April Gold News 2014

Deutsche Bank resigned its seat on the London gold and silver fix yesterday after failing to find a buyer. The news comes just three months after the bank decided to quit the price setting process. According to Reuters, Deutsche Bank will officially step down on the 13^th of May.

Deutsche Bank’s decision to resign its seat has coincided with investigations by both UK and German regulators into possible gold and silver price manipulation. Whilst in the U.S. a number of lawsuits have been filed accusing the existing members of colluding to manipulate the price. The gold and silver fix is a ...

Owners of the U.S. futures exchange, the CME Group Inc., are considering introducing price fluctuation limits for both gold and silver contracts in an attempt to end extreme price volatility.

The introduction of possible limits may address concerns that excessive buying and selling can result in extreme volatility without any fundamental reason behind the trade.

Last October, investors and analysts became concerned over a series of large unexplained trades which caused extreme volatility and disrupted trade in the COMEX gold futures exchange.

Price fluctuation limits are already in place for some base metal, agriculture and financial futures contracts.

According to the National Society of Mining, Petroleum and Energy (SNMPE), Peru was the world’s fifth largest gold producer in 2013. The report published in Andina confirmed that over 60% of Peru’s gold was produced in the La Libertad and Cajamarca regions with the majority exported to Switzerland and North America

According to SNMPE President, Eva Arias, gold production is expected to grow by 1% in 2014 and is now the country’s second largest export product.

Mainstream media have been quick to report that Chinese gold imports from Hong Kong fell from 111 tonnes in February to 81 tonnes in March. However, when Q1 data is compared against the corresponding period in 2013, it is clear Chinese gold imports from Hong Kong actually increased by 27%. Rather than suggesting a slowdown these figures indicate China’s appetite for gold remains as strong as ever.

In 2013 China imported 1,139 of gold form Hong Kong, double amount they imported in 2012, and in doing so overtook India as the world’s largest consumer of gold.

Gold fell below $1,300, as positive U.S. housing data offset heightened geopolitical tension in the Ukraine.

Gold dropped as U.S. data confirmed contracts to buy previously owned homes increased in March, the first time in nine months. Tensions in the Ukraine remain high following the United States decision to impose new sanctions on allies of President Putin.

Traders are now looking to the release of Fridays U.S employment data for further information as to the state of the world’s largest economy.

Gold is currently trading at $1,290.38 per ounce and silver at $19.40 per ounce.

Gold production in Ghana, the eighth biggest gold producer in the world may fall by as much as 500,000 ounces this year as miners put production on hold according to the Minerals Commission. Increased costs and a lower gold price have made mining unprofitable.

According to spokesman, Daniel Krampah, total output is expected to be 3.1 million ounces in 2014, down from the initial target of 3.6 million ounces. In 2012, Ghana’s gold production reached a record 4.3 million ounces.

Deutsche Bank may end up resigning its seat on the London gold fix as potential buyers become concerned by the number of U.S. lawsuits claiming the five permanent members of the fix colluded to manipulate the price.

In the last two months alone 20 separate lawsuits have been filed against Barclays, Societe Generale, HSBC, Deutsche Bank and Bank of Nova Scotia. According to industry insiders the court cases are making any sale unlikely until the legal action can be resolved.

The gold fix is a pricing benchmark used by industry participants such as central banks and jewellers to price deals.

Since the Libor ...

Gold broke through $1,300 as the crisis in Ukraine continues to unfold. During overnight trading in Asia gold for immediate delivery increased 0.3% to $1,306.59 per ounce. Year-to- date gold has risen 8.4%, in part, due to the political instability in the Ukraine. U.S. and European officials confirmed they are going to place a number of new economic sanctions on Russia today.

Assets held in the world’s largest exchange traded fund, the SPDR Gold Trust, remained unchanged at a 3 month low of 792.14 metric tonnes.

Silver decreased 0.3% to $19.67 per ounce, platinum increased 0.4% to $1,428.75 per ounce and Palladium ...

Japans Ministry of Finance is to launch a pair of 1,000 yen silver coins to commemorate 50 years since the introduction Japan’s bullet trains. Although the coin has a face value of 1,000 yen the coins will be made out of 31.1 grams of sterling will silver and will be sold for 8,300 yen ($83).

