Gold’s London AM fix this morning was USD 1,547.00, EUR 1,217.44, and GBP 974.00 per ounce. Yesterday's AM fix was USD 1,537.50, EUR 1,208.73 and GBP 966.31 per ounce.

Gold edged down $2.90 or 0.19% in New York yesterday and closed at $1,539.40/oz. Gold climbed during volatile trading in Asia having recovered from the NY close yesterday. In European trading the yellow metal is hovering near the $1,548/oz level.

Gold fought back yesterday after touching its lowest level since Dec 29th, as concerns about Greece’s political instability and possible departure from the euro, prompted investors to buy back into bullion.

Technically, gold’s trend remains down but gold looks increasingly oversold. Bullion’s 14-day RSI (relative-strength index) was at 25.14, and once it’s below thirty it may indicate a rebound.

The euro rose from a 4 month low against the dollar as Fed policy makers are again suggesting that further QE is needed which will again be bullish for precious metals.

Gold Demands Trend (Q1 2012) – Enter The Dragon
The World Gold Council has released the Q1 2012 Gold Demands Trend report.

Gold demand grew 16% over the past 12 months to 1,098 tonnes. This had a US dollar value of just $59.7 billion spent on gold, globally, in Q1 2012.

While global demand was down 5% from the record high of Q4 2011, it was significantly higher than demand in Q1 2011 suggesting that global demand may be consolidating at these higher levels.

Investment Demand
Investment demand again dominated as under owned gold continues to be diversified into and accumulated globally.

Gold investment demand (all demand for gold bars, coins and ETFs and similar products) grew by 13% year-on-year to 389.3 tonnes in Q1 2012, equating to a demand value of just US $21.2 billion.

The key drivers of this increase came from China and global ETFs.

Probably the most important aspect of demand and one of the most important fundamentals in the gold market is that of still very robust and increasing Chinese demand.

In this the Chinese Year of the Dragon – China is becoming a fundamental driver of the gold market.

Global demand was boosted by China posting a quarterly record of 98.6 tonnes of investment demand up 13% from Q1 2011. This increase was a result of investors’ continued move to preserve wealth amid ongoing concerns over inflation, volatility in equity markets and price falls in some property markets.

Jewellery demand in China, much of which is also store of wealth demand, increased to 156.6 tonnes – 30% of the global appetite.

This increase places China as the largest jewellery market for the third consecutive quarter.

Retail and institutional investors buying exchange traded funds (ETFs) accounted for 51.4 tonnes of gold purchased in the three months to the end of March, at a total value of $2.4bn. The World Gold Council stated that this movement was in stark contrast to the first quarter of 2011, when the ETF sector witnessed net outflows.

ETFs and similar products were the beneficiary of solid inflows during the first quarter. The bulk of demand was generated in January and February, with demand tailing off to some extent during March as the gold price stabilised and investors awaited fresh economic data.

While the year-on-year data suggests that it was a challenging quarter for investment demand in Europe, Q1 2011 was an exceptional period for demand, fuelled by European sovereign debt concerns and the Arab Spring. European investment demand remains well above pre-2008 average quarterly levels and indicates sustained investor interest at relatively high levels.

The report also argues that investment demand should continue to draw strength from continued very low real interest rates and inflationary pressures globally bolstering gold’s appeal as an inflation hedge.

Central Bank Demand
Central banks across the developed and emerging markets purchased 80.8 tonnes of gold in the first three months of the year, at an average price of $1,691/oz.

Central banks diversified into gold despite prices being 22pc more expensive than a year ago. With risks posed to the euro, the dollar and all fiat currencies due to very poor public finances this central bank demand is set to continue.

Luxury/Jewellery
India and China, the two largest jewellery demand markets, provided the main stories of the quarter from a jewellery perspective.

Jewellery demand in China also increased significantly to 156.6 tonnes, accounting for 30% of global jewellery demand making China the largest jewellery market for the third consecutive quarter.

The first quarter of 2012 was an unprecedented period for India, with a number of market forces converging to dampen demand. Weakness in the rupee resulted in elevated local prices while consumers digested a rise in import taxes on gold and the introduction of an excise duty on gold jewellery, which prompted jewellers’ country-wide to strike. However, in May, the government withdrew the new tax on jewellery and the market is already responding positively.

High gold prices continued to erode jewellery demand in western markets. However, the World Gold Council believes that demand will move upwards in these markets, as gold becomes re-premiumised; high-end consumers, searching for “fewer, better things” will return to gold’s unique value proposition, combining emotional and intrinsic value in a way which defines true value.

