Gold Investing, Core PPI and Gold Lending

Posted by TheGoldRate on Oct 17, 2012 in Gold News | 0 comments

Recent analysis of core PPI suggests that future inflation is not rising fast enough to encourage strong gold and silver investing. The Core PPI serves as a warning sign that gold could decline after its most recent run up.?? The seeking alpha article goes into this topic further and discusses how QE3 is different than QE2 and QE1 with the purchases of MBS and it may not be as inflationary.? The author suggests the recent rise in gold and silver is simply momentum traders trying to push the price up with the QE3 news.? At the same time, it?s important to note that core PPI statistics come from previous months and rising prices generally lag any new creation of money.? So, it?s quite possible the rise in gold and silver price is just part of the market expectations that 2013 will start to show a rising Core PPI.

The news report from Business Standard discusses gold loans in India and how these gold loaning companies provide short term loans at high interest rates using gold as collateral.? The report suggest the RBI is not monitoring and regulating this type of company efficiently.

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Gold, silver investors take notice: Core PPI falls
Gold and silver investors should take notice of how the metals reacted to the announcement of Producer Price Index (PPI) data by the U.S. Bureau of Labor Statistics (BLS). The BLS releases PPI separately for finished goods, intermediate goods and crude ?
Read more on MarketWatch

Gold And Silver: The Most Important Data Since QE3
Gold bulls contend that QE3 is highly inflationary. Further, there is precedent of precious metals running after QE1 and QE2. In the hoopla of excitement about QE3, it was lost on gold and silver investors that QE3 is very different from QE1 and QE2 ?
Read more on Seeking Alpha

RBI has not done its homework on rules for lending against gold: Rahul Bhasin
Starting in 1998, Rahul Bhasin has seen the evolution of private equity in India. In an interview with Ranju Sarkar, the Managing Partner of Baring Private Equity Partners India talks about his investments, outlook and regulations for gold loan companies.
Read more on Business Standard

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Source: http://www.thegoldrate.com/1204/gold-investing-ppi-and-gold-lending/

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