Tuesday, 10 March 2015

Frank Holmes: Gold - No Reason To Let Dollar Get Stronger.



"Kitco News is back in studio and kicks off the week with Frank Holmes and the Gold Game Film. Holmes comments on gold’s sharp drop last Friday and how he sees the metal set up for the week ahead. “What’s really impressive is that the dollar hit an 11-year high but gold, 11 years ago, was $400 an ounce and oil was $40 a barrel – so gold is doing spectacularly well in that context,” he says, adding that he doesn’t think the Federal Reserve has to raise rates. “I think what’s important for investors is that the real rates return are very strong, there’s no reason to get the dollar any stronger by lifting rates higher because it would truly hurt America’s ability to export finished products.” Tune in now to see what Frank thinks may be gold’s touchdown pass of the week. Kitco News, March 9, 2015."


Central Banks Bought 477 t of Gold In 2014 - Second Highest In 50 Years.


  "Koos Jansen debates a lot of data produced by World Gold Council and I will stay with him on his in-depth analysis of China's Gold Demand picture. But WGC has produced the very important news in this presentation: Central Banks Bought 477 t of Gold In 2014 - Second Highest In 50 Years. Now we can add it to the Peak Gold production in 2015 reports."


"Gold production is expected to peak in 2015. As the next chart suggests, the discovery cycle peaked some 20 years ago, and that will only reflect as of this year in the production volumes. Combine this with the falling gold prices (currently right below the average cost of production), and the result is a series of liquidations of miners and mining projects which would lead to an even more drastic short-term decrease of gold output."