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.

SWOT Analysis: Gold In Focus After Climbing Above Key Threshold Level

Strengths
The best performing precious metal for the week was palladium, up 7.28 percent as money managers raised their net-long positions on continued expectations that the shift from diesel to gasoline powered cars will continue. Gold traders and analysts surveyed by Bloomberg are bullish for the first time in five weeks, reports Bloomberg. Following the release of the Fed minutes which showed rising concern about low inflation, the yellow metal climbed to a two-week high. A fresh flare-up in tensions with North Korea pushed gold higher this week, writes Bloomberg, along with a U. S.-Turkey diplomatic spat regarding visitor visas was supportive. The Indian government withdrew an order that brought the gold industry under anti money-laundering legislation, reports Bloomberg. Jewelers were included in the Prevention of Money-Laundering Act in August that increased compliance requirements. In response to the rule reversal, shares of jewelers climbed in the country. This move comes just as gold buying improves before the Hindu festival of Diwali, the peak season for demand, the article continues. Weaknesses
The worst performing precious metal for the week surprisingly was gold, up more than 2 percent, despite grabbing most of the precious metals headlines. According to the People’s Bank of China website, gold reserves in China came in at 59.24m fine troy ounces in September, unchanged again from the previous month, which unfortunately is beginning to become a trend. Chinese markets had been closed the prior week to mark National Day.

This post was published at GoldSeek on Monday, 16 October 2017.

Germans Have Quietly Become the World’s Biggest Buyers of Gold

When I talk about Indians’ well-known affinity for gold, I tend to focus on Diwali and the wedding season late in the year. Giving gifts of beautiful gold jewelry during these festivals is considered auspicious in India, and historically we’ve been able to count on prices being supported by increased demand.
Another holiday that triggers gold’s Love Trade is Dussehra, which fell on September 30 this year. Thanks to Dussehra, India’s gold imports rose an incredible 31 percent in September compared to the same month last year, according to GFMS data. The country brought in 48 metric tons, equivalent to $2 billion at today’s prices.
As I’ve shared with you many times before, Indians have long valued gold not only for its beauty and durability but also as financial security. Indian households have the largest private gold holdings in the world, standing at an estimated 24,000 metric tons. That figure surpasses the combined official gold reserves of the United States, Germany, Italy, France, China and Russia.
A New Global Leader in Gold Investing?
But as attracted to gold as Indians are, they weren’t the world’s biggest investors in the yellow metal last year, and neither were the Chinese. According to a new report from theWorld Gold Council (WGC), that title shifted hands to Germany in 2016, with investors there ploughing as much as $8 billion into gold coins, bars and exchange-traded commodities (ETCs). This set a new annual record for the European country.

This post was published at GoldSeek on Thursday, 12 October 2017.

Germany’s Budding Love Affair with Gold

We talk a lot about India’s love affair with gold. The Asian nation ranks as the second largest gold consumer in the world, behind only China. Gold is intimately intertwined with Indian cultural and marriage rights, and it serves as a vital cog in India’s economy, both above ground and underground. But the yellow metal has a new lover vying for its attention.
Germany.
Over the last 10 years, gold investment has boomed in Deutschland, according to a report by the World Gold Council. Last year alone, Germans poured 6.8 billion ($8 billion) into gold investment products, with 22% of German investors buying goldover the past 12 months. Over the last 10 years, Germany has established itself as a 100 ton-plus per year market for gold bars and coins. The WGC calls the growth in the German gold market a ‘radical transformation.’
Before 2008 it was small. Bar and coin demand languished at low levels: average demand between 1995 and 2007 was a modest 17 tons and, in
some years, there were more sellers than buyers … Since then, the German gold investment market has flourished. Germany has established itself as a 100t-plus per year market for bars and coins, and a vibrant domestic ETC market has developed: during Q3 2017, German-listed ETC AUM hit an all-time high of 252.1 tons, equivalent to 9.8 billion.’

