Global gold price hits 3-year low

[webfact]

GOLD
Global gold price hits 3-year low
Nongnapas Pitthapatee
The Nation, Bloomberg


People parades to buy gold ornament at the gold shop at Yaowarat, Chinatown of Bangkok, when gold price lower Bt20,000 per bath (15.2 grammes) again by close sale price Bt19,150 per one bath of gold bar (15.2 grammes) yesterday or dropped Bt800

BANGKOK: -- Gold fell to its lowest price in three years after US Federal Reserve chairman Ben Bernanke said stimulus measures might be reduced this year as the US economy recovers. Market expectations are for the price to fall below US$1,300 (about Bt40,480) an ounce this month, while the local gold price declined slightly, eased by appreciation of the baht.

Gold for immediate delivery dropped as much as 3.4 per cent to $1,304.75 an ounce yesterday. Bullion for August delivery sank 5.1 per cent to $1,303.30 an ounce on the Commodity Exchange in New York.

In London, gold fell to the lowest in more than two and a half years, exceeding the drop in April.

Gold has slumped by 22 per cent so far this year amid speculation the Fed will pare its quantitative easing (QE), which helped the metal cap a 12-year bull run last year. Bernanke said the US central bank, which currently buys $85 billion of Treasury and mortgage debt each month, might begin reducing purchases this year and end the programme in 2014 should the economy continue to improve.

Thailand's Gold Traders Association adjusted its local gold price 10 times yesterday, with gold bar selling at Bt19,150 per baht weight.

Kritcharat Hirunyasiri, president of MTS Gold (Mae Thong Suk Group), said the global price was highly volatile on concerns over the likely tapering off of US monetary stimulus. The price is expected to continue its decline, he said.

"The gold price will likely decline consistently and is expected to go down below $1,300 an ounce soon. The local price has been highly volatile, however, softened by the weakening baht," he said.

A Bt1 depreciation of the Thai currency against the dollar affects the local gold price by about Bt1,600 per baht weight, he added.

Tipa Nawawattanasub, chief executive officer of YLG Bullion and Futures, said: "The Fed chairman's statement after the FOMC [Federal Open Market Committee] meeting gave a clear sign of lowering the size of bond purchases this year. It's also possible that the measure will be ended by the middle of next year. This prompted the gold-price drop."

If gold falls below $1,300 an ounce, it is possible for it to dip further to $1,250-$1,220 or Bt18,500-Bt18,000 per baht weight.

Kamonthan Pornpaisarnvijit, director of the Gold Research Centre, said Bernanke's signal could pressure gold prices in the world market after investors purchase dollars. He expects the global gold price to move in a range of $1,300-$1,450 an ounce in the short term.

However, the centre believes that the gold price in Thailand will not drop as much as in the world market because the depreciation of the baht.

The result of the FOMC meeting negatively affected prices in stock, gold and oil markets. Compared with other main currencies, the US dollar has appreciated. Yields of 10-year US government bond went up by 15 basis points, or 6.5 per cent. These figures reflected investors' outlook for the US economy.

The gold price will not decrease substantially because the lower it goes, the more demand for consumption will increase, the centre said, predicting that the global price would be maintained at $1,300-$1,450 per ounce. In the second half of this year, the US economy will be a major factor for gold investment, it said.

"The gold price reacted badly," Cailey Barker, an analyst at Numis Securities Ltd, wrote in a report yesterday. "Here we are between a rock and a hard place where more QE is having less and less of an impact, but withdrawing QE is very likely to have a negative impact."

Gold entered a bear market in April as some investors lost faith in the metal as a store of value amid low inflation and a global equity rally. Holdings in the SPDR Gold Trust have slumped by 351.3 tonnes this year to 999.56 tonnes yesterday, the lowest since February 2009, wiping about $30 billion from the fund's value.

The MSCI All-Country World Index of equities has climbed 5.5 per cent and the US Dollar Index, a measure against six major currencies, has advanced 2.7 per cent.


-- The Nation 2013-06-21

[winstonc]

ive never understood the fascination for gold,,,never will im happy to say,,

[belg]

people are rushing to buy ?

when the outlook is almost certainly that the price will even decline more

i remember when a baht of gold was 8000 - 12.000 range

if only i had the bxlls back then to buy a few millions worth ...

but i'm not thai, i do not like to gamble everything on anything

[Pib]

Everybody should be buying gold now while its lower; if you don't, in 20 to 50 years you'll be sorry.

[yoshiwara]

Everybody should be buying gold now while its lower; if you don't, in 20 to 50 years you'll be sorry.

and dead.

[khaowong1]

Everybody should be buying gold now while its lower; if you don't, in 20 to 50 years you'll be sorry.

and dead.

Yeah but your grandkids will be happier than hell. For what that's worth.. bwah ha ha ha ..

[Pib]

Everybody should be buying gold now while its lower; if you don't, in 20 to 50 years you'll be sorry.

and dead.

