• Tag Archives World Gold Council
  • Silver Stocks Comatose

    The silver miners’ stocks have mostly drifted sideways this year, looking vexingly comatose. Such dull price action repels speculators and investors, so they’ve largely abandoned this lackluster sector. That weak trader participation has led to silver stocks’ responsiveness to silver price moves decaying. What can shock silver stocks out of their zombified stupor? And how soon is such an awakening catalyst likely?
    Silver stocks’ flatlined behavior so far in 2017 is surprising and odd. Silver-stock prices are ultimately driven by silver-mining profits, which are overwhelmingly driven by prevailing silver price levels. Silver in turn is slaved to gold’s fortunes, the yellow metal is the white metal’s dominant primary driver. With gold faring quite well this year despite the euphoric record stock markets, silver and its miners’ stocks should be shining.
    Since silver is a tiny market compared to gold, silver’s moves tend to leverage gold’s. The best global silver and gold supply-and-demand fundamental data available comes from the Silver Institute and World Gold Council respectively. According to them, worldwide silver and gold demand last year ran 1027.8m ounces and 4337.4 metric tons. Along with average prices, these can be used to approximate market sizes.

    This post was published at ZEAL LLC on October 20, 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.


  • 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.


  • SWOT Analysis: Macroeconomic Backdrop Remains Positive for Precious Metals, says Metals Focus

    Strengths
    The best performing precious metal for the week was silver up 1.07 percent. Precious metals rallied to mid-day highs on Friday as it was rumored North Korea will test a missile this weekend that is capable of reaching the U. S. West Coast. Gold traders and analysts surveyed by Bloomberg on Thursday were equally split between bulls and bears this week, reports Bloomberg, after saying gold prices will go down three weeks in a row. According to data released by the Perth Mint this week, gold coin and minted bar sales increased to 46,415 ounces in September. This is up from sales of 23,130 ounces in August. In the week ended September 28, inflows into U. S.-listed commodity ETFs totaled $644 million, reports Bloomberg, a 27-percent expansion. Precious-metals funds had $782 million of gains, the article continues, compared with $589 million the week prior. Since Vladimir Putin went on a geopolitical offensive in the Ukraine in 2014, gold had its first annual gain in four years in 2016, writes Bloomberg, and is now on track for another gain in 2017. In addition, the Bank of Russia has more than doubled the pace of gold purchases, accounting for 38 percent of all gold purchased by central banks in the second quarter alone. According to the World Gold Council, this brings the share of bullion in Russia’s international reserves to the highest of Putin’s 17 years in power, the article continues.

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


  • Gold Investment In Germany Surges – Now World’s Largest Gold Buyers

    – Gold investment in Germany surged in past 10 years
    – Germans are largest gold buyers in world: WGC research
    – Gold investment in Germany surges to 6.8B in 2016
    – Gold demand per person is highest in world – double Chinese, UK and U. S. demand
    – Gold one of the most popular investment for retail investors especially those with high incomes
    – 59% of respondents agreed with the statement that
    gold will never lose its value in the long-term
    – 48% agreed with the statement that owning gold
    makes me feel secure for the long-term
    – Prudent Germans more aware of financial and monetary risks
    ***
    Germany’s Golden Decade from the World Gold Council Germany’s gold investment market has boomed in the past 10 years.
    In the face of successive financial crises and loose monetary policy, German investors turned to gold to protect their wealth. In response, new product providers entered the market making it easier for people to invest.

    This post was published at Gold Core on October 6, 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.


  • Gold-Backed ETF Holdings Climb Again in September on North American Demand

    After surging in August, gold continued to flow into ETFs last month, signaling continued strong demand for the yellow metal – specifically in North America.
    According to the World Gold Council, gold-backed ETF holdings increased by 22.4 tons in September. This follows on the heels of a 31.4 ton increase in August.
    With the price of gold surging in early September, the combined liquidity of gold ETFs rose sharply month-over-month to $1.51 billion per day, an increase of 20% versus the year-to-date average liquidity of $1.26 billion per day.
    North American ETFs drove the increase with other regions seeing slight outflows.

