating a surge in popularity of the cryptocurrency. However, the BullionVault Gold Investor Index edged slightly higher to 54.6, demonstrating the number of buyers is higher than sellers. Weaknesses
    The worst performing precious metal for the week was platinum, down 0.82 percent. Due to platinum’s primary use in internal combustion engines, the metal could be among the biggest losers from electrical vehicle growth, reports Mining Review. The World Gold Council said it’s a tough quarter for gold as prices weakened in September and October. Global gold demand fell 9 percent in the third quarter as investor buying slowed and regulations in India tightened, reports Eddie van der Walt.

    This post was published at GoldSeek on 13 November 2017.


  • Internet Shutdowns Show Physical Gold Is Ultimate Protection

    – Internet shutdowns (116 in two years) show physical gold is ultimate protection
    – Number of internet shutdowns increased in 2017 as 30 countries hit by shutdowns
    – Democratic India experienced 54 internet shutdowns in last two years; Brazil 2
    – EU country Estonia, a technologically advanced nation, experienced a shutdown
    – Gallup poll shows Americans more worried about cybercrime than violent crime
    – Governments use terrorist threat as reason for internet kill switch powers
    – Own physical coins and bars rather than digital gold on a single platform
    Editor: Mark O’Byrne
    ***
    UNESCO is warning that the number of internet shutdowns is increasing worldwide. According to Statista.com when reporting data provided by digital rights platform accessnow.org, ‘internet access has been curbed 116 times in 30 countries since January 2016.’
    ‘Internet shutdown: An intentional disruption of Internet or electronic communications, rendering them inaccessible or effectively unusable, for a specific population or within a location, often to exert control over the flow of information.’ – Access Now.

    This post was published at Gold Core on November 13, 2017.


  • Looking Beyond the Headlines: Demand for Physical Gold Is Healthy

    If you’ve perused the mainstream headlines today, you’ve probably read that overall gold demand fell to an 8-year low last quarter. This was primarily due to a steep drop in inflows into gold ETFs compared to last year, and sagging jewelry demand in India after the implementation of a new tax scheme. But despite the gloomy-sounding headlines, investors are still buying physical gold.
    Investment demand for physical gold grew in the third quarter by 17%, according to a report released by the World Gold Council.
    Global gold bar and coin sales grew 17% year-on-year in Q3, totaling 222.3 tons. Chinese investment drove demand for physical gold. Bar and coin sales increased 57% to 64.3 tons in the Asian nation. This continues a year-long trend. So far in 2017, gold bar and coin demand in China is at the second-highest level on record.
    Two themes have underpinned China’s market this year. First, from a macroeconomic perspective, fears over a potential depreciation of the yuan and the specter of rising inflation continued to hang over investors. Second, there are relatively few alternative investment opportunities. The Chinese government, for example, imposed restrictions on the real estate market earlier this year. Gold, as a globally traded asset and a natural hedge against currency weakness, has benefited.’

    This post was published at Schiffgold on NOVEMBER 9, 2017.


  • NOV 8/GOLD RALLIES $8.35 TO CLOSE AT $1283.75 AND SILVER WAS UP 16 CENTS TO $17.11/INDIA IS BACK WITH RESPECT TO GOLD DEMAND AS OFFICIALLY THEY IMPORT CLOSE TO 900 TONNES (WITH SMUGGLING OVER 100…

    GOLD: $1283.75 UP $8.35
    Silver: $17.11 UP 16 cents
    Closing access prices:
    Gold $1281.50
    silver: $17.03
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1285.90 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1277.60
    PREMIUM FIRST FIX: $8.30(premiums getting smaller)
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1285.00
    NY GOLD PRICE AT THE EXACT SAME TIME: $1279.00
    Premium of Shanghai 2nd fix/NY:$6.00 PREMIUMS GETTING smaller)
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1282.25
    NY PRICING AT THE EXACT SAME TIME: $1280.85???
    LONDON SECOND GOLD FIX 10 AM: $1284..00
    NY PRICING AT THE EXACT SAME TIME. 1285.10 ??
    For comex gold:
    NOVEMBER/
    NOTICES FILINGS TODAY FOR OCT CONTRACT MONTH: 7 NOTICE(S) FOR 700 OZ.
    TOTAL NOTICES SO FAR: 973 FOR 97,300 OZ (3.026TONNES)
    For silver:
    NOVEMBER
    1 NOTICE(S) FILED TODAY FOR
    5,000 OZ/
    Total number of notices filed so far this month: 864 for 4,320,000 oz
    XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
    Bitcoin: BID $7481 OFFER /$7505 UP $365.00 (MORNING)
    BITCOIN CLOSING; BID $7319 OFFER: 7344 // UP $204.00

    This post was published at Harvey Organ Blog on November 8, 2017.


