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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 shayne@heffcap.com


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 shayne@heffcap.com


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 shayne@heffcap.com


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 shayne@heffcap.com


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 shayne@heffcap.com


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 shayne@heffcap.com


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 shayne@heffcap.com


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 shayne@heffcap.com


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 shayne@heffcap.com


Contact

Linda Johnson, Business Development Director - Private Client Group, Heffernan Capital Management Sales@Heffcap.com Singapore 3 Raffles Place #07-01 Bharat Building Singapore 048617 Tel: +65 6329 6408 Fax: +65 6329 9699 Email : info@heffcap.com

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 shayne@heffcap.com

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. Unc...

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