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


  • Gold: More than Just a Hedge

    Conventional wisdom holds that gold is a good store of value, and provides a hedge of protection against inflation and economic upheaval. But a close look at the data reveals gold offers a long-term growth trajectory comparable to other financial asset classes.
    In fact, as we reported in August, gold has actually outperformed the stock market so far this century. If we index both gold and the S&P 500 to 100 as of Dec. 31, 1999, gold had returned 86% more than the market.
    Over the past 17 years, the S&P 500 has undergone two major contractions, both of them resulting in a loss of around 40%. Gold, meanwhile, has held its value well, boosting its appeal as a portfolio diversifier.’
    Analysis by the World Gold Council shows that gold actually compares favorably with a number of financial assets when you analyze growth, whether you look at a 10-year, 20-year, or even a 40-year time span.

    This post was published at Schiffgold on OCTOBER 3, 2017.


  • Russian Gold Reserves Hit Putin-Era High, Buying Frenzy Accelerates

    Amid a creeping global de-dollarization, Vladimir Putin appears to be the one leading the charge from the precious metal perspective.
    As Bloomberg’s Yuliya Fedorinova and Olga Tanas report, the Bank of Russia has more than doubled the pace of gold purchases, bringing the share of bullion in its international reserves to the highest of Putin’s 17 years in power, according to World Gold Council data.

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


  • Russia Gold Rush Sees Record Reserves For Putin Era

    Russia Gold Rush Sees Record Reserves For Putin Era
    by Yuliya Fedorinova of Bloomberg via Irish Indepedent
    Vladimir Putin is doing his part to keep the upswing in gold alive.
    Since the Russian president went on a geopolitical offensive in Ukraine in 2014, the haven asset had its first annual gain in four years in 2016 and is on track for another in 2017.
    ***
    A beneficiary of economic and political perils from North Korea to Brexit, it’s among the top-performing commodities this year.
    Meanwhile, the Bank of Russia has more than doubled the pace of gold purchases, bringing the share of bullion in its international reserves to the highest of Mr Putin’s 17 years in power, according to World Gold Council data.
    In the second quarter alone, it accounted for 38pc of all gold purchased by central banks.

    This post was published at Gold Core on October 2, 2017.


  • Russia and China’s Golden Plan to Shift Economic Power East

    Russia and China seem to be betting their monetary futures on gold. Their long-term maneuverings could seriously undermine the dominance of the US dollar and shift the world’s economic center of power from West to East.
    Russia and China buy more gold than any other countries in the world, with Russia leading the way. Over the last decade, the the Central Bank of the Russian Federation has added more than 1,250 tons of gold to its reserves, according to the World Gold Council. At 1,700 tons, Russia’s has the sixth largest gold reserves in the world. Russian gold makes up about 17% of the nation’s wealth.
    In 2016 alone, the Russian central bank purchased 201 tons of gold, far more than any other central bank in the world. The People’s Bank of China ranked second, adding 80 tons to its reserves.
    In June 2015, the Chinese central bank announced its gold holdings had grown by 57% to about 1,658 tons. It was the first official update to China’s gold reserves since 2009. Since then, the Chinese have aggressively added to their holdings and taken other steps to increase their influence on the world’s economic stage. Many analysts believe China drastically understates the amount of gold it owns.

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


  • India Gold Imports Nearly Triple in August Despite Tax Increase and Government Regulations

    Despite rising prices, a tax increase, and government attempts to tighten regulation of the jewelry industry, gold continues to flow into India.
    Gold imports into the country nearly tripled year-on-year in August. An estimated 60 tons of the yellow metal flowed into the Asian nation last month, up from 22.3 tons in August 2017. This continues a trend for the year. Over the first 8 months of 2017, India’s gold imports climbed to 617.5 tons, a 158% increase over 2016.
    As a Reuters report notes, the Indian gold market has an impact on the broader world market.
    Higher purchases by India, the world’s second biggest consumer, could support global prices, trading near their highest level in a year.’
    The continued flow of gold into India demonstrates the resilience of the market in that country. On July 1, the Indian government replaced a labyrinth of taxes with a nationwide 3% Goods & Services Tax (GST). The World Gold Council called it the ‘biggest fiscal reform since India’s liberalization in the early 1990s.’ The WGC said the new tax structure would ultimately increase demand for gold in India, but analysts braced for a short-term dip in imports as the tax went into effect and the market adjusted to the new system.

