Gold Dips Below $1,170 Despite Greek Debt Crisis

Gold Price below $1,170 – On-going Greek Crisis

Price of gold fell recently as the markets anticipated news from euro zone summit speculating whether progress would be made due to the Greek debt crisis, as growing positions in gold underline bearish sentiments towards the precious metal.

In the meantime, China’s foremost stock market closed at 7.4% down the same day and some 18% down from fortnight back since several brokerage houses had tightened their margin trading rules. A data portrayed French and Italian consumer confidence rising though private sector loans from the 19 nation Eurozone increased by only 0.5% annually in May, as stated by the European Central Bank, inspite of 5% growth in the currency union’s broad money supply motivated by the new QE bond buying program of ECB.

 Gold has failed so far to see substantial safe-havenbids due to the on-going Greek crisis and the strength in the dollar has also stopped improvements. Higher prices attempts seem pointless with traders selling into rallies and bringing the prices quickly lower. Spot gold eased 0.1% to $1,168 an ounce by 0630 GMT and the metal increased as much as 0.6% early on Monday followed by Greek rejection on terms of the bailout package.

Investors Concerned – Major Macro Risks

However, it gave up most gains close to 0.2%. On Tuesday, US gold futures dropped to 0.5 percent. The price move indicated the growing evidence that gold cannot hold its weight against the face of market jitters according to an analyst at Phillip Futures, Howie Lee.

He commented that `while that suggest gold has lost some appeal as a safe-haven asset, more importantly it signifies the loss of interest in gold as an investment vehicle. Investor positioning reflected the same, established on US Commodity Futures Trading Commission data on Monday. In the week ending June 30, hedge funds as well as money manager increased their short position to the highest on record.

Non-commercial dealers increased their short positions to a two-year high. While, investors were still net long on gold, a week ago, bullish position fell drastically.However, in terms of transaction, 3 days of strong revenue in the Shanghai Gold Exchange’s domestic kilobar, contract trailed on Friday, by record high volume, with its premium doubling from the previous day to $2.60 per ounce over comparable London quotes.

A London bullion bank had commented that `more people getting involved is a clear sign that investors are concerned about major macro risks – Greece, Europe, China’, adding that the exchange trade trust fund vehicles backed by gold, saw strong inflows on Thursday.

Athens Speculating Proposal for a Deal

The benefit of gold had also been affected by prospects of higher US interest rates later this year which would have increased the demand for the dollar and reduce the appeal of non-interest paying bullion. The weakness in the euro, recently from the Greek crisis has supported the dollar.

Dollar index trading near a one month high was reached on Monday and according to a Sydney based bullion trader, focus was on the euro zone meeting to take place with any Greek debt deal is likely to send gold prices below $1,150.Athens is speculating in bringing a proposal for a deal to the summit after Germany and France informed Greece on Monday, to come up with thoughtful proposals for the purpose of restarting financial aid talks.

Edward Meir, an INTL FCStone analyst stated that `any movement towards an agreement would probably mean that gold’s staying power at current levels will prove to be short-lived’.

Gold Snaps Seven-Day Rally

Gold Dropped – Investors opt for Uncertain Equity Assets

Gold dropped on Friday as investors opted for the uncertain equity assets after some mixed economic data from U.S and the fluctuating dollar. However, gold future gained 1% for the week and the favourite metal continued making strong gains because of its appeal for the past two days even though global equity markets seemed low amidst the confusion in Yemen.

Earlier gold rallied after officials from Federal Reserve officials’ commented that U.S interest rates would stay at zero for some time till September. In the meantime, focus of the investors was on the comments from the Fed Chief Janet Yellen who planned to address the Federal Reserve Bank of San Francisco Conference and would be delivering a note entitled, `The New Normal for Monetary Policy,’ before the close of markets.

Ms Yellen’s speech is planned at 7.45 pm GMT where traders would be listening for some indication on when the Fed would start tightening monetary policy. According to Senior Manager Ole Hansen of Saxo Bank, he states that `Yellen has been accused of being too dovish and probably she wants to react by making her speech sound a little less dovish’.

Adjustment from Ultra-Loss Monetary Policy

The Presidents of the St. Louis Fed and Atlanta Fed, at separate events on Thursday said an adjustment away from ultra-loose monetary policy would be needed due to US economy’s improvement since 2007-09 financial crises. By 3.24 pm GMT, spot gold has eased 0.5% to $1,197.70 an ounce and the metal increased to 2% on Thursday to its highest since March 2 at $1,219.40 due to reaction to tensions in the Middle East.