Yeah but your grandkids will be happier than hell. For what that's worth.. bwah ha ha ha ..

I agree...and as the price of gold reaches $2000 an ounce numerous times over the next 20 to 50 years a person can get rich trading gold...all they have to do is buy low and sell at $2000...it's so easy.

[PCA]

Everybody should be buying gold now while its lower; if you don't, in 20 to 50 years you'll be sorry.

and dead.

Yeah but your grandkids will be happier than hell. For what that's worth.. bwah ha ha ha ..

I agree...and as the price of gold reaches $2000 an ounce numerous times over the next 20 to 50 years a person can get rich trading gold...all they have to do is buy low and sell at $2000...it's so easy.

hang on, was there not the idea that gold gonna become the ultimate trouble shooter. 2000 what against it? Rotten teeth maybe

[pacovl46]

When I moved to Thailand in 2003 one Baht was 6250 Baht!

[Pib]

When I moved to Thailand in 2003 one Baht was 6250 Baht!

And you might see that price again.

[stoli]

ive never understood the fascination for gold,,,never will im happy to say,,

I don't own it either. Do people think that the use of currency will dry up, and therefore those that have gold bars will be able to take it, and a pocket knife, to 7-11 and buy what they need by shaving off the amount of gold needed to buy a bottle of SamSong? That those of us with just currency will be starving in the streets? Or is buying gold like betting whether the baht will rise or fall? Maybe it just for enjoyment as to whether you really can predict the future. Everyone needs a hobby I guess.

[yoshiwara]

ive never understood the fascination for gold,,,never will im happy to say,,

I don't own it either. Do people think that the use of currency will dry up, and therefore those that have gold bars will be able to take it, and a pocket knife, to 7-11 and buy what they need by shaving off the amount of gold needed to buy a bottle of SamSong? That those of us with just currency will be starving in the streets? Or is buying gold like betting whether the baht will rise or fall? Maybe it just for enjoyment as to whether you really can predict the future. Everyone needs a hobby I guess.

You will be able to buy your very own personalised 7-11 catering just for you.

The girls, will, of course, continue to accept gold as they always have.

[MrRealDeal]

In 1981+- a Honda civic cost 10 ounces of Gold +- ...... In 2103 a Honda civic cost 10 ounces of gold +-

There are numerous ways you could have invested your 6000 dollars in 1981 and have a lot more than a Honda civic to show for it.

Gold is simply a way to fight inflation it's not a way to get rich over time.

[Naam]

In 1981+- a Honda civic cost 10 ounces of Gold +- ...... In 2103 a Honda civic cost 10 ounces of gold +-

There are numerous ways you could have invested your 6000 dollars in 1981 and have a lot more than a Honda civic to show for it.

Gold is simply a way to fight inflation it's not a way to get rich over time.

all those who held 6,000 worthless fiat dollars in 1981 were too stupid to invest them in long term US-Treasuries at double digit interest. instead of cashing till 2001 a total of ~22,000 dollars interest they kept the money in the cookie jar.

[MrRealDeal]

amen to that ...... but people will see the end of the world next time rates are double digit and not but them then either !

I actually bought a Honda Civic ! lol but I was young and foolish and needed a car !

[yoshiwara]

In 1981+- a Honda civic cost 10 ounces of Gold +- ...... In 2103 a Honda civic cost 10 ounces of gold +-

There are numerous ways you could have invested your 6000 dollars in 1981 and have a lot more than a Honda civic to show for it.

Gold is simply a way to fight inflation it's not a way to get rich over time.

all those who held 6,000 worthless fiat dollars in 1981 were too stupid to invest them in long term US-Treasuries at double digit interest. instead of cashing till 2001 a total of ~22,000 dollars interest they kept the money in the cookie jar.

One is reluctantly forced to the conclusion that since gold bugs earn zero returns on their investments they assume that no one else is either.

[maengda]

Recently, I have been considering investing in physical gold bullion. However, the concensus seems that it is a risky idea.

In your opinions, what low will the gold price in thailand hit? As of today it is a tad above 18,000. Any advice/insight greatly appreciated. Thanks!

[yoshiwara]

Recently, I have been considering investing in physical gold bullion. However, the concensus seems that it is a risky idea.

In your opinions, what low will the gold price in thailand hit? As of today it is a tad above 18,000. Any advice/insight greatly appreciated. Thanks!

You want to do it, you know you do. As glittering as the go-go girl swirling in front of you this evening. You cannot resist. Some imperceptible dribble gently dropping on to your shirt. On the count of three I am going to clap my hands and this conversation will be as if it has never been but the die has been cast and your pockets will empty. $2000 they whisper. Long time not short time. You will be rich, rich!

[midas]

Gold rush 2013 style has Dubai scrambling

The price drop led to a rush of buyers for Dubai gold from the Middle East, South East Asia, the Balkans, Turkey and parts of Europe according to Tarek El Mdaka, the managing director of Kaloti Gold in Dubai.

