Month: September 2015

Mainstream Media & Banks Warm Up To Gold

Mainstream pundits apparently are warming up to gold. A number of recent bank reports, as noted by NewsMax, have viewed the metal’s near term future somewhat optimistically. Moreover, on the television characters like Jim Cramer have been positive on gold.

For instance, UBS recently asked in a bank report: “Time to warm up to gold?”  UBS states that the market will turn around in gold.

“But the possibility that the market may be overestimating the terminal rate suggests that current weak sentiment and price expectations may also be overdone,” UBS analysts stated. “Positioning has declined considerably over the past couple of years and has now become very light. There may be an opportunity, especially for long-term oriented participants looking to diversify portfolios, to rebuild positions at more attractive levels.”

“Any further downside is likely to be contained, and we expect the market to ultimately find stability, which should provide the foundations for a moderate recovery over the coming years.”
HSBC also recently wrote positively of gold: “It has managed to hold above and build on gains over $1,100/oz. and in non-USD terms, it is back above EUR1,000/oz.,” the bank stated.  “The recovery in oil prices, which … if sustained, may lend additional support to gold. Chinese demand, as indicated by persistent Shanghai premiums, implies decent levels of imports of gold into China. This is offsetting the slowdown in Indian demand. Retail demand for gold and silver coins is also strong. On the negative side, we are unsure about central-bank demand, at least at the moment.”

According to Commerzbank, “Switzerland exported 173.9 tons of gold in August, 8% more than in the previous month. Nearly 70% of this total was shipped to Asia…50% more gold was exported to China. Exports to Hong Kong were actually more than twice as high as in July, which suggests that China also imported more gold from Hong Kong last month.”

“Increased gold demand in India and China should lend support to the gold price,” said the Commerzbank report. On CNBC recently, a trader outlined why current economic conditions could be good for gold.

In the following video, Jim Cramer – popular amongst gold bugs for his negative view of the metals – seems positive on gold prospects.

Dilbert: Boss Hoards Gold

September 17 version of Dilbert takes a look at gold ownership:

Screen Shot 2015-09-19 at 7.38.47 PM

Premiums Tell It All In Silver Bullion Retail

On the retail level, procuring silver bullion has become an issue with delay in several products including American Silver Eagles, Canadian Silver Maples and even some private silver rounds. The premiums tell the entire story.

Silver.com has become the premium leader in the online retail market. As you can see by the chart below, the company raised its premium on American Silver Eagles from 22%-sub 30% around August 23.

 

Compare Silver Prices

Silver.com did similar with its Canadian Maple Leaf price.

Compare Silver Prices

APMEX increased its Canadian Silver Maple price:

Compare Silver Prices

Provident metals raised its premium on American Silver Eagles from 30%-40% in the past two weeks.

Compare Silver Prices

 Premiums on Austrian Philharmonics have also increased with little reprieve: 

Compare Silver Prices

 

While the premium change coincides with a decrease in the silver price to sub-$18 from $18.60, you can see that the silver price has regained much of this, while premiums remain high. There are still great opportunities to buy inexpensive bullion. Find them here.

Millions of dollars in gold silver sitting under New Zealand volcanoes

US and New Zealand researchers recently  found massive gold and silver deposits in reservoirs underneath a volcanic range on New Zealand. Project researcher Stuart Simmons told Quartz that find could be worth between $50 million and $250 million, though that is speculation. As Simmons explains:

Taupo Zone [is]…similar to Yellowstone National Park in the US, volcanic magma enriches underground water with heat, chemicals, and in some instances, precious metals.

 The steam from the area’s hot springs is used as a source of geothermal energy, Simmons explained, and when the hot water moves toward the earth’s surface, it is sometimes caught in the pipes of geothermal production wells—which are designed to generate power from hot water in the earth. Over time, thin films of silver and gold build in the pipes of these wells.
Researchers want to extract the gold, although Simmons said there has not been enough to research to form the basis of a mine. Further more, in order to extract the gold from the hot springs, new mining techniques would have to be used.