| Chinese and Indian Gold Buying: At the Peak since January 2014 | |
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Key Update: Gold Settles below $1,200 per Ounce Again (Part 2 of 3) (Continued from Part 1) Demand drivers
China and India’s gold buying activity increased the most in March 2015, according to data from the Swiss Federal Customs Administration. The data showed that China almost doubled its gold buying to 46.4 metric tons in March 2015. India also joined the party. It doubled its imports to almost 72.5 metric tons from the United Kingdom. This means gold moves from the United Kingdom. It’s refined in Switzerland and shipped to China and India.
Recent Reuters’ data showed that China and India consume 48% of gold. The festival season in India could boost the short-term demand of gold in India. This supports gold prices.
Gold mining production increased by 2% and gold production was at 3,114 tons, according to the World Gold Council in 2014. Production peaked to a new record in 2015. It’s expected that 2015 will mark another year of massive production, according to industry sources like Goldman Sachs. In contrast, Reuters’ surveys state that production will be flat in 2015.
The average cost to produce gold hovers around $1,000–$1,200 per ounce across major mines in the world. This is a key level for gold mining companies to watch. As prices drop below this level, it could put pressure on revenue. This would cause a liquidity crunch for these companies.
Lower gold prices are negative for gold mining companies like New Gold (NG), Gold Fields (GFI), and Royal Gold (RGLD). These companies account for 10.46% of the Market Vectors Gold Miners ETF (GDX). The fall in gold prices also impacts gold ETFs like the iShares Gold Trust (IAU).
The consensus of rising production, the strong dollar, and the improving US economy will continue to put pressure on gold prices.
Continue to Part 3 Browse this series on Market Realist:
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Gold Fields ltd
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PRODUCTEUR |
CODE : GFI |
ISIN : US38059T1060 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Gold Fields est une société de production minière d'or basée en Afrique Du Sud. Gold Fields est productrice d'or, de cuivre au Ghana, au Perou, en Australie et en Afrique Du Sud, en développement de projets d'or au Mali, et détient divers projets d'exploration au Perou. Ses principaux projets en production sont ST IVES MINE et AGNEW en Australie, BEATRIX MINE, DRIEFONTEIN, KLOOF MINE, SOUTH DEEP, KLOOF et BEATRIX en Afrique Du Sud, DAMANG, TARKWA et DAMANG PROJECT au Ghana et CERRO CORONA au Perou, son principal projet en développement est KOMANA au Mali et ses principaux projets en exploration sont LOBO aux Philippines et CHUCAPACA et CANAHUIRE au Perou. Gold Fields est cotée aux Etats-Unis D'Amerique, en Afrique Du Sud et en France. Sa capitalisation boursière aujourd'hui est 11,7 milliards US$ (10,5 milliards €). La valeur de son action a atteint son plus bas niveau récent le 10 novembre 2000 à 1,69 US$, et son plus haut niveau récent le 13 septembre 2024 à 14,21 US$. Gold Fields possède 821 530 048 actions en circulation. |