Gold & Silver Digest: 10/8/13
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10/8/13 7:30 PM EST US close metals price quotes from Finviz
Gold prices eased on Tuesday as investors took profits, but losses were limited as growing uncertainty about the U.S. budget impasse and a looming deadline to raise the U.S. debt ceiling bolstered bullion's safe-haven appeal.
There were few signs U.S. politicians were willing to compromise to end the partial government shutdown. Republicans proposed the creation of a bipartisan panel to work on deficit reduction and make recommendations on a debt-limit increase, but the plan was quickly dismissed by Democrats.
Gold shipments to China from Hong Kong fell in August after some Chinese banks used up import quotas and as buyers became wary of rapid price gains.
Net imports, after deducting flows from China into Hong Kong, were 110.2 metric tons, from 113.2 tons a month earlier, according to calculations by Bloomberg. Mainland buyers purchased 131.4 tons in the month, including scrap, compared with 129.2 tons in July, data today from the Hong Kong government showed.
(Kitco News) – Comex December gold futures are coiling in a narrow range in early Monday action. The tone is firmer, supported by the ongoing partial U.S. government shutdown, which reportedly as of now has no end in sight.
Traders continue to eye the significant Oct. 17 debt ceiling deadline in which the U.S. government will run out of money to pay its bills. Most market watchers expect the two parties to come together with a compromise to avoid an actual U.S. debt default, as the financial market, economic and political consequences would be quite grave if they didn’t. In the meantime, gold should retain a firm tone. There will likely be few willing sellers while the government is shutdown.
Indian silver imports are on pace to hit a record high this year as the wedding and festival season drives up buying of the precious metal instead of the traditional gold, made scarcer and dearer by official measures aimed at cutting the trade gap.
Higher silver demand in the world's biggest buyer may help support prices, which have fallen almost 30 percent this year on the international market and are on track for their biggest annual drop in almost three decades.
MineWeb: China’s unstoppable gold imports continue virtually unchecked
People have been predicting that imports of gold into China would slow down – well August figures suggest they may have, but only by a minute 3 tonnes compared with a month earlier, and the country remains on track to comfortably exceed 1,000 tonnes of known net gold imports for the year, with a total of 723 tonnes imported via Hong Kong for the first eight months.
Extrapolating this over the full year would give a total import figure (via Hong Kong alone) of 1,084.5 tonnes. On the evidence of the past six months’ import figures, the full year total could be quite a bit higher if recent momentum is sustained – and there’s no real sign of it slowing down, at least not yet – it seems more likely that the full year figure could well end up at more like 1,150 tonnes. Certainly, in past years, imports have tended to rise as the year progresses, which means that even this number could be a conservative estimate.
Gold took quite a beating in September, bucking its seasonal average monthly return of 2.3 percent. The political battle between President Barack Obama and Congress, China’s Golden Week, and India’s gold import restrictions likely weighed on the metal.
September’s correction only adds to the negative sentiment toward the precious metal. The assumption from many market pundits is that gold is no longer attractive as an investment. With rising rates and continuing low inflation, U.S. investors believe they have a solid case for selling their holdings. –
For many investors, 2013 was supposed to be the year that silver regained its luster. Most economists thought silver would climb as a hedge against inflation and be a devalued dollar on the heels of continued economic turmoil. Or, assuming the economic rebound was in full swing, it would grow due to industrial demand for everything from solar panels to electronics, batteries to the automotive industry.
Strangely, none of that happened. Silver benefits by being both a precious metal and an industrial metal. As an industrial metal, investors need to actually see enough economic growth before they can ride that bandwagon. As a precious metal, silver is being taken along for the ride by investors fleeing gold.
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IMF membership agrees to transfer gold profits to help meet the financing needs of low-income members— a historic milepost! Thank you all