The gold futures of US fell from $7.90 to $1,196.70 an ounce for April delivery. On Wednesday, Saudi Arabia and its associates had launched air strikes in Yemen rattling broader markets and backing gold which is usually seen as an assurance against any risk. Julius Baer, head of commodity research Norbert Ruecker commented that `Geopolitics has never been something which could set a trend in gold prices; it only causes a short term deviation from the existing trend’.

Inspite of the Friday’s losses, gold was back on track to finish the week up at 1.3% after its seven day rally and the metal’s longest winning stretch since August 2012.

Holdings Dropped by 6 Tonnes

Gold showed gains after the Fed signalled caution at its policy meeting last week on the pace of interest rate increase prompting the dollar to drop from multiyear high and a violent rate rise path could affect the demand for gold which is a non-interest paying asset.Caution by the investor was obvious as SPDR Gold Trust, which is the world’s largest gold backed exchange traded fund, post outflows continued and holdings dropped nearly by 6 tonnes on Thursday to 737.24 tonnes which was the lowest since January.

As physical demand all over Asia slowed down, the long rally in prices discouraged most of the buyers. Palladium had lost by 3% to a two month decrease of $743.47 an ounce and platinum was low by 1.2% at $1,139.99 an ounce while silver dropped by 0.6% to $16.97 an ounce.

Stock Market Rebound Lowers Gold Prices

Gold Prices Lower

The bounce in the stock markets all over the world at the starting of the trading week has pressurized the U.S trading early on Monday, as reflected in the moderately lower gold prices. A bearish outside market phenomenon, which is working against these precious metals, is also the reason for the higher index of the U.S dollar on this day. At $1,210.00 an ounce, February Comet Gold was last down $12.50. At $1,210.25 an ounce, Spot Gold was last down $12.20. At $16.84 an ounce, March Comet Silver was last down $0.227.

Crude Oil’s Status

Due to last week’s selling pressure, the World Stock market prices were comparatively higher on Monday for corrective bounces. The past few weeks have seen plunging price of crude oil. This has frightened the stock markets, while the consumer at gasoline pumps have benefited.

The January Nymex crude posted a corrective bounce after falling to a five-year low of $56.25 overnight. Libya, a major oil-exporter, is limiting selling interest in oil, due to some fresh violence within the country, at the starting of the trading week.

Incidents over the World Affecting the Market

Not hovering much below its recent four-year high, The U.S dollar index was firmer on Monday. For the past few months, the bearish underlying factor for the sector of raw commodity has been the stronger greenback.

The Prime Minister of Japan, Shinzo Abe, after his much expected and anticipated election victory on Sunday commented that he will continue in his endeavor to boost the Japanese economy, which is presently moribund.The terrorist situation in Sydney, Australia where a gunman is retaining hostages at a café is also being kept watched by the markets, in suspicion of terrorist links.

The FOMC Meeting

A meeting of Federal Reserve Open Market Committee (FOMC) that is to be held this week for discussing the monetary policy of the U.S is being anticipated by the traders and investors. Many believe that the monetary policy hawks will be favored as the Fed meeting is expected to change the statement wording slightly.

A timeline to raise interest rates might also be further elaborated by the FOMCin the meeting, as the interest rates hasn’t been increased by the Fed in six years. U.S. economic data that is to be released on Monday includes the Empire State manufacturing survey, NAHB housing market index, industrial production and capacity utilization and Treasury international capital data.

In the Near Future 

Technically, in order to lower chart consolidation after recent gains, the gold futures of February have seen sideways. The overall near-term technical advantage is still in possession of the bears. A closing above solid technical resistance during the December high of $1,239.00 is the next year-term upside price breakout objective of the gold bulls.

A closing of prices below solid technical support of $1,184.80 is the next downside near-term price breakout objective for the Bears. The first resistance is observed at $1,221.00 and then again at the overnight high of $1,225.00, while the first support is generally observed at the overnight low of $1,207.00 and then finally at $1,200.00.

Gold Prices Ends Fluctuations As The Market Consolidates

Gold prices finally find a steady ground after the Friday US trading. The continued safe-haven demand and a lower U.S. Dollar index are limiting the selling pressure in gold which is a good sign. February Comex gold was last up by $1 at $122.20 an ounce while Spot gold was last down by $1.40 at $1226.50. March Silver last traded up by $0.048 at $17.155 an ounce. Both gold and silver near term technical had shown a considerable improvement this week.

