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Smart Money Entering Precious Metals as Russia Buys Another 300,000 Ounces
Today’s AM LBMA Gold Price was USD 1,211.00, EUR 1,083.45 and GBP 772.96 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,209.60, EUR 1,084.36 and GBP 772.60 per ounce.
Gold fell $3.78 to close at $1,205.82 an ounce on yesterday, and silver remained unchanged at $17.12 an ounce.
- Gold in U.S. Dollars - 1 Week
Overnight, gold in Singapore inched up 0.2 percent to $1,208.19 an ounce near the end of day trading. Gold is on track to trade down 1.4 percent it largest weekly drop in a month.
Gold prices have rebounded today after ending yesterday down 0.3%, but appear to have run into some resistance at their 200-day moving average (1215). On the week, gold is down 0.7% and silver is marginally lower in dollars for the week but has eked out gains in euro terms. The biggest fall of the week was palladium, down just over 2%.
On a daily basis, palladium's the only precious metal lower today, down just over half a percent, while platinum's up 0.3% and silver's 0.5% higher.
- Gold in Euros - 1 Week
Gold was weak in dollar terms but strong in euro terms this week. The U.S. dollar gained nearly 2 percent this week as the euro weakened again.
‘Grexit’ remains a real risk. German chancellor Angela Merkel, Greek Prime Minister Alexis Tsipras and French president Francois Hollande are negotiating a cash-for reforms deal that would allow Greece to meet its debt repayments next month and join the ECB’s quantitative easing programme.
“We can't just throw Greece of the euro” - Juncker has threatened ahead of the crunch summit. Greece says a reform deal can come in 10 days, but Merkel is cautious - she warned that there is a 'whole lot left' to do on Greece bailout talks.
Jitters remains about the next repayment which is due on June 5th. ‘Extend and pretend’ seems likely again but obviously this can only go on for so long before we get a very serious crisis and potentially contagion.
Thomson Reuters' Lipper service data showed yesterday that investors in U.S.-based funds removed $597 million out of commodities and precious metals funds in the week ended May 20, the biggest outflow since December 2013, showing negative sentiment towards the sector.
- Gold in British Pounds - 1 Week
However, the smart money continues to maintain allocations or accumulate positions. U.S. mining financier Oskar Lewnowski is preparing to launch a base and precious metals fund, sources have told Reuters. This is his latest step in recreating Red Kite - the famed trading and investment enterprise he co-founded a decade ago.
Two years after going out on his own and creating a private equity investment firm Orion Resource Partners, the 50 year old New Yorker has already invested almost $1 billion in equity, loans and royalty streams into at least 17 junior mining firms, and hired a physical metals trader to handle supply.
Russian gold reserves increased by another sizeable 300,000 troy ounces in April to bring total, declared Russian gold reserves over the 40 million mark - to 40.1 million troy ounces. There is of course the possibility that Russia is not declaring all of their gold bullion purchases and reserves, in the manner of the People’s Bank of China.
In late morning European trading gold is up 0.56 percent at $1,212.67 an ounce. Silver is up 0.68 percent at $17.28 an ounce and platinum is up 0.27 percent at $1,157.00 an ounce.
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"smart" money was buying gold when it was $1800/oz too....you said so then!!!
Say the same thing for years and sooner or later you will end up being right!
Man, no shit!
1.) Buy GOLD and SILVER as INSURANCE (I have about 60% of my assets in gold, silver, land and U.S. dollars - safely stored away; NOT in any bank from which it cpould be confiscated by a "bail-in") - NOT as an investment. Should paper currencies lose their value (INFLATION), gold and silver will preserve some of your wealth; and their value relative to paper currencies will skyrocket.
2.) Should DEFLATION occur, U.S. dollars will INCREASE in their "purchasing power" - so the price of precious metals will decrease slightly. HOWEVER, the Federal Reserve, ECB and other western central banks will do EVERTHING they can to prevent deflation! That is why I keep a few months' worth of cash stored in my safe. However, I am betting against deflation - the Federal Reserve and central banks have too much to lose to allow it to happen!!!
