• All about gold and gold bullion, from buying to selling, from investing to prospecting.
    All the comprehensive data, news and educational information about gold and gold bullion

Share |

Gold Today News

China Challenging the West for Gold Market Control

gold jewelry

China is continuing to challenge the dominance of the West (London and New York) over trading in the gold market. The Shanghai Gold Exchange (SGE), due to open in a month or so, is in front of target, signing up eager foreign members.

The SGE has signed up 40 companies, well over the target 30, including many foreign banks eager to be able to trade gold in Yuan instead of the usual US dollar.

The Bourse will open in September the 29th in the Shanghai free-trade zone, starting with three Yuan-denominated physical gold contracts, of 100 grams, 1 kg and the bigger London gold delivery bar weighing 12.5 kg, respectively, according to a close source.

According to Bernhard Schnellmann, director of the Swiss-based Argor-Heraeus, "It is too important a market to stay away,"

He went on, "I think the SGE will be successful with this new exchange as they have a big home market and there should be enough liquidity."

"Having a gold contract delivered in the free trade zone in local currency is interesting in terms of bringing together the onshore and offshore players," said one trader with a bullion bank that is considering being part of the exchange.

Market sources have said HSBC, AND Banking group, Standard Bank, Standard charted, Bank of Nova Scotia and even JP Morgan have shown interest. Refiners such as the Perth Mint and Argor-Heraeus are also considering membership. Offshore trading is currently restricted to certain financial centres such as Hong Kong, London and Singapore so this will give the Chinese currency more exposure with less need to trade or exchange in US dollars and will boost the Yuan as an international currency.

According to a report in Reuters, 'China - the world's biggest buyer of raw materials from copper to coal - is pushing hard to establish pricing benchmarks for a number of commodities. China and other Asian gold trading centres such as Singapore are seeking control over pricing of the precious metal as they seek alternatives to the so-called London fix, the global benchmark, which is being investigated by regulators on suspicion of market manipulation.'

References in.reuters.com/article/2014/08/22/gold-china-exchange-idINKBN0GM0QU20140822 www.Gata.org


Gold Mining Industry Cutting Costs

As the price of gold has dropped 32 percent since the all-time high of 1900 dollars an ounce in September 2011, meant gold miners are now seeking ways to reduce their costs.

The cost of mining gold can vary considerably. "Gold mining costs are not uniform," according to UBS's Art Cashin. "They vary from mine to mine and from level to level within each mine." The variation can be quite large as evidenced by the mining giant Barrick Gold have issued a chart that includes the cost of mining an ounce of gold at each of their sites. The range is very large depending on the site and can vary from $333 dollars up to $3,764 an ounce.

As you can see below, the cost of mining an ounce of gold for Barrick ranges from $333 to $3,764 per ounce.

BarrickGold Chart
Chart from www.businessinsider.com.au/the-cost-of-mining-gold-2013-6

One cost cutting measure is AngloGold's reduction in the listings on various exchanges around the world. AngloGold has announced it will be withdrawing its share listing on the London Exchange. "The bulk of the trading of its shares is on the Johannesburg Stock Exchange and the New York Stock Exchange. "The company added that it "wishes to streamline its administrative procedures and reduce costs arising from listings on multiple stock exchanges." The shares will stop trading on September the 22nd

Meanwhile In Vietnam, Ranked 7th largest gold consumer in the world by The World Gold Council, consumed 92.2 tons of gold with a value of 4.16 billion. Up 20 percent on 2012.

According to a report by the World Gold Council, "2014 has seen a pause in the schedule of the central bank's gold auctions, causing a supply squeeze that has kept the domestic price premium high at around US$100-150/oz. [more than global prices]," the World Gold Council said in its report. "As a result, interest in chi rings (plain, gold rings with low mark-ups) as an investment proxy remains high and will increase if tight supply conditions persist in the bar market," the council continued, adding that "unofficial flows continue to supplement the official supply."

Reference:
www.ft.com/intl/fastft
www.businessinsider.com.au/the-cost-of-mining-gold-2013-6


47.5 million dollars raised for gold ETF

The Bo Gold Exchange traded Fund has so far raised 47.5 million dollars or 292.2million Yuan according to Bosera Funds and the launch date could be as close as September according to Bosera Funds.

The fund will invest in spot gold contracts and trade on the Shenzhen Stock Exchange.

Three Gold ETFs are currently trading on the exchange, HuaAn Gold ETF and Goutai Gold ETF who were launched in mid-2013 and E Fund Gold ETF who launched in December last year after raising 500.4 million Yuen.


Bloomberg bucks the tide for China Gold

Although a major report recently published by the World Gold Council, "Chinas gold market: progress and prospects" reports that the private sector demand is going to increase by at least 20 percent over the next 3 years, Bloomberg seems to have embarked on a campaign to undermine confidence in gold by inferring that Gold demand is shrinking in China when this is clearly not the case.

