Gold demand in Asia picks up due to lower prices
Today has been a busy day for us recording the weekend show. We have some great guests joining us so please watch for us to post the show tomorrow morning. Since Doc has been sick and Rick and Chris are traveling the daily editorials have been light today. We will be back with the majority of our daily guests next week.
In the meantime here is an article that caught my eye. Originally posted on Reuters I found it on the Money Control website. There are some facts about just how poorly gold has been performing… Summed up in one short paragraph and a quote “Gold, trading at about $1,158 an ounce on Friday, touched $1,147.10 on Wednesday, the lowest since Dec. 1. The metal fell for nine straight sessions to Thursday, the longest losing streak since 1973″ and “Demand has increased a little bit because of the drop in prices but there is no big rush,” said Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation.
Here is the full article.
(Reuters) – Demand for gold picked up across Asia this week as bullion prices dropped to their lowest level in three months after the longest losing streak in more than 40 years, but caution still prevailed, traders said.
Gold, trading at about $1,158 an ounce on Friday, touched $1,147.10 on Wednesday, the lowest since Dec. 1. The metal fell for nine straight sessions to Thursday, the longest losing streak since 1973.
The lower prices attracted bargain-hunters across Asia, the top consuming region, although wariness over the price outlook kept a lid on purchases.
In top consumer India, premiums remained largely unchanged from last week’s levels at about $1.50 to $2.50 an ounce.
“Demand has increased a little bit because of the drop in prices but there is no big rush,” said Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation.
“This is the last month of the financial year so there is some liquidity crunch in the market. That is quite seasonal, but that’s also curbing some purchases,” he said.
Indian demand could pick up pace next month with the onset of the wedding season. The festival of Akshaya Tritaya, considered an auspicious time to buy gold, could also boost demand and imports in April, he said.
In second-biggest consumer China, premiums on the Shanghai Gold Exchange, the platform over which all Chinese physical trades are conducted, was steady on last week’s levels at about $4-$5, though some noted that volumes had slowed recently.
“For now physical demand is still about, but it is slowing, with turnover through the SGE gradually coming lower since Chinese New Year,” said Alex Thorndike, senior precious metals dealer at MKS Group.
Chinese consumers usually purchase gold for the new year holiday as gifts and demand tends to slow after that.
In the other major trading hubs, Hong Kong and Singapore, premiums edged up to about $1.30 an ounce. In Tokyo, premiums were about 50 cents to $1.
“We are seeing steady buying but it is not an aggressive response to the price drop,” said a dealer in Hong Kong.
“The strength in the dollar is a factor preventing some people, while others are also holding back expecting more declines.”
The dollar is trading close to its highest in nearly 12 years against a basket of major currencies.
A stronger greenback makes dollar-denominated gold more expensive for holders of other currencies.
(Reporting by A. Ananthalakshmi; Editing by Alan Raybould)
Read more at: http://www.moneycontrol.com/news/commodities/gold-demandasia-picksdue-to-lower-prices_1328306.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/commodities/gold-demandasia-picksdue-to-lower-prices_1328306.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/commodities/gold-demandasia-picksdue-to-lower-prices_1328306.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/commodities/gold-demandasia-picksdue-to-lower-prices_1328306.html?utm_source=ref_article
Read more at: http://www.moneycontrol.com/news/commodities/gold-demandasia-picksdue-to-lower-prices_1328306.html?utm_source=ref_article
Off Topic:
There were rumors the last couple of days that Putin had suddenly died.
e.g. http://www.news.com.au/world/is-president-vladimir-putin-dead-the-internet-certainly-thinks-so/story-fndir2ev-1227260905116?from=public_rss
It is much more likely he was attending the birth of his child by his long-time girlfriend.
A 48-hour Caesarian section..!!..??
—- OMG !!! 🙂
Or maybe he is having a statue made of himself. Posing is hard work.
Hmmm seems I remember that article on another site today…..
Sold 30% position in Claude today @ the 76 RSI. Will sell next 30% position @ the 80 RSI= .5034. Will hold remaining 40% as my base holding. All in cost $.218 back on Nov 14.
Bought a little Richmont @ $2.83 for the 1st time in 14 years
Bought Tahoe again @ $11.30
Nice work Marty! I sold out from Claude a little early this time, but I think there is a good chance it may get up to the $.5034 target. My forecast that it’s share-price would pull back when the gold prices were set to pull back did not pan out.
I made a nice profit, and am really happy that Claude has shown such strength over the last few weeks. I have been a long term holder for years, and intend to average back in on the next pullback. Cheers!
Thanks Marty. Good trading, man. I really like to hear how others are buying/selling specific PM stocks. I too, hold Claude @ US$0.22 for my core, but no trading shares right now.
