Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20
The Growing Weaponization of Space - 14th Feb 20
Will the 2020s Be Good or Bad for the Gold Market? - 14th Feb 20
Predictive Modeling Suggests Gold Price Will Break Above $1650 Within 15~30 Days - 14th Feb 20
UK Coronavirus COVID-19 Infections and Deaths Trend Forecast 2020 - 14th Feb 20
Coronavirus, Powell and Gold - 14th Feb 20
How the Corona Virus is Affecting Global Stock Markets - 14th Feb 20
British Pound GBP Trend and Elliott Wave Analysis - 13th Feb 20
Owning and Driving a Land Rover Discovery Sport in 2020 - 2 YEAR Review - 13th Feb 20
Shipping Rates Plunge, Commodities and Stocks May Follow - 13th Feb 20
Powell says Fed will aggressively use QE to fight next recession - 13th Feb 20
PALLADIUM - THIS Is What a Run on the Bank for Precious Metals Looks Like… - 13th Feb 20
Bitcoin: "Is it too late to get in?" Get Answers Now - 13th Feb 20
China Coronavirus Infections Soar by 1/3rd to 60,000, Deaths Jump to 1,367 - 13th Feb 20
Crude Oil Price Action – Like a Coiled Spring Already? - 13th Feb 20
China Under Reporting Coronavirus COVID-19 Infections, Africa and South America Hidden Outbreaks - 12th Feb 20
Will USD X Decline About to Trigger Precious Metals Rally - 12th Feb 20
Copper Market is a Coiled Spring - 12th Feb 20
Dow Theory Stock Market Warning from the Utilities Index - 12th Feb 20
How to Get Virgin Media Engineers to FIX Hub 3.0 Problems and NOT BS Customers - 12th Feb 20
China Under Reporting Coronavirus COVID-19 Infections by 66% Due to Capacity Constraints - 12th Feb 20
Is Coronavirus the Black Swan That Takes Gold To-Da-Moon? - 12th Feb 20
Stock Market 2020 – A Close Look At What To Expect - 12th Feb 20
IBM AI Mega-trend Tech Stocks Investing 2020 - 11th Feb 20
The US Dollar’s Subtle Message for Gold - 11th Feb 20
What All To Do Before Opening A Bank Account For Your Business - 11th Feb 20
How and When to Enter Day Trades & Swing Trade For Maximum Gains - 11th Feb 20
The Great Stock Market Dichotomy - 11th Feb 20
Stock Market Sector Rotation Should Peak Within 60+ Days – Part II - 11th Feb 20
CoronaVirus Pandemic Stocks Bear Market Risk 2020? - Video - 11th Feb 20
Facebook (FB) AI Mega-trend Tech Stocks Investing 2020 - 10th Feb 20
The US Constitution IS the Crisis - 10th Feb 20
Stock Market Correction Continues - 10th Feb 20
Useful Tips for Becoming a Better Man - 10th Feb 20
Will CoronaVirus Pandemic Trigger a Stocks Bear Market 2020? Part1 - 9th Feb 20
Could Silver Break-out like it did in 2011? - 9th Feb 20
The End of the Global Economy - 9th Feb 20
Fed to Stimulate in Any Crisis; Don’t Let Short-Term Events Bother You - 9th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Gold Coin Shortage Locks Out New Buyers 

Commodities / Gold & Silver Aug 22, 2008 - 08:50 AM GMT

By: Adrian_Ash

Commodities Best Financial Markets Analysis ArticleTHE SPOT PRICE OF GOLD in the international wholesale market slipped below $825 early on Friday in London , but stayed on track for its sharpest one-week gains since 2001 after losing $150 per ounce from the end of July.
 
"Demand is up and premiums are rising throughout the globe," said a professional gold dealer to BullionVault by email today.


"In Turkey – I kid you not – premiums can be $35 over spot. Indian premiums are around $2 above spot Gold Prices ."

The Gold Coin Shortage hitting would-be buyers worldwide also continues to worsen, with precious metal refineries now "booked solid" through to the end of Sept. according to one professional dealer in London .

"Why can't we Buy Gold at the online retailers?" asks one exasperated investor in a comment posted at MarketWatch .

"My experience ordering from [a leading US & Canadian coin and bar dealer] has been the same. No tracking record as of yet for an order placed more than 2 weeks ago."

( Rather not wait? Want to quit buying "retail" and get wholesale gold now...slashing your costs by four-fifths and more? Learn how to beat the Gold Coin Shortage today... )

Meantime in the energy markets, crude oil gave back $2 of last night's $5 jump sparked by fresh saber-rattling between Moscow and NATO over Russia 's lingering invasion of Georgia in the oil-rich Caucasus .

"It's still speculative whether Russia will use oil as a weapon to punish the West," said Victor Shum, an analyst in Singapore for Purvin & Gertz. "But it has certainly focused the market on that geopolitical threat.

"The Russian-Georgia conflict has disrupted supplies."

After capping their best six-month run in 35 years with a 10% plunge in July, the broad commodity markets today headed for their best one-week jump since 1975 according to Bloomberg data.

" Gold is universally deemed to do well in the kind of [economic] conditions we have today – inflation and recession," note Matt Turner and Gary Mead in the latest Fortis Metals Monthly from Virtual Metals in London today.

"Longer-term, the metals bull run is likely to reassert itself. The Asian-growth catch-up story is not any different today than it has been for several years. But it may take a while to get back on track."

Ahead of Fed chairman Ben Bernanke speaking today on "financial stability" at the Kansas City Fed's symposium in Jackson Hole , Wyoming , the US Dollar ticked broadly higher on the currency markets.

The Euro slipped half-a-cent from last night's one-week high, drifting down to $1.4815 after industrial orders in the 15-nation currency zone showed a 7% fall from this time in 2007.

The British Pound meanwhile dumped 2¢ in two hours, slumping back to this week's 10-month lows vs. the Dollar on news that the UK economy ground to a halt between April and June, ending 16 years of unbroken growth.

The Gold Price in Sterling touched a nine-session high above £447 per ounce, recovering more than one-half of the last month's 11% drop.

"With no US data releases due today," says Manqoba Madinane for Standard Bank in Johannesburg , "technical signals should dominate the Dollar's movements.

"Market momentum indicators show that the greenback is due for a correction to the upside against the Euro. That could restrain precious metal investment sentiment [and] some investors may prefer the sidelines today."

For German, French and Italian buyers today, the Gold Price in Euros ticked below €559 per ounce – more than 15% higher from this time last year.

"This feels like the top of the range," says today's Gold note from Mitsui, the precious metals dealer, in London , "and the markets may need to consolidate at these levels.

"[Today] has the makings for a quiet Friday, as London prepares for a long Bank Holiday weekend."

Over in the equity markets, meantime, European stocks moved 1% higher while government bonds were mostly unchanged.

"There are so many reasons for gold to become stronger," said Commerzbank analyst Eugen Weinberg to Reuters earlier.

"Now we have tensions between Russia and NATO, we have financial market risk. US real interest rates are still negative, which makes the opportunity cost of holding gold lower."

In the US markets this week, investment-grade credit spreads – a measure of investor fear and financial risk – have moved sideways. But any fresh uncertainty, sparked by new rumors of a government bail-out for Freddie Mac and Fannie Mae for example, "could see investors rotate funds away from equity markets," believes Madinane at Standard Bank.

"This could be beneficial for precious metals if oil prices gain more support."

By Adrian Ash
BullionVault.com

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
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 2008

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

© 2005-2019 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