News Articles

Russia increased its gold holdings by one million ounces in March, bringing its total reserves to nearly 40 million ounces or 1,238 metric tonnes. The Russian one million ounce gold purchase is a large one even by Russian standards as in recent years they have consistently been buying roughly 300,000 ounces per month . . . .

The common theme is that GDP, debt, sales, and much more increased exponentially. Our world is based on exponential economic growth. Consider a few HYPOTHETICAL examples of what we accept as normal . . . .

No one knows exactly how much gold China has – but we know it’s a lot. Last disclosed in April 2009, China gold reserves were at 1,054 tonnes. At least, that was the official number You see, China only reports its gold reserves every few years. The most recent number suggests . . . .

It is a bit hard to fathom but nearly three years have lapsed since I penned a rant called “Why Gold Stocks Suck” (Mercenary Musing, April 30, 2012) after a Cambridge House conference in Calgary.

At that time, I had little inkling that the bear market for gold exploration and mining companies would continue into its fifth year and be deeper now than in the spring of 2012 . . . .

Kazakhstan boosted gold reserves for a 29th straight month as Russia and Ukraine maintained holdings, the International Monetary Fund said . . . .

Gold has increased for five straight days and is now positive for the year 2015. According to one top financial technician, who works at Bank of America, the rally has just begun . . . .

Three things support this conclusion: hedge funds, gold stocks, and the macro environment. How strongly will gold bounce? That depends on other asset markets and the US dollar. If the US stock market corrects along with the dollar, the recovery in gold and gold stocks should be fierce, fueled initially by short covering . . . .

A strong dollar means a low gold price, or does it? Gold is actually one of the world’s best performing currencies this year, off just a couple of per cent compared with double-digits for the euro . . . .

From a seasonal perspective, gold tends to be a bit weak from late February until the end of the first or second week in March. Note the black arrow that I put on the chart. Also, the US Employment Situation report is scheduled for release on Friday, and gold has a tendency to often decline going into that report, and then rally nicely for several weeks after the report is released . . . .

The gold markets are at a point where two strong trend lines are about to intersect. The outcome of the face-off will determine the direction of gold markets for the next few months . . . .