Falling Price of Crude Oil

Market is still focused on the falling price of crude oil. January Nymex crude had hit another five year low $58.80 a barrel. International Energy Agency has released a report which predicted that the world demand for the crude would reduce in 2015. The consumers are cheering the falling of the gasoline prices at the pump while the traders and investors are greeting the decline with anxiety. World Stock markets are also not faring well either and they are under selling while the U.S. stock indexes are also seems to be lower in the pre-market trading on early Friday. The sell off trend in the world equities has benefitted safe assets mainly gold and U.S. Treasuries this week.

Other Markets Also Reels Under Pressure

The Bank Of Russia has once again intervened in the currency market to strengthen its ruble which had hit another record low against the U.S. dollar. The ruble is astonishingly down by 44% against the U.S. dollar this year. European Union also shows below the market expectation figures which are a cause of worry. EU industrial production rose by just 0.1% in October and was up by meagre 0.7% on year-on-year basis.
Among the Asian market China showed a stronger than expected bank loan activity in the month of November. On other hand Japanese Yen is suffering from selling pressure and volatile trading this week. Japan is soon to go through important elections from this Sunday.

Traders and investors are eagerly looking ahead for the next week when Federal Reserve’s Open Market Committee (FOMC) will meet to discuss about U.S. monetary policy.

Gold Seems To Settle After Huge Fluctuations

February gold futures are showing sideways consolidation after large gains in Tuesday trading which is not unusual. The gold bulls are almost reaching out for price breakout objective to register a growth against the solid technical resistance and they had successfully ended the week at high of $1239.00. Bears’ next near-term downside price breakout objective is closing prices below solid technical support at $1,200.00. First resistance is seen at the overnight high of $1,228.90 and then at Thursday’s high of $1,233.40. First support is seen at the overnight low of $1,218.00 and then at $1,210.00.
This Wednesday the March silver futures hit its six week high. The Silver bulls’ next upside breakout objective is closing the prices above the solid technical resistance at the high of $17.825 an ounce while silvers ended their week low at $16.165. The First resistance was seen at the week high of $17.355 and next at $17.50. The next support could be seen at Thursday’s low of $16.945 and at 16.81.

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The Gold Prices Falling Because of the Fed

The Federal Reserve has brought down the price of gold this week as investors reacted to the announcement of the U.S. central bank, suggesting that it would progressively restrict its extraordinary support measures to U.S. economy. The ounce of gold and has tumbled nearly $ 100 in the space of a week, from Thursday even below the threshold of 1300 dollars. This is something that had not seen for nearly three years. Friday, the price reaches $ 1295.45, which is its lowest level since mid-September 2010. Perverse effect of supportive policies, the Fed now considers the views of official figures, the economic recovery appears to begin in the United States no longer justifies the pace with which it buys Treasury bonds and mortgage-backed securities. These are the operations that are currently around 85 billion Euros per month. However, the withdrawal of these liquidity injections, which dilutes the value of the dollar, greatly reduces investor concerns about a possible resurgence of inflation. Thereby making the purchase of precious metals such as gold is much less attractive. The barbarous relic while losing its safe haven qualities, strengths as a bulwark against the rising prices are having so little appeal.

Some analysts believe that gold is now in a vicious circle, the decline in encouraging investors to liquidate ETF (investment funds backed by physical gold stocks). Thus, the most important of these funds, has seen its shares fall below 1,000 tons of gold this week. However, these new gold ETF disbursements weigh themselves on courses, racing somehow the machine. Meanwhile, physical demand is affected by the measures taken by the Indian government. The authorities have indeed raised the customs duties on the yellow metal, while the rupee is at a record low against the dollar. Now, gold imports will be allowed only for purposes of jewelry making. In addition, importers must now pay for their purchases in cash, without payment facility. India believes that these imports represent a significant portion of its current account deficit. A policy should reduce gold imports during the month of June, while India is the world's largest consumer of the precious metal. Finally, on the London Bullion Market, an ounce of gold finished at $ 1,295.25 at auction Friday night, against 1391.25 dollars at the end of last week.

After Gold Bubble Burst!

