Wednesday, December 11, 2013

Gold to $1,320 by year's end, Compass CEO says - Wealth Managers


Bullion's floor is near its production cost of $1,200, Andrew Su tells CNBC

Gold could rally by as much as 5% -- to about $1,320 -- before the end of 2013, Compass Global Markets chiefAndrew Su tells CNBC in a Dec. 11 interview.

"I think the 
Fed won't taper this December. I also think that strong technical support levels have been built around the $1,200 level. That's where we see the average production cost of gold," Su said.

"The last time we saw it below $1,200, it bounced very, very quickly. And a combination of other factors will see gold rise relatively rapidly over the next three weeks, and I think $1,350 is a relatively modest target for the end of the year. ... I think we'll see a renewal of the budget crisis in the U.S. ... That will cause some safe-haven buying and I think we'll also see China growth slowing down to about 7% [in the first quarter of 2014] ... That will bring back a bit of risk aversion to the markets and we'll see gold recover as a result," he said.

"We have an end-of-year target of $1,320 for gold and a medium-term target of $1,450," he told the network. 


More information can be found online at http://www.goldbullionadvisors.com

Gold could hit new all-time highs after 2016, CPM Group says - Wealth Managers


Until then, the metal's at its "cyclical bottom," predicts Jeffrey Christian

CPM Group, a consultancy that publishes annual yearbooks on goldsilver, and other precious metals, has never been irrationally exuberant in its recent price forecasts. When gold bulls were saying $2,000 was inevitable, the firm generally reacted with skepticism. However, after gold corrected severely earlier this year, it started to issue cautiously bullish statements.

Now managing partner 
Jeffrey Christian is repeating those positive sentiments in a new interview published this month atMining Markets, along with a reiteration of his presentation at the Denver Gold Forum in October.

"There are any number of massive financial, economic and political imbalances that have caused all of the economic problems over the last 12 years -- not just 2008-09, but 2000-01 and everything in between," Christian said. "None of those issues have been dealt with effectively. ...

"Our expectation is that by 2016-17, investor concerns over those longer-term imbalances will resurface," he said.

As demand starts to intensify again, supply also will have shrunk as a result of the cuts gold miners are having to make now in response to lower gold prices, Christian said.

"We think that we're at the cyclical bottom for gold," he said.

The gold price should rise sharply from 2016 to 2023, with Christian forecasting new nominal highs above $1,921 in eight to 10 years' time. However, prices could be stuck between $1,240 and $1,500 until then.

As for possible tapering of the 
Federal Reserve's quantitative-easing stimulus program, Christian says it's already priced into the gold market. "We think that the market is spending far too much attention on it -- it's become the flavor of the month," he said. Christian expects the Fed will begin to pull back on QE sometime in the first half of 2014, but that any reduction in purchases will be very modest until the U.S. economy exhibits more strength.

More information can be found online at http://www.goldbullionadvisors.com

Monday, December 9, 2013

"Gold remains the best insurance policy," Telegraph affirms - Wealth Managers


Bullion can preserve capital in inflation or deflation, argues John Ficenec

"In the face of an uncertain future, gold remains the best insurance policy," says John Ficenec at London's Telegraphnewspaper in a staunch defense of bullion published Dec. 8. Ficenec argues that for preservation of capital, nothing beats gold over the long haul, and the metal can help investors weather inflation as well as deflation:
The metal is the only store of wealth that has a proven track record over thousands of years, and as such it should be an essential part of every portfolio.

The market price of gold may have fallen during the year, but hoarding of the precious metal by central banks and private individuals is approaching record levels. ...

The first rule of investment is preservation of capital. The second is to go searching for gains or income that fits with your appetite for risk. Gold has been the insurance of choice for thousands of years to satisfy the first rule, despite the fact it generates no income and actually incurs costs for storage. ...