Bloomberg is claiming that gold demand shrank in the second quarter of 2014 by almost half, 52 percent in fact and is predicting doom and gloom for gold in the Asia pacific region with a likely gold price by the end of 2014 of 1040 dollars per ounce.

Gold will drop to $1,050 an ounce by the end of 2014 as the U.S. recovery accelerates, according to Goldman Sachs. Never one to boost the gold price, especially considering the short selling they participate in.

However, this is contrary to a major report published by the World Gold Council "China's gold market: progress and prospects" suggests that private sector demand for gold in China is set to increase 20% from the current level of 1,132 tonnes(t) per year to at least 1,350t by 20171. Following the record level of Chinese demand in 2013, which saw the country become the world's largest gold market, the report suggests that while 2014 is likely to see consolidation, the succeeding years are likely to see sustained growth.

And Koos Jansen, Gold researcher and GATA consultant, of BullionStar has indicated, "In week 29 (July 14 -18) 32 metric tonnes were withdrawn from SGE vaults and in week 30 (July 20 - 25) 33 tonnes were withdrawn. Both lower than the year to date average of 35.4 tonnes, but higher than the five week moving average trend (5 WMA). In total 1063 tonnes has been withdrawn year to date. The premium on gold at the SGE is still hovering around zero." n addition he reports that the total China Gold reserves is now at 15,000 tonnes and this is backed up by the fact that weekly gold withdrawals from the Shanghai Gold Exchange (1063 mt YTD) is higher than World Mining Production (1545 mt YTD).

Gold withdrawn from the SGE this year to date is around 1063 tonnes. This is going to China. The world gold council, however, does not record gold hoards by wealthy Chinese families.

So Gold is still very much the flavour of the year in Asia, especially in China and India, both of which are accumulating around 50 percent of the world's total gold at any one time.

References:
www.bloomberg.com/news/2014-08-14/gold-demand-in-china-contracts-52-after-buying-frenzy-subsides.html#disqus_thread
www.bullionstar.com/article/chinese%20gold%20demand%201063%20mt%20ytd
www.gold.org/supply-and-demand/china-report


GoldMoney Now Storing 1.5 Billion Dollars of Gold!

GoldMoney has increased its storage of gold to $1.4 Billion dollars worth of gold for over 22,000 clients around the world. GoldMoney has offices in London, Jersey and Hong Kong. It offers its customers storage facilities in Canada, Hong Kong, Singapore, Switzerland and the UK provided by the leading non-bank vault operators Brink's, Via Mat, Malca-Amit, G4S and Rhenus Logistics.

GoldMoney is one of the world's leading providers of physical gold, silver, platinum and palladium for retail and corporate customers. Customers can trade and store precious metal online easily and securely, 24 hours a day. Not only that but there are no minimum or maximum deposits or withdrawls. One can deposit or withdrawn any amount.

Historically gold has been an excellent way to preserve purchasing power over long periods of time. For example, today it takes almost the same amount of gold to buy a barrel of crude oil as it did 60 years ago which is in stark contrast to the price of oil in terms of national currencies such as the US dollar.

GoldMoney is regulated by the Jersey Financial Services Commission and complies with Jersey's anti-money laundering laws and regulations. GoldMoney has established industry-leading governance policies and procedures to protect customers' assets with independent audit reporting every 3 months by two leading audit firms.

Find out more about GoldMoney at goldmoney.com


Chinese Demand for Gold Strong

inside tibet mining Chinese demand for gold remains strong with Chinese gold reserves reaching an estimated 15,000 tonnes. According to Jasen Koos, Gold Researcher and GATA Consultant,"In week 29 (July 14 -18) 32 metric tonnes were withdrawn from SGE vaults and in week 30 (July 20 - 25) 33 tonnes were withdrawn. Both lower than the year to date average of 35.4 tonnes, but higher than the five week moving average trend (5 WMA). In total 1063 tonnes has been withdrawn year to date. The premium on gold at the SGE is still hovering around zero."

It is estimated that china has imported just over 670 tonnes of gold this year so far. This does not include the massive gold mining currently underway in Tibet. Large scale valuable mineral resources are being extracted by the Chinese Government in Tibet including copper, gold, and silver. Other precous resources being mined include. lead, zinc, molybdenum, asbestos, uranium, chromium, lithium and many more.

References:
www.bullionstar.com/article/chinese gold demand 1063 mt ytd
freetibet.org/about/tibets-environment


GoldMoney holdings pass US$1 billion mark
1 June 2010 - GoldMoney, one of the worlds largest providers and holders of physical bullion for retail investors, now stores more than US$1 billion of assets on behalf of its customers. The company has achieved a growth of 112% over less than 18 months based on US $476 million of customer assets at the beginning of 2009, thanks to particularly strong demand for physical gold.

