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Gold ended the week poorly with a 1% drop as at the close Friday, November was the second consecutive monthly decline in the Gold Price. Uncertainty, normally a good thing for the Gold Price is now focused on the US Dollar, and that does raise concern to Gold traders.
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Shayne Heffernan Ph.D. Economist/Hedge Fund Manager
3 Raffles Place #07-01 Bharat Building Singapore 048617
Tel: +65 6329 6408 Fax: +65 6329 9699 [email protected]
Gold Price, Charts, Ratios,
December 2012
Shayne Heffernan Ph.D. Economist/Hedge Fund Manager
3 Raffles Place #07-01 Bharat Building Singapore 048617
Tel: +65 6329 6408 Fax: +65 6329 9699 [email protected]
Gold Price, Charts, Ratios, December 2012
Gold ended the week poorly with a 1% drop as at the close Friday, November was the second consecutive monthly decline in the Gold
Price. Uncertainty, normally a good thing for the Gold Price is now focused on the US Dollar, and that does raise concern to Gold
traders. At the center of the Gold question is the US fiscal crisis and the possibility that it may trigger a recession and scare traders in
to cash positions, a mistake in my opinion.
Our own research shows that there is no winning in the fiscal cliff debate. Obama wins, the debt ceiling is lifted again, more money is
printed and the value of Gold increases. If Boeher wins, and there is a reprieve in tax hikes, more money will come back in to the
market and, Gold will go up, the last thing I would want to be left holding is a bag of US Dollars.
The US Dollar is in a precarious position right now, The Fed is pumping it out at a record rate, the Government is spending it at a
record rate and companies have more cash than ever before.
Politicians have reduced the Debt Ceiling to a simple political football, if the USA does not raise the debt ceiling the US Government
would go in to default, I do not want a bag of US Dollars if that happens. Most likely a deal will be reached, more US Dollars will be
printed, and again, I do not want a bag of US Dollars if that happens.
Gold took a dive last week after Speaker of the House John Boehner said US lawmakers from his Republican Party and Democratic
President Barack Obama are in a stalemate over a budget deal needed to avoid a $600 billion "fiscal cliff" of automatic tax hikes and
spending cuts.
Some institutional investors lightened their gold holdings, worried that failure to reach a budget deal could hurt economic growth and
undermine gold's appeal as an inflation hedge. "There is a significant amount of industry selling in anticipation of higher taxes related
to the fiscal cliff," said Frank McGhee, head precious metals trader at Integrated Brokerage Services LLC.
Shayne Heffernan Ph.D. Economist/Hedge Fund Manager
3 Raffles Place #07-01 Bharat Building Singapore 048617
Tel: +65 6329 6408 Fax: +65 6329 9699 [email protected]
For November Gold was down 0.4% percent monthly loss , better than the 3% drop in October. US COMEX gold futures for February
delivery settled down $16.80 at $1,712.70. February becomes the benchmark contract after December's first-notice day on Friday.
Trading volume was around 140,000 lots, about 25 percent below its 250-day average, preliminary Reuters data showed. Turnover
was sharply lower after it hit a record high at 486,315 contracts on Wednesday, according to CME data.
Holdings of SPDR Gold Trust GLD, stood at a record high of 1,347 tonnes, up nearly 11 tonnes in its fourth consecutive month of
gains. Global gold demand in 2013 should be led by further strength in Chinese demand and a recovery in India, helping the precious
metal continue its bull run into its 13th year, the industry-backed World Gold Council said on Friday.
China will continue to be a demand driver for the Gold Price, expected demand will hit the 1,000-ton level by 2015, with local
production predicted to be less than half that at 450 tons, according to estimations by the Ministry of Industry and Information
Technology.
Between 4,000 and 5,000 tons of gold are expected to be unearthed during the five years through 2015, increasing China's recoverable
gold reserves to 8,000 to 9,000 tons, which will be up 20% from the level recorded as of the end of 2010, the report says.
China's gold production is expected to grow 3% to 5% annually to 420 to 450 tons per year by the end of 2015. Aggregate output is
expected to range from 1,900 tons to 2,100 tons between 2011 and 2015, which will be about 30% more from the previous five-year
period, according to the report.
Shayne Heffernan Ph.D. Economist/Hedge Fund Manager
3 Raffles Place #07-01 Bharat Building Singapore 048617
Tel: +65 6329 6408 Fax: +65 6329 9699 [email protected]
Total Gold ETF Holdings as at Close Friday 31st November
Shayne Heffernan Ph.D. Economist/Hedge Fund Manager
3 Raffles Place #07-01 Bharat Building Singapore 048617
Tel: +65 6329 6408 Fax: +65 6329 9699 [email protected]
Last 5 years of Gold Performance in Relative Terms
Shayne Heffernan Ph.D. Economist/Hedge Fund Manager
3 Raffles Place #07-01 Bharat Building Singapore 048617
Tel: +65 6329 6408 Fax: +65 6329 9699 [email protected]
Bollinger Bands and Candlesticks Last 20 Days
Shayne Heffernan Ph.D. Economist/Hedge Fund Manager
3 Raffles Place #07-01 Bharat Building Singapore 048617
Tel: +65 6329 6408 Fax: +65 6329 9699 [email protected]
Gold Price Volatility Chart
Shayne Heffernan Ph.D. Economist/Hedge Fund Manager
3 Raffles Place #07-01 Bharat Building Singapore 048617
Tel: +65 6329 6408 Fax: +65 6329 9699 [email protected]
Our Custom Gold Chart
Shayne Heffernan Ph.D. Economist/Hedge Fund Manager
3 Raffles Place #07-01 Bharat Building Singapore 048617
Tel: +65 6329 6408 Fax: +65 6329 9699 [email protected]
Gold Silver Ratio Over 5 Years
Shayne Heffernan Ph.D. Economist/Hedge Fund Manager
3 Raffles Place #07-01 Bharat Building Singapore 048617
Tel: +65 6329 6408 Fax: +65 6329 9699 [email protected]
Contact
Linda Johnson, Business Development Director - Private Client Group,
Heffernan Capital Management
Singapore
3 Raffles Place #07-01
Bharat Building Singapore 048617
Tel: +65 6329 6408 Fax: +65 6329 9699
Email : [email protected]