It seems odd that the price of gold has fallen so sharply. But there are several reasons for this. Like all markets, over-exuberance had pushed the price higher than the fundamentals could support. At the same time, gold's big rival as a store of value, the U.S. dollar, has recovered as strong economic growth supports the world's reserve currency. ...

Gold is simply the best insurance against inflation, or deflation. "I would rather own gold than government bonds, high-yield bonds and equities. If this scenario [deflation] were to pass it would lead to even more money printing around the world," according to 
Marc Faber, the contrarian Swiss investor.

The first rule of investing is capital preservation. ... A balanced portfolio should hold an allocation of about 5% in assets such as gold. The future is uncertain and gold is the most effective insurance against that.

More information can be found online at http://www.goldbullionadvisors.com

Friday, December 6, 2013

Gold over 20 years is a better store-of-value bet than cash, says John Mauldin - Wealth Managers


"I hope I never use my gold insurance. But I do have some. I buy some every month."

In promoting his new book "Code Red," Mauldin Economicschief John Mauldin conducted an interview ("How Central Bankers Will Ruin The Global Economy") with Forbespublisher Steve Forbes, in which he discussed the Federal Reserve's fallibility and the necessity of owning gold as insurance.
On the Fed: "The Fed economists are particularly bad at predicting the future. It's worse than if you and I just flipped a coin. OK? It's almost statistically impossible to be as bad as central bankers are about predicting the future. And yet we're supposed to trust them that their data tells them, 'Well, we need to apply this amount of quantitative easing and this amount of money and this interest rate level. And somehow or another it's magically gonna transform into these numbers out here that for decades we've been predicting and we haven't been right.' So it doesn't end well. We have 12 men and women sitting in a room thinking they can manipulate an economy with data they truly don't understand, with an economy they can't measure and with tools they're making up as they go along. Is that impassionate enough, Steve? I get wound up, but it has consequences."
On gold: "I believe gold is insurance. It's central bank insurance. ... I buy fire insurance. I have health insurance. I hope I never use them. I'm particularly aggressively working at never having to use my life insurance, although I have it. And I hope I never use my gold insurance. But I do have some. I buy some every month. ...

"I'm getting ready to establish an account. I now have five grandchildren. You're working on catching up, I understand. But I have found a place where I can buy a small amount of gold for them every month. It'll be stored outside the United States. And my grandchildren are from six months to four years. So I can buy that same amount of gold, put it into an account for them and when they get to a place where they can use it. Or I'm not certain what education will be in 20 years. I think it will be significantly different than it is today. But when they get to that launching pad, I believe that gold will have more of a store value of money in 20 years than putting a hundred dollars a month into a savings account that is not gonna be able to access anything but low interest rate regimes for a long time.

"Now, I honestly might change my mind in ten years and say, 'Ah, the world's changed. I'd rather put it in something else.' But today, I think when I think about 20 years and I want to make sure that my children have something outside of the United States in a neutral facility, that I can move in a heartbeat to another neutral facility if I were beginning to notice things change. Yeah, I think gold has its usefulness."


More information can be found online at http://www.goldbullionadvisors.com

Wednesday, December 4, 2013

Gold launches 2% rebound for biggest 1-day gain since Oct. 17 - Wealth Managers


Yellow metal holds support at $1,210 and climbs back near $1,250

Gold rebounded from session lows to rise 2% on Wednesday, briefly breaking above $1,250, to post its largest gain since Oct. 17, while silver rose about than 3%. After a slew of mixed economic data, investors are now looking to Thursday's U.S. GDP report and Friday's crucial nonfarm-payrolls report to gauge the Federal Reserve's direction on tapering its stimulus program.

In contrast to gold, U.S. stocks 
finished mostly lower on tapering fears, with both the S&P 500 and the Dow Jones Industrial Average racking up four-day losing streaks.

The reason for rising tapering fears? Some bright spots in U.S. economic data:

*
New-home sales surged about 25% to hit their highest level in 30 years, partly because of a drop in prices, tumbling to $245,800, down from $257,400 and well below the recent highs of $279,300.

