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Gold & metals

September 14, 2012 • 16:24:41 PDT

Greyerz - Silver To Surge 433% From Current Levels

targets of this move, before a major correction, is still $4,000 to $5,000 on gold, $150 (a surge of 433%) on silver....... Read More

2012

By Geoffrey VarnerSeptember 14, 2012

GOLD HOLDS ONTO GAINS AHEAD OF WEEKEND

Gold closed above $1,770 today, finishing strong after a tumultuous week of news affected the yellow metal. Economically, Gold is a commodity that is traded around the world. its value is driven by global events. But this week all eyes were on the Fed and the announcement of QE3. Precious metals aren’t the only winners. All the major indexes were up the S& P saw levels it hasn’t seen since 2007.

Oil prices are reacting to the Fed’s announcement as well as the recent unrest in Middle Eastern countries. Phil Flynn, senior market analyst at the Price Futures Group in Chicago summed up a commodity reacting to the announcement this way. “You cannot fight the Fed. If you’re going to put more money into the system, you change the value of the commodity. If it’s priced in dollars, it’s going to take more of them to buy it. And if it’s going to stimulate the economy, it’s going to increase demand going forward.”

Commodities like oil, and especially Gold, react when you put more money into the monetary system via a QE or other mechanism. What you do is change the value of the Gold relative to the currency. Holders of Gold believe that eventually their purchases will increase in value due to such actions by the Fed. This is the safe-haven appeal of Precious Metals, we could see increased demand as the QE program continues.

At 5:00 p.m. (EDT), the APMEX Precious Metals spot prices were:

Gold, $1,771.90, Up $0.80.
Silver, $34.70, Down $0.09.

September 14, 2012 • 07:52:21 PDT

" Unlimited QE3" Quick Analysis - Federal Reserve Attacks US Dollar, Risks Currency Warfare

ANALYSIS: No Sterilization Means Radically Increased Inflationary Danger Read More

Mid-Day Gold & Silver Market Report – 09/14/2012

By Ted PrinceSeptember 14, 2012

STOCKS STILL GAINING AFTER QE3 GOLD OUTLOOK POSITIVE

Global markets continue to rally today following Thursday’s announcement of the United States’ aggressive bond-buying plan. News of the program lifted the S& P 500 to its highest single day peak since January 2, 2008. The market reaction is not unexpected. Investors will await the long-term effects of the latest round of quantitative easing (QE3) as the Federal Reserve announced it will inject $40 billion dollars a month into the U.S. economy until the jobs market realizes prolonged growth.

Bullish investors are still impeded by one final obstacle as Spanish Prime Minister Mariano Rajoy continues to delay acceptance of the European Central Bank’s stimulus package which was announced last week. Economists continue to assert that a bailout is inevitable and necessary for the country which currently renders one out of four workers jobless. Rajoy “needs to bite the bullet on aid while the going is relatively good,” Derks said, in a note. “The current market calm is merely a facade created by a fortuitous alignment of various forces. Better to get pen to paper now, rather than be forced kicking and screaming in a few months time.”

As expected, the announcement of QE3 caused a significant spike in the gold price on Thursday. Though it has traded relatively flat today, analysts predict continued upward movement for the metal as the Fed gears up to indefinitely pump funds into the struggling U.S. economy. “You’ve got gold, a fixed quantity, and central banks printing more money. Ergo, gold becomes more expensive,” Richard Cookson, global chief investment officer at Citi Private Bank, told CNBC Friday. “The cost of holding gold is zip, because interest rates are effectively zero. So you print more currency, and the gold price goes up because you price in that extra currency.”

At 1:00 p.m. (EDT), the APMEX Precious Metals spot prices were:

Gold, $1,773.90, Up $2.80.
Silver, $34.71, Down $0.08.

Morning Gold & Silver Market Report – 09/14/2012

By John FosterSeptember 14, 2012

GOLD TAKES A BREATHER STOCK FUTURES UP ON STIMULUS

Gold opened fractionally lower this morning, as the markets appear to be taking a pause after Thursday’s announcement of a stimulus program. The program launched Thursday by the Federal Reserve is a combination of maintaining near-zero interest rates and an open-ended mortgage debt-buying program. News of this new program sent Gold up Thursday, closing up nearly 2 percent for the day and 10 percent for the month. " After the move we had, not just yesterday, but over the last two or three weeks, I think it would be natural to look for a period of consolidation," said Tom Kendall, an analyst at Credit Suisse in London. " But certainly going into the back end of this year, I would be looking for Gold to be getting towards at least the $1,850 level.”

The news of the new round of stimulus has also had a positive effect on the U.S. stock markets. After hitting new highs on Thursday, U.S. stock-index futures for Friday are already up more than 40 points. “While we will hear a lot of criticism on the FOMC’s aggressive moves, we shouldn’t forget that for markets, it usually doesn’t pay to fight the Fed,” wrote strategists at KBC Bank in Brussels. Thursday’s rally pushed the S& P 500 index past the 1440-to-1445 range where it had been encountering significant resistance.

At 9:00 p.m. (EDT), the APMEX Precious Metals spot prices were:

Gold, $1,771.70, Up $0.80.
Silver, $34.57, Down $0.22.

September 13, 2012 • 14:59:41 PDT

We Are Now Beginning The Last Wave Of Gold’s Major Uptrend

bottom line here is that investors need to make sure they protect their purchasing power as the currencies are destroyed... read more

Gold at 6-month high as Fed fans inflation risk

* Precious metals hit multi-month highs
    * Spot palladium headed for 11th day of gains
    * Spot gold may rise to $1,785-$1,796 range - technicals
    * Coming up: U.S. retail sales, Aug  1230 GMT

    By Rujun Shen
    SINGAPORE, Sept 14 (Reuters) - Gold rose to a six-month high
on Friday, extending the previous session's 2-percent gain,
after the Federal Reserve launched an aggressive economic
stimulus program that could add to the risk of inflation and
strengthen bullion's appeal.
    Silver, platinum and palladium, widely used in industrial
application, also climbed to their highest in about six months,
as the appetite for riskier assets rose after the Fed announced
an open-ended debt buying programme and pledged to keep interest
rates near zero until at least mid-2015. 
    Cash gold is on course for a 2.3-percent gain this week -- a
fourth week of consecutive rises, as investors have been
encouraged by central banks' latest push to promote global
growth by printing more cash.
    " The Fed's move will flood the market with liquidity, which
will consequently push up inflation and drive investors to
assets known to be good hedges, such as gold and silver,"  said
Li Ning, an analyst at Shanghai CIFCO Futures.
    " At least in the short- to medium-term, the Fed's action
will provide solid support for gold and help it test $1,800, or
even $1,900." 
    Spot gold climbed as high as $1,777.51 an ounce, its
highest since Feb. 29, before giving up some gains to trade at
$1,774.60 by 0631 GMT, up half a percent from Thursday's close.
    The most-active U.S. gold futures contract also hit
a six-month high, at $1,780.2, before edging back to $1,777.
    Technical analysis echoed the bullish sentiment in the
market. Spot gold could rise to $1,785-$1,796 range during the
day, said Reuters market analyst Wang Tao. 
    Holdings of SPDR Gold Trust, the world's biggest
gold-backed exchange-traded fund, inched up 0.2 percent on the
day to 1,292.432 tonnes by Sept. 13. 
    The dollar index dropped to a four-month low, helping
attract gold buyers holding other currencies.    
    
    
    SILVER, PLATINUM, PALLADIUM HIT MULTI-MONTH HIGHS
    Silver rallied to a six-month high of $34.92 an ounce
earlier, before easing to $34.72. It was headed for a more than
3 percent weekly rise, extending its winning streak to a fourth
week.
    " Silver is poised to test the next resistance level at
$35.4,"  said a Shanghai-based trader. " The sentiment remains
bullish, as many investors are just entering the market after
confirmation of the QE3 overnight." 
    The recent rally, which has lifted silver by about 25
percent over the past month, is suppressing short-term physical
demand, he added.
    Shanghai silver rallied more than 5 percent to
above 7,300 yuan per kg ($35.93 an ounce).

Gold Reaches Objective in Large Volume Day

Daily Bars eliottWaves_gold_body_gold.png, Gold Reaches Objective in Large Volume Day

Prepared by Jamie Saettele, CMT

Gold reached the 1755 triangle objective in a range of over 3% and the largest volume (futures) since June 7th. Price is currently resting $10 above the 1760 pivot from December 2011 and February and the 2012 high is within earshot at 1790.55. The huge volume and range is consistent with the beginning of some consolidation before the continuation of the advance. 1747 is now support.

LEVELS: 1715 1737 1747 1791 1800 1825

Gold jumps 2 pct as Fed stimulus fans inflation fears

* Gold hits six-month high as precious metals rally

* Fed focus fans inflation fears

* US gold futures volume set for highest since late July

* Some doubt efficacy of another round of QE

* Coming up: U.S. consumer prices Friday

By Frank Tang

NEW YORK, Sept 13 (Reuters) - Gold surged 2 percent on

Thursday, approaching its high for the year after the Federal

Reserve launched another aggressive, bullion-friendly economic stimulus program.

The metal received a strong vote of confidence after the U.S. central bank said it would buy $40 billion of mortgage-backed debt each month until the U.S. jobs outlook improved substantially, as long as inflation remained contained.

Market watchers said the Fed's unprecedented step was essentially shifting its focus to employment from price stability, a move that was seen as very bullish for gold, a traditional inflation-hedge .

" They are emphasizing the growth mandate, and that means they don't care about inflation other than giving lip service to it," said Axel Merk, chief investment officer at Merk Funds, which has $600 million in currency mutual-fund assets.

" The price of gold will do very well in the years to come," Merk said.

Spot gold was bid at $1,765.40 an ounce as of 3:08 p.m. EDT (1758 GMT) after hitting a high of $1,772.26, within striking distance of a 2012 high of $1,790 set on Feb. 29.

U.S. COMEX gold futures for December delivery settled up $38.40 at $1,772.10 an ounce, with trading volume poised to hit its highest level since late July and 40 percent above its 250-day average, preliminary Reuters data showed.

The flow of COMEX gold options indicated that bullion could rally further as investors scramble to buy back their previously bearish bets after the Fed announcement, said COMEX gold option floor trader Jonathan Jossen.

Silver, which tends to be more speculative and volatile than gold, rallied 3.7 percent to $34.50 an ounce.

The Fed said the new round of bond-buying was open-ended and that it would not likely raise interest rates from current rock-bottom lows until at least mid-2015. Previously, it had set such guidance at late 2014.

" The Fed's inflationary behavior should be bearish for the dollar in the long run and drive investors to seek protection via the gold market," said Jeffrey Sherman, commodities portfolio manager of DoubleLine Capital, which has more than $40 billion in assets.

QE EFFICACY DOUBTFUL

However, some question the efficacy of the Fed's monetary action. Reuters data shows that asset performance tended to diminish with each new round of QE, and it sometimes takes as long as a year for the effects of Fed action to kick in.

Year-to-date, gold is up 13 percent following a 10 percent rally since the start of August as central banks around the world appear more determined to take up further stimulus to aid a frail global economy.

That is still below the 15 percent gain seen early this year after the Fed said in January that it would keep interest rates near zero through late 2014. Doubts about additional quantitative easing (QE), or printing money to buy government bonds, had decreased bullion's appeal as an inflation hedge.

Phillip Streible, senior commodities broker at futures brokerage R.J. O'Brien, said that gold's price outlook could still disappoint as the magnitude of the new Fed stimulus was smaller than the market had expected.

Among other precious metals, spot platinum rose 2.7 percent to $1,679.99 an ounce, while spot palladium climbed 1.9 percent to $683.82.

Closing Gold & Silver Market Report, 9/13/2012

By Brandi BrundidgeSeptember 13, 2012

PRECIOUS METALS MARKETS REACT TO QE3 CONFIRMATION

Further stimulus measures were announced today as the Federal Reserve announced the American economy would receive the third round of quantitative easing, also known as QE3, beginning tomorrow. The program consists of purchasing $40 billion in mortgage-backed securities each month in addition to an existing policy known as Operation Twist, which the Fed introduced earlier this year. The two plans combined will provide an additional $85 billion in long-term bonds to the Fed’s balance sheet per month. The focus is concentrated on maintaining extremely low interest rates and mortgage rates in order to increase consumer spending and to create new jobs. The Fed had previously stated that interest rates would remain extremely low until late 2014, but have now changed that timeframe to mid 2015.

