Bloomberg is negative on Gold and they may have good reason


Welcome to illuminati silver, we tell you
the truth about silver. Today is Thursday 22nd December 2016 and we
are commenting on a report published by Bloomberg on Monday which was rather pessimistic for
gold. It points out that Gold Prices have fallen
for six straight weeks, the worst streak in a year, as prospects for higher U.S. borrowing
costs dampened demand. Investors also appear pessimistic about the outlook for 2017. Hedge
funds reduced their bets on a rally to the lowest since February, while outflows are
increasing from exchange-traded funds. After the metal’s best first half since
1979, bullion has been losing its attraction as U.S. equities rallied to record levels.
A stronger dollar and rising bond yields have also restricted demand for gold.
According to John LaForge, from Wells Fargo Investment Institute:
“People are still too optimistic on gold….. We’re in a price purgatory for a lot of
commodities, including gold. You’re going to have a lot of investors and strategists
like myself reduce their price forecasts.” According to the U.S. Commodity Futures Trading
Commission the net-long position, or bets on price gains, for gold declined 15% to 68,905
futures and options contracts in the week ended Dec. 13. The holdings are down 61% over
the five-week slump. On the Comex in New York, gold futures added
0.3% to $1,141 an ounce on Monday, after a 2.1% loss last week. Prices touched $1,124.30
on Dec. 15, the lowest since February. Bloomberg further adds : “Investors are
positioning for more stability. In the month through Dec. 15, they pulled $6.2 billion
from ETFs tracking precious metals — the largest withdrawal across asset classes….
The biggest casualty was SPDR Gold Shares, the top fund backed by bullion. Holdings in
global gold ETFs dropped for 26 straight sessions through Friday, the longest slide since 2013.”
While assets in the gold ETFs are still up for the year, Goldman Sachs Group estimates
that the “vast bulk” of the holdings are losing money at current prices. If investors
were to withdraw from even half of those money-losing holdings, it would spark a $60 sell-off in
prices, the bank said. The prospects from China also look less healthy.
According to the Peoples Bank of China, In November China refrained from adding to its
gold reserves for the first time in six months, also Imports to India are down 43 percent
in the first 11 months of the year compared with 2015, provisional ministry data compiled
by Bloomberg shows. So what does this all mean? Well for a start
do not believe the pumpers that gold is about to hit $2,000; If anything its more likely
to reach $1,000 than $2,000 in the next 3 – 6 months. There are too many things happening
which may suppress its price and if Donald Trump does reduce taxes when he becomes President
where do you think that surplus money is likely to go – yes the Stock market not gold.
We shall be providing our gold and silver forecast for 2017 during the week between
Christmas and the New Year, so please stay tuned.
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Illuminati Silver owners come from a background of Banking, International Wealth Management
and Economics. Having now retired from these worlds we are not qualified to give investment
advice. Therefore, this and other productions must not be deemed to be giving such advice
and merely represent the personal views of its owners.

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