Gold At 4 Month High - Concerns About China Property Bubble Grow

GoldCore's picture

Today’s AM fix was USD 1,332.75, EUR 969.48 and GBP 798.53 per ounce.
Yesterday’s AM fix was USD 1,333.00, EUR 968.54 and GBP 800.46 per ounce.   

Gold climbed $14.30 or 1.08% yesterday to $1,337.80/oz. Silver rose $0.20 or 0.92% at $21.01/oz.

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Join Gerald Celente on this broadcast as he examines the opportunities in 2014 and in the coming uncertain years.

Gold in Euros, 5 Year - (Bloomberg)

Gold is marginally lower in all currencies today but holding near its strongest level in four months. Concerns about the possibility of the Chinese property bubble bursting affecting economic growth in China and the world is supporting gold.  Nervousness over Ukraine, after new acting President Turchinov warned Ukraine is close to default, is also supportive of gold at these levels.

Geopolitical risk has increased as seen in the deepening tensions between the U.S., EU and Russia and is not going to disappear anytime soon. Gold eased 0.15% to $1,335 an ounce after rising as high as $1,338.60 yesterday, its strongest since late October.

Chinese shares plunged in recent days and the Shanghai Composite Index is down 7% in less than a week over fears of a property bubble and the continued depreciation of the Chinese yuan.

Real estate stocks led the fall after media reports over the weekend said that real estate developers lowered house prices and banks halted  loans to some real estate businesses.

Government data released on Monday showed home prices dropped month on month in more Chinese cities in January. This should contribute to continuing store of wealth demand from buyers in China.

Indian and Indonesian buyers purchased gold bars. "We are seeing some buying, and there are purchases from India. Other clients are still buying some quantity, about 20 to 30 kilos each time," a gold dealer in Singapore told Reuters. Premiums on gold bars in Singapore remain healthy at  $1.20 to $1.50 an ounce.

The increase in gold ETF holdings could also reflect renewed interest from investors. SPDR Gold Trust, the world's largest gold exchange traded fund, said its holdings rose 0.41% to 801.61 tonnes on Monday from 798.31 tonnes on Friday.

Gold has risen more than 11% this year in dollar terms, 10% in euro terms and 9.1% in pound terms due to renewed safe haven demand.

Webinar: Gerald Celente On Strategies For Protecting Your Wealth In 2014 And Beyond
Join Gerald Celente on this broadcast as he examines the opportunities in 2014 and in the coming uncertain years.

Gerald Celente needs little introduction: Founder of The Trends Research Institute in 1980, Gerald Celente is a pioneer trend strategist. He is author of the national bestseller Trends 2000 and Trend Tracking (Warner Books) and publisher of the internationally circulated Trends Journal newsletter.

Celente's Trends Research Institute has been featured on Oprah Winfrey amongst hundreds of media interviews and credited with forecasting many major geopolitical and economic trends.

These include the "Panic of '08," the collapse of the Soviet Union, the dot-com bust, the 1997 Asian currency crisis, the 1987 world stock market crash, increased terrorism against America, "Crusades 2000," and the quagmire in Iraq … before war began and the last two recessions.

This webinar is scheduled for tomorrow - Wednesday, February 26, 2014, 20:00 GMT/12:00 PST/15:00 EST and will be moderated by Mark O'Byrne, Head of Research at GoldCore.

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HurricaneSeason's picture

Gerald Celente had a million dollars worth of gold with MF Global and lost it all. I know I'd feel much safer with 19 shares of facebook than an ounce of gold.

ptolemy_newit's picture

Lets think abou that you buy silver , pay a artist cost, pay a premiun, pay shipping buy a safe and a gun to protect it.  worry about it every day. then in the crisses you melt it down into pelllets.

If its not a social crisses you are trusting JPM.  lol

boeing747's picture

If China's housing bubble pops, more freed money flows to golds.


AdvancingTime's picture

In an article I wrote near the end of 2012 titled "What Is Something Worth" I point out a few of the problems with investing in gold. Remember the value of gold can drastically change if a government confiscates it and makes it illegal to buy, sell or even own can. What something is worth can be difficult to determine. And most of all tell me the value of a promise on paper or implied, remember if you own gold that is represented by a certificate, you own a piece of paper. More on the problem of determining value below,

El Hosel's picture

The price of Gold is not linked to the property bubble in China... or anywhere else. 

ptolemy_newit's picture

?what can you do with this gold really?

Countries have been buying gold because of the printing fiat and the expectation of the debasement of the USD.  IT isnt happpening.  the USD index will trend UP!

Protection from infllation?  there isnt any in the developed wold other than food and energy.  Explain how you will go to the market and trade it for water?

Chiese are buying gold because they allready own more than 1 house and its pretty.  New rich and the want to be rich.  I live in china and yes the gold shops are busy.

Chinese ar ebuying all the raw material world wide and stoockking them?  looks like a poor mark in the making!

keep in the bottom of your lake UNTIL when? sit and look at it, gold is danegrous to hold in a crisses because everyone will robe, steal and kill you for it.   Do you think in the event of an outrite social collapse you would dare to show a gold coin to anyone!!!!! 

NOT if you have family.

SAT 800's picture

It's true that survivors of Berlin and other German cities after WW11 just laughed at the idea of having gold coins. they said such a thing would be worse than useless, and would get you killed at once. the things you could use were cigerattes and whiskey; and a presentable young woman who was willing to be helpful; but not gold.

ptolemy_newit's picture

Exactly Sat,

The best commodity in a crisses is coffee, chocolate and toilet paper

SAT 800's picture

more sophisticated people have the metals on deposit at small private banks; it can be sold for UN debit-credits, or "new dollars" or whatever is popular at the moment and sent to you.

ptolemy_newit's picture

Not sure aboout any bank and size!

gold confiscation redux

SAT 800's picture

New York failed to pound Silver this morning; it touched $22 again; somebody is going to get fired, if this keeps up.

SAT 800's picture

Nice article today posted on the MarketWatch page; from the "Wall Street 247" / "Seven countries that are buying all the gold".  They point out that Central Bank sales have ceased; and that even Azerbajain is buying gold, 20 metric tonnes in their case, for a currency reserve. Not sure where Azerbajain is, or what they do when they're not buying gold, but I presume this will help them avoid a "Ukraine Moment". The bars they're delivering now to major customers are still warm; their basically isnt' t any in the LBMA's warehouse anymore.

fijisailor's picture

"SPDR Gold Trust, the world's largest gold exchange traded fund, said its holdings rose 0.41% to 801.61 tonnes on Monday from 798.31 tonnes on Friday."

This is GLD propaganda.  Every time there is an inflow of phyz to GLD, within a day or so it is removed.  YTD there has been a net 61 ton outflow of physical gold from ETFs.

SAT 800's picture

looking at the YTD is also propaganda; it's cherry picked data. An inflow is an inflow. What will the YTD look like in July, when you'll be looking back at a year starting last July? I don't know; but neither does anyone else.

Sufiy's picture

Clive Maund: GDXJ Signals Imminent Breakout Into Major PM Sector Uptrend

Silveramada's picture

Better have real possession of the real stuff( aka have  in your hands physical metal) and now also premium fro Gold Eagles Proof are at the highest level in months...