Friday, December 09, 2005
Are Central Banks Caught Up In 'Gold Fever'?
Reuters has the latest on 'gold fever.' "Gold fever took prices as high as $530.40 an ounce for the first time in nearly a quarter of a century on Friday as investors, particularly in Asia, rushed to buy an asset that has gained over 16 percent in the past month."
"'This buying is just more of the same of what we have been seeing. I suspect also that it may be central bank buying that is supporting it on the dips,' Paul Merrick of RBC Capital Markets said. Spot gold was at $529.70/530.50 an ounce by 1604 GMT, up two percent from $519.50/520.30 last quoted in New York on Thursday. The metal has soared $75, or 16.4 percent, since November 7."
"Some investors were speculating about potential purchases from some of the word's central banks, previously long-time sellers. 'I strongly believe that Asia and China are buying, but we will not know until they've finished buying or are close to it, for sure,' said Juerg Kiener."
"A spokesman at the China Gold Exchange said: 'We have encouraged the Bank of China to buy more gold, or if not, to relax the barriers and allow more Chinese people to do so.' However, he said he was not aware of the central bank's policy on the matter."
"In November Russia, Argentina and South Africa expressed interest in increasing their gold holdings, even though European central banks have sold more than 100 tonnes since September."
"Other precious metals got caught in gold's slipstream, with silver hurdling $9.00 to levels last seen 17-1/2 years ago. Spot was at $9.01/9.04, up 1.4 percent from $8.88/8.91 late in New York. Platinum was at $1,000/1,004 an ounce, against $998/1,002 late in New York. It touched $1,004 against Monday's peak of $1,006, the highest since March 1980."
"'This buying is just more of the same of what we have been seeing. I suspect also that it may be central bank buying that is supporting it on the dips,' Paul Merrick of RBC Capital Markets said. Spot gold was at $529.70/530.50 an ounce by 1604 GMT, up two percent from $519.50/520.30 last quoted in New York on Thursday. The metal has soared $75, or 16.4 percent, since November 7."
"Some investors were speculating about potential purchases from some of the word's central banks, previously long-time sellers. 'I strongly believe that Asia and China are buying, but we will not know until they've finished buying or are close to it, for sure,' said Juerg Kiener."
"A spokesman at the China Gold Exchange said: 'We have encouraged the Bank of China to buy more gold, or if not, to relax the barriers and allow more Chinese people to do so.' However, he said he was not aware of the central bank's policy on the matter."
"In November Russia, Argentina and South Africa expressed interest in increasing their gold holdings, even though European central banks have sold more than 100 tonnes since September."
"Other precious metals got caught in gold's slipstream, with silver hurdling $9.00 to levels last seen 17-1/2 years ago. Spot was at $9.01/9.04, up 1.4 percent from $8.88/8.91 late in New York. Platinum was at $1,000/1,004 an ounce, against $998/1,002 late in New York. It touched $1,004 against Monday's peak of $1,006, the highest since March 1980."
# posted by Ben Jones @ 11:40 AM 
Comments:
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damn. first Russia, Argentina and South Africa. now we learn Asian citizens are starting to buy(or relax restrictions) and the Asian Central Banks are now buying!
Four posters before I got here? Looks like progress to me!!
Gotta understand that this blog isn't as mature as HB2, naturally because the metals are lagging housing in attention. We (and Ben especially) are just out there ahead of the pack. Give them time, they'll come around.
Damn, though, aren't those metals moving! After all the 3 steps forward, 2 steps back this year the rise lately has been breathtaking. I ask again, what changed? Yes, there are lots of reasons for this to be happening, but why exactly now??
Gotta understand that this blog isn't as mature as HB2, naturally because the metals are lagging housing in attention. We (and Ben especially) are just out there ahead of the pack. Give them time, they'll come around.
Damn, though, aren't those metals moving! After all the 3 steps forward, 2 steps back this year the rise lately has been breathtaking. I ask again, what changed? Yes, there are lots of reasons for this to be happening, but why exactly now??
As has been stated before, Gold still has to more than double just to reach its historical average. Throw in a worldwide recession, some fiat crises, then the inevitable psychological bubble, and suddenly the shiny stuff's at several thousand dollars per ounce.
Buy and hold, buy and hold...
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Buy and hold, buy and hold...
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