May Gold News 2014

UKIP leader and former commodities trader Nigel Farage believes the UK national debt is out of control. During an interview with Kingworldnews Farage added.

“Every week we are paying one billion in interest on our national debt. And it’s quite a thought that by the end of the lifetime of this government in the United Kingdom next year, just in that five-year term, our national debt will have increased 40 percent. So at every level I’m afraid that debt remains a massive problem. It remains the elephant in the room, and nobody at the moment seems ...

According to the latest figures released by Bloomberg, China and India are consuming the worlds entire mine supply. After analysing consumption and mining data, Bloomberg concluded the two most populous countries are consuming over 8 million ounces per month. With only 7.44 million ounces mined each month this would leave a monthly deficient of 0.56 million ounces.

Bloomberg analyst, Ken Hoffman, suggests the deficit could widen significantly if the newly elected Indian government relax the gold import restrictions and mine production drops as expected.

Overall, Hoffman concludes the Chinese and Indians understand gold’s intrinsic value and invest in precious metals to protect ...

The gold price fell to a 16 week low yesterday as the dollar rallied and gold demand in China soften. The global spot price fell to $1,251.70 per ounce as the U.S. dollar touched a two month high against a benchmark of leading currencies.

A strong dollar makes buying gold in other currencies more expensive, whilst a strong equity market reduces gold’s appeal as a hedge against inflation and systemic risk.

Traders and analysts are closely watching the political situation in the Ukraine closely as any escalation in tensions will increase gold’s appeal as the ultimate safe haven asset.

Revised U.S. Q1 GDP ...

The gold price fell by more than $25 yesterday as $500 million of futures contracts were sold causing the gold price to fall through key resistance levels. The gold price was also knocked on political tensions in the Ukraine easing and better-than-expected economic data out of the U.S. The positive economic figures pushed the dollar and equity markets higher as gold fell.

Sentiment in the gold market was also hit after the World Gold Council reported imports from Hong Kong into mainland China fell in the first quarter of 2014.

Assets in the world’s largest gold ETF, the SPDR gold trust, declined ...

A stash of gold coins found by a Californian couple whilst walking their dog could be worth over $11m. The first coin was auctioned last night at the Old San Francisco Mint, with the remainder going on sale on Amazon and Kagins.com later this month.

Numismatist, Don Kagin, valued the coins and believes it is the biggest find in U.S history. It is unclear who buried the coins but the gold would have been minted by the San Francisco Mint. The couple, who wish to remain anonymous, plan to pay off their debts and make a large donation to charity.

Overnight Bloomberg reported The Austrian Central Bank is to send a team of auditors to the vaults of The Bank of England to verify its gold reserves.

Currently 80% of Austria’s 280 tonnes of gold is held in London with the remaining 20% in Austria.

Austrian politicians and bankers have come under increasing public pressure to undertake an audit, with many Austrians questioning if the gold still exits.

Ewald Nowotny, Governor of the National Bank of Austria told news agency Trend “I acknowledge the request. Any grocery store is obliged to do inventory once a year. It is the only way of getting ...

Former Bundesbank vice president, Jurgen Stark, has told news agency Libre Mercado that the world economic system is out of control and people should be purchasing gold and silver.

Whilst giving a speech at the Ludwig von Mises Institute in Germany, Stark warned the audience that Central Bankers around the world have lost all perspective on the economic situation. Stark believes a system which allows banks to expand the monetary base via the extension of credit is floored and will eventually collapse under its own weight.

Stark resigned from the Bundesbank in 2011, following a disagreement with the President of the European ...

China has invited the world’s top banks and largest gold miners to take part in Shanghai’s new global gold exchange. China has opened the exchange in the hope it can challenge New York and London’s dominance in the trading and pricing of precious metals.

Apparently the Shanghai Gold Exchange has approached the Bank of Nova Scotia, Australia and New Zealand Banking Group, HSBC, Standard Chartered and Standard Bank.

