My name is Shawn Ozbun, and our goal is to keep you up to date with what’s going on in the world of Gold and Silver by providing you with current news and precious metals pricing.
The Silvertowne Vault Cast is brought to you by www.Silvertowne.com
Welcome back to the SilverTowne Vault Cast. Today I’m going to go over an article that’s titled “Why Gold Bears Will Soon Find Out They Are Wrong”. We are going to talk about China cornering the market on gold, and an article says that there is no demand for silver now, and I thought I would rant a bit about that.
Before we get into all of that, let’s look at today’s precious metals pricing.
Gold - $1303.71 Down $47.40
Silver - $20.14 Down $1.18
Platinum - $1402.00 Down $9.00
Palladium - $676.00 Down $15.00
Why Gold Bears Will Soon Find Out They Are Wrong
There has been increased volatility in gold bullion prices as investors run from precious metals. According to data compiled by Bloomberg, gold bullion’s 60-day historical volatility reached 28.9% on June 13. This was the highest level since December of 2011. Average volatility over the past five years for gold bullion prices has been around 20%. (Source: Bloomberg, June 14, 2013.)
As the volatility continues in gold bullion prices, the fundamentals remain strong. Actually, demand for gold coins is unprecedented right now.
Aside from individual investors buying gold bullion, central banks continue to diversify their reserves into gold bullion as fiat currencies fail to protect their wealth. In spite of the decline in gold bullion prices, as has been well documented in these pages, central banks form Russia, Turkey, and Kazakhstan continue to add precious metals to their reserves.
Bullish stock advisors are forgetting that we are standing on the cusp of a global economic slowdown—an event that bodes well for gold bullion. It may be difficult for my readers to envision right now, but with the recent exodus by investors out of U.S. bonds, once the stock market starts declining, there will be few other “stores of wealth” for investors to seek aside from gold. Read More...
China is cornering the market on gold
China for instance in the last decade has set up various Sovereign Wealth Funds through which they are purchasing vast stores of PM from the Bullion Banks themselves. The Main monster in this den of Dragons is the Sovereign Wealth Fund CIC (China Investment Corp) an almost half a trillion dollar monster whose sole purpose was to consume worthless US dollars, and use them to buy valuable assets.
After much careful digging it seem that the Chinese are heading the train off at the pass and purchasing Gold Ingots at point of manufacture paying more than what a refiner would pay. Once again adding a quiver to the long list of strategic metals and rare earth mineral mines, China is cornering the market on Gold.
When the institutional attack on paper gold and silver prices began in the middle of February, gold spot prices were around $1680 per ounce. Over the next two months, gold fell more than $300 to a low of $1360 as weak hands divested themselves of assets in both the futures and ETF markets. However, all this did was accelerate the disconnect between spot and physical prices for the precious metal, and create a worldwide buying spree, with premiums for gold going as high as 40% in some cases. Read More...
No takers for silver despite low prices, demand plunges 40% in a month
KOLKATA: Demand for silver jewellery and coins has dropped by almost 40% in the last one month although prices have fallen to 43,000 per kg from 55,000 per kg in June last year.
The metal has also lost its flavour as an investment product and the trade says this bearish trend will not be over soon. Suresh Hundia, a Mumbai-based bullion dealer, said: "There is no demand for silver in the market now. The industry can expect some demand only in August. There is a huge stock of silver with traders now. They will first have to offload this and then place fresh orders." Read More...
For the best source for acquiring gold and silver please contact Silvertowne at 1-877-477- coin, that’s 1-877-477-2646 or you can visit us at www.silvertowne.com. Silvertowne has been a trusted precious metals and numismatics dealer since 1949.
One of the most common ways to invest in silver is with silver ingot . They are affordable, portable and easy to stack and store. Popular SilverTowne Trademark Silver Bars, featuring a classic prospector and his donkey, are guaranteed .999 fine silver and available in 1, 5 and 10 ounce sizes and SilverTowne is currently offering free shipping for these ingots. Contact Silvertowne today.
[Disclaimer] Shawn Ozbun is not a licensed financial adviser, there is risk associated with all investment including gold and silver. You should seek advise from a licensed financial expert before making a purchase.
