In Today one of the most highly respected fund managers in Singapore shocked King World News when he said that custodians of the ETF GLD have refused to give people physical gold in exchange for the shares. Grant Williams, who is portfolio manager of the Vulpes Precious Metals Fund, also warned that the massive and escalating paper claims on physical gold at the COMEX warehouse are going to create an explosion in the price of gold. Below is what Williams had to say as KWN readers around the world take another trip down the rabbit hole
There are numerous precious metals mining companies on various Stock Exchanges around the world vying for our investment funds and it is only with great care and hard work can we expect to select those that will be successful. However, before we get to the point of entry in terms of acquisitions, we need to be sure that this sector in general is heading in the right direction so that our well-chosen stocks benefit from a move to higher ground.
In assessing the current investment environment we need to decide if the current rally has the legs to carry our stocks to new highs or is this rally a false dawn tempting investors to part with their hard earned cash only to disappoint them further down the track. In order to throw some light on the matter we will refer to The AMEX Gold BUGS (Basket of Unhedged Gold Stocks) Index, the HUI.
The chart above gives us a snap shot
By Hard Assets Alliance Team
By Jeff Clark, Editor of BIG GOLD
Gold investors will recall there was a surge in bullion buying when the price crashed in mid-April. We saw less of this with the June decline, though global investment demand has still been stronger than what was seen in 2012.
What virtually every mainstream headline has been screaming about, though, is the huge outflows in GLD. This frustrates someone like me who knows the "paper" gold market comprises only a part of the total investment picture for gold. As the saying goes, they're looking at only one part of the elephant.
The reason it's important to look at the entire picture of investment demand is because an investor might draw an erroneous conclusion if they read just the headlines. For example, China and other Asian nations represent well over half of all global investment demand, while North America is just 9%. Is this bigger source of demand experiencing a lot of selling, too?
Let's look at the bigger picture of investment demand for gold this year. In the following chart, we compare GLD outflows to Chinese imports through Hong Kong, as well as other sources of demand for physical metal. Here are the data through last month.
As is clearly visible, Chinese gold imports alone are much greater than what GLD holders have sold
The following is a missive that we received from Jim Sinclair who is the host of a web site called Jim Sinclair's MineSet. The above link will take to his site and his updates via email are free, so you have nothing to lose by signing up for them.
My Dear Extended Family,
Tomorrow I meet with investors making an effort to protect themselves from the inevitable that this video, the first of its kind, outlines very well.
Seeing this video is a must
In an excellent collection of 50 charts, Ronald Stoeferle presents all fundamental data related to gold’s bull market and the too-big-to-fail debt bubble. Stoeferle is Managing Director at Incrementum Liechtenstein and writer of the famous In Gold We Trust reports.
The charts cover three major themes: gold, debt and economy, currency debasement
With US President Obama now seeking authorization from Congress to attack Syria, the already spirited debate surrounding the advisability of such military action is bound to get even more lively in the coming days. To make sense of all the argumentation and rhetoric, I am once again going to apply an old method of reasoning about controversial questions most famously used by St. Thomas Aquinas, itself a a more formalized version of the Socratic method of seeking truth about a given topic by scrutinizing the authoritative opinions about that topic. What I hope this approach will do is make it all the more evident that we have no business intervening in Syria.
Should an Attack be Launched Against Syria?
By way of a change we have for you 'The Innocenti' by Frank Kirtley which is our book of the week;
if you crave the need for an honest thriller set in spain, read on. if you like mini car chases that are not impossible, simply seat-of-your-pants, read on. if you savour pages that are steeped in a love story, read on
With the Indian rupee continuing to plumb new lows against the US dollar, it is clear that the Reserve Bank of India (RBI) is losing its war on gold. Our Chart of the Week shows the gold price in rupee hitting a new high yesterday.
The gold price has exploded in India
Once again the perma-bulls are euphoric over the recent rallies put in by gold, silver and the precious metals mining sector, however, the question still remains; is this the real deal or another false dawn? We can look back to early July when gold traded at around $1200/oz and say there it is; the bottom is in, as many of our peers have already done, but is it?