Wednesday, January 22, 2014

4 Hot Gold Stories for Wednesday

I have four gold stories for your reading pleasure ...

Gold Story #1: Germany's Gold

For years, Germany has lent out its 1348 metric tonnes of gold overseas, including a bunch in New York. A year ago, it announced it was going to repatriate half the gold (674 metric tonnes) it has lent out by 2020. Apparently, Germany recovered only 5 metric tonnes of gold from the U.S. in that year. Now ...
The Bundesbank plans to repatriate 30 to 50 metric tonnes of gold stored in New York this year.
 That's a huge jump in demand for gold in New York. I wonder if they have it on hand. Should be interesting.

Gold Story #3: Japan's Gold

Gold sales by Japan’s biggest bullion retailer surged 63% to a five-year high as prices slumped and investors sought refuge from Prime Minister ShinzoAbe’s campaign to stoke inflation and weaken the yen. Sales exceeded purchases for the first time since 2004. 

Gold Story #3: China Gold

Apparently, some companies in China thought it was a good idea to borrow a lot of gold and sell it into the market. After all, gold always goes down in price -- they could just buy the gold back at a cheaper price and pocket the difference.

Unfortunately, gold hasn't played along recently. Read more about it in "Chinese Gold Leasing: Hidden Danger."

Gold Story #4: Morgan Stanley Cries "DOOOOOM" for gold in 2014.

Morgan Stanley analysts cut their 2014 gold target by 12% to $1,160 an ounce and the prediction for 2015 reduced 13% to $1,138. Read it HERE.

Sean's view:Wall Street analysts are wringing their hands over the Federal Reserve’s next policy meeting on Jan. 28-29. That’s when markets think the U.S. central bank will announce a second cut to its $85 billion monthly bond purchases. According to the theory, this will be bad for gold. But the last time the Fed eased back on its QE program – last month -- gold went higher. So, I think any bad news for gold is probably baked in. And a pullback is a buying opportunity.

Other, Non-Gold Stories

World Economic Forum: 4 key threats that could each impact global stability in the next five to ten years

Freeport McMoRan Will Contest Indonesia's Export Tax
The Indonesian government on Jan. 11 gave Freeport and fellow miner Newmont Mining Corp a reprieve from a controversial mineral ore export ban, but then surprised the U.S.-based majors by imposing an export tax. As a result, Freeport could pay around $5 billion more in taxes over the next three years.

Sean's note: Yeah, damn right, I'd contest that tax, too! To the International Arbitration Panel!

Congress Just Quietly Passed A Bill Gutting Hazardous Waste Legislation Of course they did

Global companies hold some $7 trillion of cash - more than 2x the level of 10 years ago.

For the first time since 1999 oil demand in the US overtook that of China, the International Energy Agency (IEA) says. The US “shale revolution” has largely contributed, and analysts agree higher fuel consumption means the American economy is recovering.

1 comment:

  1. "DOOOOOM" in all-caps with 5 Os is (TM) 2012 My Own Market Narrative. All rights reserved.