This post was published at Crush The Street
This post was published at Crush The Street
Higher crude oil prices will become a headache for emerging markets currencies and bonds. I am of the view that the lower base prices for nymex crude oil will be at $60 (for 2018) with chances of $86 by July 2018 a very high possibility. Worst case downside risk for crude oil at the moment is at $48 for next year with upside at infinity. Gold always rises in an inflationary environment. Crude oil related inflation can derail fiscal management in Asian nations (including India and Indonesia) with chances of bond market outflows. Interest rate gap will narrow between Asian nations and Eurozone, UK and USA. Narrowing down of interest rate gap can result in massive bond market outflows from some Asian nations, Nations with low foreign exchange reserves could be bear the brunt of indirect currency devaluation.
Every rising investment in crypto currencies will not have any impact on gold and silver prices next year.
This post was published at GoldSeek on 27 December 2017.
Earlier this month, World Gold Council chief market strategist John Reade said he expects gold to shine in 2018, and one of the primary reasons will be rising income growth in China and India.
A report recently published by the Centre for Economics and Business Research lends support to Reade’s prediction. According to the 2018 World Economic League Table, India will leapfrog France and England in 2018 to become the world’s fifth largest economy in dollar terms. The report also predicted that China will overtake the US as the world’s biggest economy in 2032.
China and India rank as the number one and two gold consuming countries in the world. It stands to reason that strong economic growth and rising income in these Asian nations will boost demand for gold.
According to Reade, China’s income growth is expected to come in at around 6.4% in 2018. And India is expected to be one of the fastest-growing countries in the world next year, expanding at an even faster rate than it did between 2012-2014.
Over the long run, income growth has been the most important driver of gold demand. And we believe the outlook here is encouraging.’
This post was published at Schiffgold on DECEMBER 26, 2017.
There is a new Gold Rush 2.0 currently underway across the world, and prospectors have their eyes set on Winnipeg City in Manitoba, Canada.
In 1848 through 1849, the news of gold quickly spread around. People from Hawaii and Latin America were the first to hear the breaking news. Next came the rest of the U. S., Europe, Australia, and China in 1849, as the peak rush was seen in 1852, after gold reserves became harder to mine. The buzz around bitcoin is similar, although information dissemination is now much quicker and as the euphoria of bitcoin mining spreads across the globe, many cryptocurrency players have started their descent onto Manitoba in search of cheap power for their digital mining operations.
The gold rush ushered in the development of California in the 1850s and ultimately it became a state. Roads, churches, schools, and entire towns were built, to house the gold miners who sought nothing more than to extract the yellow metal from the foothills. A similar fate may await one Canadian city.
CBC News has learned that international investors have had interviews with ‘commercial real estate companies, economic development organizations, cryptocurrency industry players and Manitoba Hydro,’ who view the area as a ‘top-tier location’ to open up a mining shop. CentrePort Canada, North America’s largest inland port, offers 20,000 acres of cheap commercial land in Winnipeg, says early interest from Asian investors and South American companies who want to mine cryptocurrencies is currently underway. CentrePort president and CEO Diane Gray said, ‘we’ve had inquiries from very large non-Asian companies, some of which have roots in North America and are looking to expand significantly.’
This post was published at Zero Hedge on Dec 22, 2017.
I have seen a number of people investing their profits from bitcoins into physical gold and silver. This is the correct investment strategy. Make short term profits from crypto currencies and invest for the long term in gold and silver. Those who say that bitcoins and other crypto currencies will nosedive will regret for not having invested. Bitcoin is not just hype. It is here to stay. Babies born today will never see the physical currencies when grow up. Future kids and future teenagers will be using crypto currencies as a means of exchange as well as means of investment.
Block chain technology is a big human life changer for the world.
This post was published at GoldSeek on 19 December 2017.
The European central bank meeting was a dud. I do not believe in their inflation targets. The trend for the US dollar is still bearish. Gold and silver can see small periods of big one way rises followed by long periods of consolidation. Copper is bullish. I will prefer to use a buy on dips strategy as long as crude oil trades over $55 for the rest of the day. Global year end travel season will begin from tomorrow. Travel related energy demand will rise for a month.
‘Wolf cry’ this year was the fall in stock markets. ‘Wolf’ never came. When the actual wolf in the form of a bearish trend in global stock markets comes next year, most of the retail investors will be heavily invested in stock markets. Do not sleep on your short term stock investments next year.
This post was published at GoldSeek on 15 December 2017.
