Monday, December 30, 2013

Gold and Silver Financial Review 12/30 by Gold Radio Cafe | Finance Podcasts

Is "Taper" a set-up for "Bail-In?" 

The circus of words continues... Seems like there is no end to HOT words they can come up with to confuse people about the economy. The fact is the system is broken and the USA is still the largest debtor nation in the history of the world. So if they stop the QE and start to Taper, where is the grease for the wheels of the economy going to come from??? YOUR savings, via Bail-In! 
NO one else sees this folks and remember you heard it first on Gold Radio Cafe.   BK

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Thursday, December 26, 2013

Drop In Gold Fuels Buying Frenzy

JEDDAH – The gold shops in Jeddah are now flourishing as more customers are buying various gold types thanks to the international drop of gold prices.

Saleh who works in Al-Amari gold shop said that more people are now buying various gold jewelries and others are buying gold bullions to store their money after staying away from gold for quite sometime.

According to him various nationalities are approaching them including Saudis, Africans and Indians. The prices he said range from SR165 to SR140 per gram based on the item being sold. The price is set based on any additional work or jewelries being added. The country where the gold comes from also determent the price, “We have Italian Indian, Bahraini, Korean and local gold creations each with a distinct price,” said Saleh.
Dropping gold prices sounds like deflation, yet the most populated nations in the world keep buying! Ask yourself if gold is such a "unimportant" asset to own then why do so many people in the world keep buying it while prices are declining? Investing 101: Buy Low - Sell High. Over half the worlds population knows that owning gold protects you from inflation, yet in the west we ignore this axiom and chase yield. Why? The paper game will end badly for most and in the end "he who holds the gold makes the rules," period, end of story!   BK

Wednesday, December 25, 2013

Greg Hunter Interviews Rob Kirby

One of the best interviews I've heard in a while.  BK

Tuesday, December 24, 2013

Heraeus Market Report

Good Morning,

It’s Christmas Eve here in NYC and the subways are practically empty! It made my morning commute much more pleasant J As we approach year end, economists have been predicting what the precious metals outlook will be like for the PGMS in 2014. It looks like we can expect to see greater auto catalyst demand in RH. As a result, we may see some tightening of the RH market next year and this should help bring the metal up from current levels. The PT deficit is expected to continue next year due to South Africa restructuring its supply. This should help elevate PT prices, but the metal will experience some pressure due to weaker AU prices resulting from the beginning of the end of quantitative easing. We expect to see PD’s supply deficit remain, but not to levels PT will encounter. Gold has been trading flat in the $1200 region due to slower activity with the holidays around the corner. Investor sentiment remains bearish towards the gold unless something outrageous happens to spur demand for the shiny yellow metal. The question to ask here is how low can gold really go? We know tapering has begun and will most likely continue, but the price drop will have to end somewhere. If the price of AU falls below the cost of extracting AU from the ground, producers will simply halt production. If supply decreases then price should increase. I guess supply and demand will be significant factors to take into account when predicting gold’s path for next year. The stock market is in a Santa Clause rally but is seeing light volume due to the holidays. The stock market closes at 1:00 p.m. today and is closed tomorrow. Please note there are no PM fixings today. I wish everyone and their families a very Merry Christmas!!!


Simple Sahni
Assistant Trader

Heraeus Metals New York LLC

Monday, December 23, 2013

Gold and Silver Financial Review 12/23 by Gold Radio Cafe | Finance Podcasts

Recorded LIVE Today at 10:00am EST
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Saturday, December 21, 2013

Heraeus Market Report

Good Morning,

Gold faced selling pressure yesterday afternoon due to all the shorts in the market and investors re-balancing positions for year-end tax purposes. Since equities are at all-time highs, traders sold off the AU to realize losses to offset their capital gains. AU continued to decline until the end of the day due to a stronger U.S. Dollar and the Fed’s decision to begin tapering in January. AU futures fell more than 3%- lowest level in over 3 years. Investor sentiment for the yellow metal remains bearish since its appeal as a hedge against inflation has waned. Buying into the AU during this downtrend is like catching a falling knife-there is a lot of risk involved in this type of scenario. If buying the dip is timed correctly it can be rewarding, but if gold prices fall faster than predictions you run the risk of cutting some fingers off!! Since gold broke below 1200, we can expect to see testing levels between 1200-1180.  AU is down approximately 30% for the year while the S&P 500 is up more than 26% for the year. Looks like investors felt it was a better bet to flee from AU and put their money into equities. Third quarter GDP is up 4.1%. Have a wonderful weekend and Happy Holidays to those of you who are on vacation until next year J

