Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
Soybean Price Hits 9 Year Low Due to Trade War - 24th Jun 18
Small Cap Stocks, Technology and Pharma To Drive A Renewed Market Rally - 24th Jun 18
Gerald Celente: Why You Still Need Guns, Gold, and a Getaway Plan... - 23rd Jun 18
Cheap Gold Stocks Bottom Basing - 23rd Jun 18
A Trade War Won’t Be Good for the US Dollar - 23rd Jun 18
SPX/Gold, Long-term Yields & Yield Curve 3 Amigos Update - 22nd Jun 18
Gold - How Long Can This Last? - 22nd Jun 18
Dow Has Fallen 8 days in a Row. Medium-long Term Bullish for Stocks - 22nd Jun 18
Trouble Spotting Market Trends? This Can Help - 22nd Jun 18
Financial Markets Analysis and Trend Forecasts 2018 - A Message from Nadeem Walayat - 21st Jun 18
SPX Bouncing Above Support - 21st Jun 18
Things You Need To Know If You Want To Invest In Bitcoin Now - 21st Jun 18
The NASDAQ’s Outperformance vs. the Dow is Very Bullish - 21st Jun 18
Warning All Investors: Global Stock Market Are Shifting Away From US Price Correlation - 20th Jun 18
Gold GLD ETF Update… Breakdown ? - 20th Jun 18
Short-term Turnaround in Bitcoin Might Not Be What You Think - 19th Jun 18
Stock Market’s Short Term Downside Will be Limited - 19th Jun 18
Natural Gas Setup for 32% Move in UGAZ Fund - 19th Jun 18
Magnus Collective To Empower Automation And Artificial Intelligence - 19th Jun 18
Trump A Bull in a China Shop - 19th Jun 18
Minor Car Accident! What Happens After You Report Your Accident to Your Insurer - 19th Jun 18
US Majors Flush Out A Major Pivot Low and What’s Next - 18th Jun 18
Cocoa Commodities Trading Analysis - 18th Jun 18
Stock Market Consolidating in an Uptrend - 18th Jun 18
Russell Has Gone Up 7 Weeks in a Row. EXTREMELY Bullish for Stocks - 18th Jun 18
What Happens Next to Stocks when Tech Massively Outperforms Utilities and Consumer Staples - 18th Jun 18
The Trillion Dollar Market You’ve Never Heard Of - 18th Jun 18
The Corruption of Capitalism - 17th Jun 18
North Korea, Trade Wars, Precious Metals and Bitcoin - 17th Jun 18
Climate Change and Fish Stocks – Burning Oxygen! - 17th Jun 18
A $1,180 Ticket to NEW Trading Opportunities, FREE! - 16th Jun 18
Gold Bullish on Fed Interest Rate Hike - 16th Jun 18
Respite for Bitcoin Traders Might Be Deceptive - 16th Jun 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

Marc Faber - “I Want To Be Diversified, I Want To Own Some Gold”

Commodities / Gold and Silver 2014 Sep 15, 2014 - 03:04 PM GMT

By: GoldCore

Commodities

Veteran investor Marc Faber, author of The Gloom, Boom and Doom Report, reiterated the need for gold in a diversified portfolio when interviewed last week on CNBC. 

Faber, a resident of Thailand, is an advocate of gold storage in Singapore, and believes that a diversified portfolio will help protect against future market corrections which he believes are on the horizon.


Faber doesn’t see further new highs this year in the US equity markets, and thinks that there could be an S&P correction of between 10% and 30%. While admittedly Faber has been expecting a US stock market correction for some time now, his view is based on what he sees as weaker earnings from some US consumer bellwether companies. 

Additionally, on a technical level, Faber points to a lower participation rate of S&P stocks making new highs and more stocks making new lows. He looks for an acceleration of weakness in credit markets starting in the high yield (junk bond) market - which has already weakened - and continued weaker corporate earnings.

Asked for his view about gold, Faber commented on possible gold market manipulation and the need to diversify investment portfolios:

 “Basically, we’ve been in a correction since 2011, some informed observers they think that the market is manipulated, I don’t know.

But I have always argued, we don’t know how the world looks like in 5 years’ time, maybe the S&P is at 3000, but it could also be at 1500, we just don’t know.

There’s a lot of manipulation through fiscal and monetary policies.

Now, I want to be diversified, I want to own some gold, I want to own some shares, I own the most in Asia, and some in Europe because I think in Europe there’s still better value than in the US, and I own some bonds and cash and real estate. So, I hope that when the collapse happens, I’m only going to lose 50% of my money. “

Both the SGX’s upcoming partnership with Brinks in Singapore, and the CME’s upcoming  partnerships with Via Mat, Brinks and HKIA in Hong Kong, clearly illustrate the growing importance of secure precious metals vaulting services in these two critical financial centres in Asia.

As part of a diversified investment portfolio, secure precious metals storage in safe and stable jurisdictions such as Singapore and Hong Kong is essential for wealth protection in an increasingly volatile global financial system.