This post was published at Schiffgold on OCTOBER 11, 2017.

Indian Gold Demand Up in September Even With Tax Rule

After nearly tripling in August, demand for gold in India remained strong last month, despite a tax rule that put a damper on high-dollar jewelry purchases.
Gold demand rose 31% year-on-year in September. Imports came in at 48 tons, according to a Reuters report.
Higher purchases by India, the world’s second-biggest consumer, could lend support to global prices that are trading near their highest level in a week. The higher imports may also widen the South Asian country’s trade deficit.’
Continued strong demand in India was something of a surprise. It was fighting headwinds caused by a tax rule that went into effect back in August. The government included Indian jewelers under the Prevention of Money-Laundering Act. The rules increased compliance requirements for high-dollar jewelry purchases. Buyers had to provide their income tax identity for transactions above 50,000 rupees ($766). Analysts said the requirements were hindering high-value deals.

This post was published at Schiffgold on OCTOBER 10, 2017.

MIKE PENCE WASTED TAXPAYER MONEY ON THE NFL IN POLITICAL PR STUNT

Vice president Mike Pence spent more money than most Americans make in one year to perform a political public relations stunt at a National Football League game over the weekend. Some of his flagrant waste of taxpayer dollars went straight into hands of the NFL too – the organization which many on the right have decided to boycott.
Mike Pence made a big show out of leaving a football game early. Not just any game though. He went to an Indianapolis Colts game at home against the much-hated by the right, San Franciso 49ers. He then proudly declared himself upset and offended that some players knelt during the singing of the Star Spangled Banner (which he knew well in advance would happen.) ‘I will not dignify any event that disrespects our soldiers, our flag, or our national anthem,’ he declared on Twitter.
Looking forward to cheering for our @Colts & honoring the great career of #18 Peyton Manning at @LucasOilStadium today. Go Colts! pic.twitter.com/C3aCYUNpqG
— Vice President Pence (@VP) October 8, 2017

This post was published at The Daily Sheeple on OCTOBER 9, 2017.

Reversal of Tax Rule Could Boost Gold Demand in India

The Indian government has reversed a tax rule that was putting a damper on gold demand in the country.
The government included Indian jewelers under the Prevention of Money-Laundering Act last August. The rules increased compliance requirements for high dollar jewelry purchases. Buyers had to provide their income tax identity for transactions above 50,000 rupees ($766). According to the Economic Times, the requirements were hindering high-value deals.
The reversal of the rules comes just before a peak season for gold demand in India. Many Indians buy gold leading up to the Hindu festival of Diwali, which falls on Oct. 19 this year. Shares of jewelers increased by as much as 8% with the announcement.
The government rescinded the rules on jewelry purchases along with a number of other tax provisions, according to the ET.
India also slashed tax rates on 27 items, and extended the period for small businesses to file returns, in a bid to reverse the blow to growth stemming from a chaotic roll out of the nationwide sales tax.’

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

9/10/17: BRIC Services PMI 3Q 2017: Another Quarter of Weaker Growth

Having covered 3Q 2017 figures for BRIC Manufacturing PMIs in the previous post, let’s update the same for Services sector. BRIC Services PMI has fallen sharply in 3Q 2017 to 50.8 from 52.1 in 2Q 2017. This is the lowest reading since 2Q 2016 (when it also posted 50.8). The drivers of this poor dynamic are: Brazil Services PMI remained below 50.0 mark for the 12th consecutive quarter, rising marginally to 49.5 in 3Q 2017 from 49.0 in 2Q 2017. Current reading matches 1Q 2015 for the highest levels since 1Q 2014. Statistically, Brazil Services PMI has been at zero or lower growth since 1Q 2014. Russia Services PMI fell to 54.0 in 3Q 2017 from 56.0 in 2Q 2017 and 56.8 in 1Q 2017, indicating some cooling off in otherwise rapid expansion dynamics. The recovery in Russian Services sectors is now 6 quarters long and overall very robust. China Services PMI decline marginally from 52.0 in 2Q 2017 to 51.6 in 3Q 2017. This is consistent with trend established from the local peak performance in 4Q 2016. Overall, Chinese Services are showing signs of persistent weakness, with growth indicator falling below statistically significant reading once again in 3Q 2017. India Services sector has been a major disappointment amongst the BRIC economies, with Services PMI falling from 51.8 in 2Q 2017 to a recessionary 48.0 in 3Q 2017. The Services PMIs for the country have been rather volatile in recent quarters, as the economy has lost any sense of trend since around 4Q 2016.