One of the coins will feature an image of a bullet train, blossom, and Mount Fuji on one side and on the other an image of a multi coloured Skinkansen train.

The coins will be made available from the 1^st of October.

The UK’s Financial Conduct Authority (FCA) has visited French bank, Societe Generale, to observe the process underpinning the London gold fix, according to two industry insiders. FCA representatives visited the Societe Generale’s London office to observe both the Am and Pm London fix conference calls. Both the FCA and Societe Generale have failed to respond to questions regarding the visit.

The gold fix is a pricing benchmark used by industry participants such as central banks and jewellers to price deals. This latest news closely follows Deutsche Bank decision to sell its seat on the fix following an investigation by the German ...

The CME Group plans to launch a physically deliverable gold futures contract in Asia, with the objective of targeting increasing investor demand in the world’s top gold buying region.

Once implemented it would enable the CME group to establish a pricing reference point for gold futures in Asia, in the same way that the COMEX gold contract currently establishes the benchmark for gold bullion futures contracts globally.

The CME’s COMEX contract is commonly used as a hedging mechanism for refiners and jewellers and in most circumstances the contracts are settled in cash.

Industry insiders are predicting that the contract will likely launch in ...

Precious metals advisor, George Gero, predicts on going conflict in the Ukraine could be a massive catalyst for higher precious metal prices.

"One of the largest suppliers of gold, and of course platinum, is Russia and if they're going to be involved in sanctions, and more problems with Ukraine, and deliveries are curtailed—and there is already a problem in South Africa between the miners of platinum, palladium and the mining companies—all of that could somehow explode on the upside and curtail deliveries, meaning higher prices."

Following Vladimir Putin’s warning to the Ukraine yesterday gold spiked in a matter of minutes.

Gold bullion for immediate delivery increased by 0.3% yesterday as tensions in the Ukraine continued to escalate and U.S. housing data disappointed the markets.

The Ukrainian government angered Moscow overnight after they confirmed they are going to continue to remove pro-Russian activists from key government buildings in the east of the country. Russia responded by confirming they will intervene in the east of the country to protect their citizens if required.

In the U.S. new home sales dropped to an eight week low raising concerns that the U.S. economy is weakening, this boosted gold’s appeal as a safe haven asset.

Assets held in ...

Joe Foster, portfolio manager with Eck International Investors, believes increased physical demand from China and production cut backs will support the gold price.

Foster anticipates as soon as the gold price drops Chinese consumers will take the opportunity to increase their holdings, thereby supporting the gold price. In addition, Foster expects mine production to slow if the gold price drops below $1,200, resulting in reduced supply and increased prices.

“I see gold in the process of forming a base this year,” Foster said. “A lot of negativity is already priced into the gold market. So I don’t expect to see too ...

500 commemorative silver coins are to be minted to mark Russia’s takeover of Crimea. An image of Russian President Vladimir Putin will feature on one side of the coin and the Crimean peninsula on the other.

The silver coins will weigh 1kg and have been named - The Gatherer of the Russian Lands – a phrase which is associated with Ivan III, who expanded the Russian empire during his reign.

The Russian factory minting the coins is planning on gifting a number of the coins to members of the Russian leadership with the remainder going on general sale. Ironically an image Vladimir ...

According to industry insiders, The Peoples Bank of China (PBOC) has started to import gold directly into Beijing in an attempt to keep China’s gold imports confidential.

China’s gold imports figures via Hong Kong are accessible, whereas imports directly to the mainland are not. So any move to increase the amount imported via Beijing will make estimating China’s gold reserves even harder. Previously all gold imported into China was via Shenzhen, Shanghai or Hong Kong.

According to the World Gold Council, China has been aggressively increasing its gold reserves in an attempt to diversify away from U.S. Treasuries. Last year 1,160 tonnes ...

12 gold bars have been removed from the stomach of an Indian businessman. The patient, a 63 year old man, was admitted into hospital in Delhi after experiencing severe vomiting.