Simple Sahni
Assistant Trader
Heraeus Metals

Monday, December 9, 2013

Heraeus Market Report

Positive US data sent gold into a tailspin last week (low at 1,212 $/oz). US monthly production figures were the best in 2 ½ years this November which again brought with them the question of the timing of the reduction in the US bond-buying programme (currently $ 85 bn / month). Technical selling did its bit to enhance the slide as funds and investors sold their metal or went short. Gold in euro terms also fell drastically and only at around 891 €/oz did it find some support; a 3 ½ year low. For the first time since 2004 (in €), it looks like gold is going to finish the year with a loss (at the moment ca. -30%). On Thursday losses were quickly recovered (buy-back of short-positions), though the recovery was limited. The outlook for the recovery of the US employment market and the publishing of the non-farm payroll data for November on Friday pulled out support for the metal. Further developments in the Indian gold market remain of importance in the coming year: it is unlikely that the effective import-duty of up to 10% introduced this year is going to be reduced and a trade body official assumes that this will halve demand to around 550-550 tonnes. Illegal imports have already gone up. For example, buying from Thailand doubled in the third quarter and according to assumptions by the World Gold Council, the metal gets smuggled into India from there. We continue to see no reasons that could give sustainable support to gold. With continuing positive data from the US, some market-participants are speculating that tapering could well start this year. Some clarity is hoped for in the coming FED Strategy Meeting of 17/18 December. We expect the present volatility to continue and the 1,200 $/oz mark to be tested; then followed by supports at 1,180 $/oz and 1,150 $/oz.


The precious metals markets have an energetic week behind them. Silver lost the most in the complex (-2.36%) as it dropped below 19 $/oz during the course of this reporting period to a 5 month low. Though a short-covering rally on Wednesday saw it recover somewhat, Thursday’s good Q3 US-GDP of 3.6% again put pressure on the price of silver. Additionally the metal got little support from the weak US coin sales. Technically silver is still in an intact downtrend. Resistance is at 20 $/oz with support at 18.90 $/oz and again at the years’ low of 18.20 $/oz. This week, among others, the precious metals markets could be influenced by the following: Inflation data from Germany (Wednesday: 08:00 hours), Industrial production Eurozone (Thursday: 11:00 hours) as well as the US Retail Sales (Thursday: 14:30 hours).


Driven by high inflows into the NewPlat ETF, platinum ETF’s, as in previous weeks, know only one direction. Despite this platinum had to book mild losses in this reporting period (-0.68%). The metal dropped from 1,362.50 $/oz to 1,353.25 $/oz. After European automobile sales in October and November had recovered, the US-automobile market also reported positive sales figures. These latter were up 8.7% in November; as high as they were 10 years ago. Presently platinum is showing a tendency for falling prices. We expect a sustainable price-rise if and when South Africa is subjected to continuing strikes (see report from 11.11.2013).


Year-to-date, palladium remains the precious metal with the best performance (+ 5%). Also during this reporting period it was up slightly (+ 2.60%). On the industrial side, the picture appears to be mildly brighter. An indicator for this is demand for palladium sponge, which has improved slightly. Technically support is at the low of November and December at 705.50 $/oz and resistance at the November high of 762.25 $/oz. Outlook for 2014 as per the prognosis of the analysts questioned by Reuters is an average price of 786.70 $/oz, which implies rising prices. One explanation for expectations of rising prices could be Norilsk Nickel’s – world’s largest nickel and palladium producer – suggestion that the market will have a supply-deficit in the face of stronger demand from the automobile market and an unpredictable “above-ground-stock” situation: “Strong demand from the auto sector and an unpredictable supply from above-ground stocks suggest a physical shortage could take place in the palladium market as early as next year, an executive at the Russia's Norilsk Nickel said on Thursday.”