My best sale price for Claude today was .4686 but my average was .455 (U.S.).
I think that any surprises for the sector now will be to the upside. Even most bulls are bearish.
http://stockcharts.com/h-sc/ui?s=GDXJ&p=W&yr=2&mn=0&dy=0&id=p60332854512&a=398543470
One issue I have with Rick’s statement that the gold correction has been 48 months running, is that it’s actually 42 months altogether:
Yes FranSix you are correct, and I had incorrectly used his number yesterday without checking the chart. We are 42 months into the bear not the 46 I thought I heard him say, because it started in September of 2011.
Good point, but we are still 3 1/2 years into the Gold Bear and most Gold bears have averaged 3-4 years.
And since the Volatility Smile or Volatility Skew is at least this long, then we must be on the eve of the settlement month for very large scale financial derivatives involving gold futures.
It began with the end of Q3, 2011, and perhaps closes end of Q1, 2015:
A price flag should come up under the weekly chart by the (2) which is automated in Stockcharts.com
One curious observation: one of Richard Russell’s go to technicals is the point & figure chart. 3 months ago it had a target of 102, last month it was 120 and today it is 137. Heaven help the world if we get anywhere near the 137, worldwide Depression will imminently follow that parabolic move. 50 day moving average just above 95. Fast & Pray because the Devil is in the Details!
102 actually makes sense, but 120 is in the area of the most recent highs. 137…..holy crap!
Above comments coincidentally were for the $USD
Let’s pray it doesn’t go much higher. It looks like it’s real close to a top. But I thought that a few weeks ago too..
I gathered that when I saw 102 (targeted Fib retracement) and 120 (prior high in the dollar), but just now realized you never stated what you were discussing.
It is funny how numbers side by side like 102 and 120 form correlations in the human mind.
Marty – Thanks for the info from Richard Russell.
For India alone:
Gold imports rise to $1.98 bn in February
Mar 13, 2015 at 21:20 | Source: PTI
As per data released by the Commerce Ministry this month, the gold shipments in February jumped 48.78 percent on a year-on-year basis. India is the largest importer of gold, which is mainly utilised to meet the demand of the jewellery industry.
It goes in and just disappears forever never to surface again in world markets. Centuries pass…… India is like golds Black Hole. We might just as well dig the stuff up and then shoot it into space because the effect is about the same. And the odd part is that when prices get high they don’t sell like other speculators but rather just buy less! Eventually they will have all of it. Ha!
The recent 9 day drop in gold was due to bringing the franc to parity with the dollar IMO. Look at the gold chart and the franc chart.
I believe it has something to do with the restructuring of the financial system that’s coming within days.
I think that’s when we see the dollar top. Even if the dollar tops next week, gold still has more downside.
Gold stars are waiting for whoever calls it right. Even a song will be dedicated to them!
Bird,
Who cares who right. I just want the wash to happen so we can get on with things. Being patient is probably the hardest part regarding mining stocks.
In 3 to 5 years from now, we all will be glad we followed the PMs and miners so much.
I agree with you on that Chartster. Few are better placed to be ready when the bottom finally arrives.
Just trying to kill the boredom as gold grinds lower. We could all use a few laughs at this stage of the game. I mean the surviving gold enthusiasts of which I am actually one (believe it or not!). But this is all fun and games as we approach a period of discord. Some guys are working on timing the top in equities, others the bottom in gold. Then we have the turn in US rates, bets on where crude goes next and of course the price of rice in China!….and all of it is intertwined if we could only see it for what it really is. So sure, anyone who times the big stuff right has got to have some sort of recognition.
Exactly chartster who cares bird.. This thing is long on the tooth. Do you really want to short it your whole life? Im sure one day you will be on the buy side on the way up..By the way where you on here during the 2008-2011 run?
He showed up here in 2013.
Short gold has been the better trade for several years now, Glen. When gold turns back up I will go with it because that’s where the money will be made. As I have said many times on this site before, I have no particular loyalty to gold and I don’t really give a sh*t if it goes up or down.
Call that a learning experience. NEVER marry your trades.
Gold still has more downside ( understatement )
That’s what 6 point text is for…it is the antidote to Mark’s full time CAPS LOCKS!
The one thing about this bear and it’s final wash faze, is that there will be a lot of gold bugs turning to other asset classes at the exact wrong time.
Sad
Just as its always been. I still know guys who have been unable to touch tech companies since the Dot Com bust. Once burned I guess and after that they just felt disgusted. A lot of gold buyers are already feeling the same way. So many quit posting here when the recovery failed to materialize year after year after year.
In spite of a healthy correction,gold remains positive in every major currency in 2015.