  • Gold And The Big Four: Slam Dunk

    The synergistic relationship between gold and economic growth is quite healthy, and poised to become even more healthy in 2018 – 2019. Please click here now. Double-click to enlarge this fabulous South Korean stock market ETF chart. Big name Western money managers are finally racing to move money into Asian markets, and this is great news for both gold and global stock markets. For several years I’ve recommended that the gold community slightly reduce (but not drop) their focus on gold’s Western world fear trade and increase their focus on the Eastern stock markets and the love trade for gold. South Korea’s stock market sports 50% earnings growth and a P/E ratio of just 10! Japan’s market is also red hot, and so are the markets of China and India. US markets have risen strongly, but with anemic economic growth and nosebleed valuations. Growth is vastly stronger in Asia, but without European and US money manager participation, Asian stock markets have previously languished. This situation has changed dramatically in 2017, and 2018 should see an acceleration of this new trend. The bottom line: American markets are hot but overvalued. Asian markets are red hot but not overvalued. I own ETFs (and some individual stocks) in the ‘Big Four’ Asian markets; India, China, Japan, and Korea. I urge all Western gold bugs to ‘get with the (good) times’. The fear trade for gold will never disappear, but it’s a new era, and this new era is dominated by Asia. Investors should be very comfortable owning Asian stock markets and gold…at the same time. The bottom line: America isn’t out, but Asia is in! When times are good (and they are now very good in Asia), Asians buy more gold. Exponentially more. Chinese demand reflects this fact. It’s rising again; demand is up almost 20% over 2016, and poised to rise even more strongly in 2018.

    This post was published at GoldSeek on 7 November 2017.


  • Asian Metals Market Update: November-7-2017

    Higher crude oil prices are supporting gold and silver. Gold and silver have always flourished in an inflationary environment. Focus will shift to inflation. If crude oil prices continue to rise then one should use sharp dips to invest for the short term. I see a direct correlation between gold prices and crude oil prices. Trump’s South Korea visit and China visit will be closely watched. Ways to deal with North Korean nukes will affect gold and silver prices.
    Rising crude oil prices can change the balance sheet of emerging markets like India. Governments will be caught between the choice of fiscal management and inflation management. Most of the emerging markets have enough reserves to withstand an energy shock. I see emerging market currency weakness, if Nymex crude oil continues to rise to $80 and consolidates at $80. Under the current scenario crude oil looks headed for $100 in the next twelve months as long as it trades over $46. Emerging market stock markets will form a medium term top and could move into a bearish phase if crude oil prices rise and consolidate around $80. As long as crude oil prices do not break $80, emerging markets are in a safe zone.
    Historically crude oil prices have always zoomed under republicans. The current rise in crude oil price is an early signal of history repeating itself.
    COMEX GOLD DECEMBER 2017 – current price $1280.10
    Bullish over $1275.50 with $1291.40 and $1296.30 as price target.
    Bearish below $1270.40 with $1264.60 and $1257.30 as price target.

    This post was published at GoldSeek on 7 November 2017.


  • German Investors Now World’s Largest Gold Buyers

    – German gold demand surges from 17 ton-a-year to a 100 ton-plus per year
    – 6.8 Bln spent on German gold investment products in 2016, more per person than India and China
    – Germans turned to gold during financial crises and ongoing euro debasement
    – Evidence of latent retail demand on increased economic concerns
    – ‘Gold fulfils an important long-term, wealth preservation role in German investors’ portfolios’

    Editor: Mark O’Byrne
    ***
    India and China often grab the headlines as the world’s largest buyers of gold. In 2016 this was not the case.
    When measured on a per capita basis it is Germany that takes the impressive crown of largest gold buyer in 2016, all thanks to their investment market. Last year the country set a new personal best, ploughing as much as 6.8bn ($8 bn) into gold coins, bars and exchange-traded commodities (ETCs).

    This post was published at Gold Core on November 6, 2017.


  • Gold Speculators Refuse To Give Up; Another Drop Likely

    Normally winter is a good time for gold, with men buying their significant others jewelry for Christmas and lots of New Years Day marriage proposals. Here’s an overview of the dynamic from Adam Hamilton of Zeal Intelligence:
    Seasonality is the tendency for prices to exhibit recurring patterns at certain times during the calendar year. While seasonality doesn’t drive price action, it quantifies annually-repeating behavior driven by sentiment, technicals, and fundamentals. We humans are creatures of habit and herd, which naturally colors our trading decisions. The calendar year’s passage affects the timing and intensity of buying and selling.
    Gold stocks exhibit strong seasonality because their price action mirrors that of their dominant primary driver, gold. Gold’s seasonality generally isn’t driven by supply fluctuations like grown commodities experience, as its mined supply remains fairly steady all year long. Instead gold’s major seasonality is demand-driven, with global investment demand varying dramatically depending on the time within the calendar year.
    This gold seasonality is fueled by well-known income-cycle and cultural drivers of outsized gold demand from around the world. And the biggest seasonal surge of all is just now getting underway heading into winter. As the Indian-wedding-season gold-jewelry buying that drives this metal’s big autumn rally winds down, the Western holiday season is ramping up. The holiday spirit puts everyone in the mood to spend money.