The Chinese are keen to attract both international and domestic institutions to make the exchange as influential as possible

Last year China consumed 1,065.8 tonnes of gold and overtook India as the world’s largest consumer ...

The Financial Conduct Authority (FCA) has fined Barclays Bank £26m for failing to manage conflicts of interest in relation to fixing the price of gold.

Former Barclay’s trader, Daniel Plunkett, has been banned by the FCA for exploiting inefficiencies in the company’s systems to influence the process underpinning the gold fix.

According to the FCA, a U.S. customer owning a gold contract was set to receive a £2.3 million payment if the gold price was above $1,558.96 at the time of the fix. However, Plunkett placed orders that would increase the probability of gold price being below this level.

Plunkett has been ...

The gold price rose above the psychological $1,300 threshold yesterday on news that the Central Bank of India (CBI) is to ease gold import restrictions.

The newly elected Bharatiya Janata Party have confirmed the CBI is to relax the rule which currently requires 20% of all imported gold into India to re-exported.

The gold import restrictions imposed by the previous government increased gold’s scarcity causing premiums to soar and smuggling to rise. During the Indian wedding season premiums for an ounce of gold reached $170 over the official spot price.

As a result of the restrictions overall gold demand in India slipped 26% ...

The Russian Central Bank bought 900,000 ounces of gold in April according to data released on the banks website. The Central Banks total gold reserves now stand at 34.4 million troy ounces.

Gold only represents 10% of the country’s total foreign exchange reserves which include special drawing rights, gold, foreign exchange and their reserve position at the IMF.

The Russian Central bank has been buying around 500,000 ounces a month, whilst at the same time selling their U.S. Treasuries in an attempt to re-balance their foreign exchange reserves.

Between October 2013 and March 2014 the Central Bank sold over $50 billion of U.S. ...

The gold price fell yesterday as both the dollar and international equities recovered following a sluggish start to the day. Gold traders remained cautious as they wait for the publication of the Feds April meeting, which is to be published later today.

No rate rise is expected until mid-2015 but gold traders will be looking for any forward guidance from the Fed.

Platinum increased to a two month high as labour disputes in South Africa’s largest mines rolled into the 17^th consecutive week. Experts are becoming increasingly concerned shortages will soon appear as supply drops and demand picks up. Platinum refiner, Johnson ...

Russia and China have taken a step closer to limit the use of the U.S. dollar in bi-lateral trade. On Tuesday the Bank of China and Russia’s second largest financial institution, VTB, completed a deal to pay each other in either Yuan or Rubles.

Over the last forty years the U.S. Dollar served as the world’s reserve currency and used to settle international transactions. This dominance according to many economists has allowed the U.S. to print and borrow endless amount of money.

According to Michael Klare, Professor of Peace and World Security Studies at Hampshire College, “China sees the dominance of the ...

Total gold demand in the United Arab Emirates (UAE) reached 25.4 tonnes in the first quarter of 2014. The 16% increase from Q1 in 2013 was largely driven by Indian tourists choosing to buy gold in the UAE rather than their homeland in an attempt bypass the Indian gold import tax.

According to the World Gold Councils latest report, jewellery demand in the UAE increased by 18% to 22.1 tonnes. Despite the increase in tonnage the value of the gold jewellery sold dropped 17%. Bar and coin demand followed the same pattern with 5% increase in volume but a 17% fall ...

An ever increasing number of news outlets are publishing stories about the alleged gold price manipulation. Even German mainstream TV channel, 3sat, broadcasted a short documentary on gold manipulation last week.

The momentum started when the Financial Times published an article in February quoting, Alberto Thomas, partner at consultancy firm Fideres, “the behaviour of the gold price is very suspicious in 50 per cent of the cases. This is not something you would expect to see if you take into account normal market factors.”

Interestingly, the article was removed from the Financial Times website after only been published for two days.

