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Daily Nugget: Gold Demand Remains Sluggish; The Odyssey Continues

By The Real Asset Company (Jan Skoyles)CommoditiesJun 05, 2014 05:21AM ET
www.investing.com/analysis/daily-nugget:-gold-demand-remains-sluggish;-the-odyssey-continues-215084
Daily Nugget: Gold Demand Remains Sluggish; The Odyssey Continues
By The Real Asset Company (Jan Skoyles)   |  Jun 05, 2014 05:21AM ET
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The gold price continues to tread water ahead of today’s ECB meeting and tomorrow’s US non-farm payroll (NFP) data release.

The ECB meeting today, is widely expected to result in new monetary stimulus measures announced, given the recent strengthening in the euro. Consensus seems to be that the refinancing rate will be cut by 10 to 15 basis points, whilst the deposit rate will be criminally cut to below zero, giving a negative return on depositors’ money. Draghi is also likely to leave the door open for quantitative easing and asset purchases later in the year.

Given the strength of the US dollar index (which hit a two-month high this week) it is likely that the market has already accounted for the announcement of further stimulus measures in the EU and so we may see little reaction in the precious metals. However, look out for how both the euro and US dollar react to any ECB announcement today.

Before the COMEX close yesterday, gold did jump slightly in response to the low ADP national employment report. The ADP report is often seen as an indicator to the non-farm payroll and has been fairly accurate recently The latter is expected to show 215,000 new jobs were added in May, the ADP report fell short of this, showing just 179,000. The ADP’s indication that NFP could be slightly on the downside suggests that there will be a bullish reaction from both the gold and silver price.

Amount of gold transferred climbs

Clearing statistics released yesterday by the LBMA showed the average value of gold transfers was relatively unchanged at $25.4 billion for the month of April. However the amount of gold transferred between LBMA member accounts climbed by 3.2% compared to the previous month. This, combined with the lower gold price, meant that there was little change in the average value of gold transfers. A total of 19.6 million ounces of gold were transferred daily, a drop from the same period last year. In contrast, there was a 6% fall in the number of silver transfers compared to the previous month.

Bank forecasts see war as fundamental to gold price

Two banks released interesting comments in regard to the gold market yesterday. SocGen (MILAN:GLE) upwardly adjusted their gold price forecast citing support from the crisis in Crimea. They increased it o $1,272 from $1,180. HSBC's (NYSE:HSBC) note pointed towards weak physical gold demand and cited Turkey’s low gold imports and India’s low demand given import restrictions and a weak rupee.

Is gold boring?

An article on Bloomberg yesterday said that gold investors were becoming bored by the lack of volatility in the gold price. As this is supposed to be a market update, I won’t have my rant right now, but I’d be interested to hear your thoughts on this either in the comments below or using our Gold Silver Bugs Community.

1000 oz gold recovered

Odyssey Marine Exploration Inc. (NASDAQ:OMEX), continues to defy expectations in its recovery of the site of the SS Central America. When the recovery began in March, there were many naysayers who believed that after the two tonnes of gold recovered in the early 1990s, from the site, there was nothing else to be recovered. The team have proved the haters wrong and in their first reconnaissance dive to the wreck, recovered over 1,000 ounces of gold. The findings around and within the ship are a great example of the vast wealth and demand for gold during the California gold rush.

Daily Nugget: Gold Demand Remains Sluggish; The Odyssey Continues
 

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Daily Nugget: Gold Demand Remains Sluggish; The Odyssey Continues

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John Steve
John Steve Jul 03, 2014 1:54AM ET
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Greg Stemm, the co-founder and current CEO of Odyssey. Marine Exploration, and John C. Morris, the co-founder of Odyssey Marine Exploration, were both sued by the Securities and Exchange Commission. . . It appears that Neptune Minerals is insolvent.. . Oceanica is extremely unlikely to get an environmental permit.. . Oceanica’s cofounding shareholder, DNA Ltd, Inc, is tied to a Panamanian entity whose principal members are connected to a number of alleged financial crimes – why did Odyssey Marine Exploration structure it this way?. . Isn’t it weird that Odyssey Marine Exploration has been unable to address any of the serious questions posed by concerned shareholders? . . It’s concerning that John Morris, the founder of Odyssey Marine, is currently being sued by members of Seagrass Recovery.. . Odyssey Marine Exploration and Neptune Minerals have been tied to brokerage firms with many FINRA sanctions, this is very alarming – would you invest in this company? Buyer beware.. . Odyssey Marine Exploration has disappointed 100% of the time on its estimated project recoveries, can you trust anything they say?. . Why does Odyssey Marine Exploration have opaque and unexplained offshore subsidiaries in the Bahamas and Panama? These are completely unnecessary for Odyssey’s operations.. . Based on its current cash reserves and negative cash flow Odyssey Marine Exploration could very well go bankrupt in 2014.. . Odyssey Marine Exploration was held in contempt of court after it lost the Blackswan case.. . World-class phosphate mining companies have previously evaluated and passed on the Oceanica asset – Odyssey is the only company interested in this uneconomic asset.. . Didn’t Odyssey’s chairman Brad Baker get exposed for signing on both sides of a deal?. . Why does Odyssey Marine Exploration use an auditor that has been sanctioned multiple times by the Public Company Accounting Oversight Board?. . Based on accurate historical records, there was never any secret army gold aboard the SS Central America.. . It’s alarming that Odyssey Marine Exploration started as a shell purchased by Timothy Brasel, who was later cited by an SEC civil action for stock manipulation.. . It’s shocking that the predecessor of Odyssey Marine Exploration, Seahawk, went bankrupt – but it’s even more shocking that every other reverse merger treasure hunting company (six in total!) have also gone bankrupt.. . It’s alarming that Odyssey Marine Exploration has lost nearly $200,000,000 of shareholder capital while insiders have personally made millions – how much longer can this continue?. . Isn’t it ironic that Odyssey Marine Exploration has posted enormous financial losses but CEO Greg Stemm makes enough money to afford five houses for himself and his family? That doesn’t seem fair at all.. . Why does Odyssey host closed conference calls in which only their investment bankers get to ask questions? Why won’t Odyssey answer questions from other shareholders? Are they hiding something?
 
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