3.) China, Russia and a few other nations could "crash" the U.S. dollar immediately simply by redeeming all their U.S. Treasury bonds for U.S. dollars, then using all those U.S. dollars to buy PHYSICAL GOLD. The "flood" of all these additional U.S. dollars into the market would "crash" the dollar. PLUS, if any purchase of PHYSICAL GOLD by China or Russia using U.S. dollars FAILED to deliver this physical gold, the U.S. dollar would "die" and the price of gold would skyrocket!!!
I have been studying the relationship between the dollar and the world. It is nearly imposible for any one country to dump the dollar without becoming Cyprus/Greece overnight. Look the dollar is the trade medium. Its like a language. We can all try to speak a new language and never go back to speaking English but how likely is it that all people all over the world will suddenly just stop speaking their language. The dollars hold is woven into the very fabric of all international transaction. It is so hardwired into every nations reserves and commerce and now ecommerce which cannot possibly exist without a fiat medium that precious metals will never surplant this. Even if you had a PM based economy it will still have to be handled through a digital or a derivitive currency and that is the core of the problem. No digital currancy will compete with Visa, Master Card, Amex and so on. If any change happens, it will be after a bloody war that kills more than half the world's population. An event so devasiatingly big would need to occur that we loose all connection to any government or central planned living that it induces a reboot. Until then, the dollar is king and the devaluation will continue and you and I will be poorer everyday. Will hard goods help fight that? of course, that is what inflation is so plan accordingly.
You may be right. But I have to throw in a comment here. I had the occassion to study life before and after oil, electricity and automated vehicles were discovered. Those discoveries altered, in the course of 20 years, the standard of living of humanity as never before. For example, I found where a small town was hit with Small Pox and in the course of 3 weeks, lost 1/4 of the entire population, before electicity, automated vehicles or electricity. Anyhow, the fact that the dollar was made into the Petrodollar is the result of that standard of living change. Someone, somewhere saw what a difference a day makes, and the difference was oil. I'm not an expert in economics by a long shot. But I will tell you this with certainty. The dollar will fall because they aren't using it to trade the real gold, which is black gold. The US government will resign. The bankers will be forced to go into hiding. The only money used for trade will be precious metals. You base your argument on the strength of the dollar and its system of trade. But there is no system when the dollar is no longer used in oil trade, because it is like a token for a trolley that no longer runs. You must look beyond the history you have experienced. Everything changes.
+1. I think this is spot on. I may add to
1) that it is almost certain that your insurance will be needed at some point in the future, and if it's not in your life time then your offspring will be very happy to have some insurance
2) economic deflation IS on the way, or rather has been occurring for a long time now. the real economy is heading south in the US and across most of the board, and monetary inflation is already in progress at full speed. the price inflation is just not seen as much in the store (even though prices are up, or boxes half empty...) compared to stock prices, bond prices (with essentially no yields), housing bubble II, top notch fine art etc etc. the debt bubble (and unfunded liabilities, and the mountain of derivatives) are gargantuan
3) if more than half the world is bullish on gold (russia, china, india alone suck up ~all or more than global mine supply every single day), then I think there is a pretty safe "BRICS put" for gold.
good luck to all !
Uh, yeah....
"Smart" money entering precious metals as Russia buys its own gold, since no one else is picking up their stuff due to high (newer and higher) export taxes.
Oh... that's why Belarus and Kazakhstan buy lots of gold too? Because they don't have to pay the export taxes, as part of the Russian "I sell you gold and take it back whever the fuck I please, at original cost, if not less" program.
ALL of the central banks (including in the West) are buyng gold. The problem is that, by trying to suppress the price of physical gold via "paper gold" futures contracts, the Western central banks are making physical gold TOO CHEAP NOT TO BUY IT !!!!