Faber on CNBC

Faber webinar on gold storage in Singapore

Essential Guide To Storing Gold In Singapore

Singapore Continues Push To Be A Global Gold Hub

Singapore continues its push to be a global gold hub. Further details emerged at the weekend about the planned launch by Singapore of a new 1kg physically deliverable gold contract for the Asian wholesale gold market. 

This new gold contract differs from others in that as well as acting as a price discovery benchmark for 1kg gold bars in the Asian region, it has been specifically designed to actually deliver gold to wholesalers, because settlement of the contract is in gold 1kg bars and not in cash. A 1kg gold bar is 32.15 troy ounces.

In June the Singapore Exchange (SGX) indicated that their 1kg gold contract would probably be launched by September, but the launch date has now been pushed back to either October or November. The SGX is Singapore’s securities and derivatives exchange and clearing and depository provider.

The Singapore contract will be in lots of 25 kgs, denominated in US dollars,  and it will trade for three hours in the Singapore morning time. Singapore is 7 hours ahead of London and 12 hours ahead of New York, and 2.5 hours ahead of the Indian market, but is in the same time zone as both Hong Kong and Shanghai.

Six consecutive daily contracts will trade at the same time, so when one contract expires, another will be added.

Physical settlement is two days after trade date and consists of  99.99 purity 1kg gold bars that meet the approval of the Singapore Bullion Market Association (SBMA) good delivery list . This means that wholesalers will be able to gauge demand and supply of 1kg bars over the following week. 

At a gold conference in Pune, India this weekend, the SGX clarified the new launch date and pointed out how the new 1kg contract could benefit the physical Indian gold market.

At the conference, Derek Neo of the SGX said that the 1kg gold contract will “benefit Indian traders as they will be able to see the price trend of gold kilobar when the Singapore market for gold closes at 11.30 a.m” (9am Indian time), and that since India is one of the world’s largest importers of gold, “the contract is going to provide another avenue to source quality gold”.

The SGX is exclusively using the vaults of Brinks Singapore as the official vault for the contract’s 1kg gold bars. In Singapore, Brinks have a vaulting facility in the free port of Singapore.

Four international banks that are members of the SBMA will act as market makers for the new gold contract and these banks need to guarantee availability of 1 kg gold bars in order to provide the liquidity to allow the new contract to work as designed. These banks are JP Morgan, the Bank of Nova Scotia, Standard Chartered Bank, and Standard Bank.

Since the SGX 1kg gold contract is traded on the Exchange and is regulated, it will be interesting to see the published trading statistics from the Exchange once the gold contract product is up and running and the volume of 1kg bars that these four bullion banks are providing to the Brinks vault in Singapore. 

Hong Kong Gold Hub

The US based CME Group who run the Comex gold futures exchange in New York and also host the new LBMA Silver Price auction in London have also announced plans for a new 1kg gold product in Hong Kong.

The CME’s new Hong Kong 1kg product is a US dollar denominated gold futures contract. It will trade on the Comex in New York and not in Hong Kong, but it will be settled and deliverable in Hong Kong at exchange-approved vaults. This is significantly different to the SGX physically deliverable 1kg gold contract in Singapore.

There are still not many details released about the CME’s Hong Kong gold futures contract, but it will primarily be a cash settled contract for 99.99% fine 1kg gold bars, and is designed for global market participants who want to arbitrage and hedge risk between the New York or London gold prices and the Hong Kong regional price.

Last Thursday, the CME announced that three vault providers have applied to be approved vaults for the gold kilo contract. These are Via Mat Management AG, Brinks Global Services USA, and HKIA Precious Metals Depository Ltd.

Via Mat, Brinks and HKIA all have vaulting facilities in Hong Kong, and GoldCore exclusively uses Via Mat for its Secure Gold Storage service in Hong Kong.

The contract specifications, such as contract size and trading hours have not yet been released but it’s thought that the CME’s Hong Kong contract will be structured similarly to the CME’s existing 100-ounce COMEX gold futures contract that trades in New York.

MARKET UPDATE

Today’s AM fix was USD 1,234.75, EUR 955.62 and GBP 759.43 per ounce. Friday’s AM fix was USD 1,237.25, EUR 957.11 and GBP 760.87 per ounce.

Gold in USD - 5 Years (Thomson Reuters)

Gold fell $11.40 or 0.92% to $1,230.70 per ounce and silver slid $0.06 or 0.32% to $18.65 per ounce on Friday. Last week, gold and silver were both down 3% and 2.86%. 

Gold recovered from Friday’s low in Asian trading this morning, ending in Singapore near $1233, before continuing the recovery in London trading. Silver is trading in London at $18.58, essentially unchanged from Friday’s New York close. 

Precious metal trading will this week be predominantly affected by the upcoming US Fed FOMC meeting scheduled for tomorrow and Wednesday.

The Platinum price has recovered slightly today, rising 0.51% to $1371. Palladium is also stronger, up 1.93% at $845.

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

© 2005-2018 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