Gold 2013 ......a lack lustre year?

[Joules MM1]

some qualitative easing:

Goldman Closes Gold Short
by Tyler Durden on 04/23/2013 07:47 -0400
link: Goldman Closes Gold Short | Zero Hedge

We closed our short trading recommendation on gold
We have closed our recommendation to short COMEX Gold, as prices moved above the stop at $1,400/toz.
We have exited the trade significantly below our original target of $1,450/toz, for a potential gain of 10.4%. The move since initiation was surprisingly rapid, likely exacerbated by
the break of well-flagged technical support levels. Our bias is to expect further declines in gold prices on the combination of continued ETF outflows as conviction in holding
gold continues to wane as well as our economists’ forecast for a reacceleration in US growth later this year.

Retail Demand For Gold Is Going Nuclear In Asia And Shops Can't Keep It On Their Shelves [PHOTOS]
Joe Weisenthal | 14 minutes ago

link: Asian Physical Gold Demand - Business Insider

 

[Joules MM1]

link: Kitco Commentary

Gold: Cost of Production, Portfolio Diversification and Buying on Dips

Monday April 22, 2013 08:53
Kira Brecht

excerpt:

When the spot price of gold is above the cost of production it spurs producers to mine more—as there is more profit incentive for them. When the spot price of gold falls below the cost of production, producers have less incentive to ramp up overall production levels. But, then, supply begins to diminish, which in turn eventually creates a bullish supply/demand outlook. It is a cycle all physical commodities go through.

What is the cost of production for gold? Barclays analysts answered that in a research note last week: "Last year, the average cost of production was $673/oz, and the marginal cost of production (90th percentile) was $1,104/oz," wrote Barclays analysts.

However, one must add in capital expenditures as well: "Assuming sustaining capex at around $200/oz, this indicates cost support at around $1,300/oz, based on last year’s data; our global database encompasses 35% of global production. Should prices dip below marginal cost, around 10% of production under our cost curve becomes cash-negative, representing an estimated 262 tonnes of cash-negative gold production globally," Barclays added.

 

[Joules MM1]

any bets on a rush to the head on German rates cut? .....any real catalyst? .......or shall we just imagine that buying some trinkets might cause a rush?

what humour about the jewellery angle is simply that soon as you buy it the stuff depreciates at 50% soon as the shop assistant hands you the receipt.....so people might be rushing to buy a 50% discount theyre actually paying for in cash, theyre paying double for what they think theyre going to be worth when they resell.....crazy

 

[Joules MM1]

Associated Press' Twitter account has apparently been hacked and a bogus White House message on an explosion was incorrectly tweeted.

spx went 77's to 62's and gold went yawn......

 

[WR1]

mini flash crash - at the highs of the day and strong intraday resistance
surprised it did n't happen mid through there mini bull run

seeing as they re obviously? going back to the all time highs within a few days
makes sense if your a Market Maker

false alarm - sorry we stopped you out by accident

could n't make this stuff up?

 

[Joules MM1]

Don't Ignore This Chart!: Silver:Gold Ratio Plunges to 52-week Low

April 23, 2013 at 3:22 PM | written by

The Silver:Gold Ratio broke down in February and exceeded its summer low in April with a sharp decline.
The 52-week low shows that silver is much weaker than gold. This fits with weakness in copper because silver is more of an industrial metal than gold.

h/t Sean Brodrick

 

[Joules MM1]

some nice small accum/short covering rips today....looking healthy(er) for bulls

https://twitter.com/joulesmm1/status/326997337488637952/photo/1

 

[Joules MM1]

James Grant, articulate, almost acolyte in his bullish stance on gold....again, makes his case without the usual angst

video, about half way thru
link: Very Bullish on Gold: James Grant - CNBC

 

[Joules MM1]

video
MTS Video 4-24-13 Matt Zeman - YouTube

#1471target #20ema #shorcovering

from mrtopstep

what's driving .....like what we see to the upside

 

[Joules MM1]

minor ratios/res's being broken with impulsive buying.....good to be long

 

[Joules MM1]

and they bail ......

shhh.....can you hear that, skip?

the quiet screaming of squeezed-mania

 

[cablemonster]

Lololol 1445 prints. Monthly close above 1500 would be ultra bullish. Still chuckling about cyprus selling its gold.

 

[Joules MM1]

48's getting faded

 

[rsh01]

Still chuckling about cyprus selling its gold.

they havent....
Gold sale not a priority - Cyprus finance minister | Reuters

its a tiny amt of gold anyway, and a 10% change in gold price is hardly gonna make much difference to the state of cyprus' finances.

 

[cablemonster]

they havent....
Gold sale not a priority - Cyprus finance minister | Reuters

its a tiny amt of gold anyway, and a 10% change in gold price is hardly gonna make much difference to the state of cyprus' finances.

yes mate sorry I was being sarcastic about Cyprus. I was laughing as it was one of the earliest journo BS reasons that came out saying why it went down. There has been evidence of strong buying early in the Asian session in the last week, wouldn't be surprised at all to wake up tomorrow and see it has touched 1500.

I should declare my hand really though in that I have a tonne of client money sitting in gold bullion

 

[rsh01]

yes mate sorry I was being sarcastic about Cyprus. I was laughing as it was one of the earliest journo BS reasons that came out saying why it went down. There has been evidence of strong buying early in the Asian session in the last week, wouldn't be surprised at all to wake up tomorrow and see it has touched 1500.

I should declare my hand really though in that I have a tonne of client money sitting in gold bullion

aha!

gold merchants across the world (inc US & UK) have been running short on supply, the dislocation in paper v physical price was (still is?) big.....paper had to converge up.

do your clients own the physical? if so, who owns the vault it is stored in?

 

[cablemonster]

aha!

gold merchants across the world (inc US & UK) have been running short on supply, the dislocation in paper v physical price was (still is?) big.....paper had to converge up.

do your clients own the physical? if so, who owns the vault it is stored in?

They own a physically backed ETF, most paper gold as you rightly point out is not physically backed which is bound to blow up sometime. The gold bars are audited every month and are held in a London safe with the custodian bank HSBC.

I have no idea where the vault is in London, maybe I should go and insist on an inspection, I would love to hold an actual gold bar!

 

[Joules MM1]

toot friggen toot !

 

[Joules MM1]

no blaming etf's today........

 

[traderjoe1977]

Yes, I agree. It would be difficult to blame ETFs.