Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Stock Market Enters Early Summer Correction Trend Forecast Time Window - 11th May 21
GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
Cathy Wood Bubble Bursts as ARK Funds CRASH! Enter into a Severe Bear Market - 11th May 21
Apply This Technique to Stop Rushing into Trades - 10th May 21
Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
CHIA Getting Started SSD Crypto Mining by Plotting and Farming on Your Hard Drives Guide - 9th May 21
Yaheetech Mesh Best Cheap Computer /. Gaming Chairs on Amazon Review - 9th May 21
Breaking US Trade Embargo with Cuba - Build 7 Computers in 14 Hours Before Ship Sales Challenge - 9th May 21
Dripcoin Applies New Technology That Provides Faster Order Execution - 9th May 21
Capital Gains Tax Hike News: Was It REALLY to Blame for Sell-off? - 7th May 21
Stock Market Transportation Index Continues To Grind Higher - 7th May 21
SPX Stock Market Correction Arriving or Not? - 7th May 21
How to Invest in an Online Casino? - 7th May 21
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21
Last Chance to GET FREE Money Crypto Mining with Your Desktop PC - 2nd May 21
Will Powell Lull Gold Bulls to Sweet Sleep? - 2nd May 21
Stock Market Enough Consolidation Already! - 2nd May 21
Inflation or Deflation? (Not a silly question…) - 2nd May 21
What Are The Requirements For Applying For A Payday Loan Online? - 2nd May 21
How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part1 - 1st May 21
INDIA COVID APOCALYPSE - 1st May 21
Are Technicals Pointing to New Gold Price Rally? - 1st May 21
US Dollar Index: Subtle Changes, Remarkable Outcomes - 1st May 21
Stock Market Correction Time Window - 30th Apr 21
Stock Market "Fastest Jump Since 2007": How Leveraged Investors are Courting "Doom" - 30th Apr 21
Three Reasons Why Waiting for "Cheaper Silver" Doesn't Make Cents - 30th Apr 21
Want To Invest In US Real Estate Market But Don’t Have The Down Payment? - 30th Apr 21
King Zuckerberg Tech Companies to Set up their own Governments! - 29th Apr 21
Silver Price Enters Acceleration Phase - 29th Apr 21
Financial Stocks Sector Appears Ready To Run Higher - 29th Apr 21
Stock Market Leverage Reaches New All-Time Highs As The Excess Phase Rally Continues - 29th Apr 21
Get Ready for the Fourth U.S. Central Bank - 29th Apr 21
Gold Mining Stock: Were Upswings Just an Exhausting Sprint? - 29th Apr 21
AI Tech Stocks Lead the Bull Market Charge - 28th Apr 21
AMD Ryzen Overclocking Guide - 5900x, 5950x, 5600x PPT, TDC, EDC, How to Best Settings Beyond PBO - 28th Apr 21
Stocks Bear Market / Crash Indicator - 28th Apr 21
No Upsetting the Apple Cart in Stocks or Gold - 28th Apr 21
Is The Covaids Insanity Actually Getting Worse? - 28th Apr 21
Dogecoin to the Moon! The Signs are Everywhere, but few will Heed them - 28th Apr 21
SPX Indicators Flashing Stock Market Caution - 28th Apr 21
Gold Prices – Don’t Get Too Excited - 28th Apr 21
6 Challenges Contract Managers Face When Handling Contractual Agreements - 28th Apr 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

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