ETP GOLD HOLDINGS SINK TO RECORD LOW

Gold Price Weakness

Update 18th June 2015

Bitcoin surges as Grexit fears mount :

Gold up 1.45% AT $1201

Ole Hansen, Head of Commodity Strategy Saxo Bank: writes

“Investors have cut total holdings in Exchange-Traded Products backed by physical gold to a new six-year low following five consecutive weeks of selling.”

Charts Courtesy Ole Hansen Saxo Bank

ETP holdings, weekly change

ETP holdings, graphs

Gold Mining Costs  & The Price Buyers Are Willing To Pay

Mining costs are not uniform.  But, in relation to substantial volume producers,  indicated all in  costs are between  $950 and $1150 per oz. This price range corresponds with the prices buyers are currently willing to pay. If gold buyers are not prepared to pay a price that rewards production supply will fall, demand will exceed supply and the price will stabilise at a level that rewards producers.
The  gold price spiked to over $1900 between 2007 and 2011 when gold was being over hyped as a safe haven.  In spite of the severe correction that followed the  prophets of doom continue to hype gold relentlessly.  Claims that  China is on course to imposing a new gold standard  to strengthen its credentials with the IMF is the latest absurd pitch.

Moderation, Motivation, Strategy  & Timing

 The Goldwatcher  pitch has been that gold is well described as The Stateless Money Franchise. Moderation has been our Golden Rule and still is.  Sensible motivation, strategy and timing are of course  golden rules for all investing.
Gold is out of favour now with the investors who can access a range of alternative financial hedges and diversification opportunities. However gold  remains on the agenda for anyone interested in owning  an asset with a different risk reward profile to other financial assets. In this context  the case outlined in The Goldwatcher for owning gold as insurance against the unexpected and unthinkable remains compelling .

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