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Follow our occasional tweets for our quick takes on recent gold-market news and developments . . . and subscribe to NicholsOnGold.com for our on-going analysis of the gold-market situation and outlook. ...

GOLD Explained: A Brief Note on Recent Market Action

Gold's failure to sustain its recent price gains, gains achieved over the past few weeks, triggered a wave of computer-generated technical selling on Monday morning that, in minutes, knocked gold prices back down to psychologically important technical support levels just above $1300 an ounce. I do not subscribe to any of the various conspiracy theories to explain gold's latest tumble, even though the recent news and gold-market fundamentals suggest the yellow metal should be moving higher. (For more on this bullish view, see "Gold: Now is the Time," NicholsOnGold, July 2, 2014.) The ...

India Spicing Up the Gold Market

Readers of NicholsOnGold know we have long been of the view that robust Indian gold consumption in the years ahead would be an important pillar supporting significantly higher prices in the world marketplace. But since mid-2013, the Indian government’s anti-gold policies have put this scenario on a temporary hold as buyers within India have been reluctant to incur the high cost of the government’s punitive anti-gold policies. ...

Dark Pools, Program Trading and the Price of Gold

(This report first published and posted on May 15, 2013 — but is even more timely today!)   Day after day, gold trading has been, and continues to be, dominated by institutional trading in the “dark pools” where over-the-counter dealer and interbank activity goes largely unseen. Don’t under-estimate the influence of trading in the dark pools where “invisible” institutional trading can – in a flash – knock gold to the mat, leaving most gold-market participants and observers wondering what happened. Indeed, much of this activity in the interbank and dealer market goes unreported – but ...

Rosland Capital Review by Jeffrey Nichols – Trust is Necessary

You may have noticed elsewhere on this website, mention of Rosland Capital. Rosland is a retail dealer in gold and silver coins and investment bars . . . and they’ve been a client of mine for over five years. Officially, I’m “Senior Economic Advisor” to Rosland Capital. But my relationship with Rosland goes deeper than that. CEO and founder of Rosland, Marin Aleksov, has become a trusted friend and colleague. I’ve been in the gold business as an advisor, consultant, economist, and market researcher for over 40 years. My clients have included some of the biggest names in the gold world – ...

Filling the China Cabinet With Gold

It won’t take a collapse of the dollar or some doomsday scenario to catapult the price of gold well above its September 2011 all-time high of $1,924 an ounce. A decline in the greenback’s value and international prestige may or may not be in the cards.  So, too, might troublesome inflation, a collapse on world equity markets, or another financial crisis of some sort.  But these are not necessary prerequisites for gold to resume its long-term price ascent. Indeed, not withstanding the possibility of further gold-price weakness in the next year or so, I am confident China’s insatiable ...

Musings on Gold

I've been following gold professionally for some 40 years, ever since joining Citibank as an international economist back in 1973.  One of my early assignments was to write a report for senior management on the future role of gold in the world monetary system.  Gold had already risen from $35 an ounce in August 1971, when President Nixon ended the U.S. dollar’s official convertibility into gold, to $120 an ounce in mid-1973 when I joined Citibank as one of the most junior economists. Though I thought the price of gold could rise, if only because its price had been suppressed and private ...

I’m No Gold Bug — Just Super Bullish

I've been unwaveringly bullish on gold for nearly a decade . . . and suspect I'll remain bullish for at least a few more years.  Indeed, I strongly believe that the price of gold will more than double - and possibly triple - before the end of this decade. But, please don't label me a gold bug.  I see nothing magical about the yellow metal . . . and those who attribute to it miraculous powers or foresee it resuming its sometimes historical role as the central anchor of the world monetary system are sure to be disappointed. I consider myself a dispassionate economist, analyst, and observer ...

Central Bank Gold

A recent survey of central-bank reserve managers predicted that the most significant change in their official reserve holdings over the next 10 years will be their intentional accumulation of gold. In fact, central-bank reserve managers are already moving in this direction, expanding their reported bullion reserves by 439.7 tons last year - the biggest annual increase in almost five decades . . . and this doesn't count significant purchases that remain unreported. Central banks, taking advantage of depressed market prices, were again big buyers of gold this past March according to ...

GOLDEN JUNCTURE

With the Greek drama taking an intermission and the euro strengthening at the U.S. dollar’s expense, it looks like gold wants to move higher – and, quite possibly, it has enough oomph to break through strong technical overhead resistance as we approach and possibly exceed $1,800 an ounce. As I have pointed out in past NicholsOnGold commentaries, it is important to distinguish the forces and players that drive gold prices in the short term – measured in days, weeks, and sometimes months – from those that determine the longer-term trend and average price over many years. Short-Term ...