The patient told his doctor that during a fight with his wife he had accidently swallowed a bottle cap. However, when doctors operated they discovered 12 gold bars weighting 400 grams in the man’s stomach.

It is widely thought that the businessman swallowed the gold to avoid paying import tax when he returned to India from Singapore. Since the gold import tax was introduced smuggling into India has soared.

As soon as the ...

Gold dropped to its lowest level in two weeks as traders consider increased physical demand in China against positive economic data from the U.S.

According to Sun Yonggang, market analyst at Everbright Futures, “Gold remains under pressure as long as economic data out of the U.S. is positive. We see some support from the little pickup in physical activity when prices fall below $1,300.”

Funds under management at the world’s largest gold ETF, the SPDR Trust, decreased to 792.14 metric tonnes, its lowest level for 12 weeks.

Gold for June delivery traded at $1,289.10 per ounce in New York yesterday, silver slipped by ...

According to the World Gold Council's (WGC) latest report, Chinese private sector gold demand is set to increase by 25% to 1,350 tonnes by the 2017, with most of the new demand coming from a growing middle class.

Over the next six years the Chinese middle class is projected to grow by 60% to 500 million people. These affluent Chinese consumers will want to invest their newly acquired wealth and many will choose gold.

The WGC reported that 80% of Chinese consumers plan to spend either the same or more money on 24ct gold over the next 12 months. The jewellery market ...

Mark Karpeles, founder of the bankrupt bitcoin exchange MtGox, is refusing to attend the bankruptcy hearing in Washington on Friday.

MtGox filed for bankruptcy in both the U.S. and Japan in February after reportedly losing £300 million worth of Bitcoins.

A U.S. judge ordered Mr Karpless to travel from Japan to America to answer questions in front of the U.S. Department of Treasury’s Financial Enforcement Network regarding the exchanges failures.

Mr Karpless lawyers confirmed that the former CEO would not attend and reiterated that Mr Karpless has not been charged with any crime.

The value of one Bitcoin is currently worth around $500, down ...

Gold dropped 1.9% yesterday as economic data suggested the U.S economy is improving. Following last week’s better-than-expected retail sales data, consumer price inflation increased in March fuelling speculation that the Federal Reserve will continue tapering its asset purchase program known as quantitative easing.

Yesterday’s price drop was accelerated by technical selling as the global spot price fell through the 200 day moving average.

Gold for immediate delivery recovered this morning by 0.1% to $1,303.51 per ounce. Silver remains unchanged at $19.607 per ounce, platinum has changed little at $1,439.25 per ounce and Palladium is up 0.4% to $798 per ounce.

The World Gold Council has estimated that Chinese gold demand will increase by around 20% to 1,350 tonnes by 2017. China bought 1,132 tonnes of gold in the form of coins, bars and jewellery in 2013 and overtook India as the largest consumer of gold.

World Gold Council representative, Albert Cheng, said. “The cultural affinity for gold runs deep in China and when this is combined with an increasingly affluent population and a supportive government, there is significant room for the market to grow even further.”

"Whilst China faces important challenges as it seeks to sustain economic growth and liberalise its financial ...

Gold fell 1% yesterday, from its recent three week high, as strong U.S. retail sales data boosted the value of the dollar and raised expectations that the U.S. economy is on the road to recovery. Over the last 12 months better-than-expected economic data from the world’s largest economy has been the major driver behind the lower gold price.

Physical demand in China remained weak over night with the Shanghai spot price trading at a $1 discount to the Comex spot price.

Assets held in the world’s largest exchange traded fund, the SPDR Trust rose by 1.8 tonnes to 806.22 tonnes on Monday, ...

The gold price is at its highest level in 3 weeks as political tension in the Ukraine continues to escalate. During Asian trading gold surged 0.9% to $1,329.92 per ounce, its highest level since the 24^th of March.

Following a disappointing 2013, the gold price has risen 11% this year as the world’s major economies stutter and political events continue to unfold in the Ukraine.

The United Nations Security Council called an emergency meeting over the weekend to discuss the latest violence involving pro-Russian gunman and Ukrainian security forces in the east of the country.

Both the U.S. and the Ukrainian governments have ...