World gold demand remained more or less unchanged in Q1 when compared to the same period last year. According to the World Gold Councils (WGC) latest report overall gold demand in Q1 reached 1,072.2 tonnes.

Jewellery demand in the first 3 months of the year rose by 3% to 571 tonnes, the largest quarterly reading since 2005. China’s gold jewellery demand rose by an impressive 18 tonnes in the first quarter.

Technology demand slipped by 4% as manufacturers switched to cheaper alternatives in an attempt to reduce costs.

Central bank demand reached over 122 tonnes in the first quarter as they continue to ...

Gold demand in India fell 26% in Q1 to 190.3 tons as government restrictions directly affected gold demand in the world’s most populous nation.

In 2013, the Indian government introduced a number of measures to reduce the amount of gold imported into the country in an attempt to narrow the country’s current account deficit and protect the value of the rupee.

Following Friday’s election of the pro-business party, Bharatiya Janata, the gold import restrictions are now expected to be lifted.

According to the World Gold Council (WGC), “the country remains a source of strong latent demand, which will be unleashed as and when ...

Gold analysts are expecting the gold import tax in India to ease following the successful election of the pro-business party Bharatiya Janata.

In 2013, the Indian government introduced a number of measures to reduce the amount of gold imported into the country in an attempt to narrow the country’s current account deficit.

Currently, all gold imports are subject to a 10% import tax and 20% of all gold imports must be exported before any further imports can be made. The taxes have been extremely unpopular as gold is central to Indian culture, with Indians buying gold as a store of value and ...

In a joint statement 21 European central bankers have confirmed they have no intention to sell any “significant” amounts of gold in the next five years.

A spokesman for the 18 eurozone nations, the ECB and Central Banks for Sweden and Switzerland said, “Gold remains an important element of the global monetary reserves.” The signatories also confirmed the banks will work together to ensure the gold market avoids any market disturbances.

The forward guidance is highly unusual as Central Banks rarely disclose any details regarding their gold reserves. Gold reserves and the price of gold are closely watched by the world markets ...

China, Russia and Japan all reduced their holdings of U.S. Treasuries in March. Japan reduced its holdings by $10.6 billion, Russia by $25.6 billion and China by $800 million.

Russia’s move was widely expected amid speculation that the west may freeze Russian assets as part of sanctions over the Ukraine. By selling $25.6 billion Russia cut its exposure to U.S. sovereign debt by a staggering 20%.

Interestingly Belgium bought $40.2 billion of U.S. treasuries and is now the U.S.’s third largest creditor after the Japan and China. The small European country now holds $391.4 billion of U.S. treasuries.

According to the Voice of Russia, a meeting was held on 24^th of April by the Russian government to discuss ways of reducing the use of the U.S dollar.

The news agency confirmed the Russian Ministry of Finance is ready to implement a strategy which will increase the role of the Russian ruble in conducting international trade at the expense of the U.S dollar.

Sources close to the government confirmed that the Russian banking system is ready to handle an increased number of ruble-denominated transactions.

As a response to the Ukrainian crisis Russia has been developing a number of bilateral trade arrangements to ...

Following the news the London silver fix will stop operating on the 14^th of August a number of technology and finance companies have come forward offering potential electronic solutions.

Following the collapse of the silver fix, the London Bullion Association (LBMA) confirmed they will work with industry participants to find a suitable replacement for the century old fix. The LBMA said it will consult with miners, refiners and potential administers before a decision on a replacement to the silver fix is made.

Industry insiders close to the matter confirmed that the London Metal Exchange (LMNE) is also keen to provide the ...

Peruvian gold production dropped by 14.7% in March when compared to the same period last year according to data compiled by the Mines and Energy Ministry. March’s silver production also experienced a significant 1.94% decline.

The central Asian country of Kazakhstan has also experienced significant production declines. Data released from the Agency of Statistics of the Republic of Kazakhstan confirmed that gold production declined by 3.7% and silver by 10.6% in the first quarter of 2014.