Technology
The report reveals that in Q1 2012, demand for gold in the technology sector decreased by 7% year-on-year to 107.7 tonnes, with demand falling across all segments of the technology sector.
Much of the weakness in the technology sector can be attributed to high gold prices and the continued fragile global economic environment, which resulted in lacklustre growth (if not recession) in a number of the key markets for consumer goods containing gold.

There was strong consumer demand for wireless products such as mobile phones and media tablets. Similarly, a rise in end-use by the auto sector has also benefited demand, even though production volumes in Europe remained under severe pressure. Further growth within the NAND flash memory market also helped offset losses elsewhere, thanks to major sales drivers such as ultrabooks equipped with solid-state-drives and smart phones.

Conclusion
While demand remains robust globally and particularly from institutional investors, Asian store of wealth buyers and central banks, gold remains very under owned vis-à-vis other assets such as equities, bonds and cash.

The entire global gold demand in the first 3 months of 2012 was just $59.7 billion and all the investment demand for gold in the world was just $21.2 billion in the same period.By putting this number in perspective we can see how small the gold market remains and how there is the possibility of much more demand which could push prices higher in the coming months and years.

The US trade deficit for just one month has been close to or over $50 billion dollars for a number of years now.Tomorrow, Facebook will float an event that is expected to value the business at around $100 billion and there are hundreds of examples of valuations in the tech sector which seem optimistic at best given the macroeconomic, systemic and monetary challenges facing the world.

An example of this potential systemic risk is the $3 billion loss by JP Morgan. One investment bank lost $3 billion on a few trades.

 This equates to a value of one tenth of the dollar value of all the gold in the world that was bought for investment purposes in Q1 2012.This suggests that the bubble may again be in debt, in finance, in the leveraged banking sector and in the tech sector and when the bubbles in these sectors burst, some of that capital will flow into the very small physical gold market.

This could lead to dramatically higher prices and means that our long held price target of $2,500/oz (the inflation adjusted high from 1980) is becoming increasingly conservative.

What are the consequences when PAGE opens for international business in June 2012?

Internationalization of Renminbi (RMB)

FIRST, it will be the internationalization of the use of Renminbi, which will eventually replace the US dollar as an international reserve currency. This will further help promote the use of the Renminbi in the international arena and also help reduce the monopoly or dependence on the US dollar in the trading of precious metals. Since all trades in PAGE are denominated in RMB, a purchase by an international investor will initiate the buying of RMB and hence diversifying out of the dollar.

Precious Metals Manipulation

It is a known fact that the Federal Reserve is providing funds to mega banks like JPMorgan, HSBC, Goldman Sachs, Morgan Stanley and other banks to manipulate the precious metals market. This is because a rise in the valuation of precious metals will do no good to fiat currencies especially when they are printing lots of it.

SECOND, currently the gold and silver prices are highly manipulated. As we know, gold all along had been the archrival of ‘fiat currency’. What happens to fiat currencies when people start converting all their paper currencies to gold? That will be the end of the paper currency regime. Hence the authorities will do whatever they can to suppress the true value of gold so as to make it less attractive than ‘fiat currency’ even though most of their value had already been debased by more than 95%. This is because in a fully or partially Gold Backed economy, the authorities cannot increase the money supply of the economy by the simple act of Quantitative Easing or ‘Money Printing’ because any increase in the Money Supply had to be backed by the same amount of Gold. Hence any government without the ability to increase its money supply at its whim and fancy will not be able to monetize its debts and ‘Pump Prime’ its economy..

At the moment, in order to influence the Gold price downwards, all that needs to be done by the authorities in LBMA and COMEX , is to raise the margin requirements. Consequently, by raising the margin, traders who are unable to fulfill the margin calls will have to liquidate some of their positions. As a result, selling begets selling and this will further push the price of the metal lower which again will initiate another round of selling. This will go on until the price discovery rebalances due to the supply and demand will eventually be reached or what we call the equilibrium price

End of manipulation of Precious Metals?

THIRD, when the PAGE comes online in June 2012, authorities at LBMA and COMEX will find that they can no longer manipulate the gold price by raising the margin requirements of the gold contracts without the agreement of the Chinese at the other side of the Pacific

In other words there will be a ‘sea change’ in the price discovery of gold because gold will soon be traded in a more transparent and level playing field. In the past the losers are mostly the small and uninformed investors who invested their honest and hard earned money.