The soaring price of gold in recent years in early 2009 it was $800 and it reached more than 1900 dollars an ounce in fall 2011 - had all the characteristics of a bubble. And now, like any soaring prices of disconnected assets fundamentals of supply and demand, this gold bubble deflates. At the height of the outbreak, mad gold - a paranoid mixture of investors and others whose political agenda is determined by fear - happily predicted the price of gold on the order of 2000, 3000 or even 5000 dollars an ounce within the next few years. But the price has been declining since. In April, gold was at about $ 1,300 an ounce - and its price continues to trade under 1400 dollars, a drop of nearly 30% from its 2011 high. Many reasons can explain the bubble burst, and why the price of gold will probably fall further to stabilize at around $ 1,000 an ounce in 2015. First, the price of gold tends to buckle when serious economic, financial risks, and geopolitical threat to the global economy. During the global financial crisis, even the safety of bank deposits and government bonds was doubted by some investors. If there is concern of a financial Armageddon, it really is time metaphorically in his bunker to store weapons, ammunition, canned and gold bullion. But even in this terrible scenario, gold would be a poor investment. Indeed, at the height of the global financial crisis of 2008 and 2009, gold prices have collapsed several times. In an acute credit crunch, leverage purchases of forced sales or leads, because any price correction triggers margin calls. Gold can be very volatile - up or down - at the height of a crisis. Secondly, gold performs better when there is a risk of high inflation, insofar as its popularity as a store of value increases. But despite an aggressive monetary policy by many central banks - successive rounds of quantitative easing have doubled and even tripled the money supply in most advanced economies - the overall inflation is still low and steady decline.

 The reason is simple: when the monetary base explodes, the velocity of money slows as a result of the accumulation of liquidity by banks as excess reserves. The reduction of public and private debt keeps growing global demand below that of the offer. Companies therefore have little flexibility in their pricing because of too much capacity, and the bargaining power of workers is reduced due to high unemployment. In addition, with power increasingly weakened union, globalization has led to a cheap production of goods with high labor in China and other emerging markets, undermining the wages and employment prospects of workers unskilled workers in advanced economies. With low wage inflation, it is unlikely that there has been a steep rise in property. However, inflation fell even more today because of the overall downward adjustment of commodity prices in response to weak global growth. And gold follows the actual and expected decline in inflation. Third, unlike other assets, gold yields no income. While publicly traded stocks pay dividends, bonds have their coupons, and houses, rents, or are just a game of capital appreciation. Now that the global economy recovers, other assets - listed real estate or even the resurgent shares - now give better yields. Indeed, U.S. and global equities listed are far better than gold since the sharp increase of its course in early 2009. Fourth, the price of gold rose sharply when the real interest rate (adjusted for inflation) became negative after the various rounds of quantitative easing. The time to buy gold is when actual returns on cash and bonds are negative and declining. But the best prospects in the U.S. and global economies imply a term exit quantitative easing and zero interest rates from the Federal Reserve and other central banks, which means that real interest rates will rise rather than drops. Fifth, some have argued that the heavily indebted sovereigns would encourage investors to turn to gold because of the risks borne by the bonds. But there is an opposite situation. A large number of heavily indebted governments have substantial gold reserves which they may decide to get rid of to reduce their debts. In fact, the information that Cyprus planned to sell a small fraction - about 400 million Euros ($ 520 million) - its gold reserves led to a fall in the price of gold by 13% in April. Countries like Italy; which have massive gold reserves (over $ 130 billion), might also be tempted to do so, which would lead to a further decline in the price.

Sixth, some ultra-conservatives, especially in the United States, have so encouraged the gold rush that the effect was counterproductive. For this right-wing fringe, gold is the best hedge against the risk posed by the government conspiracy to expropriate private wealth. These fanatics also believe that a return to the system of the gold standard is inevitable, since the hyperinflation drift "devaluation" of paper money by the central banks. But in the absence of any conspiracy, and given the decline in inflation and the inability to use gold as a currency, such arguments are not valid. A currency serves three functions: it is a means of payment, unit of account and a store of value. Gold can be a store of value, but it is not a payment, you cannot use it to pay his races. It is not a unit of account the prices of goods and services, and those financial assets are denominated in gold. Gold remains so this "barbarous relic" by John Maynard Keynes, with no intrinsic value and mainly used as a safe haven against fear and panic largely irrational. Yes, all investors should have a very small share of gold in their portfolios as a hedge against extreme risks. But other real assets can be comparable coverage and extreme risk - although still present - are definitely lower than they were at the height of the global financial crisis. Even though the price of gold is likely to rise in the coming years, it will remain very volatile and will decline over time, over the improvement of the global economy. The gold rush is over.

Reason behind Buying Gold!

Buying gold is favored by almost all investors and laymen in the field for three main reasons: In fact, buying gold would be sought from the purchase ornament that the metal is a store of value and a safe haven much more net growth in a context of crisis especially now. Indeed, buying gold is the only safe other than the other monetary valued purchase. It is for these reason even central banks are getting into and carry out purchase of gold. Buying gold is a kind of asset protection for professional investors who believe that buying gold is a good investment for both the long term and short term benefits. This not to mention the attractive European taxation regarding this specific area stipulating a progressive exemption by 10% annually and that from the third year of the tax on the capital gain that would result in a tax exemption on the capital gain after 12 years of holding gold assets.