When the SHTF, those with PHYSICAL GOLD will rule. Those with "paper gold" futures contracts will be left "twisting slowly in the wind".
Posted by Goldcore. LOL
"Thomson Reuters' Lipper service data showed yesterday that investors in U.S.-based funds removed $597 million out of commodities and precious metals funds in the week ended May 20, the biggest outflow since..."
Good grief...didn't think there WAS any hot money left in the sector...!
https://youtu.be/UJOjTNuuEVw
Define "smart money"
PS Jim Ricktards is hawking a $1500 per year trading system via Agora and Casey Research ("100% accurate in back-testing")
At last, 20-20 Hindsight has been achieved. Agreee with you on the "Ricktard", theme. I listened to his spiel; I always do, until they give away their fundamental ignorance and / or looniness, and I did, and he did.
Phys vs rehypothecation...
If I were Putin I would make it illegal to hold US $ that they must all be turned into the Government in exchange for Rubles or Yuan and Renminbi then I'd take all those dollars and buy up every oz. gold I could get my hands on.
Let's get this party started.
What do you mean yuan and renminbi?
Try again.
Do you like this better CNY. Or were you just startled by the thought of soon to be worthless green backs buying up all the available gold on the planet.
The yuan (?/?) (sign: ¥) is the basic unit of the renminbi, but is also used to refer to the Chinese currency generally, especially in international contexts. The distinction between the terms "renminbi" and "yuan" is similar to that between sterling and pound, which respectively refer to the British currency and its primary unit.[citation needed] One yuan is subdivided into 10 ji?o (?), and aji?o in turn is subdivided into 10 f?n (?).
you said yuan AND renminbi like they are somehow something different. Like gold and silver. they are different. yuan and renminbi are not.
only and idiot would say "i'm selling my house for sterling and pounds"
We get it hairsplitter, thank you.
Those two terms are different but related to the same currency as you say.
However there is another interesting twist - highlighted by the three currency symbols for renminbi ... RMB, CNY and CNH.
This explains the differences.
http://www.ecrresearch.com/chinas-currency-rmb-cny-cnh
It's all kwai.
Thanks for the update, I had a belief that there may have been a differnce between them as both are commonly used in discussion.
Doesn't change my supposition that the BRICS bank backed buy gold or perhaps a basket of currencies will kill the dollar.
"Smart Money Entering Precious Metals"
They may well be right, but when a company called GoldCore says it I'm reminded of a Times Square grabber standing on the sidewalk just in front of the girly bar bringing customers in with "Pssst, c'meeah."
The most important piece of information in the article is the statement about the money flowing out of the Commodities and hard metals funds; note that this occured during a period of firm and gently rising prices in the metals. This is extremely important. The last thing that happens before a new wave upward in a major secular market is that the last die-hard dum-dums have to give up and sell out. There's a very real possibility we'll see a significant Silver Rally this year; certainly the low for the year is already in and behind us. The current price is a little low considering the poor purchasing power of the dollar; $25 / oz. looks like a reasonable center value.
Precious metals will surge during crises (but so will interest-paying treasuries), but are dead money in between.
Suppose the "Crisis" lasts for the rest of your life ? Suppose it lasts for fifty years ? In human reality there's short term and long term. when things go on for awhile, new thought patterns become the "new normal"; as in "are we talking real money, here, or govt. paper ?"; and, "are you a real money customer"; if not " get lost ". "What's the price in Silver " ? All this, which seems odd and unusual would be merely a reversion to the normal for the last 5,000 years.
What ever happened to that gold and silver Muslim coin that was coming out.. somebody must have told them that they use Bacon grease in the form when they stamp gold, it's what gives it that shine everybody likes.
Either that or every Muslim leader who said the G word wound up dead
Buy up all the phys.
Ban phys.
Outlaw fiat cash.
Checkmate.
The smart money is buying visas and ranch houses in Paraguay.
The common sense money bought gold and silver in 2007-8 and have been plowed under a few times but they still hold out hope.