So, with the PAGE, it will in a way help regularize the price of Gold.

Our advice is to buy Gold and Silver before PAGE opens for trading

A final note, this important development will definitely be the ‘Game Changer’ of things to come and definitely cannot be taken lightly.

To find out how you can invest in bullion call us on 01158 532900

Gold hovered near $1,660 an ounce this morning with silver at $31.60, both metals are being supported by a steady euro and on easing fears about the euro zone debt crisis, though investors remained cautious on the outlook for peripheral economies and were awaiting more clues on global growth.       

Traders saw gold in a consolidation phase after a recent rally lifted prices from a near three-month low just above$1,610, amid speculation of more easing from the U.S. central bank.      

A stable euro provided some support, after fears about Spain’s debt problem somewhat eased on ECB Executive Board member Benoit Coeure's comments on potential bond buying.   "The comment has stabilised the stock market and euro, but the prospect in the euro zone still looks grim with yields in Spain and Italy trading at relatively high levels," said Peter Tse, director at Scotia Mocatta in Hong Kong. Tse said even if another risk sell-off took place on the deteriorating euro zone situation, gold should be able to weather the storm much better than other commodities due to its safe-haven status.

Investors will be watching a key auction of three-year Italian bonds, the weekly U.S. unemployment claims data, U.S. March producers prices figures later in the day, as well as China economic growth data due on Friday, seeking clues on the global economy. A surprise could prompt gold to break the range-bound pattern, which has suppressed interest in trading.               

China, the world's second-largest gold consumer, imported 20 percent more gold from Hong Kong in February compared to a month earlier, suggesting robust appetite for the precious metal.

For more on bullion click on the links below

Buying The Dips In Gold Has Been The Right Move For A Decade – Forbes

Gold 'to hit $2,000' on Spain fears – Telegraph

Euro crisis still kicking and will impact gold – Murenbeeld

Very positive on gold market, excited on gold mining equities – Tocqueville

To find out how you can invest in bullion call us on 01158 532900

Gold is hovered around $1,680 this morning, and silver is holding steady at $32.60, as investors awaited more trading cues from U.S. data after recent hints from the U.S. Federal Reserve chairman on more stimulus propelled gold to a two-week high near $1,700 in the previous session.

After defending very low interest rates and triggering a rally in bullion prices earlier in the week, Ben Bernanke cautioned it is too soon to declare victory in the U.S. recovery and said the Fed would take no options off the table on further action to stimulate growth.

Expectations of further monetary easing buoyed sentiment in gold, which benefits from a higher inflation outlook should more quantitative easing be launched."Bernanke was highlighting his uncertainty about the sustainability of the recent uptick in the U.S. data," said Jeremy Friesen, commodity strategist at Societe Generale in Hong Kong. "It is negative for the dollar and positive for expectations on stimulus, both of which should work in the advantage of gold."

Soc Gen's Friesen expected the U.S. data to take a turn for the worse in coming months and the Fed to eventually adopt more monetary easing to stimulate growth.

For more on gold and silver click on the links below;

Barclays Capital expects 15% increase in gold price by Q2

Perception of US monetary policy key to gold rally: HSBC

$2,000/oz gold "reachable" this year – Newmont Mining

Is Gold a Part of Your Currency Reserve?

Gold Climbs Above 200-day Moving Average

Despite Bernanke remarks, US states want gold, silver currency

With expectations of a further round of quantitative easing from the US and inflation fears mounting, the next rally in gold and silver is gathering up a head of steam with both metals poised to test overhead resistance levels in the coming days. Savvy investors will be taking advantage of these lower price levels to accumulate bullion as higher prices are just around the corner.

Call us on 01158 532900 to find out how you can protect your wealth by holding bullion in your portfolio.

Gold and silver recover after losses

Gold and silver have seen a steady start to the morning with both metals recovering after losses in previous trading sessions due to a stronger dollar and weak economic data. Technical analysis suggests that gold and silver could rebound in todays session and prices are getting ever closer to being massively oversold. We have always suggested that investors “buy the dips” as the fundamental factors that have driven prices higher for the last 11 years have not changed.

