Salient to Investors: The festival season in India, the world’s biggest gold consumer, runs from August to October and the wedding season runs from November to December and from late March through early May. Gaurav Mehta at Ambit said the fall in gold should alleviate to a significant extent one of
READ MORE... →Salient to Investors: Central Bank of Sri Lanka said falling prices are an opportunity for nations to raise gold reserves. The Bank of Korea said the gold price plunge is not a big concern because short-term price moves are an unavoidable risk and holding the metal is part of a long-term strategy for diversifying
READ MORE... →Salient to Investors: Gold miners will accelerate spending cuts and trim high-cost output as gold’s biggest fall since 1980 threatens to make about 30 percent of production unprofitable. Gold is down more than 20 percent since its record close in August 2011, thus signalling a bear market. Dundee Capital Markets
READ MORE... →Salient to Investors: 4 of the biggest stakeholders in untapped deposits known as the Utica Shale in Ohio have put up all or part of their acreage for sale, as prices fall by a third in some cases. The flip-flop underscores the difficulties faced by even experienced drillers around the world
READ MORE... →Salient to Investors: The fall in the price of gold today was the worst one-day drop in 30 years. Miguel Perez-Santalla at BullionVault said there was one big seller at the COMEX opening on Friday, followed by a seller of 53,000 gold futures contracts on Sunday – unusual in that sellers
READ MORE... →Salient to Investors: Will Bertsch at BMO Capital Markets said all the sectors leading the market down are commodity-backed in some fashion, while today the sharp rise in ETF trading volume shows investors putting on hedges. Jeffrey Sica at SICA Wealth Mgmt said commodities can’t appreciate without China being strong
READ MORE... →Salient to Investors: The most important factor in gold’s decline is that global inflation is falling and gold bugs are scrambling to exit their gold positions at any price. The JPMorgan Chase global consumer price index shows global inflation peaked at 4 percent in 2011 and has fallen steadily since. JPMorgan’s main
READ MORE... →Salient to Investors: Seth Masters at Bernstein Global Wealth Mgmt says: Bubbles today are driven by fear and investors’ desire for safety versus greed and recklessness in the past. Supposed safe havens of gold, bonds and dividend-paying stocks are dangerously overpriced. Over the past 5 years more than a trillion
READ MORE... →Salient to Investors: Goldman Sachs forecast that supplies at the US delivery hub in Cushing, Oklahoma, will shrink at the end of May. Goldman Sachs now recommends buying September 2013 WTI and selling September 2013 Brent rather than the June spread because weaker production growth in Texas and New Mexico greatly reduces the risk
READ MORE... →Salient to Investors: Loren Gatch at the University of Central Oklahoma said the state legislation promoting gold signals discontent with monetary policy and fear that Bernanke and the Fed are pursuing policies that will lead to the collapse of the dollar. Jim Rickards at Tangent Capital Partners said should Texas
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