Daily Gold Chat

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Friday, January 20, 2017

Dollar weaker
(Horia)
01/19/2017 - 21:08
01/20/2017 - 09:08

https://www.barchart.com/futures/quotes/DXH17/opinion

Opinion Snapshot as of January 19, 2017:

Last month: buy
Last week : hold
Yesterday : sell

How to value a gold project
(Horia)
01/19/2017 - 17:45
01/20/2017 - 05:45

http://www.mining.com/web/heres-how-you-value-any-gold-project/

This is quite a good guide for evaluating a gold project,
analyzing things like:
---mine status (feasibility study)
---year to start
---resources and reserves
---production oz
---gold recovery
---costs.........

HSBC: Contractions in global trade.....
(Horia)
01/19/2017 - 10:26
01/20/2017 - 10:26

....are bullish for gold:

http://preview.tinyurl.com/gold-and-global-trade

Trade wars are looming.

Pension funds need gold......
(Horia)
01/18/2017 - 17:14
01/20/2017 - 05:14

...before it is too late:

http://www.valuewalk.com/2017/01/pension-funds-buy-gold/

Pension funds are underfunded or invested in risky assets.

Treasuries are not that safe...with 20 trillion $ debt and more
then 100 trillion $ long term entitlements. How can you meet these
obligations other than through inflation ?

Texas already created some Gold Invested Pension Funds.
Texas took back its gold from the Wall Street vaults and
deposited it in a Texas repository.

Hedge funds snapping up gold contracts.....
(Horia)
01/18/2017 - 15:06
01/20/2017 - 03:06

....and dumping S & P 500 contracts:

http://www.valuewalk.com/2017/01/sp-500-bull-snapped/

Some hedge bought gold contracts first time since November 2016,
although their positioning is still quite low...

Dollar trade-the most overcrowded
(Horia)
01/18/2017 - 11:53
01/20/2017 - 11:53

http://wolfstreet.com/2017/01/18/the-dollar-the-most-crowded-trade-unwinds/

When a trade is so overcrowded, it does not take much
to lower the dollar. Recent official statements seem
to be the end of the strong dollar policy.

Consumers benefited but the corporations suffered because
of a strong dollar.

Goldcorp development
(Horia)
01/17/2017 - 17:41
01/20/2017 - 05:41

http://preview.tinyurl.com/goldcorp-development

This is a slide presentation.

A few points:

---production 2017 2.5 Moz (million oz)
---production 2012 3.0 Moz target

---gold industry reserves and production decreasing (gold peak)

---target increase in NAV per share

---cost reduction AISC 20 %

---target operating efficiency and innovation

Volatility Index CBOE calls
(Horia)
01/17/2017 - 13:54
01/20/2017 - 01:54

http://preview.tinyurl.com/call-CBOE

Investors bought more calls on this index,
related to market volatility.

It shows investors protection against selloff.

Active or passive investing ?
(Horia)
01/17/2017 - 12:12
01/20/2017 - 12:12

http://preview.tinyurl.com/gvjhnsh

A few points:

In the last time we can see a rise in the popularity
of index investing and of ETF's.

Indexing (investing in indices) represents 30 % of the mutual
fund world but only 15 % of USA stock market.

Institutional investors have 75 trillion $ under management.
Only 1 % of it is invested in ETF's.

Mutual funds fees are 4 times bigger than ETF's fees.

ETF's trading is only 5 % of the total trading.

Mutual fund managers have great incomes.

Yes, active investing is still quite alive, although
indexing is making inroads.

There are 325,000 Bloomberg terminals worldwide,
120,000 CFA's (Chartered Financial Analysts), and many
others aspiring to become CFA's.

There are many MBA's, PhD's, economists, quants....

Hedge funds increasing their gold bullish positions....
(Horia)
01/16/2017 - 17:56
01/20/2017 - 05:56

....by 57 % last week:

http://www.mining.com/gold-price-hedge-funds-bullish-bets-jump-57/

However this is far from July 2016, when gold had
its high for 2016.

Friday, January 20, 2017

The total world's holdings of gold could be transported by a single solitary oil tanker.