Today’s metal news has an international flair—we look at Russian gold reserves, Chinese speculative buying and it’s effects on platinum in H2, and the insurance troubles storage vaults are facing around the globe since the price of gold has surged so much this year. All this and more.

Let’s dig in…

Price
Gold Price Stays Moving Sideways

Last Friday, gold futures contract lost 0.18%, fluctuating after Wednesday’s decline of over 1.7%. The intraday volatility has remained low even after the monthly jobs data release. Meanwhile, the stock market rout didn’t trigger any significant move in gold all of last week.

THIS DAILY CHART SHOWS HOW GOLD IS EXTENDING ITS CONSOLIDATION

International
Russian Gold Reserves Grow by $1 Billion in One Week

After three consecutive weeks of growth, Russian forex holdings reached a total of $591.8 billion, according to the latest data by the country’s central bank. The international funds increased by $1 billion in just one week from August 21 to August 28. According to the regulator, growth was driven by a “positive revaluation” that was partly alleviated by foreign currency sales on the domestic market. Since the start of the year, Russia’s gold and foreign currency reserves rose by nearly $36 billion despite…

Commentary
World’s Biggest Wealth Manager Says 10% Allocation to Bullion is ‘Not a Bad Move Right Now’

Gold prices have lost some ground in recent weeks, but the world’s largest wealth manager is still a big believer in gold playing a key role in investor portfolios. He’s Charles Day, private wealth advisor at UBS Wealth Management, and he is quoted in a Business Insider article as saying: “In terms of being diversified with everything that has gone on, having a small allocation, maybe up to 10%, is not a bad move right now.” Day recently went back to buying gold after staying away from it for about ten years. Day is now convinced gold is still a good hedge against a weak dollar. “It could be a good hedge with interest rates where they are, with the dollar where it is and with the market where they are.” KEEP READING

U.S. Economy
U.S. Gold Imports Skyrocketed Through July

In the first seven months of 2020, U.S. imports of gold surged by 560%. Meanwhile, U.S. exports of gold increased marginally by 5.06% through July this year to total $9.54 billion. Last year, the U.S. exports were $9.09 billion during the same seven-month period. The top five trade partners were the UK ($5.54 billion), Switzerland ($1.87 billion), Canada…

International
Chinese Speculative Buying Leaves Little Upside for Platinum in H2

Heraeus Precious Appraisal is focusing has made available a free PDF that focuses a market spotlight on Chinese speculative buying, and how this leaves little upside for platinum in H2. GET YOUR FREE REPORT HERE

Economy
Gold’s Price Surge Brings Insurance Trouble to Storage Vaults, Report Finds

The latest record prices for gold stashes come with an apparent catch for facilities’ keepers, as they have to procure insurance for their hoards while making sure the value doesn’t surpass the coverage.

Increasing demand for gold, universally deemed as a safe haven during economically tumultuous times, implies that the business conditions are favorable for companies that store the world’s bullion, Bloomberg reported, adding that despite the obvious pluses for such businesses, there is an obvious catch: bars of the precious metal suddenly become much more difficult to insure.

The challenge is that insurers place a cap on how much financial exposure they are ready to shoulder for each vault. More specifically, as the price of gold has risen this year, gaining at least 37 percent, the number of insurable ounces of gold at all storage places has inevitably shrunk.CONTINUE READING

Thanks,
Gold Silver Central