A Californian couple who found $10 million of gold coins whilst walking the dog may not have been so lucky after all. The hoard may have been stolen from the U.S. mint in 1900 and subsequently may be the legal property of the U.S. government. The find which included mostly uncirculated coins with a total face value of $27,000 matches the amount stolen from the San Francisco Mint in 1900.

According to Goldman Sachs gold will continue to decline in 2014 as the U.S. economy continues to expand.

Bank analyst, Jeffrey Currie, confirmed he believes gold will finish the year at $1,050 per ounce and gold’s recent rally will soon subside. Currie believes the tapering of the Federal Reserve’s Bond buying program and a pickup in U.S. economic data will be a driver for lower gold prices.

“It would require a significant sustained slowdown in U.S. growth for us to revisit our expectation for lower gold prices over the next two years. While further escalation in tensions could support gold prices, we ...

The gold price this week has been boosted by the ongoing political unrest in the Ukraine and the Fed’s decision to keep interest rates at record lows.

The Ukraine government decided to send security forces to the east of the country after pro-Russian protestors began occupying administrative building. Gold was also lifted by the Fed’s intention to keep interest rates on hold.

Bullion for immediate delivery traded at $1,320.14 per ounce during Asian trading.

Assets held in the world’s largest exchange traded fund, the SPDR Gold Trust, fell yesterday to 806.22 metric tonnes, the lowest level since March 7^th.

Silver increased 0.1% to ...

Bitcoin has fallen below $400 for the first time since November following the news that Chinese bitcoin exchange BTCTrade.com has received notice that their bank accounts will be closed. The price fell $30 within just a few hours of BTCTrade.com making the announcement.

Bitcoins value has dropped drastically over the last few weeks following rumours that the Chinese Central bank are looking to ensure that cryptocurrenies are separated from the traditional banking industry.

Bitcoin is currently trading at $391.11 per coin.

Research undertaken by gold analyst, Alasdair Macleod, suggests China may have more gold than was previously thought. The China Gold Association (CGA) informed markets that the Asian superpower consumed 1,176 tonnes of gold in 2013. The figures released by the (CGA) excluded all the gold mined and recycled in China which is thought to increase the consuption figures by a further 500 tonnes.

On the other hand, Alasdair Macleod believes China Actually consumed 4,843 tonnes in 2013. His revised figure is based on data from Chinese gold reports which details the actual amount of gold vaulted.

Macleod’s views are also supported by ...

The world’s largest single gold crystal worth $1.5 million, which was found in a river bed in Venezuela, has been successfully verified. The American owner, who found the crystal over 10 years ago, handed the crystal to experts at the Los Alamos National Laboratory to test its crystallinity. Researchers have used the latest technology to validate the 217.78 gram crystal which is about the size of a golf ball.

Gold crystals are valued so highly because they are created entirely naturally. In 2006 the validity of the crystal was called into question because experts could not confirm its authenticity with the ...

The gold price increased for the third consecutive day after minutes from the Fed's March policy meeting indicated officials are reluctant to increase interest rates in the short term.

The low interest environment in the U.S. which reduces the opportunity cost of holdings non yielding bullion above other assets, has been a major driver behind the higher gold price in recent years

The gold price touched $1,316.81 per ounce yesterday before finishing Asian trading 0.3% up at $1,315.04.

Assets held in the world’s largest exchange traded fund, the SPDR Trust, have remained constant since March the 24^th.

Observers believe Turkey’s gold imports soared in 2013 as a result of Ankara paying for its imported Iranian gas and oil in gold. The Turkish government have always denied that such a program existed.

It is alleged that Turkey was using gold instead of dollars as a form of payment in attempt to skirt western sanctions. The sanctions included banning Iran from the international payment system SWIFT.

An investigation into the oil for gold program began in December and a number of high profile politicians and businessmen linked to the Prime Minister Recep Tayyip Erdoğan's ruling Justice and Development Party (AK Party) ...

India’s gold imports increased to 50 tonnes in March, the highest monthly reading since the Reserve Bank of India introduced the gold import tax in May 2013.

Following the government’s decision to allow more banks to import gold, existing importers have increased their orders.

