Gold rally sours Indian demand in August

  • The domestic gold price was 10.3% higher in August compared to July, outpacing the LBMA gold price which rose by 7%
  • Indian gold imports reached just 28.2t in August 2019 – 70% lower than the same month last year and lowest level since January 2018
  • With elevated domestic gold prices and a higher custom duty, the discount in the local gold market widened out as far as US$55/oz in August
  • Monsoon rainfall is 5% above Long Period Average (LPA) with Kharif sowing just 0.2% lower than last year; normal monsoon and healthy sowing bodes well for rural gold demand in Q4 2019.

Posted 4 years 1 month ago

Takeaways from the Shenzhen Jewellery Fair 2019

I was in Shenzhen earlier this month attending various events held by major jewellers and industry bodies such as the Shenzhen Gold and Jewellery Association.

Attracting around 2,300 Chinese jewellers, the Shenzhen International Jewellery Fair 2019 is China’s leading jewellery conference and exhibition, showcasing cutting-edge innovations and exciting developments in China’s jewellery market.

Posted 4 years 1 month ago

Chinese gold premium hit six-year high in August

  • In August, Shanghai Gold Benchmark (PM) rose 11% to 355 yuan/gram and the local gold premium peaked at a six-year high.
  • While Au(T+D)’s trading volume in August surged to a new all-time high, gold withdrawals from the Shanghai Gold Exchange (SGE) declined again last month.
  • Gold imports dropped to 44t in July, the lowest since 2017.
  • The People’s Bank of China (PBoC) added another 6t to its gold reserves in August.

Posted 4 years 1 month ago

First Eagle Investment Management on gold’s contribution to an investment portfolio

First Eagle Investment Management is an independent firm with more than US$100 billion (bn) of assets under management and a heritage dating to 1864. Committed to prudent stewardship of clients’ assets, First Eagle believes that gold and gold-mining stocks can play a unique role as a potential hedge in investment portfolios. Thomas Kertsos, co-portfolio manager of the First Eagle Gold Fund, explains why in part one of a two-part interview; part two of this interview will be published 18 September.

Posted 4 years 1 month ago

Oil price jump highlights gold’s lower volatility

In our recently published report Gold: the most effective commodity investment, we looked at how gold is under-represented in the commodity indices investors often use to gain exposure. This can have unintended consequences on portfolio performance, especially when other commodities – such as oil – can have significantly different characteristics than gold.

Posted 4 years 1 month ago