This post was published at True Economics on Monday, October 9, 2017.

Asian Metals Market Update: October-06-2017

Chinese demand will be key to precious metals and industrial metals once China reopens tomorrow. Industrial metals except nickel have remained firm in the last week. Gold and silver have fallen in the last week. If the US dollar continues to gain and Chinese demand is not in line with expectations then gold and silver will see another wave of sell off. If not then gold and silver may form a medium-term bottom. Gold jewelry demand in India will be on the higher side today and till Sunday due to Hindu festival of ‘Karwa Chauth’ on Sunday wherein wives fast from dawn till dusk for the long life of their husbands. It is a big gifting festival like Valentine’s day. But if jewelry sales in India disappoint (till Sunday) then I do not see a big recovery in gold demand in India unless prices nosedive.
US September nonfarm payrolls number needs to be seen from a totality prospective and not just the headline numbers.

This post was published at GoldSeek on 6 October 2017.

Committee Forming to Establish Indian Spot Gold Exchange

The World Gold Council has announced plans to form a committee that will help set up India’s first physical gold exchange. Officials say they hope to have the exchange up and running in 12 to 18 months.
The committee will not actually set up the exchange, but will provide guidance. WGC Indian operations managing director PR Somasundaram told Bloomberg the council is in the process of creating an industry committee of jewelry trade associations, dealers, miners, regulators, foreign and Indian banks, and eventually some consumers.

Indians have a love affair with gold. The country ranks as the second largest consumer of the yellow metal in the world. It’s not just a luxury. Even the poor buy gold in India. The yellow metal is interwoven into the country’s marriage ceremonies, and cultural and religious rites. Indians also value gold as a store of wealth, especially in poor rural regions. According to the World Gold Council, Indian households hold over 22,500 tons of gold.

This post was published at Schiffgold on OCTOBER 5, 2017.

Safe Haven Silver To Outperform Gold In Q4 And In 2018

– Safe haven silver to outperform gold in Q4 and 2018
– ‘Expect silver to eventually outperform gold’ say Metals Focus
– 2017 YTD, silver has underperformed gold, climbing by 5% versus 11%
– Silver undervalued versus gold and especially stocks, bonds and many property markets
– Will follow gold’s reactions to macroeconomic & geopolitical factors and should outperform gold
– Special report on India shows it accounts for just 16% of global silver demand
– Silver a ‘safe haven at times during which gold failed to be’ according to academic research
***
Since the beginning of 2017 the silver price has disappointed many investors. With a 5% gain so far in 2017, it has failed to match gold’s 11% gains this year. Both precious metals have ultimately performed below expectations given the positive macroeconomic and geopolitical backdrop.
However, things are starting to look up for the industrial precious metal as industry observers believe it will outperform gold this quarter and into 2018.
In a recent Metals Focus report, the precious metals consultancy concluded that ‘we do expect silver to eventually outperform gold.’

This post was published at Gold Core on October 4, 2017.

