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With KING WORLD NEWS site very differcult to log on to its tough to get PRO-GOLD story.....Sure, Jim Sclair is on, but why he has the man on so much i don't know.........he been SO wrong over the last 2 years.
Anyway, we yet MORE "QE" save Mega?
Bear market for gold still gleams tantalisingly thanks to money-printing
Gold is once again flirting with a bear market. But could the latest wall of stimulus save the day for embattled gold bugs?
old jumped by $26.45, or 1.7pc, after downbeat jobs data across the Atlantic. Photo: ALAMY
By Garry White, and Emma Rowley
5:14PM BST 07 Apr 2013
16 Comments
The spot gold price hit an intraday high of $1,921.41 in September 2011, but it has been on a downward trajectory since then. It now sits at $1,581.25 (£1,038.76) an ounce. A bear market is loosely defined as a 20pc fall from its peak, so the price of the precious metal needs to fall below $1,537.13 to officially unleash the bear. That's just 3pc below its current level.
Even GFMS, the precious metals consultancy now owned by Thomson Reuters, has raised the prospect of a bear market, but not until 2014. Until then, it reckons the bull will still be in charge.
"Gold is forecast to overcome recent lethargy as renewed investment drives price back over $1,800 before year end," it argued. However, Neil Meader, head of precious metals research at the body, accepted a bear market was possible.
"There's arguably clearer light at the end of the tunnel in that we can perceive a return to something more like normality for the macro-economic backdrop, and that could easily entail the start of a secular bear market, perhaps in late 2013 or more probably in 2014," Mr Meader said.
This upbeat tone was questioned by some. "The outlook certainly raised some eyebrows as a bullish call estimating a 2013 average of $1,730 an ounce with highs in the $1,800s is a far cry from the market consensus at this time," Kieron Hodgson, an analyst at Charles Stanley, said. "In a continuing trend, gold-backed [exchange-traded products] holdings are now down over 7pc from their highs in December… The market consensus is to call gold lower. However geopolitical uncertainties, especially in North Korea, should never really be ignored."
Related Articles
Indeed, "geopolitical uncertainties" can take many forms and two events at the end of the week mean that money printing machines the world over are being cranked up as high as governments dare.
On Thursday, the Bank of Japan (BOJ) unveiled plans to pump massive amounts of money into the financial system to boost lending and kick-start growth. The BOJ wants to double the money supply and boost inflation to 2pc over the course of the next two years. However, this failed to make much impact on the gold price, which finished 0.2pc lower.
However, things were different on Friday. Gold jumped by $26.45, or 1.7pc, after downbeat jobs data across the Atlantic. This was its biggest one-day gain since November last year, but some of the rise was down to short covering after the data showed that the US employers hired new workers at the slowest rate in nine months.
This eased fears that the Federal Reserve would change its current quantitative easing strategy of buying $85bn (£55.8bn) worth of mortgage-backed securities a month.
However, although the global economy is far from out of the woods, there are hopes of an improvement. When the global economy recovers – and it will – this will be bad for mass investment in gold. The unwinding of positions from exchange-traded products shows that some investors want to be the first out of the door.
"The US economy is the most important when it comes to investment demand for gold," said Ben Traynor, chief economist at BullionVault, which manages and stores gold for private investors.
"If the US economy improves and the Federal Reserve starts to unwind its ultra-loose monetary policies, one would expect this to be bearish for the gold price. In fact, if enough investors take this to be the most likely scenario, this in itself will weigh on gold demand."
So, money printing machines look likely to support the gold price in the short term, but based on current trends, the bear market for gold doesn't look like it's too far away.
Corn prices drop as US supplies prove higher than expected despite drought
Corn prices are trading way below their recent peaks after a recent US government report revealed supplies were much higher than analysts and traders had expected.
The US Department of Agriculture said in its quarterly grains report that corn stocks totalled 5.4bn bushels as of the beginning of March, and that farmers intend to plant the most corn in nearly 80 years.
The update at the end of March came against a backdrop of weaker than expected demand and prices are still heading downwards.
Corn dropped around 10pc in trading in Chicago last week, having suffered its biggest-ever two-day decline at the start.
"The corn market has been in dire straits since the stocks report came out," said Sterling Smith, a vice president with Citibank.
It represents a marked turnaround from last year, when the worst US drought in decades hammered crops and pushed global prices sky-high.
Soil is still dry in many crop-producing states, raising questions about how crops will turn out. However, that is not proving enough to support prices.
In addition, worries that bird flu could spread in China have proved a drag, as it would reduce demand for soybeans for chicken feed – and corn and soybean prices are highly correlated. On the upside for consumers, the slide should ease food inflation pressures.
'End of an era' for copper bulls
We are seeing the "end of an era" for copper bulls, according to Barclays' analysts. For nearly a decade investors who like the copper story have focused on the paltry growth of the supply of the metal, which has averaged just 1.9pc a year over 2003 to 2011.
But now it seems the key trend of weak supply growth has ended, removing support for higher prices. Global mine supply production grew by 4pc over last year as a whole, they note , predicting similarly strong growth of 3.5pc this year.