There is not enough space on airlines flying in to Dubai to meet the rapidly rising demand for physical gold in the emirate since the price plunged to record lows this week.

"I cannot find a place for transporting gold on Emirates, on BA on Swiss Airlines this weekend," Mr El Mdaka said. "I am shipping in one-and-a-half to two tonnes of gold every day and it is going straight out."

http://www.thenational.ae/business/industry-insights/markets/gold-rush-2013-style-has-dubai-scrambling#ixzz2XTAh0M1K

Edited June 28, 2013 by midas

[Naam]

Mr El Mdaka added that gold is in such short supply in Dubai that he is able to charge a US$3 premium per ounce. "In the last week or so that has gone up from $1.25, $1.50 to $1.75. But now it is $3. We are really squeezed."

http://www.thenational.ae/business/industry-insights/markets/gold-rush-2013-style-has-dubai-scrambling#ixzz2XTAh0M1K

a horribly high premium

[midas]

The Great Comex Paper Gold Dump: Online Real-Time Physical Gold Price Datasource

The tail is wagging the dog right now. Nobody – NOBODY – in their right minds is selling the physical. This is all futures movement, which as pointed out above, maybe 100 times larger than the physical market. We have to go through this phase to get to the other side. Think of this as a cleansing process. The fake futures market needs to die before true price discovery can begin. But this process offers a great opportunity to those who recognize it (for a limited time only though). We don’t know how low the futures will go, but there will be a futures price below which the physical won’t be available

http://www.gekkosblog.com/2013/06/the-great-comex-paper-gold-dump-online.html

[PCA]

The Great Comex Paper Gold Dump: Online Real-Time Physical Gold Price Datasource

The tail is wagging the dog right now. Nobody – NOBODY – in their right minds is selling the physical. This is all futures movement, which as pointed out above, maybe 100 times larger than the physical market. We have to go through this phase to get to the other side. Think of this as a cleansing process. The fake futures market needs to die before true price discovery can begin. But this process offers a great opportunity to those who recognize it (for a limited time only though). We don’t know how low the futures will go, but there will be a futures price below which the physical won’t be available

http://www.gekkosblog.com/2013/06/the-great-comex-paper-gold-dump-online.html

that's rubbish midas. Leave gold alone, it doesn't support you and it doesn't stand by itself. What you are doing is distributing hype with most of your posts. The middle man who thinks he is in balance but doesn't know what it means for others.

[midas]

If Gold is such a dreadful commodity……. I wonder why the Rothschild family loved it so much?

https://www.youtube.com/watch?feature=player_embedded&v=Y_wkVJcH65s#at=120

Edited June 29, 2013 by midas

[Naam]

If Gold is such a dreadful commodity……. I wonder why the Rothschild family loved it so much?

i don't think anybody considers gold as dreadful. in fact 99.99999999999% of the worlds population would love to possess a ton or more. correct is that gold can be a dreadful investment if not timed by a lucky hand.

[yoshiwara]

If Gold is such a dreadful commodity……. I wonder why the Rothschild family loved it so much?

https://www.youtube.com/watch?feature=player_embedded&v=Y_wkVJcH65s#at=120

Save us from your neo-Nazi conspiracy theories.

[midas]

If Gold is such a dreadful commodity……. I wonder why the Rothschild family loved it so much?

i don't think anybody considers gold as dreadful. in fact 99.99999999999% of the worlds population would love to possess a ton or more. correct is that gold can be a dreadful investment if not timed by a lucky hand.

then the 00.000000000001 % must be yoshiwara !

[midas]

If Gold is such a dreadful commodity……. I wonder why the Rothschild family loved it so much?

https://www.youtube.com/watch?feature=player_embedded&v=Y_wkVJcH65s#at=120

Save us from your neo-Nazi conspiracy theories.

no neo-Nazi conspiracy theories behind that presentation...........sorry if the facts dont suit your agenda

Edited June 29, 2013 by midas

[maengda]

Recently, I have been considering investing in physical gold bullion. However, the concensus seems that it is a risky idea.

In your opinions, what low will the gold price in thailand hit? As of today it is a tad above 18,000. Any advice/insight greatly appreciated. Thanks!

You want to do it, you know you do. As glittering as the go-go girl swirling in front of you this evening. You cannot resist. Some imperceptible dribble gently dropping on to your shirt. On the count of three I am going to clap my hands and this conversation will be as if it has never been but the die has been cast and your pockets will empty. $2000 they whisper. Long time not short time. You will be rich, rich!

Everything in Thailand isn't about whoring, maybe for you it is. Thanks for the insight.

[Pib]

Boy, Thai gold shops sure are busy now days....but a lot of the buying is really just folks swapping their old gold jewelry for new gold jewelry since they pay a little less on the exchange with the lower price of gold. Buying gold as an investment is the least of things on their mind; they are just looking for some different bling (i.e., style of the month). My wife did such a swap/upgrade/etc., this weekend on a piece of jewelry.