Gold News: A roundup of gold news from around the world.
Gold Price Dip
In what could have been in response to a possible U.S interest rate rise this year, spot gold prices in London dipped by 2.4% on Wednesday.
Before the possible interest rate rise announcement last week, gold in the U.S had nudged up to $1,182 an ounce. And then at one point afterwards the precious metal dipped to as low as $1,114 in Asia before finally levelling off.
Increased interest rate rises generally mean commodities such as gold are not so attractive in the short-term for some investors.
Bullion expert Oliver Temple gives his view on what gold prices could do and whether now could actually be an ideal time to invest in the precious metal.
See Oliver’s article on gold prices here.
Gold Prices Affecting Indian Jewellery Sales So Far
Volatile gold prices have affected jewellery buying in India, according to All India Gems and Jewellery Trade Federation.
One Raipur jeweller said that 40% of sales were for bridal jewellery.
This was followed by 5 gram to 10 gram of gold coins which accounted for about 25% of total sales.
Retailers in India are hoping that consumer buying in the sector will increase around ‘dhanteras’, which falls on 9th November.
Indian Households Encouraged To Swap Physical Gold
New schemes, which aim to reduce the amount of physical gold kept in Indian homes, have been announced by Prime Minister Narendra Modi.
It is estimated that households hold an estimated 20,000 tonnes of gold (worth $800 billion).
Large Online Retailer Buys Gold As Insurance Policy
U.S Online retailer Overstock, which employs over 1,500 staff, has bought $10m in gold and silver coins. Overstock’s Jonathan Johnson is classing the gold purchases as an insurance policy so that employees can still be paid if lenders “slam shut” in the event of a crisis.
Overstock also keeps freeze-dried food for employees in case of an emergency.
Smuggled Gold To Be Auctioned
Smuggled jewellery worth more than £2.5m is set to be auctioned off. In 2012, HMRC seized the haul from a gang trying to smuggle the jewellery into the UK. The loot included Asian gold rings, bangles and necklaces. Prices ranged from £200 to £5,000 per lot.
All proceeds from the sale will go to the UK government – already £700,000 has been raised by two online sales.
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Image of “Shopping Woman” by Pong at freedigitalphotos.net.