*The 
U.S. trade deficit fell 5.4% in October, partly because of rising petroleum exports. 

* The Fed's latest 
Beige Book found that the economy continues to expand at the same "modest to moderate pace" it has seen over most of the past year, though it detailed strong "concerns about future cost increases attributable to [Obamacare]." This is now the 11th consecutive Beige Book in which the Fed has heard loud concerns about theAffordable Care Act from the regional businesses it surveys.

But most importantly, 
private-sector hiring in November was the hottest in a year, as 215,000 jobs were added, beating expectation of 178,000, according to a report fromAutomatic Data Processing released Wednesday morning. This report, along with Thursday's weekly initial jobless claims number, is seen as a bellwether for Friday's all-important NFP data.

Already largely oversold, gold's rebound Wednesday was partly attributable to 
short covering. After the price held the $1,210 level, traders betting the price would fall were forced to repurchase previously sold positions, or short contracts, to neutralize bets that profit when gold prices fall.

Now the attention of investors is shifting to Friday's payrolls report. Thursday's GDP number is important, but with the Fed's stimulus policy linked to the unemployment rate, the NFP is key to predicting the Fed's next move. If the unemployment level rises or stays the same, the Fed is less likely to taper. If the unemployment rate improves, the Fed might be more inclined to reduce stimulus sooner. The Fed's next policy meeting on Dec. 17-18.

"Better-than-expected ADP today points to the likelihood of strong nonfarm payrolls," 
Citi analyst David Wilson said. "We are all going to watch data on Friday to see what happens.''

A strong NFP report could knock further wind out of stocks and gold, but with the latter already down more than 20% on the year and stocks off all-time record highs, the real bargain here is gold (and silver).


More information can be found online at http://www.goldbullionadvisors.com

Wednesday, November 27, 2013

Gold shipments from Hong Kong to China rocket to second-highest level ever - Wealth Managers


"A lot of the Chinese were ... taking advantage of prices that have been coming off"

Just when you thought demand for gold couldn't get any more massive in China as it prepares to unthrone India as the world's top bullion consumer, a new report from Hong Kong has set the bar even higher.

"Gold shipments to China from Hong Kong rose in October to the second-highest on record as jewelers and retailers bought the metal to build up inventories ahead of a peak-demand season at the end of the year," 
Bloomberg reported.

Net imports hit 129.9 metric tons in October, from 109.4 tons in September. That's second only to the all-time high of 130 tons in March. Furthermore, imports have topped 100 tons for

"It's a strong number and it certainly puts China on track to import more than a thousand tons," said 
Victor Thianpiriya of Australia & New Zealand Banking Group. "You do get the usual seasonal pickup towards the last quarter of the year, but a lot of the Chinese were also taking advantage of prices that have been coming off."

"October was also the beginning of the wedding season, which could have prompted more demand for jewellery," 
said Chen Min of Jinrui Futures.

If October was any indication of burgeoning demand for gold in China, look out: China and numerous other nations with large Chinese populations (such as Indonesia, Malaysia, and Vietnam) celebrate the 
Chinese New Year holiday on Jan. 31, 2014. That buildup, of course, will be coinciding with Western demand for gold jewelry for the Christmas holidays. Look for the December and January numbers out of Hong Kong to potentially shock and awe gold market watchers.

More information can be found online at http://www.goldbullionadvisors.com

Tuesday, November 26, 2013

Gold Bullion could hit "$1,800 in the next 12 months," says ECU CEO - Wealth Managers


British currency firm sees "long-term bull trend" resuming in 2014

Gold is headed for a price rebound in 2014, maybe by as much as 40%, ECU Group chief executive Antony John toldFE Trustnet in an interview posted Nov. 25.

The financial markets are peaking and global macroeconomic weakness is likely to re-emerge in 2014, setting the stage for gold's resurgence, he predicted.

"It's a natural hedge against the world situation and we are likely to see a long-term bull trend," he said. "We could see $1,800 [an ounce] in the next 12 months."

