April 23, 2017 
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Ideal Time for Facts

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 By abboseo

03/25/2017  11:52PM

Thanks for sharing this information. I really like your blog post very much. You have really shared a informative and interesting blog post with people.
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 By cw3343

02/02/2017  5:34PM

Some good comments/info in the post below.

One thing they did not mention was the current strength of the US $, and the fact that it may become weaker (Trump has alluded that he would like a weaker USD - this helps any USA company that exports goods/services to countries who pay in other currencies). If the USD weakens, then that should be good for the price of gold (and other commodities in general). I do not want to get into it here, but there is usually an inverse relationship between the strength of the dollar and the price of gold/commodities. One of many caveats however, is the Federal Reserve Open Market Committee. If they continue to raise the federal funds target rate, a result should be a stronger US dollar. The USD is the reserve currency of the world, and will be for the foreseeable future. It's strength or weakness should have some effect on spot gold prices.
 By Michael Miller

01/13/2017  6:45PM

Information about gold has numerous sources. Many relate facts and opinions to support a bias view intend to support some theory, position or gain by the writers. My subscription to the World Gold Council goes back decades. It is required to declare ones interest from six categories. I checked ‘Gold Mining and Gold Technology”. Below is a summary from a report I received today. It covers investment yet you may find it interesting as I did.

Outlook 2017 World Gold Council
Global economic trends and their impact on gold


The gold price had a strong performance in 2016, rising close to 10% in US dollar terms (higher in most other currencies) and amassing multi-year record inflows through physically-backed gold ETFs - making it one of the best performing assets last year, despite a post-US election pullback. And the price has gained more than 5% since the Federal Reserve (Fed) increased rates in mid-December.

Political risk is rising. Europe will hold key elections in the Netherlands, France and Germany in 2017. The election cycle will happen “against a backdrop of continued citizen unrest, fueled by the ongoing uneven distribution of economic welfare.” In addition, Britain must negotiate its exit from the European Union. In the US, there are positive expectations about some of the economic proposals of President-elect Donald Trump and his team, but there are also concerns

Monetary policy is likely to diverge between the US and other parts of the world. The Fed is widely expected to
tighten monetary policy, but it is far from certain that other central banks may be willing and/or able to do so.
over the past century, gold has vastly outperformed all major currencies as a means of exchange. One of the
reasons for this is that the available supply of gold changes little over time – growing only 2% per year through mine production. In contrast, fiat money can be printed in unlimited quantities to support monetary policies.

Nominal interest rates are widely expected to increase in the US this year, but all the economists we spoke to
forecast that inflation will rise as well. An upward inflationary trend is likely to support demand for gold for three reasons. First, gold is historically seen as an inflation hedge. Second, higher inflation will keep real interest rates low, which in turn makes gold more attractive. And third, inflation makes bonds and other fixed income assets less appealing to long-term investors

Stock markets had a significant rebound in the last stretch of 2016. And while some stock markets are just recovering from lackluster multi-year performance, stocks in the US have reached historical highs. In many cases, valuations have been elevated, as investors increase their risk exposure in search of returns in a very low yield environment.

Until now, investors have used bonds to protect their capital in the event of a stock market correction. As rates
rise, this is a less viable option – and in the meantime, the risk of a correction may be increasing. The interconnectedness of global financial markets has resulted in a higher frequency and larger magnitude of systemic risks. And as Jim O’Sullivan puts it: “The [US economic] expansion will not last forever.” In such an environment, gold’s role as a portfolio diversifier and tail risk hedge is particularly relevant.

Macroeconomic trends in Asia will support economic growth over the coming years and, in our view, this will
drive gold demand. In Asian economies, gold demand is generally closely correlated to increasing wealth. And as Asian countries have become richer, their demand for gold has increased. The combined share of world gold demand for India and China grew from 25% in the early 1990s to more than 50% by 2016. And other markets such as Vietnam, Thailand and South Korea have vibrant gold markets too.

While jewelry demand in China has suffered from changing consumer tastes, the investment market has undergone a remarkable period of development. In little more than 10 years its bar and coin market has become one of the world’s largest. Trading volumes on the Shanghai Gold Exchange are increasing. And interest in new products continues to increase; we believe innovation should continue to support China’s gold market in years to come.

Gold is becoming more mainstream. Gold-backed ETFs made gold accessible to millions of investors, primarily in the West, over the past decade, but other markets continue to expand too. China has seen dramatic growth in recent years through Gold Accumulation Plans, physically settled gold contracts in the Shanghai Gold Exchange

In Japan, pension funds have increased their gold holdings over the past few years. In the corporate sector, more than 200 defined-benefit pension funds have invested in gold. In addition, more than 160 defined-contribution plans have added gold to their list of investments. We expect this trend to continue and expand into Western markets, where pension funds have had to rethink asset allocation strategies following prolonged exposure to low (and even negative) interest rates. In our view, this will result in structurally higher demand. Innovation is evident across all markets, but at the end of last year one development stood out. The Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI), with support from the World Gold Council, launched the Shari’ah Standard for Gold, opening up the Muslim world to gold investment.

...

 

  
 
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