Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Indian Silver Demand Leads to ‘Supply Issues’

Commodities / Gold and Silver 2011 Oct 04, 2011 - 07:12 AM GMT

By: GoldCore

Commodities

Best Financial Markets Analysis ArticleGold is 0.4% higher in US dollars and is trading at USD 1,665.10, EUR 1,263.00 , GBP 1,082.80, JPY 127,651, AUD 1,764.90 and CHF 1,534.90  per ounce. Gold’s London AM fix this morning was USD 1,672.00, EUR 1,267.05, and GBP 1,086.35 per ounce. Yesterday’s AM fix was USD 1,660.00, EUR 1,242.51, and GBP 1,068.07 per ounce.


Cross Currency Rates

Gold has risen for a fourth day as investors bargain hunt and safe haven buyers continue to accumulate. The flight to cash trade seen recently, due to margin calls and sharp losses in other markets, appears to be over. 

Gold’s resilience yesterday and again today despite sharp falls in equity markets on deepening concerns of banking and sovereign contagion is impressive. Physical bullion buyers remain focused on gold’s long term fundamentals and its value as a safe haven asset. 

Gold’s short term correlation with equity markets has been seen on many occasions in recent years. What has happened is after an initial correlated sell off where gold falls alongside risk assets, gold recovers faster than other assets and displays an inverse correlation with riskier paper assets over the long term.

We expect to see that happening again on this occasion.

Gold Spot $/Oz Daily 10/4/10-10/4/11 

Especially due to massive continuing demand being seen from China, India and across all of Asia including in Vietnam.

Vietnam has seen robust demand for gold for months now but that demand appears to be accelerating as Vietnamese demand surges due to the continuing devaluation of the Vietnamese dong.

Vietnamese gold bullion imports are $1.5 billion so far in 2011 but astonishingly Vietnam imported $600 million worth of gold bullion in September alone, according to a report from the Tien Phong newspaper, citing the Ministry of Industry and Trade.

XAU-EUR Exchange Rate - Daily 10/4/10-10/4/11

Due to gold’s still strong fundamentals - bullion banks, mints, refiners and dealers remain bullish despite the recent sell off and very few have lowered their price forecasts for Q4 2011 or for 2012.

Credit Suisse have raised their 2012 average gold price estimate to $1,850 from $1,540. 

XAU-GBP Exchange Rate - Daily 10/4/10to 10/4/11

Those continuing to be bearish on gold and misdiagnosing a gold bubble (for a variety of simplistic and ill thought out reasons – see Commentary) are ignoring the deeply held belief in gold as a store of value of some 3 billion people in Asia.

They also ignore the small but growing number of buyers in the western world who are diversifying into gold leading to an increase in allocations to gold from a miniscule base. These buyers include hedge funds, banks, pension funds and most importantly central banks.

These buyers continue to rightly focus on gold’s value rather than its price.

SILVER
Silver is trading at $30.38/oz, €23.05/oz and £19.75/oz .

Silver has risen another 0.6% today as buyers continue to buy on this latest sharp dip.

Silver Spot $/Oz - Daily 10/4/10-10/4/11

Physical demand for silver remains high and is being reflected in a slight uptick in premiums. GoldCore have seen continuing coin and bar demand and physical buyers are not being deterred by the latest sell off on the COMEX market. Those buying silver continue to expect silver to rise to $50/oz and many expect silver to rise to over $140/oz which is the real record (CPI inflation adjusted) high from 1980. 

Demand from western buyers remains minimal as buyers remain a contrarian few with the majority of investors and savers having no allocation to silver whatsoever.

However, this is not the case in Asia where both gold and silver are held in far higher esteem and appreciated for their wealth preservation qualities.

Indian demand has been very significant in months and has accelerated in recent days after the sell off and tentative signs of a bottoming.

Heightened physical demand for silver from the Indian subcontinent is causing “supply issues” according to UBS this morning. UBS note that airline capacity to deliver the precious metal is being “stretched” and premiums are unsurprisingly on the rise. 

With gold having risen 17% year to date but silver flat so far in 2011, many in Asia are seeing silver as better value at these price levels. Also, many buyers in Asia cannot afford gold at these prices and thus are buying silver instead as silver again fulfills its roles as “poor man’s gold”.

The physical silver market remains tiny vis-à-vis equity, bond and currency markets and even a small increase in allocations to silver could lead to sharply higher prices. As ever buyers should focus on value rather than price and use silver as a wealth preservation tool rather than simply for capital gains.

For the latest news and commentary on financial markets and gold please follow us on Twitter.

PLATINUM GROUP METALS 
Platinum is trading at $1,475.50/oz, palladium at $584/oz and rhodium at $1,575/oz

GOLDNOMICS - CASH OR GOLD BULLION?



'GoldNomics' can be viewed by clicking on the image above or on our YouTube channel:
www.youtube.com/goldcorelimited

This update can be found on the GoldCore blog here.

Yours sincerely,
Mark O'Byrne
Exective Director

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules