World Gold Council

Gold, Silver Prices Today Rise to 30-Year High on Unrest in Middle East

Ongoing unrest in the middle east is causing investors to push up the price of gold and silver today, with silver reaching a 30-year high, and palladium also rising to its highest levels in 10 years.Physical demand for gold in the middle east has been skyrocketing, increasing 39 percent in the fourth quarter, according to World Gold Council, as locals in the region see the potential for

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I Want Me Gold

I Want Me Gold

The price of physical gold hit a three-month high in London this morning on news that the Chinese were not going to hike interest rates. Most traders were expecting the Chinese to hike rates to stave off inflation, which is now at a 28-month high of 5.1%. In an effort to hedge against this inflation, Chinese retail investors are turning to gold. In Friday’s Wealth Daily , Luke Burgess wrote: China’s gold imports to jump 457% this year. The Shanghai Gold Exchange recently revealed China’s gold imports jumped almost fivefold in the first 10 months of this year. And even though China is the world’s #1 producer, the country is expected to import 9.2 million ounces of gold this year as inflation concerns lifts investment demand. Albert Cheng, managing director of the World Gold Council’s Far East department, said at a recent conference in Shanghai that China’s gold investment demand may reach 150 tons this year — a 42.9% increase compared to 2009. New renminbi gold contract Demand is so high in China that the Hong Kong bullion exchange will launch the first international gold contract denominated in renminbi in the spring of 2011. According to The Financial Times , “The new contract comes as China pushes for greater international use of the currency and as Hong Kong’s precious metals industry seeks to take advantage of booming gold demand on the mainland.” The exchange expects trading volume will see a 20% increase when the renminbi gold bars hit the market. Currency flees China In light of Chinese inflation fears, the renminbi is flowing out of the mainland and into Hong Kong. Deposits jumped 45% in October from September to US$32.5 billion— helped along by currency restrictions, which were lifted in July. Demand is expected to increase so much that the Hong Kong government set up a high-security gold vault for overseas investors to store their gold. The tale of three charts The combination of currency wars and inflation in China means that both gold and oil are on the verge of breaking out. The U.S. Dollar Index is at a crossroads… As you can see, the Dollar Index against a basket of currencies is in a long-term downward trend and below its 200-day moving average. At the same time, there is support at 76. I expect it will trade in this range for the rest of 2011 as the fight between global flight to safety and the bond vigilantes work themselves out. Oil pushing a breakout We have a new range for crude as it is bouncing between $87 and $91 a barrel. As the global economy gets back on track, we should see oil breakout above $91. The Wall Street Journal ‘s survey of economists raised their projection for GDP growth to 2.6% for 2011, up from 2.4%. Both FedEx and UPS are gearing up for their busiest day ever today; UPS expects to ship 16 million packages up 13% from last year. Shipping companies are leading indicators. I want me gold The price of gold continues to stair-step higher. There are a number of things that could drop the price of gold: A massive new discovery on the scale of Spain’s discovery of South American gold mine could swamp demand; Or governments could tie…

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China Gold Demand Soars

China Gold Demand Soars

The Chinese saw the writing on the wall over a decade ago. They realized the ultimate fate of the U.S. dollar and the fiat currency system. So in 2003, the government of China began an aggressive campaign to secure resources of gold. They began by increasing the country’s gold reserves. Since that time, the People’s Bank of China has added 21.2 million ounces to the country’s gold holdings. China now has the fifth largest national gold reserve, with over 1,054 tonnes in reserves. While boosting reserves, the Chinese government also began to deregulate the gold mining industry and invite foreign investment for the development of domestic resources. The measures were a runaway success; China is now the world’s largest gold producer with output increasing 70% in the past decade. Chinese government even began encouraging its 1.3 billion citizens to own gold. And today, the country has become the second-largest consumer of gold in the world. The government’s efforts to stimulate and expand the domestic gold market has been highly successful. Chinese citizens have embraced gold as true wealth in all economic seasons. And now new concerns over the future of the U.S. dollar and domestic inflation has prompted the Chinese to recently begin acquiring gold on a epic scale. China’s gold imports to jump 457% this year The Shanghai Gold Exchange recently revealed China’s gold imports jumped almost fivefold in the first 10 months of this year. And even though China is the world’s #1 producer, the country is expected to import 9.2 million ounces of gold this year as inflation concerns lifts investment demand. Consumer prices in China rose 4.4% in October— the fastest pace in two years — and above the government’s full-year target of 3.0%. The People’s Bank…

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More Reasons Gold Is Going to $2,000

More Reasons Gold Is Going to $2,000

The biggest holder of U.S. Treasuries isn’t happy. And why should they be? They’re sitting on the sidelines holding US treasuries worth $797 billion. That’s quite a chunk of change. Of course I’m talking about China. The Chinese have been the biggest foreign creditor to the United States and in recent statements they’ve made it clear that Washington needs to maintain the value of the dollar. “We have made a huge amount of loans to the United States. Of course we are concerned about the safety of our assets. To be honest, I’m a little bit worried,” said Chinese Premier Wen Jiabao. It’s estimated that around 50% of China’s total reserves are held in US treasuries. And they know that the reserve currency they hold is depreciated with each passing day. With so much riding on the price of the dollar you can bet that Beijing has been keep a close tally on America’s spending — and the results can’t be pleasing. To say the least, Chinese faith in the dollar is feigning. And I’ll give you one guess as to where they are going to spend their $797 billion nest egg… Gold! Right now China is 6th on the list of world gold holdings with around 1,000 tonnes of gold reserves. Not bad right? Wrong. When you look closer at the statistics you can see that China has a mere 1.9% of its total reserve holdings in gold. Compare that to the U.S. with 77% and you’ll start to see China’s future motivation. China is in the market for a reserve currency that’s stable. And when it comes to stability nothing glitters like gold. Need proof? Look no further than another developing world powerhouse… India. Recently India made a bold move to start protecting itself from the U.S. dollar and fiat currencies in general… News broke that India made a huge gold purchase from the IMF — somewhere in the neighborhood of 200 tonnes. Previously, the government of India held 350 tonnes of gold reserves. This 200 tonne purchase is a 57% increase …

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China’s Gold Demand Increases 26%

China’s Gold Demand Increases 26%

The World Gold Council reported that Chinese gold demand increased 26% in the second quarter amid booming interest in retail investment demand for gold. During the second quarter, 48% of China’s gold demand came from the retail investment market, which increased 25% from the previous year. As a result, the country retained its position as the world’s second-largest consumer of gold as the demand for gold in China from April to June was 112 tonnes. China outperformed all other countries in the world in terms of the growth rate in the retail investment volume for the metal. Wang Lixin , General Manager of the World Gold Council in China In the long-term, gold demand in China is expected to balloon as mounting inflation concerns and a faltering global economic recovery has recently caused an increase in retail investment demand. The government recently released new guidelines to encourage the development of the domestic gold market. This will spur interest for gold as an investment and boost liquidity in China’s domestic gold market. These new regulation also strongly support foreign investment in China’s gold industry. And companies with well-established Chinese gold positions may be well-leveraged to take advantage of sharp increases in domestic demand. In a report report for Wealth Daily , I discuss how the liberalization of China’s gold industry could have drastic effects on the delicate supply/demand balance for gold and send the price of gold skyrocketing higher as millions of new gold investors in China bust into the global gold market. Plus, I discuss two junior gold stocks that are looking to profit with gold projects in China. You can read my latest free report by clicking here or finding it on the Wealth Daily website called: China’s Gold Bull Market Good Investing, Luke Burgess Editor, Wealth Daily Investment Director, Hard Money Millionaire and Underground Profits China’s Gold Demand Increases 26% originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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India Imports More Gold Despite Higher Prices

India Imports More Gold Despite Higher Prices

Filed under: International Markets , Forecasts , India , Commodities Higher prices are not keeping gold buyers away in India. This year it is estimated that India will buy between 600 to 625 metric tons of the precious metal, up fromm 480 to 485 tons last year, according to the National Spot Exchange Ltd, a reported by Bloomberg. This year’s purchases will make India the world’s biggest consumer of gold. According to the World Gold Council , India’s bullion demand almost doubled in the first half of this year. Anjani Sinha, CEO of the nation’s’biggest bourse for trading physical gold said: “This level of prices is already accepted, so during this period compared with last year, the demand will be higher.” Continue reading India Imports More Gold Despite Higher Prices India Imports More Gold Despite Higher Prices originally appeared on BloggingStocks on Thu, 02 Sep 2010 09:30:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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China’s Gold Bull Market

China’s Gold Bull Market

The Chinese government is making strategic moves that could have dramatic effects on gold’s delicate supply/demand balance. This maneuver could force gold prices screaming higher as hordes of new Chinese gold investors come clamoring into the market. For investors today, the new measures promise at least two things: The gold bull market is secure with prices expected to continue marching higher. Companies with Chinese gold assets may be well-leveraged to take advantage of soaring domestic demand. Here’s how China’s new gold strategy could fundamentally alter the global market… Plus two small gold companies that are hoping to profit with well-established positions in Chinese gold assets… Advertisement BP Changes Oil Forever… and Hands You a Shot at 508% Gains Thanks to the catastrophic Gulf oil spill, the oil industry is being transformed before our eyes. Oil is about to make a huge move back onto land… and these 3 small American companies are already in prime position to lead the charge. Find out how you can piggy bank their good fortune all the way to 508% gains by July 2012. Gold: The China Impact The Chinese government just announced that it will allow more of its domestic commercial banks to import and export gold. Up until now, the international trading of gold was restricted to only five of China’s largest commercial banks. These include the Chinese divisions of HSBC and Standard Chartered. But new regulations will allow smaller financial institutions to freely trade on the Shanghai Gold Exchange and internationally. The liberalized trading rules will eventually give hundreds of millions of Chinese citizens new access to gold-linked investment products. And this creates the perfect scenario for gold’s price to finally soar over its inflation-adjusted record high of $2,500 an ounce. China’s gold market liberalization sends a strong demand signal and it’s very positive for the price of gold. It is a structural demand shift which must result in higher gold prices as the global equation has changed now significantly with more gold consumers and investors. – LGT Capital Management , voted “Private Equity Manager of the Year” 2007-2009 The international gold market is now paying a lot more attention to China’s gold demand, not just from an official reserve asset perspective, but also private demand. Behind India, China is the second-largest physical consumer. Therefore any step to integrate, liberalize, and expand this market should, in time, foster a rising appetite for gold. – UBS , the world’s second largest manager of private wealth assets. The demand for gold in China has already increased during the first half of this year as concerns over the global economic recovery spurred investment. China National Gold Group Corp., the country’s largest state-owned gold producer, even reported a 40%…

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Gold ETFs: Paper vs. Bullion

Gold ETFs: Paper vs. Bullion

Gold is one of the most important investments to own— especially now. Gold prices have been trading around $1,100 an ounce for a few weeks. But long-term trends point to gold prices over $2,000… $3,000… maybe even over $5,000 an ounce. These trends include: Weakness in the U.S. dollar Economic uncertainty Supply constraints Growing investment demand Cyclical bull market Geopolitical uncertainty Advertisement It’s like getting a piece of the automobile market back in 1908. And not just Ford either. We’re talking about the market as a whole. Oil, rubber tires, road construction… the whole nine yards! Click here to learn more. Ten years ago, it was difficult to invest in gold without holding the physical bullion. But the development of the gold ETF market in 2003 changed all that. Today, one of the easiest ways to invest in gold is through Exchange-Traded Funds (ETFs). Gold ETFs are an efficient way to invest in gold without dealing with the troubles of holding the physical metal, such as storage. Gold ETFs are traded just like shares of stock. You can buy and sell a gold ETF just as easily as shares of any company. And they trade on major stock exchanges including New York, London, and Sydney. It’s important to note, however, that all gold ETFs are not created equally. Some gold ETFs buy and hold the physical bullion, while others invest in futures contracts. The physically-backed gold ETFs will track the spot price of gold more accurately. Physically-backed gold ETFs include SPDR Gold Trust (NYSE: GLD) and iShares COMEX Gold Trust (NYSE: IAU). These ETFs store physical gold in secure bank vaults. Gold ETFs that track the futures market will following gold prices very closely, but may deviate due to backwardation and contango in the commodity futures markets. Gold ETFs with that track futures contracts include PowerShares DB Gold Fund (NYSE: DGL) and USB E-TRACS CMCI Gold Total Return (NYSE: UBG). Typically a small commission is charged for trading gold ETFs and a small annual storage fee is charged. The annual expenses of the fund are charged by selling a small amount of gold represented by each certificate, so the amount of gold in each certificate will gradually decline over time. Despite the fees and expenses, gold ETFs have become one of the most popular gold investments. The World Gold Council reported that the world’s total gold ETF market grew 85% relative to 2008. Other precious metal ETFs have exposure to gold. These precious metal ETFs include the Central Fund of Canada (AMEX: CEF), which is backed by gold and silver bullion. Both the PowerShares DB Precious Metals Fund (NYSE: DBP) and iPath Dow Jones-UBS Precious Metals ETN (NYSE: JJP) have exposure to gold. These products track futures contracts to follow the price of a basket of precious metals that is tilted heavily towards gold. For investors looking for leverage, Van Eck offers the Gold Miners ETF (NYSE: GDX), based on an index that provides exposure to publicly-traded companies engaged in mining for gold. Another option is the Junior Gold Miners ETF (NYSE: GDXJ) also from Van Eck. This fund focuses on equities of small and mid cap gold companies. For investors looking to leverage the price of gold even further, I invite you to check out the profits you could be making right now by joining my Hard Money Millionaire advisory service. In 2009, the Hard Money Millionaire portfolio delivered 22 winning investment recommendations out of 23 ventures — a 95.7% success rate. …

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How to Straddle The Gold Market

Filed in Australian Gold, Gold, Gold Market, World Gold Council by on April 1, 2010 0 Comments

Whether you’ve got gold to sell, or shopping for just the right investment; Come to GoldBitz.com first. Look for information on gold market price, gold bullion , gold coins, and more! … Published:Wed, 31 Mar 2010 18:39:55 -0700. The share market remained higher at noon with takeover activity in gold stocks and strength in resources……. World Gold Council and ICBC Enter Into … Published:Thu, 01 Apr 2010 02:23:00 -0700. World Gold Council and Industrial and Commercial …

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Chinese demand for gold to double in the next decade

The World Gold Council released their first ever report on the Chinese gold market earlier today. The report concluded that Chinese demand would double in the next 10 years and that China was also running out of its own supply. Chinese demand for gold to double in the next decade

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$5,000 Gold: Likely or Just ‘Pie in the Sky’?

Filed in Gold, Gold Demand, Gold Investing, World Gold Council by on March 21, 2010 0 Comments

At the beginning of the last decade gold was trading at $255 an ounce and by the end of 2009 was trading at $1,100 an ounce. Not many investors thought that that was remotely possible and, at best, highly unlikely. Now some analysts are saying we should see $5,000 gold in a couple of years. Is that likely or just ‘pie in the sky’? Words: 453

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Price Per Ounce or Total Ounces Owned

Filed in Debt, economy, gld, Gold, Gold ETF, Spot Gold, World Gold Council by on March 8, 2010 0 Comments

In a recent conversation with a fellow gold analyst, he was emphatic that the price one pays for physical gold should be ignored. “What’s far more important,” he insisted, “is how many ounces I own in relation to the total value of my assets.” Building a core position in gold bullion is a smart goal, to be sure, and a strategy Casey Research has been advising for years. However, ignoring the price you pay for gold could be seen as foolhardy; sure, it’s insurance, but isn’t price part of the consideration when you shop for insurance? So, who’s right? The World Gold Council just released their 2009 annual report on gold trends. From the densely populated pages of interesting data, there’s one compelling tidbit I gleaned that may shed some light on the buying behavior of gold investors. Overall investment in gold was 7% higher in 2009 than 2008. This is significant when you consider that demand in the fourth quarter of 2008 – during one of the worst financial meltdowns in history – was so great that shortages of physical metal abounded everywhere. And yet investors bought more gold in 2009 when investor fear about global financial uncertainty was subdued. Further, 2009 total funds invested in all forms of gold exceeded 2008 by 20%, and the average price was 11.6% higher. In other words, investors were buying gold even though the price wasn’t necessarily “low.” To be sure, that’s a broad statement. But the fact remains that year-on-year, more gold was purchased at higher prices when the markets were less scary, than when the price was lower and Hank Paulson was on CNBC every 15 minutes pontificating on how to save America’s financial system. This isn’t to suggest one shouldn’t pay attention to price. And the data doesn’t identify how many of those who purchased gold last year were first-time buyers, as certainly there were newcomers to the sector that contributed to higher demand. But it begs the question, who would continue to buy gold when the price is higher? Whoever doesn’t own enough, that’s who. The gold I bought last month was certainly higher priced than what I paid in 2008. But I’m trying to position my assets for protection from eventual dollar debasement and rising inflation. So perhaps…

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