 Buying gold for the purpose of hoarding seems reasonable for several reasons. Indeed, buying gold is hoarded in order to avoid the trustee payments but also by a fear of an upset or simply to avoid certain estate costs. This leads us to say that to capitalize on gold through buying gold can only lead to benefits. In addition, buying gold is going to be a real guarantee despite it does not generate revenue. Therefore by purchasing gold, it is good before speculating wait for the right moment when gold allow you to generate good profits. As such each would behave selfishly by hoarding their gold and wait for the right moment because gold cannot be a generator of profit.

Dramatic Decline In The Price Of Gold!

In this month, the price of an ounce of gold has decreased by over 12%. This is the largest decline in the price of gold last 33 years history of gold. A decline in the selling price of gold, which affected the activity of buying gold from the counters of the jewelers around the world and it create a new rush in the bullion and gold coins across Asia and America. The ounce of gold traded in London at $ 1,790 October 5, (the highest price in the year 2012-1675), Friday, 12 April it was $1548 and on Monday and fell to $1416 before stabilize in the next few days between 1380 and 1400.

 Many explanations have accompanied the fall of the price of gold, some were optimistic and explained the decline of renewed confidence among investors in the economic and banking system as they no longer fear a collapse of the international banking system and no longer reluctant to put their money in financial products. So it is indeed signal the end of the crisis. Other explanations are much less positive considering that it is the fear of a resumption of the weaker global economy that was expected, resulting in less stress on the commodities market and therefore a lower risk of slippage in prices. Gold, he did not forget, is primarily a protection against inflation.

Black Monday for the gold market!

The price of gold has lost nearly 10% until Monday and a additional fall under 1440 dollars an ounce, its lowest level in over two years, and headed for its biggest drop in two sessions since February 1983 , investors massively reducing their exposure to this market. The price of gold has fallen by nearly 13% in two days, a victim of the announcement of the sale of a portion of the gold of Cyprus, which could give ideas to other countries in need of resources budget. Market players also explain this collapse by the prospect of the Fed influence by the end of its monetary policy by reducing its liquidity in the markets, which in recent months have made one of the engines up. "We cannot get across the road in front of a train: the market must go to the end of the race," said Max Schubert, head of commodities Emirates NBD Bank in Dubai. For its part, Ole Hansen, senior manager at Saxo Bank, suggests accelerated liquidation of long positions (the positions taken that focus on higher prices) from investors in ETFs (exchange-traded funds) and selling hedge funds. The announcement Monday of a slower growth expected in China in the first quarter gave investors another reason to reduce their exposure to the commodities market. Oil and copper, for example, were also oriented in sharp decline. The gold on the "spot" market fell to a low of 1336.04 dollars an ounce before recovering slightly, to 9:20 p.m. GMT; it was trading at 1352.75 dollars, down nearly 8.54 % on Friday. Other precious metals were also affected by large movements of Sale: money is returned to its lowest level since October 2010, the lowest since platinum and palladium last August to its lowest level in three months. The decline in gold prices began their down trend nearly three weeks, and despite its status as neither a refuge nor the rising tension on the Korean Peninsula, or the shift of monetary policy the Bank of Japan could not reverse the motion. The announcement of the Cyprus will sell for € 400 million of gold reserves from its central bank has increased the movement last week. "Investors fear that Cyprus and set a precedent that other central banks to follow suit, and it is not a factor in reducing purchases because central banks have been a key driver of the rise in the gold years, "said Ole Hansen. Debate more lively on the evolution of Fed policy does not help. "We are now witnessing panic sales, which may explain the speculations on the support of the Fed. The Fed hinted that it could reduce the QE (quantitative easing) and this began confidence in gold, "said Dominic Schnider, an analyst at UBS Wealth Management.

Why you should invest in Gold?

The Periodic Table of Commodity Returns in a user friendly format shows a decade of results across 14 different products. Last year, 11 products have increased in value with the wheat harvest in top of the list after experiencing quite a decline in 2011. Then later the following metals lead, zinc, natural gas and platinum entered the race for the rich. Their values have seriously increased in 2012, 2011 being the year of the falls. Only 3 products declined throughout year 2012: crude oil fell nearly 7% after an increase of 8% the year before. Nickel declined for the second consecutive year. In 2012, the metal has lost 9%, while in 2011 it had dropped to 24%.