GoldGeoff Turk, CEO of GoldMoney, said: "Investors are now more than ever looking for a safe haven for their money. As gold has, on average, registered a yearly appreciation of approximately 17% over the past nine years, many investors have chosen to safeguard their portfolio by owning a tangible asset and simultaneously benefit from the price appreciation of precious metals.

"The market is being driven by the growing fear in the financial community that just like Greece, other nations might end up revealing huge budget deficits. GoldMoney therefore expects that the uptrend in gold has further to go. We expect to see customer assets grow as the price continues to rise. More and more people will turn to GoldMoney to protect their wealth."

GoldMoney is the leading provider for the online sale and storage of physical gold, silver and platinum to retail buyers.

Find out more about Gold Money
One can invest in gold online with relatively little cost. At Gold Money you can buy gold, silver and or platinum in any quantity and have it stored for you in banks in Switzerland or London on your behalf. All is fully insured and secured and you do owned the amount of precious metal you have bought.


Banks Reopening Vaults for Gold

An indicator of the value and faith people are placing in gold in this global financial time is the number of vaults now being built and opened around the world.

Investors and mums and dads are piling money into gold in record levels. Old vaults that were closed, such as the JPMorgan Vault in New York that was closed in the 90s, is now being reopened to accommodate the influx of gold bullion.

With gold climbing to record heights, investors are turning to physical gold bullion instead of the flimsy metals futures or even mining equities. Private investors now hold around 30 thousand tonnes of solid gold according to the consultancy GFMS. This, for the first time in history, is more gold bullion than the central banks hold.

Other banks such as the HSBC, Deutsche Bank, Barclays and Bank of Nova Scotia, for example, are also opening old vaults to accommodate the influx of gold.

According to Peter Smith, head of JPMorgan's vaulting service, "There is growing interest from ETFs and other fund institutions as well as from corporates and high-net-worth individuals to store precious metals."

Many of the old historic vaults cannot be reopened as they have been converted into restaurants such as the New York vault built in 1902 for John Pierpont Morgan which is now home to a steak house.

Now Gold has Hit the 1300 Mark - Where to Now?

GoldNow that gold has hit the 1300 US dollars an ounce mark, where to now?

Will it continue its rise or has it done its dash?

Most gold bugs, and even non gold must have been forced to admit that gold is by no means yesterdays child. Asian banks buyers and dealers are snapping up gold even with the higher price. Do they expect it to rise even further? Or perhaps it is the drop in faith in the dollar. "The probability that the Federal Reserve may implement a second round of quantitative easing keeps boosting gold," said C.H. Oh, head of overseas futures at Seoul-based NH Investment & Futures. "We think there are good chances gold prices will rise further in U.S. dollar terms," Tobias Merath, head of commodities research at Credit Suisse Group AG, wrote in a report dated recently. "The U.S. dollar is weakening and there's talk about a potential second round of quantitative easing in the U.S."

"The underlying bullish trend in the gold market continues to be fuelled by the high level of uncertainty regarding the United States and European economies," said SEB Commodity Research analyst Filip Petersson. "Wealth preservation are the keywords.As long as we do not see a reduction in the uncertainty regarding the long-term economic outlook, gold prices will remain well-supported as the currency of choice for risk-averse investors." he added. Evidently an uncertain financial future is continuing to fuel demand for more gold and as this happens, the stock of gold available will decrease and the value, compared to the ailing dollar, will continue to increase.

It seems that gold is set to continue its trend and may possibly reach 1500 before the financial year is out.

GoldMoney holdings pass US$1 billion mark

GoldMoney, one of the world's largest providers and holders of physical bullion for retail investors, now stores more than US$1 billion of assets on behalf of its customers. The company has achieved a growth of 112% over less than 18 months based on US $476 million of customer assets at the beginning of 2009, thanks to particularly strong demand for physical gold.

Geoff Turk, CEO of GoldMoney, said: "Investors are now more than ever looking for a safe haven for their money. As gold has, on average, registered a yearly appreciation of approximately 17% over the past nine years, many investors have chosen to safeguard their portfolio by owning a tangible asset and simultaneously benefit from the price appreciation of precious metals."

"The market is being driven by the growing fear in the financial community that just like Greece, other nations might end up revealing huge budget deficits. GoldMoney therefore expects that the uptrend in gold has further to go. We expect to see customer assets grow as the price continues to rise. More and more people will turn to GoldMoney to protect their wealth."

GoldMoney is the leading provider for the online sale and storage of physical gold, silver and platinum to retail buyers.

Find out more about Gold Money
One can invest in gold online with relatively little cost. At Gold Money you can buy gold, silver and or platinum in any quantity and have it stored for you in banks in Switzerland or London on your behalf. All is fully insured and secured and you do owned the amount of precious metal you have bought.


Top of Gold Today

Feedback | Links | Disclaimer | Privacy | Terms


Copyright (c) 2007 - 2014 ALL RIGHTS RESERVED. Technical Author Services Pty Ltd.

Webmaster: Technical Author Services Pty Ltd.