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December Gold News 2014


Gold Review 2014: Year of the Central Bank

Gold Review 2014: Year of the Central Bank

2014 was a relatively stable year in the gold market with the price fluctuating between £718 and £819 per ounce.
Click here to view the 12 month gold price chart

The Fed finally tapered their QE program in October and despite the economy apparently stabilising they kept interest rates at near zero. Low rates gave governments freedom to increase their debt. In 2014 U.S government debt surpassed $18 trillion and the UK reached £1.46 trillion or £40,493 per tax payer.
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As soon as the Fed ...

Gold drops below $1,200 as trading becomes volatile

Gold drops below $1,200 as trading becomes volatile

Yesterday the gold price once again fell below the psychological $1,200 barrier as volatility returned to the market. Trader’s attention will now shifted to the Fed’s Open Market Committee meeting later today.

The markets are also closely watching the currency markets after the Russian Rouble crashed 11% against the U.S dollar on Tuesday despite the Russian Central Bank hiking interest rates from 10.5% to 17%. This year the rouble has fallen over 50% against the U.S. dollar stirring memories of the 1998 crises when the rouble collapsed in a matter of weeks. Russia eventually defaulted ...

Gold back under $1,200 per ounce

Gold back under $1,200 per ounce

The gold price dropped more than 2% yesterday to trade under $1,200 per ounce as the dollar strengthened and the oil price dropped below $60 per barrel. In normal trading conditions when the dollar rises and the oil price falls the gold price comes under downward pressure.

The gold price retreated in early trading as the dollar strengthened 0.10% against a basket of international currencies. Following positive economic data the market is now anticipating the Federal Reserve to raise interest rates sooner than previously expected. The selloff accelerated in the afternoon as the oil price ...

 Will QE stop France falling into a deflationary vortex?

Will QE stop France falling into a deflationary vortex?

France is on the brink of falling into a deflationary vortex as manufacturers cut prices to maintain market share. Latest statistics confirm that core inflation in France fell to -0.2% in November.

The situation in the rest of Europe is not much better with Greece, Portugal, Spain, Holland, Germany, Italy, Poland and the Baltic states starting to show signs of deflation.

According to RBS analyst, Andrew Roberts, the European Central Bank is presiding over a deflationary disaster.

“They need to act fast and aggressively or else markets will start to attack ...

  Industrial silver use to surge 27% by 2018

Industrial silver use to surge 27% by 2018

Total silver industrial demand is expected to grow by 27% to 680 million ounces by the year 2018, according to the latest report published by the Silver Institute. The mining industry will need to supply a further 124 million ounces into the market to maintain the supply demand equilibrium.

Silvers unique properties make it indispensable in a number of industrial applications from solar panels to watch batteries. Half of the additional demand will occur from the electrical sector with the remainder coming from our increased reliance in batteries.

The report forecasts in the ...

Indians spend 8% of its daily budget on gold jewellery and coins

Indians spend 8% of its daily budget on gold jewellery and coins

An average Indian household spends 8% of their income on gold jewellery and coins according to the World Gold Council latest report. The survey reported 77% of respondents purchased gold on at least one occasion in 2013 and more than 50% bought more gold last year than the previous year.

The Indian government blames the high level of gold purchases for the country current account deficit. In second quarter the deficit widened to $10.1 billion.

This report recommends India establishes gold bourse designed on the Shanghai Gold Exchange to ensure transparency, stable pricing ...

Russia continues to buy bullion

Russia continues to buy bullion

The Russian Central Bank has increased its gold reserves by a further 18.9 tonnes last month, according to the World Gold Councils latest report.

Russia’s reserves now stand at 1,168 metric tonnes which equates to 10.20% of the country’s total reserves. The Russian Central Bank now has the world’s sixth largest gold holding.

This latest purchase coincides with a sharp drop in the value of the rouble. The currency has fallen 40% against the U.S. dollar since the start of 2014. Western sanctions directed at Russia’s oil and gas industry have hit the country’s ...

Gold trades close to seven week high

Gold trades close to seven week high

The gold price rose for the third consecutive day to close at a near seven week high as the dollar came under pressure and global equities retreated. The gold price has surged $37 since Monday to trade at $1,232.70 per ounce. Gold has advanced over 7% since hitting a four year low in November. Silver has advanced over 10% in the same period.

The dollar fell against a basket of currencies as traders took the opportunity to crystallise profits before the end of the fourth quarter. Typically the gold price and the dollar move in ...

Silver eagle sales surpass 2013 record

Silver eagle sales surpass 2013 record

The U.S. mint has sold a record amount of American Silver eagles in 2014. With two weeks remaining in 2014 the Mint has already sold 42,864,000 coins and surpassed last year’s sales record of 42,765,000 coins.

The mint has sold 82 silver eagles for every gold eagle in 2014, up from 50 to 1 in 2013. Since the silver eagle was introduced in 1986 the U.S mint has sold over 400 million coins. Sales for silver coins have exploded since the start of the 2008 economic crises. Typically silver eagles are bought by retail investors looking ...

The Bank of International Settlements issues yet another economic warning

The Bank of International Settlements issues yet another economic warning

Often referred to as the Central Bankers bank, The Bank of International Settlements has issued another warning over the state of the world economy.