China also is key to gold's future, he noted, especially as its emerging middle class continues to grow.

"The rhetoric [of the government] can mean you are going to get volatility, so as China develops, their love affair with gold will increase," he said.

China's plans to increase the renminbi's role as a global currency also makes gold important.

"The Chinese government are continuing to buy huge resources of gold and could be creating their own gold standard for their own currency," he said. "They will say, 'Our currency is backed by physical gold so the rate should naturally be higher.'" h

The eurozone also will re-enter full-blown crisis mode and is likely to have a dampening effect on markets, he predicted.


More information can be found online at http://www.goldbullionadvisors.com

Friday, November 22, 2013

Gold still "makes sense" for hedge-fund guru David Einhorn - Wealth Managers


"What we really own gold for is just in case something goes really haywire"

Gold might be down this year, but it's still an important component of Greenlight Capital founder David Einhorn's portfolio. Why? Because of reckless monetary policy from theFederal Reserve, the billionaire tells CNBC in a new interview.

Asked by the talking head whether gold's performance has been a disappointment, he replied: "I don't know that I would agree with the premise about it not working out the way we thought it would. We bought the gold in 2008 when we saw what was going on with the Fed policy.

"This year hasn't been a good year for gold, but other years have been good, and the investment overall so far has been OK for us. But that's not the important thing, because what we really own gold for is just in case something goes really, really haywire. And what I'm thinking about is in terms of mostly the monetary policies but also the fiscal policies that are being run by the big economies. I just heard (
Starwood CapitalBarry Sternlicht (speak on CNBC) and he was very critical of quantitative easing and the easing policy. I think I'm much more critical than he is. ... I don't think it's a question of the price of gold; I think it's a question of the wisdom of the policy. And I think it makes sense. It's not like half our portfolio is in gold or anything like that, but I think it makes sense in any portfolio to own some of this. It's very under-owned and it makes sense in case these guys kind of lose control of the switches."

In the same interview at the 
Robin Hood Investors Conference, he also expounded on the Fed: "I'm not convinced when -- or if -- they'll ever taper," he said. "I don't know. We may go into the next crisis, the next depression/recession rollover, and the next move might be to pour more fuel on the fire. It wouldn't surprise me in the slightest."

More information can be found online at http://www.goldbullionadvisors.com

Wednesday, November 20, 2013

Gold consumption in China exceeds an astounding 2,000 tonnes this year, researcher says - Wealth Manager


Metal "will remain a favored choice," one expert predicts

"When people finally realize that there's a shortage of gold, the price starts to go up. The most incredible thing to me is that because of all the misinformation out there, China can buy an extra 25% of the gold market over the last two years, and the price goes down. ... It should be substantially higher."-- Eric Sprott of Sprott Asset Management in a Novemberinterview with The Gold Report.

Another day, another upward revision to the estimates of China's gold consumption. Eric Sprott in recent months has been openly questioning the statistics compiled by industry firms such as the 
World Gold Council and Thomson Reuters GFMS, alleging that they underestimate true demand there.

Now 
Mineweb's Lawrence Williams has spotlighted the work of Koos Jansen, who "suggests that Chinese gold consumption in the current year will more likely exceed 2,000 tonnes, perhaps as high as 2,200 tonnes which implies a much higher level of imports than the World Gold Council's assumed 1,000-tonne estimate issued far earlier in the year before the continuing high monthly figures for imports through Hong Kong had become fully apparent. ... 

"So, how does Jansen arrive at a much higher total estimate? He draws on published figures from the (
People's Bank of China), the Shanghai Gold Exchange (SGE), and Swiss gold import and export data to reach his conclusions." 

Who's buying all this gold? The Chinese "aunties" are at it again, according to 
Bloomberg in its Nov. 19 article "Gold No Slam-Dunk Sell in China as Aunties Buy Bullion."

