Indian Gold ETFs promoted as jewellery demand drops

Physical demand will drive the price of gold but news from India - the largest and most watched market is not entirely encouraging.

While the Akshaya Tritiya festival will lift jewellery demand, analyst Marc Ground at Standard Bank said "the pace of demand is not to the extent that we expected" (reports BullionVault)

But financial gold could still get a boost as the Indian gold exchange traded fund market continues to grow fast and India's National Stock Exchange will reportedly waive transaction fees on physical gold ETFs and extend trading hours on April 24.

It happened in May last year and again in October, the latter prompting the heaviest gold ETF buying day ever on the exchange.

Despite expectations that new taxes and higher gold prices will dampen demand some ETF providers expect more people to use ETFs.

JPM's Blythe Masters vs Ted Butler on silver (and gold)

"That's wrong and we don't do it" is what Blythe Masters told CNBC when she was asked about the bank's massive short position in the silver futures market and whether it was manipulative. Her argument was that all the short positions are part of a hedging mechanism for metal held by their clients.

The veteran silver analyst Ted Butler  - the main force behind four investigations into silver manipulation allegations by the US regulator (CFTC) -disagrees. He questions the need for the bank to hedge in the futures market when it is a big player in the OTC market.

Capital Economics: India's gold lending = gold standard?

All eyes are on the Indian government's attempts to reduce gold imports and tackle a growing trade deficit but with 18,000 tonnes of gold already within it's borders could there be unexpected consequences?

I bought gold yesterday

Despite a great deal of uncertainty about my investment rationale, I bought some gold yesterday afternoon. I did it without consulting previous agonies over action vs inaction or anything else other than the price had  fallen below a level that had caused me to think about it earlier in the day.

New gold ETF gives retail investors access to real gold

A new physical gold ETF launched last week allows retail investors to turn their gold shares into 10g gold bars for 750 rupees (£9/$14) fee. It's only available in India but would an ETF like this work in the UK?

Should I buy more gold ETFs today?

The last time I looked (about 10.30am) I would have paid £1,019.43 including fees for 10 ETF Securities physical gold ETF shares (PHAU).

BBC Analysis explores a return to the gold standard

BBC Radio 4's Analysis: "What is money" includes a look at the debate about a return to the gold standard

1.8% error in ETF Securities' physical gold ETFs PHAU and PHGP?

There was a near 2% drop in the price of ETFS Physical Gold (PHAU) on Tuesday that didn't appear to correspond with the spot price of gold. The drop happened after a large trade of the ETF for the day (an automatic sell order  of 11,000 shares worth around £1.8 million).

iShares physical gold ETF spreads shot above 3%

Weekly ETF trading data from the London Stock Exchange show that physical gold ETFs make up the majority trading in exchange traded products and that spreads -  the difference between the buying and selling price of shares - for one of these physical gold ETFs rose above 3% at the beginning of the year.

Gold ETFs snapped-up in London on Thursday

Despite increasing fears that the gold price will fall further shares in UK physical gold exchange traded funds (ETF) were being snapped up on Thursday - with £60 million in net buying via automatic trades. After the London Stock Exchange closed the spot price of gold carried on upwards and is now trading around $1,658 or £1,056 after hitting $1641 lows earlier in the day.

Gold on Monday night 12 March

Not a very inspired go at a market report, just for my own reference. The price of gold was around $1,704 per ounce £1,089 on Monday night.

Gold on Sunday night 11 March 2012

BullionVault's market report from Friday is the only outline I've read of what went on at the end of last week.

Source physical gold ETF SGLD vs PHAU - cheaper, growing fast

Today I tried a bit of research on the size of gold ETFs traded on the London Stock Exchange and on the spreads investors are likely to see (with a helping hand from Index Universe).

The process reveald a few more physical gold ETFs than I expected but most of them were pretty small compared to PHAU, GBS and Source (SGLD), although I couldn't always find their assets under management.

Gold breaks $1,700, no CDS showdown?

Sitting here in my Hackney flat relying on free news, Google Finance and free gold spot price charts from the likes of BullionVault I'm wondering why gold is moving up before the Greek deal.

Greece and gold on Thursday 8 March

National, regional and global events are difficult to understand in their own right let alone slot into a gold price forecast.

This BBC explanation of the Greek debt crisis says the crucial deal needed with private bond holders is due this (March 8) evening. If less than 90% of bond holders agree to it then we should expect further delays and extra drama as Greece contemplates enacting a compulsory version of the deal - which could trigger default insurance policies (credit default swaps). But something has to happen soon as a big payment is due on March 20.

This morning (1am) gold was around $1,684 per ounce and £1,071 in sterling. This slight gain over Tuesday's and Wednesday's lows was down to positive feelings about the Greek deal. Reuters reported Bill O'Neill, partner at commodities investment firm LOGIC Advisors, saying: "Gold is up because there is growing evidence that there will not be a hard default in Greece."

Will that sentiment hold through tomorrow?

In the same Reuters piece Suki Cooper at Barclays  Capital said: "Although the macro environment is still very gold-supportive, in the nearer term it's going to be the physical market and whether that enables prices to consolidate enough so that investment demand can retake the reins."

Most analysts quoted in this BullionVault piece also say gold is still more likely to fall further.

It quotes UBS analyst Edel Tully saying physical buyers needed "in size... otherwise further downside seems inevitable". Axel Rudolph at Commerzbank saying "further weakness to be seen in the coming months, taking gold towards the $1,600/$1,500 region."

Today total buys for PHAU on the London Stock Exchange were around £8.3 million and sales were £13.3 million compared to yesterday's £13.6 million-worth of buys and £23.1 million of sales.

Before the outcome of the private bond deal investors will have the MPC rate setting and the ECB rate and press conference. And on Friday there  are the US non farm payrolls.

Brad Zigler on increasing correlation between stocks and gold.