Tag: GOLD

Turkey Exports ‘Massive Quantities Of Gold’

By Mark O’Byrne

Gold’s London AM fix this morning was USD 1,627.00, EUR 1,250.77, and GBP 1,008.99 per ounce. Friday’s AM fix was USD 1,629.50, EUR 1,240.20 and GBP 1,007.54 per ounce.

Silver is trading at $29.74/oz., €22.91/oz. and £18.47/oz. Platinum is trading at $1,525.50/oz., palladium at $635.40/oz. and rhodium at $1,350/oz.

Gold fell $3.70 or 0.23% in New York yesterday and closed at $1,638.70/oz. Gold started out sideways in Asia then gradually dropped lower and this weakness continued in early European trading.

Cross Currency Table – (Bloomberg)

Gold edged lower on Tuesday despite the weaker euro and stock markets after furious citizens in Greece and France voted against austerity measures. Gold prices are being supported by bargain hunters who continue to buy dips around the lower end of the metal’s recent range between $1,620/oz. and $1,680/oz.

The elections in France and Greece create added political uncertainty to an already extremely uncertain financial and political situation and this is likely to weigh on the euro.

Euro gold remains firm around the EUR 1,250/oz. level where it has been consolidating since mid-March – in a range between €1,228/oz. and €1,276/oz.

Gold has been trading between $1,620 and $1,680 for about a month. It is supported by the very uncertain macroeconomic and monetary environment but recent price weakness has made some buyers – especially more speculative buyers in western markets hesitant.

via Turkey Exports ‘Massive Quantities Of Gold’ | Resource Investor.

May 9, 2012
Grand Bazaar’s gold merchants turn to Bloomberg

Demand for gold has risen steadily over the last decade Photo: REX

By Katherine Rushton

Around 2.5m ounces of the substance change hands in its labyrinthine alleyways each year, amounting to $29bn (£18.6bn) of business and giving the Grand Bazaar a clear lead as Turkey’s biggest gold market.

But that centuries-old ritual is starting to change. The economic downturn has fuelled trading of the ‘safe haven” metal to such an extent that Istanbul’s gold merchants have started to invest in expensive Bloomberg terminals in order to keep up with demand and step up the speed of transactions and gain access to the latest prices.

Each subscription costs $20,000 and is more commonly associated with a trading floor, but allows gold sellers to keep track of volatile prices, and instantly trade gold and currency with buyers far beyond the 4,000 shops of the Grand Bazaar.

“It’s a classic fusion of tradition and revolution,” said a Bloomberg spokesman.

“The Grand Bazaar is a uniquely dynamic and fast-moving trading environment that is highly price-sensitive.”

Demand for gold has risen steadily over the last decade, and continued its rally for most of last year as the eurozone crisis, economic stagnation in the West and the inflationary effects of quantitative easing drove demand for the metal.

It ended the year above $1,570 an ounce, well above its $1,420 price tag at the close of 2010, notwithstanding a sharp slump in early December.

Prices were around $300 a decade ago and despite 11 consecutive years of gains, many experts predict the metal will continue to rise this year.

Analysts at UBS, the Swiss bank, expect gold to hit $2,050 this year, although that view is seen as bullish by some, given the economic turmoil in Europe and contagion elsewhere.

BNP Paribas has forecast an average price for 2012 of $1,775 an ounce, rising to $2,150 in 2013.

via Grand Bazaar’s gold merchants turn to Bloomberg – Telegraph.

January 3, 2012
Turkey’s hidden treasure

by Daniel Dombey

In Turkey, gold is a way of life. For example, a Turkish bride often brings an outsize purse to her wedding, all the better for guests to drop gold coins into. (If she’s unlucky, they will pin bank notes on her gown instead.)

But now, it looks like the national interest in the shiny metal could have an impact on the national accounts as well – and just at the right time.

Turkey has hefty financing needs. It has a current account deficit of about $75bn, which is increasingly bankrolled by volatile financial flows rather than long term foreign direct investment. And figures out this week showed that foreign debt due in the next 12 months adds up to another $132bn, which means the country needs more than $200bn in external financing.

Enter Ozgur Altug at BGC Partners in Istanbul.