It's a war of attrition now. How many stackers can stay solvent long enough to chalk up a win? Mr Yellen is throwing all the bacon to her crew, who are thrilled to help her out with lay-offs and closings. That's how this looks from the blue-collar perspective.
It sucks.
Das U-boot Lied
Is this a test?
https://youtu.be/kYWTt1HuSMc
Bomben auf Engelland is better.
https://youtu.be/d9sOlKuRN-E
The orchestral introduction on this one is also very interesting.
https://youtu.be/Qn0GpUgYOEs
Forget trying to time your purchases using some dumb ass calculator. Buy on Fridays. FIFY.
Whatever you do, don't study charts, because they might show a range bound sinusoidal pattern ......Just buy high or low, right?
The program still has you buy on a regular basis, it just adjusts the dollar amount, but hey, to each their own.
I don't think 10 tons bought by Russia is going to make a huge difference in the market but PM's are the place to be for at least part of your portfolio.
This is the program I use that helps me buy the dips. It's not selling anything, simply a calculator based on your average purchase price that helps buy dips thus is more aggressive than dollar cost averaging.
Hey Captain,
If the gold price would rally from here, would your program still give buy signals or would it miss the boat?
It would still allow you to acquire gold, but if it were to go up in a straight line it would have you buy less than if you were to dollar cost average, if there are significate swings up and down getting there, it will likely allow you to buy more. If there are significant dips, say as a result of the fed raising rates, it would allow you to buy significantly more, prior to the probable reverse of policy and additional QE, sending prices back up. Take a look, it will explain the system, and you can determine if it fits your investment goals.
I've been using it for years (I woke up in '09) and while the program somewhat frustrated at the time, it had me buying significantly less silver near the peak. My highest purchase was at 42 bucks but I only got 9 ounces. I stuck to it and it kept powder dry for the drop and it had me buying 100 ounce bars+ when it was in the 15's.
It has simply worked well for me so I thought I would share it. Dollar cost averaging is good for some, but if your acquiring an asset for the long term it can be all a head game. The program keeps it interesting and while you might be bummed the price is dropping at times its nice to know your taking advantage.
There's no fee or hidden tricks, I'm just trying to help people who know what's going on get real wealth in their hands as efficiently as possible. The more shiny stuff we have after the crash the safer we will be and the more influence we will have when building from the rubble.
There's no fucking way I'm chasing the price of shinies in yellenbux around. It's not worth it at my investment level.
It looks like a good system, for those who look towards investing that way. I just buy, have bought high and low, and just put it out of sight. It is a long term insurance policy so my amount of oz and value right now I dont concern myself with.
No disrespect Cap'n, but I think Honcho here is onto something. What works best for me is more heavily weighting purchases when sentiment feels lowest. After gold first broke $1,000 it chopped around a lot but it also slummed around $700 for about six weeks. Even my 'perma-bull' friend was disheartened. It felt like a good time to add a considerably larger position.
Now, as it drops below $1,200 I add a bit more here and there. Sentiment is pretty low now, is it not?
As I said to each their own.
Phew...I'm glad the rally has been monkey-hammered.
It's no good watching the price go up while still adding to the stack.
When we see week after week of 300 dollar days, that's when price rises will be pleasing to watch, albeit while also saddening to see the chaos as society unravels.
Until then...just keep stacking gold, silver, water, dirt and lead.
And food, stack those tuna cans !
Road Kill is not a dependable diet, although the price is right.
"And food, stack those tuna cans !'
mmmmmmm Radioactive Tuna... sounds like it could be the name of a Rock band
And boxes and boxes of Tuna Helper! Eating tuna plain out of the can will get old real quick.
I agree the content of the tuna helper box will eventually get old.
Then eating the cardboard box will get old....
The trend is not good.
Does the US ever BUY gold ? You never hear of it.
They rather steal it from Ukraine, Libya, let's see who's next.
No gold left to steal from Ukraine after the past 20 years of Russian "extraction".