Bullion Coin Market Dynamics
Editor’s Note March 30, 2010: While it has been some time since we published our commentary below, now is a particularly relevant time to republish it in our view. The rates of deflation below are no longer valid as there has been a rebound in growth in most countries. Nevertheless, we continue [...]
Why does everyone love gold even though it has risen only about 10% since its peak in 1980, while the Dow is up about 10-fold since then?
Our Answer: Because no one cares about its long term performance. They only care about what they think gold will do in the short term.
APMEX has excellent [...]
The Chinese Ministry of Industry and Information Technology said in a statement that Chinese Gold Companies’ profits were down 15.75% year over year. No additional details were provided. Are the only people making money trading gold in China the illegal gold sellers? (see previous post)
The money is flowing out of the GLD on an up day today as the Wall Street Journal reported healthy selling in the GLD etf. Block trades purchased were $2.34 million and sold were $13.04 million. Total non-block trade money flow was negative $22.67 million.
Reuters is reporting that July saw outflows from all major Gold exchange traded funds. Holdings of the six gold-backed etf funds that Reuters watches fell 3% in July from the previous month.
While this did not make major headlines, it illustrates the weakness in the metals sector. Yes, the dollar did fall to ten [...]
The China Daily is reporting that hundreds of illegal gold trading firms are taking funds from speculators with sizeable funds hoping to profit from the sudden rise in gold. According to the report, these illegal firms have little or no reserves, and are using deposited funds from speculators to cover potential losses. Further [...]
Google trends is reporting that the interest in the search “bullion coins” is at the lowest level since just before the October 2008 crash. We cannot overstate the message the lack of interest is presenting to the bullion coin collectibles market. In short, less interest multiplies through the coin dealer community, resulting in [...]
Classic exhaustion. Futures are down, market is very overbought, and you’ve got the dollar hanging in there and Yen is rallying. Fed says financial system can withstand CIT bankruptcy on Friday, according to Bloomberg. And emerging markets are sucking wind – China, India, and other frontier speculations. Silver popped but doesn’t [...]
Gold slid another 1 percent on Tuesday as traders unwind the reflation trade in favor of cold hard cash.
Strength in the U.S. dollar unit resulted from selling of commodities, correcting much of the gains over the last few weeks.
Spot gold was bid at $921.20 an ounce at 1507 GMT, against $932.30 an ounce late in [...]
We’ve been patiently waiting to see which way the market would break. Silver fell below the psychologically important $14 level today. Gold is off $8 to $925. The GLD is trading below its 200 moving average, and with a gap down this morning, should be bumping against the key $90 level. [...]