    This post was published at DollarCollapse on NOVEMBER 4, 2017.


  • The End Is Near… Depopulation Is Out Of Control… So Buy Stocks (Seriously)

    Authored by Chris Hamilton via Econimica blog,
    The world economy is premised on a ludicrous idea – that Asia, then India, and then Africa will continue to drive economic growth.
    So as not to turn this article into a book, lets consider this idea focusing on East Asia consisting of China, Japan, North and South Korea, Taiwan, and minor others. This region consists of 1.6 billion persons or about 22% of earths inhabitants. However, since 2008, it is this region that is responsible for nearly 100% of the global increase in demand for oil (best proxy available for true economic growth) and having primarily driven global economic growth. My point in this article is that the growth in this region is entirely a credit driven supernova against collapsing populations which will never be able to fill the 100+ million newly added apartments or pay back the debt incurred to achieve the “growth”. Contrarily, from an investor standpoint, this weakness is the green light to “invest” as aggressively as possible because as long as central banks exist, they have your back.
    Consider, since 2000, China’s debt outstanding has risen something like 14x’s to 17x’s or from about $2 trillion to something between $30 to $35 trillion presently. As for Japan, who knows Japan’s true debt as Japan’s central bank is buying much or most of the debt and essentially throwing it in a black hole, never to be seen again(…monetization with a capital “M”).
    Why the massive debt creation and central bank monetization? Depopulation with a capital “D”. First off, consider the collapse in fertility rates for these nations (chart below). To maintain a constant, zero growth population, the childbearing population needs to produce 2.1 children in order to replace themselves (dashed line, below). However, as the chart below shows, E. Asian nations have seen negative fertility rates for decades (Japan turning negative in ’74, S. Korea in ’83, China in ’92, and N. Korea in ’96).

    This post was published at Zero Hedge on Nov 3, 2017.


  • Silver News: Indians Buying Silver and New Technological Breakthroughs

    Indians are buying silver and this could have a major impact on the world market for the white metal.
    The Silver Institute covers this story, and highlights several other technological innovations involving silver, in its latest issue of Silver News. It also features an interview with ICE Benchmark Administration COO Matthew Glenville. His company recently began administering the silver benchmark and operating the auction underlying the London Bullion Market Association Silver Price.
    India’s cultural affinity for silver underscores the country’s importance as a leading source of silver demand. To meet this need, India consumed 160.6 million ounces of silver in 2016, accounting for 16% of global silver demand. Between 2010-16, India imported 990 million ounces of silver.

    This post was published at Schiffgold on NOVEMBER 2, 2017.


  • Silver on Sale! Take Advantage of the Buying Opportunity

    The price of silver is at extremely low levels compared to gold. That makes this a perfect time to invest in the white metal.
    Indians seem to recognize this buying opportunity. According to the Economic Times, silver demand was up 15% during this Dhanteras and Diwali festival season on increased purchases of coins, idols, and silverware. Analysts attributed the surge in silver buying to lack of consumer confidence in the economy and silver’s relatively low price.
    SchiffGold has the perfect way for you to take advantage of this silver buying opportunity. We have obtained a limited supply of 2013 and 2014 1-ounce Silver Britannia bullion coins minted by the British Royal Mint. These beautiful coins are ready to ship right now for as little as $1.49 over spot per coin.
    This is a bullion coin at better than bullion coin price but has the upside of potentially garnering collectible value in the future. Because they have a mint privy mark on edge of the coin the 2013 has a snake on the edge and the 2014 year has a horse on the edge.

    This post was published at Schiffgold on OCTOBER 24, 2017.


  • Smuggled Gold Pouring into India as Consumers Dodge Taxes

    An increase in the import duty hasn’t dampened Indians’ appetite for gold. It’s just pushed the market underground.
    Gold is such an important part of the Indian economy, people will do whatever they have to in order to get their hands on the yellow metal – including skirt the law. According to a recent report by the Hindu, occurrences of gold smuggling have risen rapidly in the wake of higher import taxes.
    Ever since the import duty on gold was raised to 10%, the country has reportedly witnessed a rapid rise in the quantum of gold brought into the country illegally. Currently, government levies total 13%, including IGST of 3%.’
    Government efforts to crack down on smuggling have proven largely ineffective. Officials estimate customs agents and police have intercepted less than 10% of the gold entering the country illegally. Police do a better job of catching smugglers traveling by air from West Asia and south-east Asia, but officials say gold brought in through the international waters of Sri Lanka and the porous borders of Myanmar, Thailand, Nepal, Bangladesh, and Pakistan is seldom tracked.