Finance minister, P Chidambaram, also indicated that allowing more banks to import gold was the first step in relaxing the gold import restrictions. As a result, exports are expected to remain robust and many traders and importers are predicting that the Government will relax the rules further.

Prior to the introduction of the gold import tax, India was the ...

Gold traded over $1,300 an ounce as political tension in the Ukraine escalated, increasing gold’s appeal as the ultimate safe haven.

Ukraine’s acting government launched a number of operations in the city of Kharkiv, 70 separatists occupying the regional administrative building were arrested.

Whilst in the predominantly Russian speaking city of Donetsk, pro-Russian groups seized government building and began calling for Donetsk to become its own separate republic.

The Russian foreign ministry warned the Ukrainian authorities, if force is used to dislodge the protestors they run the risk of a civil war.

In turn the U.S. accused Russia of adding fuel to the fire, ...

Bullion for immediate delivery traded at $1,299.39 per ounce overnight as investors wait for the release of the minutes from the Feds latest meeting.

Traders will be looking to the Fed for further guidance on how quickly they are going to cut their monthly asset program known as quantitative easing.

According to Lv Jie, analyst at Cinda Futures, gold will remain under pressure as U.S. economy continues to show improvement and political tensions in the Ukraine ease. In the short term Jie believes gold will trade in a tight range as traders wait for further details from March’s meeting.

Assets held in ...

40% of the world’s physical gold transited through Dubai in 2013, according to Ahmed Bin Sulayem, the Executive Chairman of the Dubai Multi Commodities Centre (DMCC). In total, 2,250 tonnes of gold worth $75 billion dollars passed through the city last year.

The DMCC is a free trade zone and was established in 2002 with the aim of promoting and regulating the gold industry. The growth in trade has been attributed to Dubai’s location, transparency of trade and the ever increasing number of tourists. In 2013, 70% of all gold consumed in Dubai was by tourists visiting the city.

Sulayem is predicting ...

A group of lower house members of the Russian Parliament are urging the country’s largest oil and gas producers to stop using the U.S. dollar.

Mikhail Degtyaryov, a member of the Conservative national party told local news agency, Izvestia daily, “We should act paradoxically when we deal with the West. We will sell rubles to consumers of our oil and gas, and later we will exchange rubles for gold.”

On Wednesday, Andrey Kostin, head of state-owned bank VTB, also called for Russia to start making international payments in rubles and not dollars. Kostin also believes this transition should start immediately and be ...

The Royal Mint is to issue 20,000 one quarter ounce silver coins from April 21^st. The coins will be minted from silver which was recovered from the sunken merchant ship SS Gairsoppa, which was torpedoed by a German U-boat on the 17^th of February 1941.

The silver was recovered in 2011 by Florida based exploration team, Odyssey. In total, 2,792 silver ingots were recovered worth £150 million.

Shane Bissett, from the Royal Mint said, “This incredible story marks yet another moment in the Royal Mint’s fascinating, 1,000-year history. We are so pleased to be able to bring these coins to market at ...

Pakistan has rejected advice from the International Monetary Fund (IMF) to convert its gold into cash in an attempt to bolster its foreign currency reserves. Pakistan rejected the advice citing security concerns according to a report issued today by the IMF.

The report confirmed the State Bank of Pakistan (SBP) holds over 2 million ounces of gold, with a market value of $2.7 billion. The gold is not included in the SBP’s foreign reserves as it is not deemed liquid, confirmed the IMF.

The IMF wants this to change and has been pushing the SBP to sell its gold bullion at a ...

Gold dropped back yesterday after the Euro fell against the dollar following the European Central Banks’s decision to hold interest rates at record lows. The ECB also reconfirmed their intention to adopt unconventional measures if inflation remains low.

Positive U.S. economic data, including better-than-expected private sector hiring and non-payroll data, acted as a drag on the gold price.

Gold slipped 0.5% at one point to $1,282.70 per ounce, silver declined 0.8% to $19.78 per ounce, palladium climbed 0.4% to $785.25 per ounce and platinum increased 0.4% to $1,438 per ounce.

Today, the market will be looking to the release of U.S. payroll data ...

