Asian Metals Market Update: December-27-2017

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.


India Set to Become World’s Fifth Largest Economy, Leapfrogging France and England

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.


India Silver Demand on the Rebound

Indians are buying silver.
India ranks as the second largest gold consumer in the world, behind only China, but Indians also have an appetite for the white metal. After a drop in silver demand last year, Indians are once again buying.
According to Bloomberg, India has imported around 5,500 tons of silver this year, and imports could grow to around 6,000 tons in 2018. That compares with a four-year low of just 3,000 tons in 2016.
We saw signs of resurgence in the Indian silver market in the fall. According to the Economic Times, silver demand was up 15% during this Dhanteras and Diwali festival season on increased purchases of coins, idols, and silverware. Analysts attributed the surge in silver buying to lack of consumer confidence in the economy and silver’s relatively low price.

This post was published at Schiffgold on DECEMBER 15, 2017.


Amid Bad Fundamentals, Gold Sector Rally May Have Begun

We have been expecting a seasonal rally in gold, silver and the miners off of a bottom due in either December or January, as is typical of the sector. I’ve marked upSentimentrader’s seasonal gold pattern to show the secondary low made (on average over 30 years) in December and the January ramp up that follows (on average).

But we’ve long contended that noise about global strife (geopolitics), inflation and most of all China/India demand need to be tuned out and the larger component planets of the Macrocosm ™ need to be respected in order to call a real bull market phase in gold and gold stocks.

This post was published at GoldSeek on Sunday, 17 December 2017.


Trump Continues Obama’s Wars Against Democracy

All the US federal government knows is how to start and perpetuate wars, including the still on-going war against gold and silver. Bitcoin may be next.
Trump Continues Obama’s Wars Against Democracy
Eric Zuesse, originally posted at strategic-culture.org
U. S. President Trump’s bold support for the apartheid dictatorship of Israel against that theocratic-racist nation’s non-Jews, fits into a larger picture of the supremacist nation that America itself has increasingly become. His immediate predecessor, Barack Obama, had repeatedly referred to the United States as being the only indispensable nation – that all others are ‘dispensable’ – such as when President Obama addressed America’s future military leaders, at West Point, on 28 May 2014, by telling them:
The United States is and remains the one indispensable nation. That has been true for the century passed and it will be true for the century to come. … Russia’s aggression toward former Soviet states unnerves capitals in Europe, while China’s economic rise and military reach worries its neighbors. From Brazil to India, rising middle classes compete with us, and governments seek a greater say in global forums. … It will be your generation’s task to respond to this new world.

This post was published at Edge Trader Plus on Tuesday 12 December 2017.


Gold And Cryptos Destroy Fiat

Please click here now. I’ve predicted that a long period of deflation in the Western world would end with a Fed taper, rate hikes, and quantitative tightening. That’s clearly in play now, and the deregulation of America’s thousands of small banks is perhaps the most exciting event taking place on this new ‘inflationary frontier’. Because of these powerful monetary trends, I’ve predicted big problems ahead for Wall Street and somewhat better times for Main Street. Having said, that, I think investors would be making a major mistake to assume America is going to experience any kind of fabulous rebirth and relive an economic growth era like the 1950s, let alone the Golden Age of the 1880s. The country now sports some of the worst demographics on the planet with horrific debt levels that are still growing under a president who is a spectacularly successful businessman. What happens when President Businessman is replaced with President Socialist? Some sort of currency revaluation endgame is what happens. The problems of America and most of the Western world are not going to be solved with pump-up speeches, sporadic tax cuts, and insane ‘good guys versus bad guys’ wars. American GDP growth is going to continue to wallow at low levels while China and India blast into what I call the ‘bull era’ at very high velocity. Global investors need to make themselves great, and the blockchain/crypto asset class is one way to do it with style. I view blockchain as a sub-sector of the gold asset class. Importantly, blockchain trading is set to become more regulated very quickly.

This post was published at GoldSeek on 12 December 2017.


SWOT Analysis: Is Gold Set to Rise in 2018?

Strengths
The best performing precious metal for the week was palladium, but it clocked in with a price decline of 1.41 percent. In an interview with Sharps Pixley’s Lawrie Williams, precious metals specialist Ted Butler said his analysis shows that, for at least the past nine months or longer, Goldman Sachs and JPMorgan Chase are taking 80 percent of all COMEX physical deliveries of gold and silver. Butler believes that someone would only take delivery if you thought the price was going to go up in value. A Shariah-compliant gold ETF targeting Malaysian institutional investors will be made available by Affin Hwang Asset Management. The ETF was listed on the Kuala Lumpur stock exchange on Wednesday. Traders are still reluctant to bet against gold even with impending tax cuts and rate hikes, thought to be negative for the yellow metal. Bearish positions on bullion futures and options were at a five-year low last week. Weaknesses
The worst performing precious metal for the week was platinum, down 5.53 percent. Traders surveyed were overwhelmingly bearish ahead of next week’s Federal Reserve rate hike expectation. The world’s second biggest market for gold, India, reported a third consecutive month of decreased imports. Additionally, Australia’s Perth Mint reported gold sales of 23,901 ounces last month, about half of the prior month’s volume

This post was published at GoldSeek on 11 December 2017.


Asian Metals Market Update: December-11-2017

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.


Gold Market Charts – November

Gold Market Charts – November BullionStar’s monthly ‘Gold Market Charts’ articles examine recent developments in the world’s largest physical gold markets using graphical gold charts created by the GOLD CHARTS R US market chart website. The physical gold markets covered include India, China, Russia and Switzerland and where relevant, the COMEX gold futures vault inventories.
Note additionally that BullionStar’s website also hosts gold and silver price charts under the BullionStar Charts menu, which also allows you to chart currencies, commodities, stock indices and Bitcoin in terms of gold and other precious metals.
SGE Gold Withdrawals Physical gold withdrawals from the vaults of the Shanghai Gold Exchange (SGE) during October 2017 reached 151.54 tonnes. SGE gold withdrawals are a suitable proxy for Chinese wholesale gold demand due to the fact that nearly all gold supply in the Chinese gold market makes its way through the SGE vaulting network to be traded on the SGE’s gold trading platform.

This post was published at Bullion Star on 4 Dec 2017.