For more on precious metals click on the links below;

Why Gold Can Go the Distance

Silver may rebound to $40-50 levels on solar PV demand: Barclays

Endeavour Silver Provides Blueprint to Sprott’s Call to Action

Iran Says "Gold Is Money"

Gold money: A once in a generation buying opportunity

Silver to perform better than gold this year

Gold is one of the best assets to own in both good times and bad. It can rise with inflation in a surging economy, and it can be practical for exchange when times are bad, and with bullion below its long-term average, it makes for a rare and attractive entry point for investors today.

Gold isn't just a hedge; it's money.

To find out how you can invest in bullion with GCIL call us now on 01158 532900.

Gold and silver are both testing long term support and are now attracting interest from bargain hunters. Some Investors may be seeking riskier assets due to fears of inflation and higher interest rates, but as we have always maintained, pullbacks in price should be viewed as a buying opportunity, the long term fundamentals that drive precious metals have not changed, and prices will go much higher from here.

Gold and silver which have in the past represented risk off are still in consolidation mode. Eventually investors will realize that the monetary metals can do well in both a deflationary risk off environment as well as an inflationary risk on environment and the trend will turn significantly higher as it has for the past decade. Gold is actually finding support and presenting a potential discount buying opportunity. It is important to accumulate when the public is disinterested.

For more on gold and silver click on the links below;

Safehaven

Mineweb

Kingsworld

Resource Investor

Gold And Silver

IbTimes

To find out how you can invest in precious metals with GCIL call us on 01158 532900

By Jeff Clark, Senior Precious Metals Analyst, Casey Research

Do you own enough gold and silver for what lies ahead?

If 10% of your total investable assets (i.e., excluding equity in your primary residence) aren't held in various forms of gold and silver, we at Casey Research think your portfolio is at risk.

After speaking at the Cambridge House conference last month and talking with many attendees, I came away convinced that most investors fall into one of two categories: those that hold an abundance of gold and silver (which tends to be physical forms only), and those with little or none. While both groups need to diversify, I'm a little more concerned about the second group. Here's why.

Regardless of what you think will happen over the remainder of this decade, one thing seems virtually certain: the value of paper money will be affected, perhaps dramatically. Even if the economy slips into deflation, the deflation wouldn't last long. A panicked Fed would print to the max and set off a wild rise in prices. This is why we're convinced currency dilution will not only continue but accelerate.

Let's take a look at what's happened so far with the value of our currency vs. gold, after accounting for the loss in purchasing power

Both the US and Canadian dollar, after adjusting for their respective CPIs, have lost about a quarter of their purchasing power just since 2000. Concurrently, gold has increased dramatically in buying power, far outpacing the effects of inflation.

This is the core reason why I'm convinced we should hold our savings in gold and silver instead of dollars. Let's take a brief look at how gold and gold stocks might perform if the economy takes a turn for the worse…

What If We Enter a Recession or Depression?

Mayan prophecies aside, many of our panelists last month, including most of the senior Casey staff, believe economic, monetary, and fiscal pressures could come to a head this year. The massive build-up of global debt, continued reckless deficit spending, and the lack of sound political leadership to reverse either trend point to a potentially ugly tipping point. What happens to our investments if we enter another recession or – gulp – a depression?

Here's an updated snapshot of the gold price during each recession since 1955.

Clearly, one should not assume that gold will perform poorly during a recession. Even in the crash of 2008, gold still ended the year with a 5% gain. And with the amount of currency dilution we've undergone since that time, it seems more likely gold will rise in any economic contraction than fall. Indeed, if the response of government to a recession is more money printing, precious metals will be a critical asset to have in your possession.

Even if the gold price ends up flat or down this year, the CPI won't. Gold's enduring purchasing power is why we hold the metal.

Don't lose patience with, or confidence in, your gold holdings. What happens to the price over any short period of time is only one chapter in the book of this bull market, and we think you'll be happy by the time that last chapter is written.

Gold and silver are trading steady this morning, holding on to the gains they have scored so far this week as fears about a messy default for Greece eased, after signs it may be able to secure a crucial debt swap deal.

Bullion has recuperated from a sharp fall earlier this week on hopes that Greece would secure an international bailout after a pledge by major banks and pension funds to take part in the bond swap deal.

Expectations that central banks will continue to promote growth by maintaining easy monetary policy also helped buoy gold, traders and analysts said. "Central banks are expected to take up the role of the main agent of stimulus, since distressed governments can't provide any help on the fiscal front," said a Singapore-based trader.

