Saudi Arabia now holds double the gold reserves previously reported. Continued central bank activity in the gold market may result in central banks being net buyers of gold this year. If so, it would be the first time in decades. Earlier this year, India bought 200 tons of gold from the IMF, and Russian and China are regularly adding to their gold holdings from domestic sources.
2009 was a good year for the gold market, with central bank buying dominating the news. Talk of IMF gold sales no longer depresses the market, as speculation abounds as to which central banks will be the big buyers.
Rob McEwen, who can almost be called a living legend in the gold mining industry, says gold prices may reach $5,000 an ounce – and as soon as 2012 but maybe not until 2014. McEwen sees loss of faith in the dollar being the reason for gold’s coming rise. “Money supply has expanded so rapidly
In a move that the gold market did not anticipate, the IMF sold 200 tons of gold directly to India’s central. It was widely known–commented on on this blog February 12, 2008–that the IMF would be a gold seller. Several years ago, the IMF let known its intentions to sell 400 tons of gold and
My Sept. 7 post noted that gold had broken out from a consolidation triangle, a move that often forecasts still higher prices. And, higher prices we got, with gold hitting an intraday high just short of $1,012.00 in the New York market on Friday, Sept. 11. Silver followed suit, closing at $16.72. However, it was
Readers of this blog mostly are long-term gold/silver investors who are not concerned with intermediate moves in gold/silver prices except to use dips in prices as opportunities to add to their positions. Still, daily $1 jumps in silver and $20 jumps in gold are of interest to all precious metals investors. If nothing else, investors
As noted on this blog before, the IMF wants to sell gold to fund more international welfare programs but must have the approval of the US Congress before it can sell any gold. In a February 2008 post, I speculated that approval under a new Congress would be likely. Now, approval appears imminent. This week
Northwestern Mutual buys gold to hedge against declining assets.
Buffetts warns against dollar-denominated investments, gives backdoor recommendation to gold and silver.
My advice on owning and storing gold: buy the physical gold and store it yourself. The form of the gold, be it Krugerrands, American Gold Eagles or gold bars, is not as important as taking physical possession. CMIGS does not hold or store gold for its clients—we ship it to them—and we strongly warn against