As a result, they argue "we would view any near-term ralliese_SLps as opportunities to short copper prices given the lower price environment envisaged by year-end".
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Anyway, we yet MORE "QE" save Mega?
Bear market for gold still gleams tantalisingly thanks to money-printing
Gold is once again flirting with a bear market. But could the latest wall of stimulus save the day for embattled gold bugs?
old jumped by $26.45, or 1.7pc, after downbeat jobs data across the Atlantic. Photo: ALAMYBy Garry White, and Emma Rowley
5:14PM BST 07 Apr 2013
16 Comments The spot gold price hit an intraday high of $1,921.41 in September 2011, but it has been on a downward trajectory since then. It now sits at $1,581.25 (£1,038.76) an ounce. A bear market is loosely defined as a 20pc fall from its peak, so the price of the precious metal needs to fall below $1,537.13 to officially unleash the bear. That's just 3pc below its current level.
Even GFMS, the precious metals consultancy now owned by Thomson Reuters, has raised the prospect of a bear market, but not until 2014. Until then, it reckons the bull will still be in charge.
"Gold is forecast to overcome recent lethargy as renewed investment drives price back over $1,800 before year end," it argued. However, Neil Meader, head of precious metals research at the body, accepted a bear market was possible.
"There's arguably clearer light at the end of the tunnel in that we can perceive a return to something more like normality for the macro-economic backdrop, and that could easily entail the start of a secular bear market, perhaps in late 2013 or more probably in 2014," Mr Meader said.
This upbeat tone was questioned by some. "The outlook certainly raised some eyebrows as a bullish call estimating a 2013 average of $1,730 an ounce with highs in the $1,800s is a far cry from the market consensus at this time," Kieron Hodgson, an analyst at Charles Stanley, said. "In a continuing trend, gold-backed [exchange-traded products] holdings are now down over 7pc from their highs in December… The market consensus is to call gold lower. However geopolitical uncertainties, especially in North Korea, should never really be ignored."
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18 Mar 2013
Indeed, "geopolitical uncertainties" can take many forms and two events at the end of the week mean that money printing machines the world over are being cranked up as high as governments dare.
On Thursday, the Bank of Japan (BOJ) unveiled plans to pump massive amounts of money into the financial system to boost lending and kick-start growth. The BOJ wants to double the money supply and boost inflation to 2pc over the course of the next two years. However, this failed to make much impact on the gold price, which finished 0.2pc lower.
However, things were different on Friday. Gold jumped by $26.45, or 1.7pc, after downbeat jobs data across the Atlantic. This was its biggest one-day gain since November last year, but some of the rise was down to short covering after the data showed that the US employers hired new workers at the slowest rate in nine months.
This eased fears that the Federal Reserve would change its current quantitative easing strategy of buying $85bn (£55.8bn) worth of mortgage-backed securities a month.
However, although the global economy is far from out of the woods, there are hopes of an improvement. When the global economy recovers – and it will – this will be bad for mass investment in gold. The unwinding of positions from exchange-traded products shows that some investors want to be the first out of the door.
"The US economy is the most important when it comes to investment demand for gold," said Ben Traynor, chief economist at BullionVault, which manages and stores gold for private investors.
"If the US economy improves and the Federal Reserve starts to unwind its ultra-loose monetary policies, one would expect this to be bearish for the gold price. In fact, if enough investors take this to be the most likely scenario, this in itself will weigh on gold demand."
So, money printing machines look likely to support the gold price in the short term, but based on current trends, the bear market for gold doesn't look like it's too far away.
Corn prices drop as US supplies prove higher than expected despite drought
Corn prices are trading way below their recent peaks after a recent US government report revealed supplies were much higher than analysts and traders had expected.
The US Department of Agriculture said in its quarterly grains report that corn stocks totalled 5.4bn bushels as of the beginning of March, and that farmers intend to plant the most corn in nearly 80 years.
The update at the end of March came against a backdrop of weaker than expected demand and prices are still heading downwards.
Corn dropped around 10pc in trading in Chicago last week, having suffered its biggest-ever two-day decline at the start.
"The corn market has been in dire straits since the stocks report came out," said Sterling Smith, a vice president with Citibank.
It represents a marked turnaround from last year, when the worst US drought in decades hammered crops and pushed global prices sky-high.
Soil is still dry in many crop-producing states, raising questions about how crops will turn out. However, that is not proving enough to support prices.
In addition, worries that bird flu could spread in China have proved a drag, as it would reduce demand for soybeans for chicken feed – and corn and soybean prices are highly correlated. On the upside for consumers, the slide should ease food inflation pressures.
'End of an era' for copper bulls
We are seeing the "end of an era" for copper bulls, according to Barclays' analysts. For nearly a decade investors who like the copper story have focused on the paltry growth of the supply of the metal, which has averaged just 1.9pc a year over 2003 to 2011.
But now it seems the key trend of weak supply growth has ended, removing support for higher prices. Global mine supply production grew by 4pc over last year as a whole, they note , predicting similarly strong growth of 3.5pc this year.
