• Tag Archives World Gold Council
  • Gold Continues to Flow into ETFs with European Funds Leading the Way

    After surging in August and September, inflows of gold into gold-backed ETFs flattened, but remained in positive territory in October.
    Global gold-backed ETF funds added 3.3 tons of gold last month, as inflows into European funds offset outflows in North America. according to the latest report by the World Gold Council.
    ETFs in Europe took in a healthy amount of gold in October, as investors added 11.2 tons with a value of around $523 million through funds listed in the region. There were outflows in North America of -8.0 tons, reversing some of its September gains. Meanwhile, Asian funds were flat, gaining 0.8 tons. ETFs in other regions lost -0.7 tons.

    This post was published at Schiffgold on NOVEMBER 14, 2017.


  • Turks Just Bought The Most Gold Ever As Lira Tumbles

    Since President Recep Tayyip Erdogan installed himself as ‘Sultan for life’, the Turks appear to have had a dramatic change of heart towards the barbarous relic…
    The Turks have never imported a greater value of gold than in the last 12 months…
    Addditionally, as Bloomberg reports, Bar and coin purchases, a measure of investment demand, were 47 metric tons so far in 2017, compared with 14.8 tons in the same period a year ago, according to a report from the World Gold Council published Thursday.
    The weak lira and ‘President Erdogan’s pro-gold comments in November last year continued to lend support to the market,’ the gold council said.

    This post was published at Zero Hedge on Nov 14, 2017.


  • China Gold Import Jan-Sep 777t. Who’s Supplying?

    While the gold price is slowly crawling upward in the shadow of the current cryptocurrency boom, China continues to import huge tonnages of yellow metal. As usual, Chinese investors bought on the price dips in the past quarters, steadfastly accumulating for a rainy day. The Chinese appear to be price sensitive regarding gold, as was mentioned in the most recent World Gold Council Demand Trends report, and can also be observed by Shanghai Gold Exchange (SGE) premiums – going up when the gold price goes down – and by withdrawals from the vaults of the SGE which are often increasing when the price declines. Net inflow into China accounted for an estimated 777 tonnes in the first three quarters of 2017, annualized that’s 1,036 tonnes.
    ***
    Demonstrated in the chart above Chinese gold imports and known gold demand by the Rest Of the World (ROW) add up to thousands of tonnes more than what the ROW produces from its mines. One might wonder where Chinese gold imports come from, which is why I thought it would be interesting to analyse as detailed as possible who’s supplying China. Is one country, or only the West, supplying China? Although absolute facts are difficult to cement, my conclusion is that China is supplied by a wide variety of countries on several continents this year.

    This post was published at Bullion Star on 14 Nov 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.


  • Technology Sector Has a Growing Appetite for Gold; Demand Up 3%

    The amount of gold used in the technology sector grew for the fourth consecutive quarter, according to the latest demand report by the World Gold Council.
    Tech industries consumed 67.3 tons of gold in Q3, a 3% increase year-on-year. Demand for memory chips served as a primary driver for increased industrial gold consumption.
    All main sub-sectors registered growth. Continued strength in the memory sector – where supply remained very tight and demand high – underpinned a 12 to 15% increase in demand for gold bonding wire in Q3. Samsung Electronics credited ‘strong demand for …memory chipsets…and flagship mobile devices’ as a key contributor to its record Q3 net profit. The prolonged shortage in memory chips is expected to persist into 2018 as factories struggle to increase output sufficiently to meet demand for high-end smartphones. We believe this bodes well for the short-term outlook for gold bonding wire.’
    World Gold Council head of market intelligence Alistair Hewitt told the Telegraph that tech companies spent several years trying to find substitutes for gold in order to save money, but that trend seems to have ended.

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


  • Gold Investment Stalled

    Gold has largely been drifting sideways for the better part of a couple months now, sapping enthusiasm. Gold investment demand has stalled due to extreme stock-market euphoria. Investors aren’t interested in alternative investments led by gold when stocks seemingly do nothing but rally indefinitely. But once stock-market volatility inevitably returns, so will gold investment demand which fuels major gold uplegs.
    Like nearly everything else in the global markets, gold prices are heavily dependent on investment capital flows. When investors are buying gold in a meaningful way, demand exceeds supply which drives gold’s price higher. When they’re materially selling, supply trumps demand thus gold’s price naturally retreats. The past couple months have been stuck in the middle, with gold investment flows neutral on balance.
    The World Gold Council is the leading authority on global gold supply and demand, publishing quarterly Gold Demand Trends reports that offer the best fundamental reads available on the gold markets. The latest Q3’17 GDT was just released early yesterday morning. While it doesn’t cover the ongoing Q4 where gold is drifting, it does offer great insights into what’s happening with gold investment demand.
    Overall world gold demand was quite weak in Q3, dropping 8.6% YoY to 915.0 metric tons. That made for an 86.1t absolute drop. Investment demand, though it only accounted for just over a quarter of the total, was responsible for this entire demand decline. Gold investment demand plunged 27.9% YoY in Q3, or 93.4t! The WGC further breaks down that category into bar-and-coin demand and ETF demand.

    This post was published at ZEAL LLC on November 10, 2017.


  • Gold Coins and Bars Saw Demand Rise 17% to 222T in Q3

    – Gold coins and bars saw demand rise 17% to 222t in Q3, driven largely by China
    – Chinese investors bought price dips, notching up fourth consecutive quarter of growth
    – Jewellery, ETF demand fell while gold coins and bars saw increased demand
    – Central banks bought a robust 111t of gold bullion bars (+25% y-o-y)
    – Russia, Turkey & Kazakhstan account for 90% of 111t of central bank demand
    – Turkey increased gold purchases and saw broad based physical gold demand
    – Gold demand in Q3 at eight-year low as ETF inflows slowed sharply
    – Gold demand saw 9% year-on-year (y-o-y) drop in to 915 tonnes (t)
    – Total global gold supply fell 2% in Q3
    Editor: Mark O’Byrne
    ***
    By first impressions the latest World Gold Council report could make for pretty dismal reading if one were to consider the headlines that followed its release.
    Much of the focus was on the fact that record and reported gold demand was at its lowest last quarter since Q3 2009 and down 9% year-on-year.
    This was predominantly down to ETF demand which fell from the very high levels seen last year. ETF gold holdings climb by just 18.9t and jewellery demand which fell by 3%.

    This post was published at Gold Core on November 10, 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.


  • 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.


  • 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.