Professional investors return from their Gold stock piles
Prevails in the precious metal markets nervousness: The statement of a leading investor was enough to crash the price of gold. And other professional investors begin to sell gold. By Holger Zschäpitz
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It currently does not take much to cause a stir in the precious metals markets. Since the crash in April, the mood is struck, with institutional investors, gold has lost its aura as a safe haven. The professional investors who have made over the past few years, the yellow metal became an integral part in their accounts, bowling part out again. The gold stocks have fallen to their lowest level since July 2011.
It was enough already, says a leading investment manager to send the price of gold is plummeting again. Lim Chow Kiat, chief investment officer of the multi-billion dollar sovereign wealth fund of Singapore, warned that gold is overvalued even after the sharp correction. Given the relatively manageable uses of gold is hard to justify the current price.
"Gold is a very special asset class," Lim said at an investor conference. "Many investors use gold as a hedge against inflation and as a tool for risk diversification as against a general collapse of the system. This strategy can be quite useful, but it also depends on the price you pay for this coverage."
German retail investors in the gold rush
Warning to millions of private investors
The price per ounce came to the strong statements from slipping. Gold had fought earlier this week still above the mark of $ 1,400, the prices slid down to about two per cent on Tuesday. In the meantime cost the ounce (31.1 grams) of only $ 1,360.
Lim's voice has definitely weight. He is responsible for the investments of SWFs from Singapore. With assets under management of almost 250 billion dollars Government of Singapore Investment Corp (GIC) is one of the largest of its kind in the world. Lim's statement could be understood as a warning to millions of individual investors.
From China to America to Germany many small investors have exploited the weakness in the gold price to replenish their stocks. The demand for coins and bars is so high that it is now even come to supply shortages. Reading can be the Run to the price premiums that must be paid for physical gold over the futures market prices. These marked in Hong Kong and Singapore as well as China highs.
Some use price adjustments for re-buys
The Shanghai Futures traded in for gold bullion rose on Tuesday by up to 4.2 percent to 280.88 yuan (35.60 euros) per gram order had investors who wanted to be physically deliver gold, an ounce more than 1100 Euro pay, whereas gold on the futures market was game for Euro 1060.
For German retail investors remain gold coins and bullion because of the late effects of financial and debt crisis first choice. "Since early May, the interest is indeed subsided somewhat after the rush in April," says Robert Hartmann, Managing Director of Pro Aurum Gold dealer. But it would still be 50 to 70 percent above the level in February.
"Our customers use the sharp price corrections in gold and silver continue to Nachkäufen. Ratio remained unchanged at 90 percent to ten percent of sales, purchases," says Hartmann. For this reason, it remains difficult to meet the demand. Bottlenecks admit it, among other things the Krugerrand, although these coins are currently being characterized in three-shift operation.
A twelve year old trend has ended
Gold has lost value since the beginning of over 18 percent. By the fall in prices in recent months gold from the perspective of institutional investors have lost much of its luster, says Frank Berger sound of LBBW. "A twelve-year upward trend has come to an end. Therefore the belief among investors is low, it goes up again soon."
Chart from a technical perspective, the gold price could drop to $ 1,320 per troy ounce. If this mark is not reached, a decrease of up to $ 1,260 is possible.
Since 2000 the price of gold had only one direction. He got twelve years in a row and seven-fold to $ 1,920.30 per troy ounce. Investors fled out of fear of a collapse of the monetary system in the safe harbor. Meanwhile, the central banks have, however, eliminated by their money, the extreme flood risks without an identifiable triggering inflation.
Financial professionals return from their depots
On the contrary, Last, inflation has slowed worldwide. In Germany, the inflation rate in April was only 1.2 percent, even in the United States only 1.1 percent. Moreover, the global economy begins to accelerate again, so that the Fed thinks about to tighten their loose monetary policy again. First of Fed Chairman Ben Bernanke could return the size of bond purchases. These views put to the gold price.
Professional investors have begun to reduce the gold content in the portfolios. The precious metal holdings of all gold funds (ETFs) have fallen to 70.32 million troy ounces. This is the lowest level since July 2011. In December, the ETF holdings were increased to a record high of 84.64 million ounces. Since then it goes downhill. In March and April there were even 28 days in a row - a negative record.