 Coal is the least performed product than all other products in 2012, falling by nearly 17%. It had a bad dead lately. In fact, this product has no known heyday for the last 5 years (although in 2010 the metal is Designed an increase of 31%). As we can see in the table, the products often suffer from significant price fluctuations from one year to another due to many factors affecting supply and demand as government policies, trade unions and strikes currency volatility. This is why when it comes to commodities and commodity producers, many investors decide to hand to portfolio managers who understand the industry products and global trends that may crack on each product.

 For example, gold and mining companies: After investing in the gold industry for decades, we noticed several facts about gold continue to surprise investors. Here are few of the most recent developments: Gold has grown steadily for more than a decade. While the yellow metal has had its ups and downs in 2012, gold continues its course. It finished the year up 7%. It's been 12 years that gold is rising. The table shows the position of the other gold products every year. What is fascinating is especially the recurrence of this cyclical increase over three years compared to other products. This scheme would allow predicting that the year 2013 would be the springboard for a sharp rise. Gold should be a strong product in 2013.

It seems that the printing will continue to operate against the wishes of some central banks balance sheets. Gold will know good days of coming months. Let's take a look at the projected increase in the balance sheets: as% of GDP (GDP) of the ECB, the Bank of Japan, the Federal Reserve of the United States and the Bank of England in 2013. It is estimated that the ECB's balance sheet reaches almost 50% of GDP by the end of the year. The Bank of Japan is located just behind the ECB with a balance that is close to 35% of GDP. Can we rely on these assessments? If we take into account the reckless actions of central banks, it would be better to hold gold as paper. Interest rates do not go red, gold still keep its brilliant shine for another good year. Gold is the product which is less volatile in the table. This may be surprising but gold is the least volatile of the 14 products. The last 4 years have been better than we thought. Gold knows a good rise since 2009. 2013 should confirm this upward curve.

Why Gold and Silver is always a good investment?

In recent years Gold, considered as a safe haven, gradually changing status to states and savvy investors to regain its historic role as the reserve currency. This should lead many investors to make an investment vital for years to come. End of 2011, a significant change in status of gold has very little was echoed in the mass media: Venezuelan President Hugo Chavez demanded the return of the gold reserves of the South American country in the trunk strong national bank, its reserves are kept in the far western banks. At the time this request spent more provocation for Chavez to the west for a rise in the role of gold. But in January 2013, Germany the first power of Euro zone country much more symbolic, has called for the gradual repatriation, by 2020, all its gold reserves stored in Paris (374 tones) and some of those stored in New York (300 tones).

 End of 2012 the gold reserves of Germany amounted to 3391 tons, and accounted for almost 80% of foreign exchange reserves of the country. It is the second largest gold reserves in the world after the United States but to those of the International Monetary Fund (IMF - about 8,000 tones) and Italy (2,451 tons). France is in fifth position, with 2435 tons. The Euro zone crisis has led the German public, inspired by some conservative politicians to worry about the national stock of gold. The German equivalent of the Court of Auditors asked last October to establish an inventory of the gold stock of the country.

Euro skeptic politicians have publicly questioned the extent of German reserves abroad, asking for their repatriation. Germany justified the repatriation of reserves by the lack of possibility of change, but it clearly demonstrates that the national gold reserves are again a strategic issue. This decision may be treated as a major event (compare Gaulle's decision in the late 60s that had ended the Bretton Woods system) which foreshadows the return of the gold standard. Countries have clearly lost confidence in the central banks (New York Fed and Bank of England), supposed to hold physical gold on behalf of many states. The gold is perhaps more simply as GATA says, lent to banks and sold on the market to keep prices under pressure. Thus, they save more time confidence in the monetary system of silver "paper" not convertible.

 In addition, the market for paper gold, would be a hundred times larger than the physical market. The day that investors will obtain delivery of their gold-backed paper that there will not be enough physical gold to satisfy demands. Gold is a material present in limited quantities in the world and its scarcity intensifies over time. Repatriating its gold, Germany eliminates counterparty risk and ensures really hold physical gold and not pieces of worthless paper.

With these repatriations that give us a strong signal of progress towards the degradation of confidence in currencies, families should reconsider the amount of gold and silver to possess. Gold is money. Its role is to safeguard the wealth. Especially the yellow metal still beautiful day ahead when we know that less than 1% of financial assets in the world, destroying every argument bubble in gold. At the same time, monetary impressions launched by the Fed and the ECB devalue paper currencies and does not restart the economy. Gold (and silver) continue to reflect the destruction of paper money. It is not gold rising; the dollar, the euro and the pound sterling fall and this may continue. These safe havens are not diluted by central banks.

