| Chinese and Indian Gold Buying: At the Peak since January 2014 | |
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Key Update: Gold Settles below $1,200 per Ounce Again (Part 2 of 3) (Continued from Part 1) Demand drivers
China and India’s gold buying activity increased the most in March 2015, according to data from the Swiss Federal Customs Administration. The data showed that China almost doubled its gold buying to 46.4 metric tons in March 2015. India also joined the party. It doubled its imports to almost 72.5 metric tons from the United Kingdom. This means gold moves from the United Kingdom. It’s refined in Switzerland and shipped to China and India.
Recent Reuters’ data showed that China and India consume 48% of gold. The festival season in India could boost the short-term demand of gold in India. This supports gold prices.
Gold mining production increased by 2% and gold production was at 3,114 tons, according to the World Gold Council in 2014. Production peaked to a new record in 2015. It’s expected that 2015 will mark another year of massive production, according to industry sources like Goldman Sachs. In contrast, Reuters’ surveys state that production will be flat in 2015.
The average cost to produce gold hovers around $1,000–$1,200 per ounce across major mines in the world. This is a key level for gold mining companies to watch. As prices drop below this level, it could put pressure on revenue. This would cause a liquidity crunch for these companies.
Lower gold prices are negative for gold mining companies like New Gold (NG), Gold Fields (GFI), and Royal Gold (RGLD). These companies account for 10.46% of the Market Vectors Gold Miners ETF (GDX). The fall in gold prices also impacts gold ETFs like the iShares Gold Trust (IAU).
The consensus of rising production, the strong dollar, and the improving US economy will continue to put pressure on gold prices.
Continue to Part 3 Browse this series on Market Realist:
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Royal Gold Inc.
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PRODUCTEUR |
CODE : RGLD |
ISIN : US7802871084 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Royal Gold est une société basée aux Etats-Unis D'Amerique. Royal Gold est productrice d'or, d'argent, de cuivre, de plomb et de zinc en USA, au Burkina Faso, au Canada, au Chili, au Mexique, au Nicaragua, en Argentine, en Bolivie et en Guinee, en développement de projets d'argent, de cuivre, d'or, de plomb et de zinc au Burkina Faso, au Canada, au Chili et en Australie, et détient divers projets d'exploration au Canada, en Argentine, en Bulgarie et en Finlande. Ses principaux projets en production sont BALD MOUNTAIN en USA, LIMON, LEEVILLE MINING COMPLEX et GOLDSTRIKE OPEN PIT au Nicaragua, DON MARIO (CERRO PELADO) et ROBINSON (NEVADA) en Bolivie, EL CHANATE, PEÑASQUITO, WHARF, MARIGOLD, DOLORES MINE, MULATOS MINE -ESTRELLA et GOLDSTRIKE UNDERGROUND au Mexique, SIGUIRI en Guinee, TAPARKO au Burkina Faso, MARTHA MINE en Argentine, ANDACOLLO HYPOGENE, TOQUI et ANDACOLLO au Chili et WILLIAMS, TWIN CREEKS, PIPELINE MINING COMPLEX et TROY au Canada, ses principaux projets en développement sont GOLD HILL et PASCUA LAMA au Chili, HOLT MINE & MILL et PINE COVE (MINGS BIGHT) au Canada, BALCOOMA en Australie et BOUROUM au Burkina Faso et ses principaux projets en exploration sont CANADIAN MALARTIC (QUEBEC), GOLDSTRIPE WILLA, MANHATTAN (WHITE CAPS) et CAMP BIRD MINE au Canada. Royal Gold est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 8,2 milliards US$ (7,6 milliards €). La valeur de son action a atteint son plus bas niveau récent le 28 février 1992 à 0,03 US$, et son plus haut niveau récent le 26 avril 2024 à 124,58 US$. Royal Gold possède 65 455 293 actions en circulation. |