Gold rose 2 percent today after the Fed announced QE3. Jeffery Sherman, at DoubleLine Capital said, " The Fed's inflationary behavior should be bearish for the dollar in the long run and drive investors to seek protection via the Gold market.” Gold's safe-haven appeal is returning, and investors are turning to the yellow metal as a safe store of value due to the concern of devaluing currency when liquidity is added to markets.

At 5:05 p.m. (EDT), the APMEX Precious Metals spot prices were:

Gold, $1,768.80, Up $36.10.
Silver, $34.74, Up $1.44.

Mid-Day Gold & Silver Market Report – 9/13/2012

By Ryan SchwimmerSeptember 13, 2012

QE3 ANNOUNCED, STARTS TOMORROW

Precious Metals prices spiked today after the announcement that a third round of quantitative easing (QE3) starts tomorrow. In a statement, the Federal Open Market Committee said, “The Committee is concerned that, without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions.” Of course, among the current conditions the Committee mentioned is a very stubborn 8 percent unemployment rate.

For QE3, the Fed will purchase mortgage-backed securities to the tune of $40 billion per month and monitor the results. This will be an “open-ended” bond-buying plan, so the end of the program will be decided at a later date when conditions improve. Stock markets also benefitted from the decision, and Gold and Silver erased losses and spiked heavily.

At 12:45 p.m. (EDT), the APMEX Precious Metals spot prices were:

Gold, $1,749.70, Up $16.90.
Silver, $33.92, Up $0.62.

Morning Gold & Silver Market Report – 9/13/2012

By Ryan SchwimmerSeptember 13, 2012

QE3 DECISION ANTICIPATED AT 12:30 P.M. (EDT)

Gold and Silver prices are mostly flat this morning as investors await a Federal Reserve monetary policy decision. Fed Chairman Ben Bernanke is scheduled for a press conference at 2:15 p.m. (EDT), though the policy decision should be out closer to 12:30 p.m. (EDT). David Morrison of GFT Markets believes that the markets have “priced in significant action from the (Fed). The expectation is for a further round of large-scale asset purchases similar to 2010’s $600 billion QE2 program.” He continued, “The language accompanying another round of quantitative easing will be all-important” because if the Fed decides to wait, the markets could be in for disappointment.

Prices remained stable after the weekly jobless claims report was released. Claims rose by 15,000 last week, about 12,000 more than expected. Guy Berger of RBS Securities Inc. said, “The labor market continues to be disappointing. We’d like to see the hiring side pick up. Companies are very cautious given all the uncertainty.”

One of the countries hit hardest by the eurozone debt crisis is Spain, which boasts the third-largest economy in the eurozone. Spain’s prime minister Mariano Rajoy suggested to parliament yesterday thatSpain may not need to ask for a bailout due to the success of the European Central Bank’s bond-buying program. Many experts believe a bailout will be necessary eventually, however, and the delay in asking for one could prove to make things worse by way of conditions for receiving bailout funds. Goldman Sachs analysts wrote, “The more the Spanish administration indulges domestic political interests and is perceived to be taking undue advantage of external support, the more explicit conditionality is likely to be demanded.”

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

Gold, $1,734.40, Up $1.70.
Silver, $33.21, Down $0.09.

IS THE EVOLUTION OF MONEY HURTING US !!!

It all started with “BARTER TRADE SYSTEM”: Long time ago the first trade was conducted via Barter. All goods were directly exchanged for all other goods. But this method had its own problems. If you want to swap your chicken for a loaf of bread, but baker happened to want firewood, you had a task to find someone with firewood who wanted to have chicken.

Then came the medium of gold exchange, under which everyone agreed to accept gold in return for whatever they were selling. This transition allowed the swapping of chickens for gold and then gold for anything else. The thing with gold was that it was indestructible and could be stored for the future. As gold also become the “Store Of Value” – if you had lots of chickens you could swap all of chickens for gold, spend only part of the gold on bread and keep a few gold for a rainy day.

Gold as a mode of money, created its own set of problems – Governments in financial troubles, would call back their gold coins, then melt it down and reform the same metal into more coins with lower gold content in it or mixing any other metal in it. For government, it generated a nice new stock of gold for conversion into coins. This is what called “Debasement of Currency”.