Silver is also a precious metal and historical ratio gold / silver is 16. That is to say that every gold coin you possess worth 16 pieces of silver. Today this ratio is greater than 50. Thus, investing in silver metal should be more profitable in the long term, provided they are patient and mentally strong to withstand fluctuations in its price. To eliminate the risk of counterparties must hold his gold outside the banking system, directly in physical gold. I advise to hold a small portion of its assets in precious metals, in order to keep this future security. Money that we do not need a long-term horizon may be invested in it. Invest around 10% of your assets in gold and stumbling sounding reassured, but for the rest

 I prefer you to invest in developing your income. Precious metals have this defect, they produce nothing. Besides this, you can buy stock of assets, real estate, which in turn will generate regular income.

Gold will continue to shine in 2013!

2012 was the eleventh consecutive year in which the price of gold has increased. End of 2002, one troy ounce (a little over 31 grams) of gold was worth just under $ 400. Today, you will pay $ 1,700 for the same amount of gold. It has long been the gold price rises. Is it time to take profits? Apparently not. Some analysts predict that 2013 will be a year of gold and hence any one may expect the uptrend of gold. Demand for gold may have declined in the third quarter and the following weeks, but chances are that 2013 is a good year for the precious metal.

The analysts see two reasons. First, we note that many central banks continue to run the printing press. History shows that it is associated with an increase in the price of gold. The second reason is the debt crisis, especially in Europe but also in the United States, where budget discussions are intense. Anyway, it seems that 2013 will be a year of great uncertainty, and it is always a fertile ground for potential gold boom. But predicting the price of gold over the next few months or years would be like trying to read the future in coffee grounds. However, most experts believe that gold will exceed the $ 1,800 mark in 2013. The biggest optimists even see the yellow metal flirting at $ 4,000 and more. Do you think gold will reach new heights in 2013 yet?

A Better Tips For Buying Gold Part.II

The purchase of the paper gold reflects the evolution of gold without the actual possession of it. It is the best alternative between the buying physical gold and buying gold stocks. This is the convenient way to buy and sell gold by bypassing the unnecessary taxation. The purchase is very simple and it is similar that of buying a share and you can buy in volumes. In addition in case of insolvency of the issuer, the investor is compensated in gold.

 Now you may ask the question what will be the trend of gold in coming months?

 Before making any investment we have to see the technical analysis of the particular product. Technical analysis is the study of graphs of financial products and various indicators derived in order to anticipate the market trend in the near future. In September 2011 the gold touched its record to the high of $1921. Before investing you have to judge the long term trend and short term trend. Sometimes the long term trend may bullish where as the short term trend may be neutral or bearish. Hence we have to plan according to the signal of our technical indicator. If the signal is not clear don’t venture into it and wait for the clear signal so that we can follow a foolproof risk management for a success.

Last but not the least the physical gold has the following advantages. It is the only asset which provide as a safe haven against both inflation and deflation. Unlike other investments it is not affected by the political and social events and it is the only reliable source when major economic crisis occurs. If you are a materialistic and pessimist then you go for the physical gold. If you are a conservative and optimistic then go for the gold securities with the self time varying from several months to several years according to the signals of your technical analysis and that of your plan. I hope I have explained perfectly the rules and it is quite simple, effective and applicable to every individual.

A Better Tips For Buying Gold Part.I

Today we are going to more about the gold. Commodities such as gold, oil or food grains are on the rise in the recent years. The oil price is soaring obviously because of its increasing demand and its scarcity which causes an imbalance between supply and demand. Because of demand raises the prices very quickly. The similar happens in gold also. On one hand the excessive indebtedness of countries and the Currency crisis raise the importance of yellow metal and on the other hand the demand chiefly come from its safe haven of quality and rarity and also the speculation which amplifies the rapid movement of the rare metal.

 Then how can we invest in gold? There are three ways to invest in gold. The first and easy one is purchase of physical gold that is the gold bars are the coins etc. The second one is buying gold stocks and the third one is buying gold in “paper”.

 Buying of physical gold is of centuries old and is the wide spread traditional one. In this type of investments you can buy a kilo in lot or of five hundred grams or of pellets of lower denomination. Now days you can buy the bullion directly from a specialty shop on the internet or the special counters in our banks. The greater disadvantage in this type of investments is safety. You have to store them somewhere in our home or in safety lockers at your home. Keeping the gold in the safety lockers in the banks are not safe. Let us discuss the reason in some other post later.

