Salient to Investors:
The start of the bear market in gold in April spurred a surge in demand for coins and jewelry. Indian demand is so great that the government is curbing imports. Richard Peterson at the US Mint said sales may reach a record this year if the current demand continues.
Mark O’Byrne at GoldCore said gold has already had a correction, so people see value in the gold market, but there has been significant technical damage done to gold which will take time to recover.
Bachhraj Bamalwa at the All India Gems & Jewelery Trade Federation said Indian imports may fall as much as 20 percent in 2013 because of the higher levy.
Gordon Galt at Taurus Funds Mgmt shut its precious metals fund in May because of investor redemptions.
Warren Rogers at Duet Asset Mgmt said the broad gold trend is lower and the tail risks largely mitigated – the Fed is telling you QE is over and there is a bull market in the S&P 500.
Economists predict global economic expansion will accelerate in Q2 and the next 3 quarters.
Credit Suisse forecast last month that gold may drop to $1,100 in a year. Nouriel Roubini at NYU forecasts a decline toward $1,000 by 2015.
The 494.8 tons of gold sold from ETP s this year now exceeds additions in the previous 2 years.
Scott Kerson at Man Group said diverging prices for raw materials and other risk assets is a sign that traders will once more focus on supply and demand.
Citigroup said most commodities will drop this year as China’s economy moves from a focus on infrastructure to domestic consumption and services.
Carole Ferguson at SP Angel Corporate Finance said in the last few years commodity prices have been buoyant not because of general global economic prosperity, but more because of Chinese industrialization.
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