In its latest warning the bank believes the strengthening U.S dollar could have potentially destabilise emerging market economies, such as India and China. The warning comes as China’s latest trade figures disappointed and the U.S. dollar surged to a five year high against a basket of 10 major currencies.

The Swiss based bank also confirmed that the issuance of collateralised debt obligations (CDO’s) has now surpassed the levels recorded ...

First Holland and now Belgium

First Holland and now Belgium

A week ago the Dutch Central Bank shocked the market by announcing they had successfully repatriated 122.5 tonnes of gold from the U.S. Federal Reserve. Now Belgium is going to formally request repatriation of their overseas gold. Belgium owns 227 tonnes of gold bullion which is the equivalent to 7.3 million ounces.

It appears the issue of gold repatriation is not going away. Last week French opposition leader, Marine Le Pen sent a letter to the governor of Bank of France demanding the French repatriate all their gold. Le Pen’s right wing party is gaining ...

Gold price set for best weekly performance in 10 months

Gold price set for best weekly performance in 10 months

The gold price is heading for its best weekly performance in 10 months as the price trades above the psychological $1,200 barrier. Yesterday a slight rise in the oil price boosted gold’s appeal as a hedge against future inflation. Today gold traders will be looking towards the release of latest U.S. jobs data report for further information on the health of the world’s largest economy.

Better than expected jobs growth will be negative for gold as many believe this will prompt the Federal Reserve to raise interest rates sooner. This week gold has risen 3.3%, ...

 Record trading volumes at the Shanghai Gold Exchange

Record trading volumes at the Shanghai Gold Exchange

With three weeks still to go in 2014, trading volumes at the Shanghai Gold Exchange has already exceeded the total amount traded in 2013. In the first ten months of this year 12,077 tonnes of physical gold has been traded.

In 2013 China overtook India as the world’s largest consumer of gold, while Europe’s consumption continues to decline as physical gold continues to flow from West to East.

China wants to become the world’s premier gold centre and recently set up the Shanghai Exchange to attract foreign investors in the precious metals sector. ...

 Gold falls ahead of ECB meeting and jobs data

Gold falls ahead of ECB meeting and jobs data

The gold price fell yesterday as U.S. employment data beat expectations raising the belief of interest rate rise which resulted in a strengthening U.S. dollar. The gold price fell 0.4% to $1,204.69 per ounce during Asian trading.

Attention will now shift to Mario Draghi, President of the European Central Bank following his comments last month that the ECB would be prepared to purchase a wide variety of assets to fight deflation. It now only seems a matter of time before a full blown stimulus package is introduced. Previously the ECB has stated they are willing ...

Ukrainians turn on Central Bankers as gold is vaporized

Ukrainians turn on Central Bankers as gold is vaporized

Two weeks ago the head of Ukraine’s Central Bank confirmed on primetime TV that all of Ukraine’s Central bank holdings had gone.

Not surprisingly the Ukrainian people are angry and have started to demand answers from their so called politicians. News agency Interfax has reported a Kiev court has instructed prosecutors to bring legal action against Valeriya Gontareva, the governor of the National Bank of Ukraine. Gontareva has been accused of miss using her power to obtain personal profit.

The plaintiff Lawyer, Rostyslav Kravets claims, “Gontareva has intentionally committed an extremely unfavorable transaction ...

Ancient gold coins found in temple toilet

Ancient gold coins found in temple toilet

Construction workers in Southern India have found 43 200 year old gold coins whilst digging a hole for a toilet close to an ancient temple.

According to the Bangalore Mirror the workers who discovered the coins initially hid their find rather than reporting to the authorities. The men later took the coins to a local pawnbroker in the nearby town of Chamarajanagar to establish their value.

The broker told the men the coins where fake and therefore worthless and sent them packing. However, in a turn of events the pawnbroker then phoned the ...

Gold up 3% after massive price volatility

Gold up 3% after massive price volatility

Yesterday was a sensational day in both the gold and silver markets. Gold finished the trading day up 3.05% after one point trading as low as $1,140. From high to low the gold price swung 5.9% in one trading day its biggest price jump since September 2011.

The price was driven by a combination of heavy short covering and buy stop orders triggered in the futures, and bargain hunters in the cash market.

Silver as normal experienced even more volatility. Silver traded as low at $14.50 per ounce before surging to $16.80 per ounce. ...

U.S. Public debt to reach $18 Trillion

U.S. Public debt to reach $18 Trillion

At some point within the next two to three weeks total U.S. public debt will exceed $18 Trillion.

Since the start of the 2015 fiscal year the U.S. national debt on average has expanded by $2.08 billion per day. Once the national public debt reaches $18 Trillion each U.S. household will be on the hook for $124,275 which is up from $81,984 in 2008.

The $18 Trillion debt figure excludes all state and private debt such as mortgages, car loans, student loans and credit cards.

In the UK total public debt ...

Swiss voters reject gold referendum

Swiss voters reject gold referendum

Swiss voters have rejected the proposal to force the Swiss National Bank to hold 20% of reserves in gold bullion. The motion was overwhelmingly rejected by 77% of the voters. The referendum was launched by the right wing Swiss Peoples Party in reaction to the SNB buying billions of devaluing euros.

In 2011 the SNB introduced a currency cap meaning it would not allow the Euro to trade below 1.20 Swiss Francs. To maintain the ratio the SNB was forced to enter the market and buy billions of dollars of euros.

Following the ...

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