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Not since 2010 has gold moved to the upside as it is moving in 2017.
The good news is it is being overshadowed by all the noise being made by
cryptocurrencies and bitcoin in particular. Some in the gold community
are upset about cryptos stealing all the headlines; not me, however. I love
visiting websites and YouTube channels that have comments that read
something like “
gold went up $6 today while bitcoin went up $600 – sale all your bitcoin and buy gold“.
Of course this is intended as sarcasm and, once again, I love it. It
shows how little people understand either of these monetary assets.
What is being reported, around the world, is nothing short of a mixed
bag about what is happening in the physical gold market. Gold sales in
India are down,
gold sales in Germany are skyrocketing, gold is being discussed as trade settlement
in Russia and China while we see gold retail sales in the US just fall
off a cliff. This is to say nothing of Ray Dalio making his massive
acquisition of paper gold through GLD. While this fraudulent vehicle,
GLD, takes away from the overall physical gold market,
it does make a difference in the physical gold flows.
Russia, China and all the economic alliances they are heading will
all be using gold in some form – either at the sovereign level as trade
settlement between nations or as backing for a currency or some
combination of these two platforms. Russia and China have made this
clear - the only thing we don’t know at this point is how gold will be
used and if gold will be outlawed for use by the citizens.
As we approach year end India is probably the biggest surprise with
physical gold for the wedding season being off due to a slower sales of
their cash crops.
Kolkata: Demand for gold in rural India has taken a hit
this wedding season with kharif crops like soyabean, guar, mustard and
turmeric not fetching remunerative price for farmers, said traders.
Sales generally pick up around this time after harvesting, but this
year, demand has dropped by 25-30%, they said.
Lower demand has also resulted in gold being sold at a $4-5 discount
in the wholesale market with bullion dealers offloading their stocks.
“Rural demand is particularly muted in Madhya Pradesh, Chhattisgarh,
Maharashtra, Andhra Pradesh, West Bengal and Bihar,” said Nitin
Khandelwal, chairman of the All India Gems & Jewellery Federation.
“Farmers are yet to get good prices for their produce.”
Source
Gold is moving higher and today, Monday November 27, gold moved, once
again, to the upside. At 5:40pm EST, gold was up more than $6.50 on the
day. As we have explained on a couple of occasions gold must average
gains just over $13.00 per month, for the next two and half years, to
reach the new
annual average high north of $1,670.
Gold is going to achieve this new high and once it arrives it will
remain in this rarified air. We have almost no doubt about this
happening. One of the more important questions associated with this new
annual average high is what kind of world will be living in? Inflation
is already eating away at any disposal income in such a way that it is
truly mind boggling to watch our fiat dollars disappear as quickly as
they arrive.
Prices have advanced this month, keeping the metal on
course for the biggest annual gain since 2010 after two monthly
declines. Gold has benefited from a weakening dollar, tepid inflation
that’s spawned
divisions
among U.S. Federal Reserve officials over a policy path forward, and
uncertainties over President Donald Trump’s plan to cut taxes. In
Europe, wrangling over
Brexit and Germany’s struggles to form a coalition government have underpinned demand for the metal as a haven.
 
“Gold is starting to attract attention of asset allocators,” George
Gero, a New York-based managing director at RBC Wealth Management, said
in an email. The bullion futures market is “quiet and steady as we wait
for more headlines on taxes in the U.S. and a Fed hike in December,” he
said.
Source
We will continue celebrating gains made in the real world and
continue to be leery of digital representatives of currency. We believe
gold and silver will continue moving to higher ground for the next
several years. We are not predicting any get-rich-quick-schemes - we are
just looking out for our wealth and take comfort in knowing that all the
wealth we store today in physical gold and silver will serve us well in
the time when we need them most.
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Rory Hall, Editor-in-Chief of The Daily Coin, has written over 700 articles and produced more than 200 videos about the precious metals market, economic and monetary policies as well as geopolitical events since 1987. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver and Silver Doctors, SGTReport, just to name a few. Rory has contributed daily to SGTReport since 2012. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Visit The Daily Coin website and The Daily Coin YouTube channels to enjoy original and some of the best economic, precious metals, geopolitical and preparedness news from around the world.
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The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.
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