But debasement of currency became a huge problem and led to the development of certificates of gold deposits. Debasement & the larger monetary transaction required that the coins to be counted weighed and checked for its purity & authenticity. In addition to which there was constant problem of security, so this led to the development of the Gold Depository Banks whereby a group of merchants come together and formed Merchant Banks that would hold their gold securely at a central location. The quality of coin was checked, the depositor was issued with paper certificate of deposit. The certificate of deposit represented his holding of gold within the banks & the holder of this certificate was entitled to present the certificate back to the bank, who would on demand, exchange it for the same amount of gold coin originally deposited.

These banks soon realized that the owners of the gold rarely come back to collect it. As a result gold was lying idle with them most of the time. So, these bankers come up with a money making scheme of their own. These banker’s started issuing their own certificates of gold deposit and would lend those certificates to merchants. These merchants would use these new certificates to buy goods, which they would then sell on at a profit provided everything went well, the merchant could borrow the certificate, buy & sell the goods to make profit and repay the bank before anyone realized that the gold had left the vault which of course it never had.

Now, what this did was there were always more certificates of deposits in circulation than the gold in the vaults of banks. This in turn led to crisis situation during which individuals with these certificates landed up at the bank asking for their gold back. The trouble was that the bank did not have enough gold to make good against all the certificates it had issued. As this news spread, more people landed up leading to bank running, this soon led to a situation whereby a central bank was created which would fight financial instability. In return for the backing of the central bank, the commercial banks gave up their rights to issue their own gold depository certificates. From now on there would only be one type of depository certificates and these would be printed by the government, and be distributed through the central bank to the commercial banks. In addition, gold reserves of the commercial banks would be collected together at the central bank.

This created the concept of Currency Notes issued by the government. But what this also did was that it gave the government a monopoly on printing money. And unlike the kings of the earlier age, who had to call their gold coin back to debase them, now government could simply print more and more paper money as & when they deemed fit. And this right as we know has more or less been responsible for the current financial crisis.

IMPACT OF THE EVOLUTION OF MONEY: Let’s say US government prints $1 trillion and keeps it in its vaults, so then what would be the impact of this printing of money will be on the Inflation? The answer would be ZERO impact? Correct, simply because all the printed money is in the vault and does not enter into the economic systems…It is when the money enters the economic system which leads to a situation wherein more money chase the same or even fewer goods leading to price rise. At same time it is important how fast does money changes hands, meaning how fast people receive and then go out and spend this money. The faster they spend this money, more velocity money has and that in turn leads to a faster increase in prices & thus an increase in inflation.

SAFEGUARD FROM THE FINANCIAL CRISIS : When markets are erratic & at times unpredictable, then the wise thing to do is to step up exposure to an asset that would infuse a semblance of stability and strength to the portfolio. And the cleanest, simplest & most efficient way to do is to invest in GOLD ETF. Not to mention the fact that the rampant way in which countries are debasing their currencies, one cannot help feel that at the end of the day, bullion will be more valuable than billions.

BUY GOLD ETF's: There are new alternatives to invest in GOLD ETF’s -CLICK HERE , ETF’s – known as Exchange traded Funds which are listed on NSE. ETF just like any other mutual funds collects money and invest into the market. GOLD ETF’s collects funds and invests in GOLD. They buy gold physically – so the units are backed by 0.995 finesse gold. When you invest in GOLD ETF you are allotted a unit same as in mutual fund, here 1 unit of GOLD ETF can be 1 gm or 1/2 gm of gold depending on the funds – So Gold ETF are affordable. GOLD ETF’s trades like normal equity share on exchanges whose prices are in tandem with domestic gold price. If you dint have Demat account you still can invest in GOLD FUNDS like SBI GOLD FUND, Quantum Gold Saving Fund. You can also invest in these ETF in a Systematic Investment way (SIP) with as low as Rs. 500. JUST call your broker to buy GOLD ETF’s (List of listed ETF are mentioned below) or just visit your nearest bank and ask for GOLD FUND (if you don’t have trading account)

Listed GOLD ETFS

AXIS GOLD SHARE

GOLD BeES

HDFC GOLD ETF

KOTAK GOLD ETF

RELIANCE GOLD ETF

RELIGARE GOLD ETF

SBI GOLD ETF

CLICK HERE