As a result, they argue "we would view any near-term ralliese_SLps as opportunities to short copper prices given the lower price environment envisaged by year-end".
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Commodities
In Finance »
Top 10 coolest offices in the UK
In Commodities
Past attempts to corner commodity markets
City needs to wake up and smell the coffee when it comes to commodities
What caused the silver price spike – and crash?
Commodity prices so far in 2011
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RayUSA
7 minutes ago
In all of recorded history, there has never been a time in which gold and silver had no value. Yet, historically, over 300 paper currencies (along with debased “metal” currencies) have failed. What does that simple fact tell you, especially in light of all the ongoing, never-ending printing of paper currencies?
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justareindeer
23 minutes ago
It does not need another round of QE.
The attack on the savings deposits in Cyprus (with rumors that it could happen again anywhere in the EU) and the lesson that foreign investors (Russians) learned that the European banks can not be trusted, together with the plans for a new "BRIC-currency" - will accelerate gold. Just give it a bit more time. The ETF-manipulations too, will run out of steam - and the TRUE price of gold will show.
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midnightrambler
6 minutes ago
You can try Bullion Vault, its partly backed by the Rothschilds. Not sure if that is a good or bad thing frankly. Or TRAC might be another.
Either way store all of your PM's outside the jurisdiction you live in. No VAT on gold in UK but there is on silver - only IF you take physical possession.
If you store it in a vault and never take physical possession there is no VAT to pay.
There is a case for taking physical possession in which case gold not silver and also tell nobody.
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debtmonster
25 minutes ago
If central bankers are buying gold then so am I.
Hold it outside the Eurozone or Dollarzone or Sterling zone.
You can be certain that central bankers aren't going to be the ones to pay when final act is played out.
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midnightrambler
27 minutes ago
The Fed is about to swop sides and go long on gold so the price will rocket.
They can't allow any more of it bought up at such cheap rates by the East and other sensible folk.
Follow Jim Sinclair - he has forgotten far more than most of these commentators have ever known.
Simple really
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justareindeer
21 minutes ago
Dont know what sources you got, but these are good and logical news.
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jimiweb
56 minutes ago
Whatever the media tell you, do the opposite.
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silverboy
51 minutes ago
add bankers to that as well. they are calling for bear market too. Im loading up on silver every week. Bad money out of the bank, good money drops through my letterbox each week.
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justareindeer
18 minutes ago
Let me in on this. What kind of silver do you buy? Coins, bars, ETF? Where do you buy it (Shop, internet,privately?). Do you have to pay VAT on it?
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silverboy
1 minute ago
coins in 1 oz. if you like to collect you can get 5 and 10 oz in perth mint coins, and these can be as close to spot as the 1 oz maples. I buy maples, eagles and also armenian noahs arks but also have some perth mint koalas and kookaburras. Ebay can be used but be very careful with the sellers reputation - check feedback, not just the percentage score - check comments in their feedback too. Bars can be tricky - a 1 oz bar will cost much more than a 1 oz coin. Big bars, 250g, 500g usually cost more than the equivilant in coins. Do not touch ETFS - read counterparty risk. Own it yourself in your own posession. In uk vat is due on silver but if you sell later on ebay buyers take account of the vat. Do not sell at a we buy gold place if you want best price.
Search atkinsonsthejewellers for about the best, cheapest place in uk to buy from.
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Will
13 minutes ago
Don't buy ETF's. Unless you have it in your hands,you don't own it. What medium of silver is up to you. I like Canadian silver maples of 1 oz each, wildlife series, usually off Ebay. If you buy from abroad expect HM Customs to charge you 20% VAT..........if they know whats in the package!
Wink, wink, nudge, nudge.
Be careful of bars. There is a lot of Chinese made silver plated forgeries on ebay. Some people bid spot price for bars that the seller clearly states are plated. Such stupidity is infuriating.
(Edited by author 10 minutes ago)
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justareindeer
7 minutes ago
Thank you for the hint !
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Will
6 minutes ago
You are welcome!
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silverboy
56 minutes ago
More msm disinfo on gold. The gold and silver prices are rigged by western governments using paper contracts in the futures makets. They sell paper contracts en masse to drive price down. These governments do not want people in gold and silver as it is not as easy to steal from the people (cyprus) and also gold and silver are competition to unbacked fiat currency. We are seeing shortages in the physical supply of these metals - especially in silver. Price rigging schemes always fail, and this one will too. Anyone with a brain knows that all is not well with the financial and banking system and gold and silver show this by the price rising - create falling prices and you trick people into thinking everything is ok. They are giving you the opportunity to buy real money that cant be printed at huge discounted prices on what they should really be. I buy regularly. If the price drops, I buy more as they are letting me buy more for less. But when this scheme fails, prices will go up so fast it will amaze people.
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nephi
Today 12:32 PM
God, gold and guns!
Bible, beans and bullets!
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securedgold
Today 12:31 PM
Buy gold. And bitcoins.