Gold: Demand Vacuum Has Silver Lining

Since I issued my ‘book profits now’ call for gold several weeks ago, the price has declined relentlessly from the $1360 area high. Investors want to know if I see signs that a fresh rally could begin. The good news is that gold/silver stocks and silver bullion look better than gold bullion. Some stocks are rallying strongly while gold oozes lower. Please click here now. This is the main problem for gold right now; a collapse in Indian market demand. Prime Minister Modi has acted more like Prime Minister Napoleon over the past year. He’s lorded over a collapse in manufacturing, anemic jobs growth, and tanking GDP. He has essentially devolved into what I call a ‘taxaholic’. He’s maniacally obsessed with expanding government size at the expense of the economy. Modi has ordered jewellers to file what he calls ‘Know Your Client’ forms on gold jewellery purchases of 50,000 rupees or more. That has helped hammer demand by about 50%. It coincided with major flooding that prevented buyers from going to the stores. Over the past few weeks, Indian gold imports have been negligible. Commercial COMEX traders have sold into that demand vacuum, pushing the gold price down by about $90 an ounce. Dhanteras marks the start of Diwali on October 17. I expect some pick-up in demand then. Unfortunately, that doesn’t happen for another two weeks. The Chinese ‘Golden Week’ holiday is also in play. Gold markets in China close for the holiday. Western gold bugs are finding the holiday is anything but golden for them, as the price seems to melt lower on a daily basis.

This post was published at GoldSeek on 3 October 2017.

India’s Appetite for Silver

Indians love gold. Despite rising prices, a tax increase, and government attempts to tighten regulation of the jewelry industry, gold imports into the country nearly tripled year-on-year in August. India ranks as the second largest gold consuming country in the world, trailing only China. But gold isn’t the only precious metal Indians covet. They also buy a lot of silver.
According to a new report by the Silver Institute, India consumed 160.6 million ounces of silver in 2016, accounting for 16% of global silver demand.
More than half of the silver flowing into India is used in jewelry and silverware.
These are traditional markets, though the demand drivers and consumer profile vary considerably between both segments. Typically, silver jewelry is purchased by most income groups in India, whereas silverware is bought by the middle and affluent classes. Since the start of this decade, there has been a large expansion of demand in both markets, from around 39 Moz in 2010 to 88 Moz in 2016. Of note, the Indian silverware market is the largest in the world and its importance is growing, representing 70 percent of the total global demand.’

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

Gold Market Charts – September 2017

Featuring charts produced by the GOLD CHARTS R US market chart website, the BullionStar chart series focuses on a number of the world’s most important physical gold markets including China, Russia, India, Switzerland and the London gold market, and provides background and commentary on the selected charts.
Shanghai Gold Exchange (SGE) Gold Withdrawals Gold withdrawals from the Shanghai Gold Exchange network of precious metals vaults totalled 161.4 tonnes during August. These withdrawals are in the form of actual physical gold bars and ingots which leave the Exchange’s vaults and enter the downstream investment, jewellery and fabrication markets. Since most gold flowing through the Chinese gold market from the supply side to the demand side is traded through the SGE, this makes SGE Gold Withdrawals a suitable proxy for wholesale gold demand in China. See “Mechanics of the Chinese Domestic Gold Market” for more details.

This post was published at Bullion Star on 30 Sep 2017.

Fun on Friday: He Put Gold Where???

A few Fridays back, I shared some of the innovative ways people have come up with to smuggle gold. Like I said in that article, gold smuggling is a very lucrative business. People want gold, and they’ll go to great lengths to have it. But smuggling isn’t as easy as you might think, and people have put gold in some places … Well, let’s just say it couldn’t have been a comfortable experience.
OK – I’ll just come out and say it. More than a few smugglers have resorted to sticking gold up their butts.
Now when I hear about these stories, I imagine some poor guy shoving a few gold coins or ingots up there – or maybe even a single bar. That would be uncomfortable enough. But get this. A man from Sri Lanka got caught with 2.2 pounds of gold stashed in his rectum.
Yes. You read that right.
POUNDS.
According to the Metro, the 45-year-old was trying to smuggle the gold into India when customs agents at the Colombo airport noticed ‘suspicious movements.’

This post was published at Schiffgold on SEPTEMBER 29, 2017.