Best of the Week
Most Popular
1.The Trump Reset, US Empire's Coming Economic, Cyber and Military War With China (2/2) - Nadeem_Walayat
2.Now Is the Time to Buy Gold - 5th Jan 17 - John Grandits
3.CIA Planning Rogue President Donald Trump Assassination? Elites "Manchurian Candidate" Plan B - Nadeem_Walayat
4.The Trump Reset - Regime Change, Russia the Over Hyped Fake News SuperPower (Part1) - Nadeem_Walayat
5.Most Popular Financial Markets Analysis of 2016 - Stock Market Crash Postponed Again - Nadeem_Walayat
6.No UK House Prices Brexit Crash 2016 Despite London Weakness, Forecast 2017 - Nadeem_Walayat
7.President Trump Understands the NSA, CIA... LIE, America's Intelligence Agencies Crime Syndicate! -Nadeem_Walayat
8.President Donald Trump's 2017 New Year Message, BBC Fake News, Was 2016 a Dream? - Nadeem_Walayat
9.Major Stocks Bear Market Still Looms - Zeal_LLC
10.Biased 2017 Forecasts - Debt, Housing and Stock Market (1/2) - James_Quinn
Last 7 days
United States Common Sense - 2017 - 23rd Jan 17
Is Dow 20,000 a Bridge Too Far? - 23rd Jan 17
The New Gold Rush Of 2017! - 23rd Jan 17
HBO HOMELAND Bet on HIllary Clinton Winning US Election and LOST - 23rd Jan 17
Stock Market New Highs For 2017? Yes, But When Do I Enter? - 22nd Jan 17
Active vs Passive Investing: And the Winner Is ... - 22nd Jan 17
The Epidemic of Bad Ideas - 22nd Jan 17
Gold Futures Prices Looking Bullish - 22nd Jan 17
Time for Crude Oil Price Drop below $50? - 21st Jan 17
AI and Robotics - We Are All Low-Skilled Workers Now - 21st Jan 17
The Trump RESET Starts on US Presidential Inauguration Day 2017 - What to Expect - 20th Jan 17
Will the CIA Assassinate Rogue President Donald Trump Like JFK? - 19th Jan 17
Bonds, Dollar, Stocks, Gold, Silver Major Markets at Turning Points - 19th Jan 17
Populism; the Danger? What About Debt? - 19th Jan 17
Gold Price 50-DMA Breakout - 19th Jan 17
Turkey, 'Axis of Gold' and End of US Dollar Hegemony - 19th Jan 17
The Most Important Market Chart on the Planet - 19th Jan 17
Trump Deficits Will Be Huge - 19th Jan 17
Stock Market Trading Patience Pays Off with CHK Using Momentum Reversals - 19th Jan 17
Gold - How to "Buy Low and Sell High" Like a Pro - 19th Jan 17
State of the Global Stock, Financial and Commodity Markets Report 2017 - 19th Jan 17
The Hunt for Russia's Next Enemy - 18th Jan 17
Returning Gold Bulls - 18th Jan 17
Biotech Breakthrough Could Create A $11.4 Trillion Opportunity - 18th Jan 17
Bitcoin and Gold - Outlook, Volatility and Safe Haven Diversification - 17th Jan 17
Stock Market Uptrend on Borrowed Time - 17th Jan 17
The One Stock to Retire On - 17th Jan 17
Trump anti-Communist Counter Revolution - 17th Jan 17
US Stock Market Update as the Trump Inauguration Approaches - 17th Jan 17
The American Crisis - Common Sense 2017 - 17th Jan 17
Obama Leaves, Hope Arrives, Will Stupid Stay? - 17th Jan 17
Damage Inflicted by Precious Metals Manipulation Is in the “Multi Billions” - Keith Neumeyer - 17th Jan 17
Gold Price Forecast 2017 Update - Video - 17th Jan 17
The Story of the U.S. Regime Change Plan in the Philippines - 16th Jan 17
Gold Price 2017 Trending Towards $1375 as Forecast - 16th Jan 17
'Deep State' CIA Director States We are Not NAZI's, Warns Trump Does Not Understand Russian Threat - 15th Jan 17
UK House Prices Forecast 2017 - Crash or Bull Market? - Video - 15th Jan 17

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

State of Global Markets 2017 - Report

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

© 2005-2016 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

Catching a Falling Financial Knife