Industry analysts believe last year’s price decline caused many producers to stop mining at some sites and cease exploration at others in an attempt to control ...

Silver rose by more than 1% yesterday following the news that silver demand in 2013 reached a record high of 1,081 million ounces (Moz). Overall demand was driven by a 76% increase in bullion bars, coins and jewellery.

Demand for investment grade bars more than doubled and sales of silver coins and medals increased by 38%. The amount of silver held in exchange traded funds remained flat in 2013.

The biggest increase in demand came from India where silver jewellery sales increased by over a third to the highest level since 2001.

Platinum jewellery demand in India is set to increase by a staggering 35% this year as the metal becomes a favourite with Indian men.

According to Platinum Guild International (PGI), "Platinum men's jewellery is a very new category. Coming from a very low base, it is now seeing very high growth. There are a lot of inquiries for men's jewellery and retailers are seeing a lot of walk-ins and new buyers.''

PGI are forecasting that India’s platinum demand will increase from 30 to 40 tonnes in 2014. Since 2000 the number of platinum manufacturers in the country has increased from 2 to ...

Gold traded above the psychological $1,300 barrier yesterday as the ongoing violence in the Ukraine boosted gold’s appeal as the ultimate safe haven asset.

Russian Foreign Minister, Sergei Lavrov, believes Ukraine is sliding dangerous towards civil war as the west continues to blame Russia for the ongoing violence. Gold is up over 8% this year largely due to the ongoing tension in the east of the Ukraine.

Palladium prices have been boost by supply disruptions in South Africa and increasing concerns that economic sanctions against Russia could further restrict supplies. Palladium is currently trading at $823.13 per ounce.

Silver dropped 0.3% overnight to ...

The company that runs the London silver fix will stop operating from 14^th of August, according to the company that administers the process. The process underpinning both the gold and silver fix has come under increased scrutiny from both UK and German regulators amid accusations that members of the fix colluded to benefit from the process. In April Deutsche bank resigned from the process underpinning both the gold and silver fix after failing to find a buyer.

The three members of the silver fix, Deutsche Bank AG, Bank of Nova Scotia and HSBC will continue to participate in the fix until ...

The gold price closed above $1,300 yesterday as voters in the East of Ukraine voted for self-rule. Both Ukrainian and Western governments declared the elections legal and even Russian president Vladimir Putin requested that the pro-Russian separatists postpone their referendum until the end of May. Observers are becoming increasing fearful the country could slide into a civil war. Traditionally gold is held as a hedge against political and economic uncertainty.

Today gold traders will be looking to the U.S. Federal Budget announcement for further insight into the state of the world’s largest economy.

As gold smuggling into India reaches record levels official imports continue to fall. Government figures released last week confirmed that legal gold imports for April declined by 74% to $1.75 billion.

The jewellery industry is suffering as manufacturers struggle to source gold from official sources. The shortage has caused premiums to soar forcing many to accept gold from unofficial channels. Gold smuggling into India has soared four fold to a record 148 reported cases in 2013-2014.

As a result of the gold import tax China has overtaken India as the world’s largest consumer of gold.

The gold price recovered slightly during Asian trading as escalating political turmoil in the east of Ukraine boosted gold appeal as the ultimate safe haven asset. The gold spot price increased $2 to $1,289.60 per ounce.

Over the weekend pro-Russian activists declared a resounding victory in a referendum for self-rule. Edward Meir, gold analyst at INTL FCStone, said traders are being increasingly complacent about the ongoing crisis in the Ukraine, perhaps figuring that the worst case scenarios were not materializing. The more the crisis remains localized, the more pressure there will be on gold prices going forward."

Sentiment towards gold was ...

Karipur International Airport was put on red alert on Friday after the pilot reported an unidentified parcel in an airplane toilet. The pilot of the Air Arabia flight reported the unidentified package shortly before the plane touched down. After a 45 mins search by security personnel two 1kg gold bars were discovered.

