Standard Bank says physical gold purchases unusually high
By Nicholas Larkin
Wednesday, January 23, 2013
LONDON -- Physical gold demand has been unusually strong for this time of year, with "good buying" from Southeast Asia, according to Standard Bank Plc.
The Standard Bank Gold Physical Flow Index signaled demand climbed to the highest since November, the bank wrote in an e-mailed report yesterday. Purchases typically pick up toward the end of the year amid religious festivals and the wedding season in India. Gold reached a four-week high of $1,696.28 an ounce in London on Jan. 17.
India, the biggest buyer in 2011, raised taxes on gold imports two days ago to reduce a record current-account deficit and to moderate demand. Standard Chartered Plc said earlier this month that its gold shipments to India soared on mounting concern the duty would be raised. While gold has gained for the past 12 years, the best run in at least nine decades, prices dropped as much as 9.5 percent from October through Jan. 4.
... Dispatch continues below ...
Opinion Around the World Is Changing
in Favor of Gold -- Find Out Why
When Deutschebank calls gold "good money" and paper "bad money". ...
When the president of the German central bank, the Bundesbank, pays tribute to gold as "a timeless classic". ...
When a leading member of the policy committee of the People's Bank of China calls the gold standard "an excellent monetary system". ...
When a CNN reporter writes in The China Post that the "gold commission" plank in the 2012 Republican platform will "reverberate around the world". ...
When the Subcommittee on Domestic Monetary Policy of the U.S. House of Representatives twice called on economist, historian, and gold standard advocate Lewis E. Lehrman to testify. ...
World opinion is changing in favor of gold.
How can you learn why and what it will mean to you?
Read the newly updated and expanded edition of Lehrman's book, "The True Gold Standard."
Financial journalist James Grant says of "The True Gold Standard": "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman she has finally found him."
To buy a copy of "The True Gold Standard," please visit:
"It was strong in November and that's normally a usual seasonal pattern that we see coming through from Indian post-monsoon, wedding season buying," Marc Ground, a commodity strategist at Standard Bank in Johannesburg, said by phone yesterday. "The fact that January is as high as we see in November usually -- that's unusual. There was probably some Indian buying ahead of this tariff increase."
Bullion for immediate delivery rose 1.1 percent this year to $1,693, after advancing 7.1 percent last year. It rebounded above the 200-day moving average, currently at about $1,663, earlier this month. Investors own 2,618.8 metric tons through exchange-traded products, a hoard valued at $142.5 billion and bigger than the official reserves of all but two nations, data compiled by Bloomberg show.
Gold gained last year as central banks from the U.S. to China pledged more action to bolster economies. The Bank of Japan (8301) said yesterday it will buy about 13 trillion yen ($147 billion) in assets per month from January 2014 and set a 2 percent inflation target.
"Gold should find support from the BOJ stimulus as the liquidity created by the BOJ finds its way into the broader global economy," Standard Bank analyst Walter de Wet wrote in the report. "We still expect $1,700 to provide resistance and $1,660 to provide support. If gold manages to break through $1,700, we would target $1,720."
India raised import duties on gold and platinum to 6 percent immediately from 4 percent. A levy on gold ore, concentrate, and so-called dore bars for refining will be doubled to 4 percent, and an excise tax on refined gold will climb to 5 percent from 3 percent. About 80 percent of India's current-account deficit, the broadest measure of trade, tracking goods, services, and investment income, is due to gold imports, according to the Reserve Bank of India.
Buying gold is considered auspicious in India during religious festivals and weddings. The festivals start in August and end in November, and are followed by the wedding season.
* * *
Join GATA here:
California Resource Investment Conference
Saturday-Sunday, February 23-24, 2013
Hyatt Regency Indian Wells Resort and Spa
Palm Desert, California
* * *
Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:
Or by purchasing a colorful GATA T-shirt:
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
Fred Goldstein and Tim Murphy open All Pro Gold
Longtime GATA supporters Fred Goldstein and Tim Murphy have brought their many years of experience in the precious metals and numismatic coins to All Pro Gold as metals brokers who specialize in the delivery of gold and silver bullion bars and coins as well as numismatic gold and silver coins. Fred and Tim follow these markets closely and are assisted by a team of consultants in monitoring market trends. All Pro Gold offers GATA supporters competitive pricing on all bullion products and welcomes inquiries. Tim can be reached at 602-299-2585 and Tim@allprogold.com, Fred at 602-799-8378 and Fred@allprogold.com. Ask about their ratio strategy and the relationship of generic $20 dollar gold pieces to 1-ounce gold bullion coins. Visit their Internet site at http://www.allprogold.com/.