China & Gold Values

China is currently the second-largest holder of U.S. Treasuries behind Japan, creating a need for China to create a stronger hedge against a weakening dollar. This follows a previous statement by Teng Tai, China's chief securities dealer, when he advised the country to increase its current gold reserve of roughly 600 tons to 2,500 tons in the near term and maintain around 3,000 tons over the long term.

Gold speculators have anticipated such a move for some time, as China's current gold position is only 1.4% of its total foreign exchange reserve, according to figures from the International Monetary Fund. This percentage ranks it the lowest among the top 15 central banks with bullion reserves, according to a recent report from Credit Suisse First Boston. A move to 2,500 tons would make it the fifth-largest bullion holder, behind countries like the United States and Germany. Gold speculators are partying over the possibilities.[tags] gold, spot gold, china, gold price, gold miner, gold nuggets[/tags] gold nuggets

Gold — Supply Cannot Keep Up With Demand

According to an analyst quoted by Dow Jones Market Talk, there has been an increase in demand without an immediate corresponding increase in supply in the gold market.

“The one major difference that the precious metals…are seeing is that supply cannot ramp up despite decade high prices,” said Neal Ryan of Blanchard Economic Research. “The lack of new supply will not only set a floor for prices moving forward, but become the price drivers as we move into the next several years.” [tags]gold, gold spot price,gold nuggets, gold price [/tags]     spot gold price

Gold Sales in India

AHMEDABAD: Gujarat's bullion market, which had lost its sheen due to poor offtake of gold, is regaining its glitter as demand for the yellow metal has doubled in the past four days with the gold price dipping over six per cent in the past week.

Fresh investment demand coupled with renewed buying interest among jewellers has brought gold back to the centrestage in the spot market.

Gold sales have increased from 250 kg a day to 500 kg a day in the Gujarat market following the crash in prices in the global markets.

"As the gold prices continue to dip, overall demand for the gold has increased by 100 per cent in the past few days. Our daily sales of gold have increased from 25 kg to 50 kg a day," said Monal Thakkar of Amraplai Industries, a leading bullion firm. [tags] spot gold price, spot gold, gold sales, gold market, gold price[/tags]   spot gold price

Gold Price Predictions for 2007

The most optimistic gold investors pointing out that the metal gained 23 percent last year, trouncing the 13.6 percent increase in the Standard & Poor's 500- stock index. Prices will reach $664 an ounce in 2007, according to the average forecast of 39 analysts, traders and investors in a survey last week.       gold   [tags] gold, gold prices, gold price quote, gold miner, spot gold, current gold price [/tags]