Gold has also been a stellar investment since the year 2000 in every currency:
http://www.fxstreet.com/analysis/gold-investments-market-update/2015/03/13/
The Fed fiat performance is not representative of the global gold market.
China mines the most ,consumes the most and imports the overwhelming majority of gold and is now suspected to hold the world’s largest supply of gold. If the data that Koos Jensen supplies is accurate China should now have near the same amount of gold as the rest of the world -combined.
That would make the Yuan ‘good as gold’ and the Chinese will soon be influencing the price,not the western banksters paper derivative mechanism profiting those that have paltry supplies or sold and/or leased out their bullion eons ago.
You are wrong Matt. Gold has not been positive in EVERY currency in 2015. Try for accuracy next time. And don’t make stuff up that is not true.
Bird,no sense getting your knickers in a fiat knot of linen.
I see denial and anger instead of the accuracy you demand.
How’s that?
Creativity is just the sign of pumpers, shills and promoters in this business. How is that? You might bullshit everyone else here on the site but you won’t pull the wool over the eyes of the veterans. Go back to grade two and try again later when you grow up.
Lmfao, now he’s a veteran. The guy that said we should “speak from the heart” lol!!! I don’t know about everyone else, but I prefer facts to a creative, delusional artsy fart like Bird speaking from his heart.
Anybody pumping the Fed/Bankster price of gold needs no introduction,Bird.
Gold in fed notes has been the global con game and you are the veteran gold dumper on this site.Honesty is not theft and lying to make it a fact.
The Comex Registered Inventory is at only 20.424 tonnes.
20 tonnes.
http://www.strategicgold.com/insight/
Since gold came under attack in April 2013, the COMEX paper-to-gold ratio has moved from less than twenty to over one hundred ounces of paper gold representing each single ounce of physical gold.
http://www.safehaven.com/article/34750/manipulation-in-the-gold-market-and-a-related-opportunity
Total Chinese Gold Reserves Approaching 16,000 tonnes
https://www.bullionstar.com/blogs/koos-jansen/total-chinese-gold-reserves-nearly-16000t/
Huh? Bird, the veteran gold dumper
Whatever Al.
Anybody pumping the Fed/Bankster price of gold needs no introduction,Bird.
Gold in fed notes has been the global con game and you are the veteran gold dumper on this site.Honesty is not theft and lying to make it a fact.
The Comex Registered Inventory is at only 20.424 tonnes.
20 tonnes.
http://www.strategicgold.com/insight/
Since gold came under attack in April 2013, the COMEX paper-to-gold ratio has moved from less than twenty to over one hundred ounces of paper gold representing each single ounce of physical gold.
http://www.safehaven.com/article/34750/manipulation-in-the-gold-market-and-a-related-opportunity
Total Chinese Gold Reserves Approaching 16,000 tonnes
https://www.bullionstar.com/blogs/koos-jansen/total-chinese-gold-reserves-nearly-16000t/
Absolutely right about the Bird, Matt. It’s a shame that so many newbies are duped by his know-it-all, BS-as-you-go, approach.
Here’s a window into this twisted miscreant’s world:
On February 22, 2015 at 11:05 pm,
Birdman says:
Funniest damn comment I read all weekend. Don’t you know the old folks are just manipulating you? What they lose in physical strength they make up for in deception!
For those who are new here, here’s an example of what you can expect from Bird if he doesn’t like what you have to say:
“I would say you are one very biggoted, extreme right wing, racist, anti-government, Fed bashing, Obama-hating, gold loving, money lusting loser.”
Got that? Birdman is saying that old people are manipulative and deceptive. You see, he thinks that because HE is that every other old person must be. The guy is ill.
DITTO ON THE DUPED……EVEN POOR AL……………
Matthew……….I left Mark a note below…….I TOLD HIM IT WAS HIS TURN….,
meaning it was his turn to listen to the heckler……….
You mean Matt. I understood.
Benjamin Franklin understood the Birdmen of the world: “Tricks and treachery are the practice of fools, that don’t have brains enough to be honest.”
And Mark Twain understood those tricked by them: “It’s easier to fool people than to convince them that they have been fooled.”
As I told Al,,,,…he is a little devilish……
I think I was the first one , he attacked in April 2013…..it is on record, so it will not be hard to find…..
I would like to forgive and forget and move on , but, this is really getting disturbing..
Yup, just a worthless distraction. The fact that more people don’t shun him is just more “end of empire” action. I believe that far fewer adults would’ve tolerated him even 30 or 40 years ago.
Somebody in the room got destroyed on his precious metals options (again). No big surprise I suppose but don’t take it out on me. I warned you about the fall in gold, friend but you just wouldn’t listen. It was clear as day on the charts. I am just amazed you could not see the obvious especially as you see yourself as some kind of chart Guru. All I can suggest is you try to keep an open mind next time and not let pride get the better of you. Good luck on your next trades.