China’s Belt and Road Initiative heralds a new era with mega infrastructure projects dotting the landscape…
If you are looking for the latest breakthroughs in trans-Eurasian geoeconomics, you should keep an eye on the East – the Russian Far East. One interesting project is the new state-of-the-art $1.5 billion Bystrinsky plant. Located about 400 kilometers from the Chinese border by rail and tucked inside the Trans-Baikal region of Siberian, it is now finally open for business.
This mining and processing complex, which contains up to 343 million tonnes of ore reserves, is a joint venture between Russian and Chinese companies. Norilsk Nickel, Russia’s leading mining group and one of the world’s largest producers of nickel and palladium, has teamed up with CIS Natural Resources Fund, established by President Vladimir Putin, and China’s Highland Fund.
This post was published at Zero Hedge on Dec 15, 2017.
Traders had priced in four interest rate hikes for next year. The Federal Reserve says three. This resulted in the US dollar falling and gold and silver getting a boost. All is not over. The European central bank and the Bank of England meetings can affect the markets. America’s growth outlook for 2018 has been raised. If the ECB and BOE also raise their growth forecast for next year, then the US dollar could see another sell off and gold and silver could get back some of the lost investor confidence.
The lower base for US nonfarm payrolls for next year is 140,000. The US economy needs to continuously add 140,000 NFP every month to ensure the case for an interest rate hike every quarter. Next year there is a competition between the USA, the UK and the Eurozone on growth versus interest rate. The Eurozone has imported migrants from Africa and Asia for higher growth. Migrants will ensure that Eurozone growth beats American and UK. Eurozone member nations are distributing free money to the migrants just to support their ‘too big too fail’ corporations. This is a very disturbing practice and a self-destructive practice. Gold and other non US dollar alternates will zoom.
Everyone says bitcoin and other crypto currencies are not backed by anything. I ask everyone was the US dollar backed by anything when it started after the First World War. The US dollar is just backed by a heavily indebted nation currently. Nations are supporting the US dollar as they have invested heavily in US bond markets. If the USA sinks a lot of nations will become bankrupt. There will be mass unrest globally. With bitcoin and other crypto currencies, it is just a starting point to replace the US dollar and other paper currencies. Over a period of time as central banks start supporting it, bitcoin and crypto currencies will be backed by nation’s physical assets.
This post was published at GoldSeek on 14 December 2017.
The trend of global financial markets after the FOMC meet will be interesting. Bitcoin futures has started at CBOT. The CME will start BTC futures next week. The world is attracted to bitcoin and crypto currencies. It remains to be seen how negatively the ever rising trading volumes in BTC/crypto currencies affect stock markets and bond markets globally.
Gold it seems is more of a central bank play. More and more non NATO allies’ nations are continuously increasing their physical gold reserves. Nations like India are promoting gold buying in electronic form which involves physical gold only when the buyer takes delivery. Ninety percent of the physical buyers of gold in India in electronic form will not take delivery at least for a period of one year. Indian gold demand will be steady but not zoom next year. Fundamentals will be the key. Gold is bullish for an investment period over twelve months. Long term gold investors need not worry.
This post was published at GoldSeek on 11 December 2017.
Singapore has evolved into one of the world’s most dynamic gold trading and storage hubs. Following sustained growth over the last five years backed by government initiatives to develop the country’s investment precious metals (IPM) sector, Singapore now hosts a vibrant local and regionally focused gold market comprising a wide variety of precious metals participants. These participants range from retail bullion dealers to bullion wholesalers, from precious metals refineries to secure logistics providers, and from bullion banks to trading houses.
One of the early initiatives that transformed Singapore into a precious metals trading and storage hub came in February 2012, when during a budgetary speech to parliament, finance minister Tharman Shanmugaratnam announced that the importation and supply of investment-grade gold and other precious metals in Singapore would become exempt from Singapore’s Goods and Services Tax (GST). Previously the GST on precious metals in Singapore was 7%.
As reported by Reuters in February 2012, Shanmugaratnam in his budget speech envisaged that:
‘We will facilitate the development of gold trading, which can draw on Singapore’s strengths as a financial and trading hub, to meet strong demand for investment-grade gold in Asia.’
The GST exemption on investment precious metals was first introduced on 01 October 2012, and applies to transactions in investment-grade gold, silver and platinum that are in the form of high purity bars, ingots and coins. This means that investment grade precious metals purchased in Singapore are free of GST.
International Enterprise (IE) Singapore, an office of the Singapore Government, has also been active in supporting Singapore’s precious metal sector, and in promoting the benefits of Singapore’s gold market internationally. Overall, the main aim of IE Singapore and the government in the bullion sphere is to ensure that Singapore becomes and remains the region’s primary bullion trading, storage and transport hub.
This post was published at Bullion Star on 11 Dec 2017.