Gold prices pulled back by 6 percent after U.S. Federal Reserve chief Ben Bernanke disappointed investors by not referring to any further monetary easing."That's a good sign, as investors appear to think it is a good opportunity to get their hands on gold," said Dominic Schnider, head of commodity research at UBS Wealth Management in Singapore. Physical demand also started to pick up after prices dipped below $1,700, he added. Spot gold could rebound towards $1,712 an ounce during the day, said Reuters market analyst Wang Tao.

On Friday, investors will await the key U.S. non-farm payrolls data for cues on whether the Fed is likely to launch any stimulus measures soon. China's January inflation data and industrial output data due Friday will also be closely watched, as investors gauge the pace of the world's second-largest economy.

Gold and silver have once again found good dip buying interest from savvy investors, we have long been banging the “buy the dips” drum. The underlying fundamentals for gold and silver remain very bullish, and these corrections in price, no matter how small should be viewed as an opportunity to accumulate bullion. To find out how, call us on 01158 532900.

Gold and silver have regained some ground on this morning as bargain hunters in Asia snapped up the metal after prices dropped 2 percent in the previous session, Concerns Greece could default on its mountainous debt commitments due on March 20th triggered a wave of risk aversion Tuesday as Greece gave private creditors until Thursday to agree to voluntarily participate in a bond swap, sending equity and commodity markets sliding lower. In addition Euro zone revised GDP showing the region contracted -0.3% last quarter while a report from the Institute of International Finance suggested a disorderly default would not only cost more the €1 trillion but would “lead to the hurried exit of Greece from the euro area, this financial shock the ECB could raise significant stability issues about the monetary union.”

Worries that Greece may not secure a deal with private creditors to cut its debt by the Thursday deadline, spurred selling in shares, but pressure on gold was offset by a bounce in the euro and physical off take.

"I think the market is waiting for U.S. non-farm payroll data for clues on whether the United States will launch QE3,"said the dealer, referring to a possible third bond-buying programme to lower interest rates. But the U.S. economy probably recorded a third month of solid job gains in February, which could further reduce the chances of additional monetary stimulus from the U.S. Federal Reserve. The Labour Department is due to release the February employment report on Friday at 8:30 a.m. EST (1330 GMT)

Silver tracked gold higher, while platinum and palladium also rebounded from Tuesday's lows.

For more on gold and silver click on the links below;

John Embry – Conditions are Deteriorating at an Alarming Rate

Buffett's Bursting Bubble

Will Doomsday Bill Help Gold & Silver Shine?

Central bank meetings, US jobs report, Chinese data keys for gold, other commodities

People always look for the most stable kind of money – usually gold or silver- David Levenstein

“Absolutely nothing has changed regarding the fundamentals of gold which remain as sound as ever with broad based demand from store of wealth buyers, institutions and central banks internationally, and especially in Asia. The financial crisis in Europe has not been resolved and the staggering level of debt in the USA will ultimately become unsustainable, prices will soon recover and test $1800 an ounce level”. (David Levenstein)

To invest in bullion with GCIL call us now on 01158 532900.

Gold held around $1,700an ounce Tuesday, after falling in the previous session as China, widely seen as the engine of the global economy, cut its economic growth targets, but cheaper prices could attract more buying from jewellers in Asia.

Bullion struck a record at around $1,920 an ounce last September. "A lot of gold investors are still affected by the large sell-off last week. Many are looking at the technical charts, where gold may come down further before it goes up," said Lynette Tan, an analyst with Phillip Futures in Singapore.

"I think it's very strongly supported at the 200-day moving average. If (China) announces some sort of easing policy, it could support gold prices. So far, they don't really talk much about gold. I think in the longer-term, of course, we are looking at China to become the top buyer of gold."

Gold demand struck 14-year highs in 2011, driven by record investment, buying in China, and central bank purchases, which hit their highest in at least 40 years, the World Gold Council said. China could also overtake India this year as the world’s main consumer.

For more on precious metals click on the links below;

Talking bullish on gold – supporters see breakout around the corner

Morgan Stanley: Gold supportive influences remain intact

Buffett’s gold aversion baffles State Street’s Goolgasian

Where is Greece’s Gold?

In the long run gold and silver remain firmly underpinned by ultra-loose U.S. monetary policy, portfolio diversification and strong physical demand from Asia. Continuing negative real interest rates and global currency debasement are strong fundamentals leading most analysts to forecast much higher prices. Citigroup have said that they believe that gold will rise to $2,400/oz. in 2012 and by $3,400/oz. in “the coming years”.

To find out how you can invest in bullion through GCIL call us on 01158 532900.