October 1, 2012

INDIA GOLD IMPORTS TO DECLINE FURTHER

This post was recently published on ZYX Short Sell Change

In the year 2011-12 , India imported 1,067 tonnes of gold worth about $60 billion.

In the April-June quarter of 2012-13 fiscal year, gold imports had contracted by 18.4 per cent year-on-year to about $13 billion.

India’s imports of gold are likely to fall further for three reasons:

Indian currency rupee is strengthening.
Inflation in India is likely to come under control.
Gold imports have inverse correlation to amount of Monsoon rains.

One of the biggest argument North American momo gold crowd advances is increasing gold imports by India. However, the data does not support the argument.… Please click here or the title below to read more.

October 1, 2012

CHARLIE EVANS’S COMMENTS ARE A TRIGGER FOR THE GOLD AND SILVER UPMOVE

This post was just published on ZYX Buy Change

As we wrote in the morning capsule, the traditional beginning of the quarter new money is pouring in stocks, gold and silver, oil, and bonds. However the trigger for the sharp move in gold and silver was comments by Charlie Evans. Evans is the president of Chicago Fed. Evans said that the Fed should stay accommodative until unemployment reaches 5-6%. The present unemployment rate is about 8%.

As soon as Evans uttered those words, the momo crowd aggressively started buying gold and silver.

The momo crowd is not known for deep analysis, so it is not a surprise that they ignored for following: