Best of the Week
Most Popular
1.U.S. Inner City Turmoil and Other Crises: Ron Pauls Predictions for 2015 - Dr_Ron_Paul
2. What’s In Store For Gold Price in 2015? - Ben Kramer-Miller
3.Crude Oil Price Ten Year Forecast to 2025: Importers Set to Receive a $600 Billion Refund - Andrew_Butter
4.Je ne suis pas Charlie - I am not Charlie - Nadeem_Walayat
5.The New Normal for Oil? - Marin_Katusa
6.Will Collapse in Oil Price Cause a Stock Market Crash? - OilPrice.com
7.UK CPI Inflation Smoke and Mirrors Deflation Warning, Inflation Mega-trend is Exponential - Nadeem_Walayat
8.Winter Storms Snow and Wind Tree Damage Dangers, DIY Pruning - Nadeem_Walayat
9.Oil Price Crash and SNP Independent Scotland Economic Collapse Bankruptcy - Nadeem_Walayat
10.U.S. Housing Market Bubble 2.0 Meet the Pin - James_Quinn
Last 5 days
Stock Market Major 4 or Primary IV Wave - 31st Jan 15
Gold And Silver Price Probability for A Lower Low Has Increased - 31st Jan 15
U.S. Bond Market Has Reached Tulip Bubble Proportions - 31st Jan 15
The 3 Big Reasons My Apple Stock Price Prediction Is Still Coming True - 31st Jan 15
199 Days of Hell - Unintended consequences: Oil and the Worst Battle in History - 31st Jan 15
Kaminak Yukon Gold - 30th Jan 15
U.S. Asset Price Deflation Coming Up? Food Prices Drop? CPI Negative? Credit Deflation? - 30th Jan 15
An Often Overlooked Predator: State Governments and Income Taxes - 30th Jan 15
Bullard Says Rates at Zero Interest Rates Not Right for U.S. Economy - 30th Jan 15
Why the European Central Bank's Massive Economic Experiment Will Fail - 30th Jan 15
Gold Price Short-Term Bottom Due, Higher into February - 30th Jan 15
Silver and Other Precious Metals To Manipulate - 30th Jan 15
Socialism Is Like a Nude Beach - Sounds Like a Great Idea Until You Get There - 30th Jan 15
To Create Unlimited Market Liquidity or Not; That Is the Question - 30th Jan 15
Seen the Energy Downturn Movie Before, and Not Worried - 30th Jan 15
It’s Not Time to Sell Everything – Yet - 30th Jan 15
13 Investment Themes for 2015 - 29th Jan 15
The Raging Currency Wars Across Europe - 29th Jan 15
The End of Currency 'Safe-Havens' - 29th Jan 15
Ron Paul on U.S. Fed, Central Bankers Monetary Psychopaths - 29th Jan 15
Why Microsoft Stock Will Provide Major Investing Returns - 29th Jan 15
Exploring the Clash Within Civilizations - Mind the Gap - 29th Jan 15
Saudi Arabia Changes Kings, But Not its Oil Policy - 29th Jan 15
Crude Oil Price Bulls vs. Resistance Zone - 28th Jan 15
Acceleration Of Events With Rising Chaos – US Dollar Death Foretold - 28th Jan 15
The Fed and ECB Take the West back to when the Rich Owned Everything - 28th Jan 15
Washington's War on Russia - 28th Jan 15
Cyber War Poses Risks To Banks and Deposits - 28th Jan 15
Lies And Deception In Ukraine's Energy Sector - 28th Jan 15
EUR, AUD, GBP USD – Invalidation of Breakdown - 28th Jan 15
“Backup-Camera Envy” Is Driving This Unstoppaple Investment Trend - 28th Jan 15
The Great "inflated" Expectations for Gold, Oil, Commodities -- and Now Stocks - 28th Jan 15
How to Find the Best Offshore Banks - 28th Jan 15
There’s More to the Gold Price Rally Than European Market Fears - 28th Jan 15
Bitcoin Price Tense Days Ahead - 27th Jan 15
The Most Overlooked “Buy” Signal in the Stock Market - 27th Jan 15
Gold's Time Has Come - 27th Jan 15
France America And Religious Terror War - 27th Jan 15
The New Drivers of Europe's Geopolitics - 27th Jan 15
Gold And Silver - Around The FX World In Charts - 27th Jan 15
It’s Not The Greeks Who Failed, It’s The EU - 27th Jan 15
Gold and Silver Stocks Investing Basics - 27th Jan 15
Stock Market Test of Strength - 26th Jan 15
Is the Gold Price Rally Over? - 26th Jan 15
ECB QE Action - Canary’s Alive & Well - 26th Jan 15
Possible Stock Market Pop-n-drop in Store For SPX - 26th Jan 15
Risk of New Debt Crisis After Syriza Victory In Greece - 26th Jan 15
How Eurozone QE Works: A Guide to Draghi's News - 26th Jan 15
Comprehensive Silver Price Chart Analysis - 26th Jan 15
Stock Market More Retracement Expected - 26th Jan 15
Decoding the Gold COTs: Myth vs Reality - 26th Jan 15
Greece Votes for Syriza Hyperinflation - Threatening Euro-zone Collapse or Perpetual Free Lunch - 26th Jan 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Learn to Trade

