New gold rush

A woman selects necklaces at a gold shop in Chinatown yesterday. People flocked to buy gold after the price dropped to below Bt18,000 per baht weight (about 15 grams)

Savers nationwide are flocking to gold shops, enticed by the falling price of the precious metal, which yesterday tumbled to a 34-month low amid fears of an end to the US quantitative easing policy.

Gold bar fell below Bt18,000 per baht weight for the first time since April 2010.

Wisawa Wisawachaiwat, the owner of Jongluck Gold Shop in Phitsanulok, said the recent plunge had sparked new interest among small savers. “The prices have fallen to the lowest in years and they are expecting huge profits once the prices climb up again,” he said. Some clients took home gold bars worth 50-100 in baht weight.

The precious metal yesterday extended the decline to a 34-month low amid speculation that the US Federal Reserve will reduce stimulus with economic data beating estimates. Held as a safe bet against inflation, gold lost value as unprecedented money printing by central banks around the world failed to spur inflation.

A lack of accelerating inflation and concerns about the strength of the global economy is also hurting silver, platinum and palladium, which are used more in industry.

Bullion has slid 28 per cent this year, set for the biggest annual drop since 1981, after rallying for the past 12 years. About US$62.4 billion was wiped off the value of precious metals exchange-traded product holdings this year as some investors lost faith in them as a store of value.

While gold bullion slid to $1,180.50 an ounce early yesterday in Singapore, the lowest since August 2010, gold prices in Thailand followed the move. Local gold prices were adjusted 15 times yesterday in line with global volatility. At 5pm, gold bar was sold at Bt17,850 while ornaments were at Bt18,250 per baht weight.

Local gold price averaged Bt17,493.18 in April, 2010, when global prices averaged $1,145.72 per ounce and when the baht was at 32.29 to the US dollar.

Jitti Tangsitpakdi, president of Gold Traders’ Association of Thailand, believed that gold prices could decline further but would not fall below $1,100 per ounce. Cheap prices should spur new demand and the local prices could be cheaper if the baht does not weaken further against the US dollar.

Christin Tuxen, a senior analyst at Danske Bank in Copenhagen, who sees gold at $1,000 in three months, said: “The current environment is a fundamentally poisonous one for the yellow metal. Rising yields are upping the opportunity cost of holding gold, the initiation of a fundamental dollar up-trend weighs, inflation expectations are in decline as the commodities super-cycle wears off, and many tail risks have been sidelined.”

Investors sold 583.2 tonnes of gold this year.

“There’re still people who are interested in gold but because prices have fallen so much and so rapidly, they’ll wait for some stabilisation,” said Alexandra Knight, an economist at National Australia Bank. “There’s definitely been a loss of confidence in gold and that’s seen in the ETF liquidations.”

Source: http://www.nationmultimedia.com/business/New-gold-rush-30209352.html

There’s Absolutely No Physical Gold For Sale

Whistleblower Andrew Maguire stunned King World News when he stated that during this brutal takedown in the price of gold, no physical gold has actually come on to the market. Maguire, who recently appeared in the CBC production “The Secret World of Gold,” takes KWN readers around the world on a final trip down the rabbit hole in part three of a series of extraordinary written interviews which have been released today.

Maguire spoke about the manipulative takedown in the metals: “Let’s start by looking at what happened on Wednesday morning because this is really where the intervention came in: In the very thin access markets, in very thin liquidity, we saw a surgical strike.

And it was designed to trip-off and accelerate end of quarter position squaring. There is no doubt this (manipulation) was Fed-backed and (agent) bullion bank instigated….

“This is the important part, these producers have to balance their books at the end of the quarter, and these guys were hoping for prices above $1,300. This was a highly predatory move, but it enabled these bullion banks to go some way towards replenishing depleted bullion inventories. But it was directly at the expense of these producers who had been holding out for a price rise well above $1,300.”

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/29_Andrew_Maguire_-_Absolutely_No_Physical_Gold_Has_Turned_Up.html

Massive 580 Tons Of Gold Purchased In Just 7 Days

Today whistleblower Andrew Maguire told King World News that Eastern Central banks have purchased a staggering 580 tons of physical gold in just the last 7 trading days. This means Eastern Central banks just purchased a stunning 25% of the world’s annual gold mine production in just 7 trading days. This was the largest purchase of physical gold during any 7 trading day span in history. Maguire, who recently appeared in the CBC production “The Secret World of Gold,” also discussed the brutal takedown in the gold and silver markets as well as the disappearing inventories in part one of a series of written interviews that will be released today.

Maguire: “The lower these prices are set in the paper (gold and silver) markets, the stronger the physical buying becomes. But it’s totally unsustainable. And given the incredibly bullish COMEX structure now, and the global market underpinning, these paper sales just cannot continue any longer.

Officials have not been selling any physical gold for many months now….

“However, by manipulating the gold price lower through the foreign exchange interventions, they’ve succeeded in forcing 600 tons of ETF redemptions, COMEX capitulation, and drawn in an unprecedented level of fresh managed money short supply. This has now successfully allowed the bailout of the bullion banks to the point where they have been able to get net long (gold) futures. The two primary bullion banks that we all know about are net long.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/28_Maguire_-_Massive_580_Tons_Of_Gold_Purchased_In_Just_7_Days.html