    This post was published at Schiffgold on OCTOBER 23, 2017.


  • SWOT Analysis: How Will Gold Move Into 2018?

    Strengths
    The best performing precious metal for the week was palladium, off 1.44 percent for the week. Citigroup favors palladium in the short term, in response to pollution control, but says substitution risks prevent the bank from taking a more bullish view long term as the price of palladium is now higher than the price of platinum. After the Indian government eased rules on gold purchases, the country’s demand for gold jewelry and branded coins appears to be better than the last quarter, according to P. R. Somasundaram, MD for India at the World Gold Council. The ensuing wedding season is the key for quarterly demand performance, Bloomberg reports, and with a good monsoon season, stable gold prices should encourage consumers. In the month of September, Swiss gold exports doubled month-over-month to 148.4 metric tons, reports Bloomberg. In August, exports were only 72 tons, according to the Swiss Federal Customs Administration. Specifically, Swiss exports to China rose 21 percent and to Hong Kong rose 92 percent. Weaknesses
    The worst performing precious metal for the week was platinum, off 2.41 percent as palladium seems to be the more crowded trade. September makes 11 months straight of China officially reporting a zero increase in the level of its gold reserves, writes Lawrie Williams. The only time in recent years that the Asian nation has published any month-by-month gold reserve accumulations was in the 16 months ahead of the yuan being accepted as an integral part of the International Monetary Fund’s (IMF) Special Drawing Rights basket of currencies, Williams continues. ‘We don’t think it coincidence that such month-by-month reporting effectively ceased once the yuan became part of the SDR, thus paving its way for acceptance as a reserve currency,’ the article reads.

    This post was published at GoldSeek on 23 October 2017.


  • Fun on Friday: No Gold Biscuit for You!

    How would you celebrate the birthday of a government building?
    Maybe send out a press release? Perhaps hold a little assembly and let some politician ramble for a while about how great the building is? Maybe host an open house for the public? Or here’s an idea. Just ignore it. After all, it’s a government building. Who really wants to celebrate that?
    Well in India, they go for a little more swanky soire when it comes time to celebrate their government buildings. The Karnataka Assembly building will turn 60 this month and the state assembly secretariat proposed a lavish 2-day festival complete with a gift of gold biscuits for each lawmaker.
    The cost for the shindig? Rs. 26-crore. If you don’t have your handy rupee to dollar calculator with you, that equals 260,000,000 rupees, or about $4 million U. S.
    And yes. I did say a gold biscuit for every lawmaker.

    This post was published at Schiffgold on OCTOBER 20, 2017.


  • Gold Price Rallies as China Fears ‘Minsky Moment’

    Gold price losses of 2.0% for the week so far were cut to 1.2% lunchtime Thursday in London, as world equities fell from new record highs and government bond yields rose against a backdrop of fresh geopolitical tensions from Spain to India and China.
    After Wall Street set new all-time highs last night, gold priced against the rising US Dollar touched $1288 per ounce as Western stock markets marked the 30th anniversary of October 1987’s Black Monday – the sharpest ever 1-day fall in equities – by falling some 0.7% on average.
    Commodities slipped and major government bond prices rose, nudging longer-term interest rates lower.
    The weakest UK retail sales data in 4 years meantime saw the Pound retreat to a 1-week low on the foreign exchange market, helping the UK gold price in Pounds per ounce to halve this week’s earlier 1.5% loss to trade at 976.
    “From being the most hated developed market currency earlier this year,” says a Hedge Fund Watch from French investment bank Societe Generale, “Sterling is now back in favour” with speculators.

    This post was published at FinancialSense on 10/19/2017.


  • Australian Gold Mine Production on Track to Fall By Half Over Next 25 Years

    Australian gold output will peak in just four years and then begin a steep decline, according to a report issued by a Melbourne-based industry adviser.
    According to MinEx Consulting analysis reported by Bloomberg Business, Australian mine output will max out in 2021 and then fall by half into the mid-2050s, as aging mines close down.
    A steep decline in Australia’s gold production will have a significant impact on world supply and lends credence to remarks made by the chairman of the World Gold Council during an interview at the Denver Gold Forum last month.
    Randall Oliphant said he thinks the world may have reached peak gold. This means the amount of gold mined out of the earth will begin to shrink every year, rather than increase, as it has done pretty consistently since the 1970s. Oliphant said there are signs we’ve reached that point. In the near-term, he expects production to likely plateau at best, before slowly declining as demand rises, especially given global political risks and robust purchases by consumers in India and China

    This post was published at Schiffgold on OCTOBER 16, 2017.