In a research note, he says the Turks have around $300bn of gold under their pillows – or, alternatively, 4,670 tons of the stuff or 649m standardised gold coins (of wedding fame), which averages out at about 32 coins a household.

Of course, during the past few years, when the gold price has gone up, this has (inadvertently?) proved a good investment.

“The historic high gold price, global worries and efforts to bring gold holdings into the financial system could trigger further gold sales,” Altug writes. “Even 5 per cent liquidation of the under-pillow gold could contribute to the GDP growth by two percentage points, which could limit the possible negative impact of another global recession.”

Not only that, but the metal could also work its magic with Turkey’s financing needs, he says.

During tough economic times in 2009, Turkey became a net gold exporter for the first time – because people were selling their hoards, or at least part of them. As Altug points out, similar sales today would help bring down the current account deficit.

So much is possible when you’ve got $300bn hidden away – if that is indeed the case. The central bank, which has a mere $90bn or so in reserves, must be enviously eyeing the pillows of the nation.

via Turkey’s hidden treasure | beyondbrics | News and views on emerging markets from the Financial Times – FT.com.

September 22, 2011
Feasibility study supports expansion of Eldorado’s Kisladag mine in Turkey

VANCOUVER – Eldorado Gold Corp. (TSX:ELD) says a recent feasibility study supports a planned US$354-million expansion at its 100 per cent owned Kisladag gold mine in western Turkey.

Since operations began at Kisladag in 2006, continued exploration of the deposit has resulted in a doubling of the proven and probable reserve ounces to 10.2 million ounces, the company said in a release Friday.

“Kisladag, with an average expanded production rate of approximately 475,000 ounces annually, will contribute significantly to the continued growth of Eldorado’s high quality production base,” president and CEO Paul Wright said in a comment on the study results.

On the basis of the work carried out to date, Eldorado estimates the Phase 4 expansion at Kisladag will be completed in the third quarter of 2014, including the time required for permitting and preparation of the mine plan and infrastructure.

Based on expanding production by the 2014 deadline, the study estimated that 6,218,000 ounces of gold would be recovered at Kisladag in the 2012-2026 period.

A total initial capital investment of US$354 million is required to achieve the increased throughput, including new mining equipment, crushing, screening and an ADR plant, expanded infrastructure costs and a contingency of about US$35 million, Eldorado said.

Sustaining capital through the planned mine life is estimated at US$960 million, comprised mainly of additional mining equipment, leach pad expansions and capitalized waste mining.

Life of mine cash costs are estimated at between US$430 and $450 and ounce, with total cash cost projected at US$450 to $470 an ounce.

via Feasibility study supports expansion of Eldorado’s Kisladag mine in Turkey – Winnipeg Free Press.

August 27, 2011
Hugo Chavez Nationalizes Venezuelan Gold Industry

Chavez Demands 211 Tons Be Returned From Abroad – JPMorgan, Bank Of England & ETFs Scramble For Physical Metal

‘We just reported that Hugo Chavez has nationalized the entire Venezuelan gold industry this afternoon. Well, Hugo didn’t stop there, as latest headlines flashing indicate that Chavez has requested that the Bank of England return 99 Tons of Venezuelan gold held on deposit, and a total of 211 Tons of gold held abroad (WSJ).

http://silverdoctors.blogspot.com/2011/08/hugo-chavez-demands-99-tons-of.html

August 19, 2011
Buying gold? Try Istanbul’s Grand Bazaar

In these austere economic times, many have sought refuge for their savings in gold.

Gold rose to record highs last week but it’s not just on the financial markets where people are looking to protect their wealth.

In Istanbul’s Grand Bazaar, traders have been buying and selling gold since 1461, the early days of the Ottoman Empire. Its shops attract between 250,000 and half a million visitors annually.

One Moroccan tourist on a visit to the market told euronews the quality of gold varies from one store to another, but the prices are usually good. “Nevertheless, I always negotiate,” he said.

An estimated 22 billion euros worth of gold is traded at the Grand Bazaar each year.

Bora Bayraktar, Euronews’ correspondent in Istanbul said “Grand Bazaar is one of the important places where gold has been exchanged for 550 years. Even today, daily 2.5 tonnes of junk gold is brought here for processing.”

Copyright © 2011 euronews

via Buying gold? Try Istanbul’s Grand Bazaar | euronews, world news.

July 19, 2011