Why has the Gold Price Fallen Further? – by Illuminati Silver


Welcome to Illuminati Silver – we tell you
the truth about silver. Today is Tuesday 4th August 2015 and we are
producing this video to attempt to answer the question, why are gold prices falling
further? In summary, Gold is down because recent events
have led to a reduction in risk aversion. The Greek crisis has been resolved, at least
for now and Iran has signed the nuclear deal with the US.
Fears of an interest rate rise by the US Fed have buoyed the dollar thereby dampening the
precious metal market price. Gold is the least preferred asset class right
now and sentiment is at a low ebb. The total gold holdings in SPDR Gold Trust, the largest
gold ETF in the world, has come down from 1,291 tonnes in 2012 to just 690 tonnes today,
a fall of 47%, reflecting this decline. China, the largest consumer of gold, has witnessed
large scale selling and the fall in user demand from China because
of their current economic condition has also influenced price.
In addition, Global consultancy Thomson Reuters GFMS says “seasonal strength between April
and June saw India reclaim the top spot in regard to total gold consumption for the second
quarter of 2015. India was “easily the biggest consumer of
all gold products in the second quarter,” the report says, and please listen to this
carefully, despite seeing no sizeable change in either jewellery or gold investment demand
from a year earlier. China’s household demand fell 24% in contrast, with the drop split
across jewellery and investment. Frank Holmes CEO of US Global Investors and
a regular contributor to Kitco News summarises the position like this, and we quote: “Besides apparent price manipulation, other
factors are affecting gold’s behaviour right now, three in particular: 1. The strong US Dollar
2. Interest rates on the rise 3. Slowing Manufacturing Activity He adds: “China is the 800-pound commodity
gorilla, and its own PMI has remained below the important 50 threshold for the last three
months, indicating contraction. He said on Kitco yesterday: “that the metal
was acting more like a raw commodity than a safe-haven asset…. the key outside markets
are also in a bearish posture for gold and silver, as the U.S. dollar index is higher
and crude oil prices are lower. Incidentally, Copper and aluminium prices
also fell to six-year lows. There is concern of massive deflation after the downbeat economic
news coming out of China,”. As we are entering the Monsoon period in India,
the Holiday period in the UK and the west, and historically a ‘low demand’ period
for the precious metals over the next 2 or 3 months, we can only, at this time, envisage
even lower prices. We hope you like this video and found the
information useful. If so, please give it a thumb up, comment and if you haven’t already
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Disclaimer: Silver Illuminati owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of
its owners.

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