The article profiles 
Yang Cuiyan, a 41-year-old housekeeper from Anhui province, who traveled 650 miles to Beijing to buy gold. Yang "is one of the legions of middle-aged Chinese women, respectfully referred to as aunties, who bought coins and jewelry this year, bringing support to a market shunned by many professional investors who began doubting the metal as a store of value."

"I don't know anything about the stock market and I don't have enough money to buy property, so I figured gold is the safest choice," she said. "I can put it on when I go back home to show everyone that I'm doing well. ... I don't want to put my money in a bank. I want to keep up with my relatives and friends back home. We all like to compete to see whose necklace is thicker."

China's demand for jewelry, bars, and coins rose 30% to 996.3 tonnes in the 12 months to September, while usage in India gained 24% to 977.6 tonnes, according to the WGC. India was No. 1 in 2012.

"Images in Chinese media of aunties clearing shelves in gold shops after a 14% plunge in prices in two days in April illustrate an appetite for bullion that defies the views of the biggest banks in the West and points to limited investment choices in China," Bloomberg noted.

"In China, you look around and see very few places to put your money," said 
Duan Shihua, a partner at Shanghai Leading Investment Management Co. "With the share market down and the government nudging people away from real estate, gold will remain a favored choice."

Chinese demand will be a key support for gold going forward. Once the allure of the stock market loses luster in the West and/or monetary velocity from unprecedented central-bank liquidity lights the fuse of inflation, expect a pickup in demand from investors in the U.S., and thus a resumption in the rise of dollar-denominated gold prices.

Furthermore, as China and Singapore grow in stature as gold-trading hubs, the price-setting mechanisms that are currently based in London and New York should give way to increasingly dominant Asian counterparts in cities like Shanghai, and prices will more truly reflect voracious Eastern physical demand and not waning Western gold ETF and futures investment.


More information can be found online at http://www.goldbullionadvisors.com

Tuesday, November 19, 2013

Gold Bullion to $50,000 by 2020, Jim Sinclair predicts - Wealth Managers


Avoid ETFs that own unclaimable derivatives of real bullion, he tells USA Watchdog

Gold ultimately is headed to $50,000 an ounce, bullion expertJim Sinclair of JSMineset.com tells Greg Hunter of USA Watchdog in a recent wide-ranging interview on numerous topics of interest to gold buyers.

Those topics include the 
Federal Reserve's quantitative-easing program, U.S. debt, the dollar's role as a world reserve currency, the Cyprus bail-ins, China and the other BRICS nations, the Singapore Gold Exchange, the stock market, the modern welfare state, and the difference between physical gold and paper gold like ETFs.

"The exchange-traded funds don't necessarily own physical gold," Sinclair notes. "In fact, they own gold in various derivative forms," and the claims on that derivative gold are exponentially higher than the existing physical supply. Once the demand for physical gold outstrips the ability of exchanges like the 
COMEX and the London Bullion Market Association to make normal deliveries, the price of physical bullion will explode, Sinclair predicts.

"Gold is insurance," Sinclair says. "I think the dollar gets hammered. I think we are headed toward hyperinflation."

Sinclair calls the collapse of 
Lehman Bros., the TARP bailout, and the 2008 financial crisis "The Great Flushing." We're next headed into what he calls "The Great Leveling," in which the middle class risks being wiped out. That period from 2014 to 2016 will be followed by "The Great Reset," in which the BRICS nations (Brazil, Russia, India, China, and South Africa) force the U.S. dollar off its pedestal as world reserve currency.

How high will gold go? Asked (at 41:15) for his gold prediction, Sinclair says: Gold is "trying to better $1,650, which is the pendulum point for gold. It will better $1,650 and will rise to $2,400, drop, then rise to $3,200 to $3,500 before we go into the Great Reset" before 2016. "I almost embarrassed to say (how high I think gold can go). ... Physical gold emancipated from paper gold, which I believe will happen, will be $50,000 an ounce."


More information can be found online at http://www.goldbullionadvisors.com