    This post was published at Schiffgold on SEPTEMBER 18, 2017.


  • Gold Investment Resuming

    Gold has surged dramatically to major breakouts since its usual summer-doldrums lows. That’s naturally rekindled interest in this leading alternative investment, despite the record-high stock markets. Investors are starting to return to gold again to prudently diversify their stock-heavy portfolios. That’s very bullish for gold, as investment capital inflows can persist for months or even years. This shift is most evident in GLD.
    The American SPDR Gold Shares is the world’s leading and dominant gold exchange-traded fund. Since its birth way back in November 2004, it has acted as a conduit for the vast pools of stock-market capital to migrate into and out of physical gold bullion. The marginal gold investment demand, and sometimes supply, via GLD can be big and varies wildly. Thus GLD-share trading is often gold’s primary short-term driver.
    The definitive arbiter of global gold supply and demand is the venerable World Gold Council. It publishes highly-anticipated quarterly reports called Gold Demand Trends. They offer the best reads available on global gold fundamentals. At first glance, it’s not apparent why gold-ETF demand plays such a massive role in driving gold’s price action. But digging a little deeper makes this crucial-to-understand relationship clearer.
    According to the WGC, over the past 5 years from 2012 to 2016 jewelry demand averaged about 54% of overall global gold demand. Total investment demand including physical bars and coins in addition to gold ETFs averaged just 26%. Breaking that category down further into bars and coins separate from ETFs, they weighed in at averages of 28% and -2% of world gold demand respectively over the past 5 years.

    This post was published at ZEAL LLC on September 15, 2017.


  • Gold-Backed ETF Holdings Surge in August Signaling Strong Demand for Gold

    Gold flowed into gold-backed exchange-traded funds in August, signalling robust demand for the yellow metal.
    According to the World Gold Council, gold-backed ETF holdings increase by 31.4 tons in August to 2,295 in total global gold holdings.
    Gold ETFs account for a significant part of the gold market. ETF holdings are on par with the foreign reserve gold holdings of France and Italy.
    North America led inflows in August. Investors added 27.8 tons of gold through funds listed in the region. That represents a dollar increase of $1.3 billion.
    Funds based in Europe also saw a net increase, taking in 6.4 tons, or $322 million last month. Asian funds saw a net decrease of 2.4 tons.
    The combined liquidity of gold ETFs rose month-over- month to $1.23 billion per day, near its annual average of $1.22 billion per day.

    This post was published at Schiffgold on SEPTEMBER 6, 2017.


  • MAJOR GOLD MARKET INDICATOR SHIFT: Trouble For Future Supply

    One of the major gold market indicators experienced a major shift in 2017. If we look at this gold indicator over the past several years, this recent trend reversal suggests something has fundamentally changed in the gold market… and in a BIG WAY.
    According to the World Gold Council, global gold scrap supply declined significantly during the first half of 2017 even though the price of gold increased. Global gold scrap supply plunged to 563 metric tons (mt) in the first half of 2017 compared to 702 mt during the same period last year:
    ***
    Now, what is interesting about this decline in gold scrap supply is that it took place even though the gold price increased to $1,238 versus $1,221 during the same period last year. Normally, gold scrap supply increases with price. This actually took place when the price of gold increased from $1,075 in 1H 2015 to $1,221 during 1H of 2016. As the gold price jumped nearly $150 during this period, global gold scrap supply increased from 617 mt to 702 mt. Normally, when the gold price increases, individuals take advantage by selling old jewelry or scrap into the market.

    This post was published at SRSrocco Report on AUGUST 7, 2017.


  • Gold: An Economic Lifeline for Women in India

    Gold makes up an integral part of the economy of India in general, but for Indian women, it often serves as an economic lifeline.
    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. Two-thirds of India’s gold demand comes from these areas, where the vast majority of people live outside the official tax system.
    Women drive much of the traditional demand for gold in the India, as former Reserve Bank of India governor Y. V. Reddy explained in the recent issue of the World Gold Council publication The Gold Investor.
    Gold is inherited by women and they are deprived of it only under desperate circumstances. As gold is significantly nondepreciating in its physical form or in terms of value, it provides safety and security for women and, under difficult circumstances, liquidity.’

