Spot gold soars 1.5% to US$1316 an ounce, one-month highs
Something positive to start this week.
Monday, July 22, 2013 by Proactive Investors
Gold has soared 1.5% in the spot market to US$1316 an ounce at 8:30am EST (Australia), with the yellow metal now at fresh one-month highs.
Several factors are responsible for driving gold higher, with hedge funds increasing their positions after Fed chairman Ben Bernanke last week dampened speculation of a reduction in stimulus measures any time soon - supported by the insatiable physical demand out of Asia.
Recently Japan's biggest gold retailer said that demand in the June quarter was triple that of the preceding three months, while imports by India have now surpassed 900 metric tonnes in 2013 - which is up from 860 tonnes in 2012.
China's demand for gold remains very strong, with the country set to pass India as the largest bullion consumer - potentially before the end of this year.
Last week the London-based World Gold Council said that China's purchases may surpass 1000 tonnes in 2013, up from 817 tonnes.
With a tonne of gold valued at $41.6 million, which means China's purchased based on this price could be around $41.6 billion.
China is currently the world's biggest gold producer with over 400 tonnes last year, which highlights the vast gap between domestic production and demand.
Nice post lookin, you are a gold bull, I can see why you post here.
Backwardation is when you have to pay more today than you do at some future time for the same commodity.
Gold should never be in backwardation, because most of the gold that has ever been mined is still around. I checked Comex future prices, and the last spot price they had was Fridays close of $1292. September 13's future price is quoted about $40 less. Same story with futures on October 13, December 13, and February 14. When gold gets in backwardation like that, it's a bullish sign, because why pay more today than you would pay a few month's later?
But even the future prices that are quoted are subject to manipulation, just like interest rates are. The Libor scandal made that clear. Gold prices are suppressed to help keep the US dollar as the world's reserve currency and to make our debt seem less toxic. Same story with silver. If you follow the gold and silver markets you will probably come to the same conclusion, you don't have to have anyone explain it to you. If you follow it the gold and silver markets it becomes obvious.
Didn't check though until asked, was just quoting others. Don't read zerohedge all that much, look at Harvey Organ's blog, Turd Ferguson, King World News, & Max Keiser on RT. And yeah, zero hedge too, Don't ever post on zero hedge, but my username on that site is Lick Me Clean. Lost a lot of money with LMC, a base metal company, almost got licked clean with LMC...
Anybody see Phil win the British open? Fifth major, third of the four needed for the career grand slam. Man, does he make that game look easy or what?