Gold smuggling into India has soared four fold to a record 148 reported cases in 2013-2014 since the Indian government introduced the gold import tax in an attempt to reduce the country’s current account deficit. Gold smuggling into India has soared four fold to a record 148 reported cases ...

A Romanian couple are to be deported from the U.S for alleged tax evasion worth $68 million. The couple left behind a stash of gold and silver coins worth $2.7 million in a fully equipped doomsday bunker.

Radu and Diana Nemes built an underground shelter with a built in kitchen, back-up generators, water filtration systems, four pistols and two AR-15 assault rifles. The couple had stashed enough food to last months plus 80 gold coins and 10,500 silver coins.

The FBI believes the couple bought a further $2.75 million in gold and silver coins which are yet to be accounted for.

Mr and ...

According to a Chinese government official, China wants Zimbabwe to use its mineral proceeds as collateral for any future loans. Zimbabwe’s Mines minister confirmed the two countries had discussed using various metals and minerals as collateral but concluded that gold is the most stable.

Chinese officials have defended their stance claiming, "It’s in accordance with rules and regulations when granting any loan, it doesn’t mean that we will use the collateral."

China has already extended nearly $1.5 billion to Zimbabwe over the last three years in an attempt to help support the African countries allying economy. Between 2007 and 2009 the ...

Senior managers from the Birmingham Assay Office joined members of their construction team to start work on the Assay office’s new premises on Icknield Street in Birmingham.

The Assay Office was created in 1773 by an act of Parliament and continues to carry out its statutory duty of testing and hallmarking precious metals. The Assay office has grown significantly over the last ten years and now offers assessment, authentication and valuation of jewellery, precious metals, gemstones, watches and fashion accessories.

CEO, Stella Layton, believes the move to the new site will enable the Assay Office to improve its service in terms of ...

The latest Metal Focus report has confirmed Russia has overtaken the United States as the world’s third largest producer of gold. In 2013, China, the world’s largest gold producer mined 65% more gold than second place Australia.

1) China

2) Australia

3) Russia

4) United States

5) South Africa

6) Peru

7) Canada

8) Mexico

9) Ghana

10) Indonesia

Legendary investor and author Jim Rogers is warning that governments could potentially take your savings. In an interview with the Sprott group, Rogers explained that American and European governments have the legal power to confiscate your savings.

According to Rogers the confiscation of wealth has already happened in Poland and Argentina as both governments struggle to balance their finances.

Rogers co-founded the Quantum Hedge Fund with George Soros in 1973.

Gold traded below $1,300 per ounce as Janet Yellen confirmed the U.S. Fed will continue to taper its monthly asset purchase program known as quantitative easing.

Fed Chair, Janet Yellen, told U.S. lawmakers that the U.S. economy still requires a monthly stimulus, even though data suggests the U.S. economy is set to expand.

According to HSBC analyst, James Steel, gold broke through the £1,300 barrier as a response to Yellen’s comments and the de-escalation of geopolitical tension in the Ukraine.

Assets in the world’s largest gold ETF, the SPDR gold trust, remained unchanged at 782.85 metric tonnes for the third consecutive day.

Silver ...

According to Ian Stewart, investment manager of the Newton Real Return fund, gold should be included in every well balanced portfolio. Stewart holds gold as hedge against currency debasement as countries attempt to lower the value of their currency in an attempt to boost exports and increase economic growth.

Stewart added, “We are in the largest collective debasement the world has ever seen, it is a bit of an experiment, it’s been going on for decades but they are really testing it to destruction as there has been competitive devaluation going on across the globe.”

According to data compiled by FE ...

Chinese gold consumption rose 0.8% in Q1 when compared to the same time period last year according to the China Gold Association (CGA).

Over this time period gold jewellery consumption rose 30.2% to 232.53 tonnes but consumption of investment bars fell 43.56% to 67.95 tonnes. The President of CGA believes the recent price drop has reduced the demand for investment grade bars. State news agency, Xinhua, suggested that legislative changes to the types of gifts government officials can receive may also contributed to lower bar demand.