Silver Stalls as Gold Rallies

Commodities / Gold and Silver 2013 Feb 14, 2013 - 01:46 PM GMT

By: Adrian_Ash

Commodities

The PRICE of wholesale gold rallied from fresh 6-week lows at $1641 per ounce on Thursday morning, rising as European stock markets fell after much-worse than forecast economic data.

Silver meantime stalled below $31 per ounce as industrial and energy resources cut earlier gains.

Economic output across the 17-member state Euozone contracted by 0.6% in the fourth quarter of 2012, the worst drop since the depths of the global recession four years ago.


Gold prices for Euro investors today jumped €16 per ounce from yesterday's near 8-month low at €1218.

UK gold investors saw the price rise to £1060 as UK government debt prices fell again, nudging 10-year gilt yields up to 2.27%, their highest level since last April.

"The outlook for gold demand remains strong in 2013," reckons Marcus Grubb, managing director investment at the World Gold Council, launching the market-development body's latest Gold Demand Trends report today.

"We expect jewelry demand to remain buoyant, driven largely by wealth creation in India and China, and the re-synchronization of economic growth in both countries."

Altogether in 2012, global gold demand was the second-highest on record, down 4% by weight from 2011 but rising 2% by value to $236 billion.

Gold supply slipped 1%, as new record mine output met falling supplies from existing above-ground stocks.

So-called "scrap" supply fell 3% for 2012 as a whole, despite average gold prices rising more than 6% to an annual record of $1669 per ounce.

"The main drag on gold prices [so far this month]," wrote INTL F.C.Stone's Ed Meir in a note on Wednesday, "is the fact that we are seeing money move into industrial metals, corporate bonds, sovereign paper and equities.

"[That is] leaving much less of the investment pie available for gold and silver."

But if "examined in a longer term context," says today's World Gold Council report, "annual gold demand was 15% higher [in 2012] than the average for the previous five years, with much of that growth coming from the physical bar segment of investment demand and central-bank purchases."

Central banks as a group bought a 5-decade record of 534 tonnes in 2012, raising their US Dollar spend on buying gold for their currency reserves by 24%.

Despite rising prices, gold jewelry demand also rose by value, up 3% to a new record of $102.4bn.

"That clearly illustrates that gold is capturing an increasing share of wallet," says the report.

Studying the World Gold Council data, "[Indian] purchases were clearly brought forward in anticipation of import duty hikes," says Eugen Weinberg's team at Commerzbank today.

A flattening in Chinese demand left India as the world's #1 consumer yet again, defying many analysts forecasts.

Japanese households became net buyers of gold for the first time since 2005, albeit of just 7.6 tonnes, with the dis-hoarding of private investment holdings slowing sharply as the new Abe administration vowed to weaken the Yen to reflate the economy in the fourth quarter.

Soros Fund Management – which raised its allocation to gold by one-half in the third quarter of 2012 – has made about $1 billion in profits betting on the Yen's 20% fall since November, according to the Wall Street Journal today.

Fellow gold investors David Einhorn at Greenlight Capital and Kyle Bass at Hayman Capital Management have also made "big trading profits" betting against the Japanese currency, the WSJ adds.

By Adrian Ash
BullionVault.com

Gold price chart, no delay   |   Buy gold online at live prices

Formerly City correspondent for The Daily Reckoning in London and a regular contributor to MoneyWeek magazine, Adrian Ash is the editor of Gold News and head of research at www.BullionVault.com , giving you direct access to investment gold, vaulted in Zurich , on $3 spreads and 0.8% dealing fees.

(c) BullionVault 2013

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Adrian Ash Archive

© 2005-2014 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

Free Report - Financial Markets 2014