 The purchase of precious metal is also speculation on gold. The share prices of gold does not always follow the price of the open market. It fully depends on the health of the financial market of that day. In the international market the price of the gold has increased in price around 3.91% from the starting of the year. Usually the precious yellow metal fully depends on the financial market and tends to follow according to the ups and downs of the financial market.

Don’t Buy Gold!!!

    Why should we not buy gold? There are so many reasons not to buy gold. One of the first reasons is that gold does nothing, and it remains in the bank or in our locker. The only reason we are buying gold is that we are very sure that we can sell it to the higher price in future. In very recent article Warren Buffet said that the growing fear of loss and confidence in the market has motivated the practice of buying gold. Since the financial crisis of 2008, the gold prices have continued to climb. The lack of confidence in the global financial markets has let people to want something more concrete that cannot fail has placed gold into that place. As on June 2012 one kg of gold was about 41,525 Euros.

     Since the people hoped that future economic policies and the continued push for the progress will make gold as a profit buy. We don’t know when it will plunge. This is a risky game investing in gold. Globally the central banks of each of the county don’t want their people to invest in gold which openly displays how their people reject their paper money and hence they will act swiftly on day or the other. If the trend continues to be volatile then the governments will announce a very debilitating tax on this yellow metal to break the upward movement. If the gold market tend to monotonically increase then it will be good to the investments in stock markets. If the stock markets continue to fall then it will ensure a good appreciation in near future. Since the stock market is unpredictable when compared with the gold trend which followed a significant increase that lead to a bubble.

 Most of our readers aware that market is drive by the two namely fear and greed. Now we are in the middle of fear cycle. When it ends the cycle of greed starts immediately. If the gold bubble happens the gold price will fall and people will sell in bulk and they will forced to buy securities and therefore the stock’s price will increase. Hence it is ideal to buy gold as a small portion of our assets.

Gold, The Misfortune Of One is The Happiness of Others

The misfortune of one is again the happiness of others ... and vice versa. After passing record after record, the "favor" of the crisis in the United States and the European Union, the price of gold has suffered these last hours of renewed investor confidence international markets.

The ounce of gold has dropped sharply Wednesday, falling below the $ 1,800 in a sharp drop of nearly 8%. While it is however necessary to correlate the thing, remembering that the day before the gold price reached a new record high trading at more than 1,900 dollars, a trend following a wave of profit taking after the outbreak observed in recent days.

By 1430 GMT, the price of an ounce of gold has tumbled to 1761.28 dollars on the spot market, dropping more than 150 dollars compared to a record 1,913.50 dollars recorded on Tuesday in exchange Asian.

Investors appear to have diverted a time of gold and its safe haven qualities, reassured by the increase observed on the European stock markets, it following the announcement of a rebound in durable goods orders in July higher than expected.

Also note that the Shanghai Gold Exchange, China market of precious metals, said Tuesday it had increased its "margin calls" - the amounts that investors must file with the operator for each position in a futures contract - making of facto less attractive investments in gold.

While the August 11, the CME, the exchange operator COMEX, New York market of precious metals, already noted by 22% its "margin calls", passing $ 7,425 per contract, some seem to fear a further increase. Sensing a desire to remove the "weak hands" who lack cash.

Gold extended its record-breaking rally

The gold reached the record of 1500 dollars an ounce, It has never been a similar rise in the financial markets. With this crisis and expressed fears about the U.S. deficit and debt in Europe, investors prefer to acquire more gold to slow the risks.

It is obvious that holding gold resources does not yield large monetary benefit, but may qualify its holder as a good asset. In times of financial instability, investors are constantly looking for safe way to invest. The gold is the best immediate alternative for them. Hence this is the reason for this recorded historic outbreak in gold rate.

Since most of the global market is unstable this trend may continue and hence more procurement by the investors will lead to more price rise. In our neighboring country China inflation was reached 5.4% as on March 2011and hence their banks are required to increase the reserve and hence there is no immediate down trend in the price of yellow metal. The current crisis and un rest in African and Middle East countries are another main reason for the price raise of the yellow metal.

In relative point of view; the prevailing price of Gold is not expensive compared with the price of 1980 considering the inflation in price in mind. Even the poor man’s gold also rose to certain extent and the metal traders highly praise this metal.


However, all metals are not aware of such enthusiasm from buyers. The platinum price has not changed while that of palladium was down 6%. Their courses have been affected by the earthquake and tsunami in Japan.