Friday, April 18, 2014

6 Hot Stories & Charts on Gold & Silver

As we slide into a Good Friday weekend, I have some charts of gold and silver for you.

Let's start with two factoids from Frank Holmes at US Global ...

#1: China Continues to Accumulate Gold

China is now thought to hold 2,716 tonnes of gold, while the U.S. holds 8,812 tonnes. China would still need ten years for its gold holdings to catch up to the U.S., suggesting strong gold demand from China. With Russia on the offensive again, it too has the capacity to push oil prices higher, boost its revenue and purchase additional gold beyond domestic production.

XX Update -- thanks to sharp-eyed reader "Anonymous," I have corrected this figure.  US Global listed it as "million tonnes," and I didn't catch it. The World Gold Council lists more likely numbers. The chart is still wrong.

#2. India's Gold Trade Caught in Cash Bind.

India’s general election has negatively impacted gold trade in the country. Gold traders in India are used to cash transactions when buying and selling gold. With the election code of conduct in force, traders face severe restrictions on carrying physical cash in large denominations. According to Hasmukh Bafna, President of the Gold Chains & Jewellery Welfare Association, business has dropped by 70 to 80 percent since the first week in March.This low gold demand is expected to continue until the middle of May

#3. Russia Rising.

Russia has now overtaken the U.S. to become the world’s second-largest gold producer behind China. In fact, the Wall Street Journal reports that Russia's production of gold-containing concentrates increased in January-March by 12.3% compared with January-March 2013, and the country's gold output increased by 32.6% on the year.

#4. Silver Production at Primary Producers on a Slippery Slope

Steve at says that for 2013, the top primary silver miners suffered the lowest average silver yield ever.

Read the rest of his analysis HERE.

#5. Gold Miner All-In Cost Blues

Deutsche Bank has released a chart showing all-in costs of some smaller gold producers.
Chart found HERE.

#6. Chart of Gold
Finally, here's an updated version of my gold chart.

(Updated chart)

 Clearly, this was a bearish week for the metal. Gold closed below $1,300 AND its 200-day moving average. A test of support seems likely.

I'm sorry if that's not bullish enough for you. If you want bullish, look at natural gas. I'll have more analysis on that next week.

Have a happy Good Friday and a Wonderful Easter.  By the way, do you wonder why it's called "Good" Friday. Wonder no more.

Peace be upon you.


  1. "China is now thought to hold 2,716 million tonnes of gold, while the U.S. holds 8,812 million tonnes"?! Wrong units or wrong numbers...

  2. You're right. That's a quote right from US Global. I will draw it to their attention. Thanks for drawing it to mine.