"Gold May Reach $1600 this Year, Higher Next Year"Posted by Brittany Stepniak - Monday, July 11th, 2011
Votes are In, Majority Bets on Gold
The CEO of Newmont Mining- the world's second largest gold producer- claims gold prices will peak at $1600 this year, and continue climbing into the following fiscal year.
World demand has maintained steady increases for the gold market. Trend continuation will keep pushing gold higher...
Booming economies in other developed countries create an ideal situation for gold-prices; keeping them on the rise.
China and India, in particular, are heavily investing in gold jewelry. In 2010 those two nations combined contributed to 51 percent of the consumer demand, worldwide. That equates to roughly 1,570 tons of gold or 50.5 million troy ounces.
This year, that percentage has leaped another 7 percent: China and India now account for 58 percent of the world's consumer demand for gold jewelry.
As far as investing in gold as an asset, the real estate bubble in China is making gold even more attractive as an infallibly valuable investment.
Those factors contributing to the above-noted growth-rate has gold markets in a prime position. Investors in the United States are only further convinced that gold is a sure-gainer.
Moreover, relentless debt crises and floating concerns over a "loose fiscal policy" in the U.S. continue to confirm that gold is a truly safe haven, protected from inflation. Jobless rates are high and consumer confidence is low. It's a perfect recipe for an optimistic gold outlook, and demand increases prove it...The World Gold Council obtains data showing spiking demand for gold coins and bars in the United States. From the first quarter of 2010 to the first quarter of 2011, that demand soared by 54% (initially at 469,400 ounces in Q1 of 2010, up to a lofty 723,400 in Q1 of this year).
Moral of the story? Gold is set to soar.
GFMS Sees Gold Hitting $1600 in 2011Posted by Adam Sharp - Wednesday, April 13th, 2011
GFMS has released their widely-followed Gold Survey 2011. The firm says prospects for gold "remain bright", and they see the metal rising another 13% by year-end.
Factors that will drive prices higher include continued loose monetary policy in the U.S., global unrest, and increased buying by Central Banks, according to the survey.
Quotes and analysis via the WSJ (emphasis added):
In its Gold Survey 2011, GFMS said fears the market may be approaching a turning point are "still premature," with growing evidence that buyers are adjusting to higher prices.
"Indeed, we would expect the next waves of investor buying to take gold to above $1,500/oz, and then to the $1,600/oz mark before the end of 2011", GMFS said.
Furthermore we expect investment in gold this year to be supported by the probable spreading of the government debt crisis from Europe to the U.S. and Japan, especially in light of the huge budget deficits the latter two countries will record in 2011 and the lack of concrete measures they are taking to rein these in
More from Bloomberg Businessweek:
Demand for physical gold bars rose 66 percent last year to a record 880.5 tons, led by purchases from China. The country’s central bank has raised rates four times since early October to combat accelerating prices. China’s consumer-price inflation reached 4.9 percent in February, above the government’s target of 4 percent.Mine supply expanded by 3.8 percent to 2,688.9 tons, led by the biggest producer, China, GFMS said. Production will rise 4 percent this year, while scrap supply will have a “fair increase,” pushing total supply up 6 percent, Klapwijk said in the presentation.
Miners paid an average $557 an ounce to extract gold, a 17 percent increase from 2009, according to the report. De-hedging by producers this year will be limited, Klapwijk said.
Live gold chart:
Gold Reaches All Time HighsPosted by Wealth Wire - Monday, July 11th, 2011
Will gold break out?
Debt worries in the United States and Europe coupled with a slowdown in China are moving investors into the safety of gold...
Gold priced in euros jumped two percent this morning to a new record of 1,104.15 an ounce.
The EU is meeting again today about the Greek bailout problem.
Word on the street is the Greeks are buying up gold as they are afraid of their banking system. But the Chinese are the ones buying gold by the bucketload.
The Chinese are getting hit hard by inflation. China announced on Saturday that inflation surged to a three-year high of 6.4% in June despite five interest rate hikes since October. As we know, it is much easier to create inflation than it is to tame it...
The Chinese now have the option of changing their savings accounts into gold at their bank, and they are taking advantage of this convenience.
It is estimated that China will surpass India as the world's largest gold buyer this fall. Chinese gold buying has grown in the double digits annually for the past decade, and it is expected to grow 10% to 15% this year.
We are very close to a turning point. If we can break out above $1,560 an ounce, we will be at $2,000 very quickly.
On Friday I recommended Crisis & Opportunity readers pick up some General Motors puts (NYSE: GM) based on a double top on the major indexes — most notably the NASDAQ, an abandoned baby candlestick pattern on the GM chart.
An abandoned baby candlestick chart pattern is a turnaround signal that looks like this:
This is a three-day reversal pattern. The first day (white) is a continuation of a bull market. The second day is a doji that gapped up. The third day is a large down day (black).
Today those puts are up 27% and the NASDAQ is down 1.66%.
I further explain what all this means in my most recent Whiteboard Weekly video — a quick, three-minute snippet I put together to explain this latest NASDAQ double top, and to change things up from the daily online e-letter format. You can check it out here.
Oil has been dropping since the U.S. unemployment numbers came out on Friday. If there wasn't a clear case of economists being wrong before, there is now.
The United States added 18,000 new jobs last month. Granted, that's more than the average attendance of an Orioles game — but that ain't saying much.
The numbers say that private companies aren't hiring, and state and local government is cutting jobs. That means business won't expand as fast and the demand side of the oil equation will drop.
Light, sweet crude for August delivery fell to $95.02 a barrel on the New York Mercantile Exchange. Brent crude on ICE Futures Europe fell $2.23 (or 1.9%) to $116.10 a barrel.
It's Brent that matters on the world stage; the Saudis price oil in Brent.
Solar Power Law
Hawaii Governor Neil Abercrombie just signed a law that will enable more people to buy solar panels. According to the AP:
The legislation calls for the investigation and possible creation of a system where residents could finance expensive up-front costs of solar power installations through their electric bills.
The law will defray costs for renewable energy systems. The biggest factor in using solar is the upfront cost to the homeowner. To be able to pay off the cost over time using electric bills makes sense, as rooftop panels cost about $10,000 per system.
New York lawmakers passed a similar bill last month. This is a bullish trend for panel makers.
Christian DeHaemer is an editor at Wealth Daily