Pecora Capital is expecting gold to reach new highs within 5 years as equities struggle and investors turn to gold as the ultimate safe haven asset.

Managing Director, Aaron Smith believes the U.S equity markets are overvalued and the recent stock market rally is a direct result of the Federal Reserve’s monetary policy

“The equity market expansion is purely a function of monetary policy, growth is not inspiring, and valuations are lofty. When there’s a stop or contraction to the Fed’s balance sheet, then you’re going to see more than a correction in equities.”

Initially, Smith expects gold to dip alongside equities before ...

Despite the price of silver dropping over the last 12 months, demand for physical silver coins in the U.S. remains robust. The U.S. mint sold 5.3m 1 ounce American Silver Eagles in March, the fourth highest sales month in history and the strongest month since January’s 2013 record high.

The sale of U.S. Mint American gold eagles dropped to 21,000 ounces in March, down from 31,000 sold in February. Gold American eagle coins are minted in 4 different sizes, 1 ounce, ½ ounce, ¼ ounce and 1/10 ounce.

As the U.S. Mint limits the amount of coins sold each month, sales figures ...

Two of the world’s largest platinum producers have confirmed they can’t deliver to certain suppliers as production has been hit by ongoing strike action.

Lonmin and Anglo American Platinum have sent out a number of force majeure notices, which in effect exempts the miners from contractual obligations, on the basis the strike action is out of their control.

The strike action began on the 23^rd of January after Lonmin and Anglo American rejected workers claims for an increase in basic salary to R12, 500.

From the 15^th of May, individuals will be prohibited from carrying gold bullion in and out of Vietnam.

Under the new regulations, individuals will have the choice of either leaving their gold with custom officials, which will be returned when they leave, or to have the gold transported back to their home country.

Gold, in the form of jewellery, can be carried in and out of the country, however, jewellery with a combined weight of over 300 grams, must be declared to custom officials.

The only time individuals can legally carry gold bullion across Vietnam’s borders is when the purpose of travel is ...

Following two days of losses, gold has steadied but remains close to a seven-week low, as better than expected U.S. factory data reduced gold’s appeal as a hedge against a faulting U.S. economy.

Gold fell yesterday following the news that auto sales picked up in the U.S. and factory output accelerated for the second consecutive month. Investor sentiment is mixed, many are suggesting the political tensions in the Ukraine could support the gold price and others believing rising equities could cause gold to head lower.

On a technical basis the gold charts look negative, but gold analyst Ed Meir is more confident, ...

6.4 tonnes of gold was redeemed from gold ETF’s on Monday, the largest, single-daily outflow since 23^rd December 2013.

Last week was the second consecutive week gold ETF’s experienced negative outflows taking the total bullion allocated to investors to 1,759.4 tonnes.

Holdings in the world’s largest Gold ETF, the SPDR Gold Trust, which accounts for 45% of all ETF holdings, saw 10.5 tonnes redeemed last week.

The total holdings in Gold ETF’s stands at 1,759.4 tonnes down from its December 2012 high of 2,632 tonnes or 93 million ounces.

Indian silver companies are reported to be upgrading their equipment and processes to conform to international standards. Previously, Indian manufacturers mixed cadmium with silver to make Sterling Silver.

As cadmium is banned in the west due to health concerns, Indian companies are now changing their process and using zinc and copper instead.

Since the change, Indian silver exports to both Europe and the U.S. have surged with an unprecedented increase in exports of silver utensils, artefacts and other silver products.

Historically, western consumers preferred 14 carat white gold for diamond studded jewellery. However, due to the high gold price, customers are switching to ...

Following increasing scrutiny by regulators into the process underpinning the London gold fix, bullion banks are considering moving to an electronic platform which would make the process more transparent.

A number of technology companies are now competing to offer a clearer way of disseminating information that shows how the $20 billion-a-day London fix is settled.

Gold manufacturers and producers are becoming concerned that if the London gold fix is abandoned their costs could jump as regulatory requirements increase.

The five members of the gold fix are HSBC Holdings, Barclays Bank, Deutsche Bank, Bank of Nova Scotia and Société Générale.