As I said before, you don’t have a clue what you’re talking about. You think I’m unhappy with the last couple of weeks??? LMFAO…….
Yes Matthew, you were wrong on most of your gold calls since the January peak as demonstrated by the rubbish charts and comments you linked and posted. Assuming you traded according the sunshine you were blowing up everyone’s arses you got badly beat.
Not that I really care, but you gold bugs deserve everything the market hands you. 🙂
Putting this another way, it is obvious to me you have a portfolio full of garbage (if you did not sell at a loss) according to all the junk you were talking about the last two years. All those bullish charts Matthew…all those wet dreams of gold going higher and how gold priced in this or that asset proved your point. I happen to recall a great deal of what you posted but when I forget the search function on this site does a great job of reminding me about just how bullish you were before declines. Stop kidding everyone here as if you are the worlds best trader who only ever makes money during a massive gold / silver price decline and does so without EVER even going short!
I am not the only one who has noticed this, chart-boy.
You’re nothing but wrong in your assumptions but your NPD gives you all the certainty you need.
It’s funny that you called yourself a “gold enthusiast” the other day despite your thorough ignorance about its benefits. Remember this?:
On June 29, 2014 at 2:33 pm,
Birdman says:
What about we don’t mine gold anymore? You really need more gold? Does it improve anything? You think the world is better for it? Maybe we need to put more in the vaults. Maybe it is good to leach heaps and poison the shit out of the soils and water and waste resources so we we can all sit around and masturbate about how WUNDERFUL gold is for our lusty sexy pleasure and all get rich together. Or maybe we ban ALL gold mining since the industry is just a bunch of shit and thieves and liars. How about that you idiot?
———–
You’re a scammer BM and Charles Spurgeon was right…
“Sincerity makes the very least person to be of more value than the most talented hypocrite.”
Its OK Matthew. If I lost as much money as you on mistaken gold and gold miner bets I would be angry too. I just hope you can learn from this experience.
Ok NPD boy. Cheers.
Anytime Matty boy, No Payment Due (NPD).
Comex Registered inventory : 20 tonnes-strategic gold March 12, 2015
Total Chinese Gold Reserves Approaching 16,000 tonnes-KoosJensen
Since gold came under attack in April 2013, the COMEX paper-to-gold ratio has moved from less than twenty to over one hundred ounces of paper gold representing each single ounce of physical gold.
safehaven article:Paul Desousa
an accomplice of a hawker, gambler, or swindler who acts as an enthusiastic customer to entice or encourage others.
a person who pretends to give an impartial endorsement of something in which they themselves have an interest.
Sorry pal but that is not the topic. You said that “gold remains positive in every major currency in 2015″….and that was not true. Don’t try pulling a Matthew here because there are people here who actually read the gold bug propaganda and will tell you that statement is incorrect.
Big
Accuracy and the free global market price of gold denominated in Fed fiat linen do not exist and will not exist under British/US ;price control mechanisms.
Comex is a fraud ,as are the bullion banks and the Fed. The US Govt, is a fraud for allowing it to continue. Monetary history is recorded so that even the most ignorant might attain the truth.
With what is now unfolding in China with SDR’s and the Shanghai Exchange while the US is being forced to give up reserve currency status by her masters,I found this prescient:
“This drop in the gold price will be one of many meaningless reactions as gold moves to full valuation.
It is the Bankster demons with the use of technology that are forcing markets for personal short term profit that have killed the West. This came along with their manufacturing of fraudulent OTC derivative paper, destroying balance sheets never to be rebuilt.
The product of these reactions in the gold price created for private profit by market bullies drives gold into the hands of the East. The West has given away everything to enrich the sociopath few with no vision or interest in the future of anything but themselves.
The banksters are the worst enemy of everything they touch. This game being played in gold will be seen in history as the enforced suicide upon the West brought about by the endless greed of the few, the Banksters.
The Banksters are the means of economic power and leadership moving to the East.”
Jim Sinclair
December 19,2012
You do know he owns a heavily indebted and leveraged gold mine in Africa and is hardly an unbiased observer of the precious metals markets … I presume? Please quote from someone knowledgeable and with a little more respect in the industry next time. That little tract was pure propaganda.
So now we know that Matt and Matthew are one and the same people. Why don’t you just come clean pal?
HANG IN THERE MATT………………….it is your turn……….lol
Well, I think it is AL’S FAULT……….HIS BIRTHDAY WAS DEC.1….JINKS the whole mess.
Owl expiry quarter………..some feathers and a lot of down. Plus it is the year of the GOAT or Ram it to us, sure sign of the times.