In a recent report, The World Gold Council estimated that China’s gold consumption will maintain an ...

Gold rose 0.2% overnight, helped by a weak dollar and continued tension in the Ukraine. Violence broke out in the eastern town of Mariupol yesterday, where a spokesman for the Pro-Russian fighters confirmed one person was killed a number seriously injured. The gold price may be boosted further if the West, led by the U.S., implements further sanctions against Russia.

According to Peter Fung head of dealing at Wing Fung Precious Metals, "The price trend is not very clear but because of the increased tensions in Ukraine, gold prices are supported, it could fall back as the situation eases."

The gold price ...

Rumours have circulated for years that the gold price is subject to collusion. In March the first lawsuit questioning the integrity of the process underlying the London gold fix was filed. On Monday lawyers for more than 20 plaintiffs gathered in a Federal Court to coordinate their lawsuits against the five current members of the London gold fix.

The lawsuits have been filed by individual investors, hedge funds and large occupational pension funds, alleging that the banks used their unique positions as market makers to manipulate the price of gold to their own benefit.

One of the suits said, “The ‘great flaw’ ...

The gold price remained flat overnight during Asian trading but remains close to a three week high as violence intensified in Ukraine.

The gold price remained little changed overnight at $1,308.96 per ounce following a 2% rise over the last two sessions.

Over the weekend, Ukrainian special forces where deployed to Odessa in the Southwest of the country in an attempt to halt the rebellion spreading and Pro-Russian forces shot down a government helicopter near the eastern town of Slaviansk.

"Worsening tension in Ukraine is likely to see prices going higher from here but strong resistance is likely to be found at $1,317," ...

A $60 million gold refinery is to be built on the outskirts of Dubai, once completed it will be one of the world’s largest refineries.

Demand for gold continues to increase in the fast growing economies in the east, however, key industry activities such as refining and clearing take place in Europe and North America.

The Dubai Gold and Commodities Exchange believes the construction of the refinery and the introduction of a spot gold price in June this year will make Dubai a world class centre for physical gold refining and clearing.

According to the Dubai Multi Commodities Centre, 40% of the world’s ...

Swiss politicians have voted against an initiative that would require the National Bank of Switzerland to hold at least 20% of its reserves in gold. The majority of Swiss Parliamentarians voted against the plan which would also require all Swiss gold to be held in vaults in Switzerland.

Members of the Swiss Peoples Party (SPP) started the initiative and collected the 100,000 signatures required to bring the matter before the Swiss Parliament. “We need gold to give the Swiss franc a credible backbone,” said Luzi Stamm, who founded the campaign “save our Swiss gold.”

The issue will now go before a national ...

The gold price is set for a weekly loss after the Federal Reserve continued to taper its monthly asset purchase program known as quantitative easing. As widely expected, the Fed once again cut its monthly asset purchases by $10 billion dollars to $45 billion dollars, with policy makers signalling further cuts are likely.

Gold was also driven down by bullish comments from the Fed about the state of the U.S. economy, despite the economy only expanding by 0.1% in Q1.

Assets in the world’s largest gold ETF, the SPDR gold trust declined 0.3% yesterday to 785.55 metric tonnes, the trusts lowest reading ...

Hedge Fund Manager and former Goldman Sacs employee, William Kaye, believes Russia’s gold reserves are multiples of what they have reported. During an interview with Kingworld news, Kaye also forecasted that the tension in the Ukraine will be positive for gold in the short term.

“This is potentially very gold bullish in the short term because it escalates tensions, which has almost always been positive for precious metals. But more importantly, I think medium-to-longer-term it accelerates the day when gold goes bid only.”

Top 10 gold producing countries

The latest Metal Focus report has confirmed Russia has overtaken the United States as the world’s third largest producer of gold. In 2013, China, the world’s largest gold producer mined 65% more gold than second place Australia.