    This post was published at Schiffgold on JULY 31, 2017.


  • Estimated Chinese Gold Reserves Surpass 20,000t

    My best estimate as of June 2017 with respect to total above ground gold reserves within the Chinese domestic market is 20,193 tonnes. The majority of these reserves are held by the citizenry, an estimated 16,193 tonnes; the residual 4,000 tonnes, which is a speculative yet conservative estimate, is held by the Chinese central bank the People’s Bank of China.
    I’m aware I’ve been absent from writing about the Chinese gold market for a long time, so for some of you it can be burdensome to pick up where we left a few months ago. It is not feasible for me to explain the entire structure of the Chinese gold market again; my suggestion would be to follow the links provided in the text for more background info. Most knowledge is covered in previous BullionStar posts, Mechanics Of The Chinese Domestic Gold Market, Chinese Cross-Border Gold Trade Rules, Workings Of The Shanghai International Gold Exchange.
    To substantiate my estimates on above ground gold reserves in China mainland, we’ll first discuss private gold accumulation in China through the Shanghai Gold Exchange (SGE), after which we’ll address official purchases by the People’s Bank of China (PBOC) and its proxies that operate in the international over-the-counter market.
    Chinese Private Gold Accumulation
    A few days ago, you could read on the BullionStar Gold Market Charts page that withdrawals from the vaults of SGE in June accounted for 156 tonnes. Year to date SGE withdrawals have reached 984 tonnes, which is 16 % shy of the record year 2015 when 1178 tonnes were withdrawn by this time. Since 2013 gold demand in China has remained extremely elevated – don’t let the World Gold Council tell you anything different – which exposes spectacular years of physical gold accumulation by the Chinese.

    This post was published at Bullion Star on 29 Jul 2017.


  • Gold shops: coming to a high street near you?

    At Baird & Co’s gold refinery, boss Nick Hammond is sorting through a tray of scrap jewellery. Bracelets, necklaces, a horse pendant (called a ‘banger’ because it is hollow, and could explode under high heat) and a military medallion dated 1895 are all destined for the furnace. ‘It’s sad, but we can’t hold them back – they all go in the pot,’ Hammond says, pointing out that Baird would have paid around 30,000 to pawn brokers and other dealers for the contents of the tray.
    Baird’s high-security factory, on an industrial estate in East London, is home to the U.K.’s only gold refinery. The family-held business, which celebrates its 50th anniversary this year, is a supplier of gold bars to the Royal Mint and one of the U.K.’s biggest producers of gold wedding bands. It has just opened a showroom and vault in the Hatton Garden area of London, hoping to lure new customers into the world of gold. ‘If you want long-term exposure to gold, you have to make the case for physical gold,’ says Hammond.
    The yellow metal is famed for its status as a safe haven and a store of wealth in times of uncertainty, but is there really a growing demand for physical gold? And how are companies exploiting the opportunity?
    Global demand for gold bars and coins rose 9pc in the first quarter of year, according the World Gold Council, despite a relatively flat market. London remains at heart of the trade: in May alone, it cleared 20.8 million ounces of gold in transactions worth $25.8bn. The exact amount of gold in the City’s vaults has always been a mystery, but for the first next month the London Bullion Market Association will publish hard data on the gold its members hold.

    This post was published at The Telegraph


  • Former governor of Reserve Bank of India admits gold bothers central banks

    The government should take steps to curb black market transactions in gold, which have an adverse effect on the economy, according to Y.V. Reddy, a former governor of the Reserve Bank of India.
    “Some of the demand for gold today stems from black market transactions, which have a nefarious influence on the economic systems and social fabric and deserve immediate and serious attention,” Reddy said in an article titled “The Voice of Authority” written in Gold Investor, a publication of the World Gold Council:
    He said a number of measures needed to be taken to tackle black market transactions, adding that in the long term, if the financial sector expands and develops, the economy grows, and society evolves, the demand for gold arising from cultural factors, property rights, and general preferences should be resolved.
    “Gold has the characteristics of a currency, competing with the official currency as a form of savings or a store of value. It is a commodity by definition — but its links with the financial sector provoke central bank concerns,” he added.

    This post was published at India Times