Annual LBMA Conference Set For Monday, Tuesday

There could be some extra excitement in the air next week as dealers, analysts and others gather in Berlin for the 2010 London Bullion Market Association conference.

Spot gold hit a fresh record high Friday, continuing a 10-year bull run that has seen prices increase by more than five-fold.  A most-active U.S. gold futures contract eked above the much-anticipated $1,300-an-ounce level for the first time, and spot silver hit a 30-year high.

The conference gives participants a chance to talk about the markets, network and attend a number of panel presentations about various topics relating to precious metals.
Keynote speakers at the opening session Monday morning include William White, chairman of the Economic and Development Review Committee with the Organization for Economic Cooperation and Development, and George Magnus, senior economic adviser with UBS.
A program later that morning is titled “Precious Metals Investment – New Paradigm.” It will include Shayne McGuire, director of global research and global fund manager for the Teacher Retirement System of Texas; Graham Birch, former head of natural resources for Blackrock; and Diarmuid O’Hegarty, deputy chief executive of the London Metal Exchange.
The early-afternoon program, “Response from Traditional Markets,” includes GFMS Executive Chairman Philip Klapwijk; Sunil Kashyap, managing director for Bank of Nova Scotia – ScotiaMocatta; and Wolfgang Wrzesniok-Rossbach, head of sales and marketing for Heraeus.
A late-Monday session is titled “Precious Metals Investment – Bubble?” The panel includes Paul Burton, managing director of GFMS World Gold Ltd; Jeffrey Rhodes, CEO of ILNTL Commodities DMCC; and Matthew Turner, precious-metals strategist with Mitsubishi Corp. International (Europe) Plc.
Tuesday morning begins with a program on the Platinum Group Metals. Speakers include Michael Wagner, head of commodities trading for Volkswagen; Emma Townshend, analyst with Renaissance Capital BJM; and Michael Jansen, head of metals research with JPMorgan.
The late-morning program is titled simply: “Presidential Style Debate.” It includes David Gornall, global head of precious metals trading for Natixis; Gerry Schubert, head of precious metals with ABN AMRO Bank N.V.; and Jeremy East, head of metals trading with Standard Chartered Bank.

Heavy Investment Interest in Gold Could Pose Risk

 

27 September 2010, 7:24 a.m.

Berlin—(Kitco News)—Investment has fueled much of the gold rally to above $1,300 an ounce and reliance on one element for so much of the increase could have some risks, according to Hans-Guenter Ritter, managing director of Heraeus.
Ritter said Heraeus watches prices closely because the company is in a manufacturing business in which precious metals are used. He said at this time industry consumption does not reflect the higher prices of gold.
“On the other hand, investment has become the major theme around the precious metals for the past couple of years,” said Ritter, noting that is a different environment. “It is always a risk when the interest is coming too much from one side of the market.”
Ritter was in Berlin for the 2010 London Bullion Market Association Conference and was interviewed on the sidelines of the conference.
Ritter said that investment surge could change very quickly, but he doesn’t see that happening in coming months. Higher interest rates could be the key, he said.
“That’s not going to happen in the next couple of months and probably not in the next 12 months, Ritter said. Investment will continue to be one of the prime drivers of gold, he said, because there are few places for investors to put their money.
Ritter doesn’t think gold is in a bubble because prices have been moving higher slowly. He also said it looks as if much of the metal that has been bought is in strong hands and is not moving out that quickly because of the economic uncertainty.
On a cautious note, however, Ritter said once investors start to get out of gold, a price decline “could come much faster than the increases we have seen over the past 24 months.”
Heraeus is a global precious metals and technology group with headquarters in firm roots in Hanau, Germany, near Frankfurt. The company is involved in precious metals trading, in materials and technologies, sensors, biomaterials and medical products as well as dental and pharma, quartz glass, and specialty light sources.

LBMA Delegates See Gold at $1,406

Market Nuggets:LBMA Delegates See Gold at $1,406
in September 2011

27 September 2010, 8:18 a.m

Berlin—(Kitco News)--Delegates at the LBMA Precious Metals Conference forecasted a US$1406 gold price for September 2011, during an impromptu survey Monday. To kick-start the opening session of the conference, Stewart Murray, Chief Executive of the LBMA asked the room of 200 delegates to predict the yellow metal's price. The survey was a repeat exercise from last year's conference in Scotland. Delegates had predicted US$1181 gold for September 2010, the price at the time was US$1052. Comex gold was hovering around $1,300 Monday morning.  The LBMA's conference is taking place in Berlin and concludes on Tuesday, September 28.

Asian Gold Demand May Temporarily Dip Due To High Price

WGC Official: Asian Gold Demand May Temporarily Dip Due To High Price

27 September 2010, 12:35 p.m.

 

Berlin—(Kitco News)The high price of gold could temporarily dent demand from the key Asian region, but is unlikely to end the historical pattern of buying for key events such as weddings, a World Gold Council official said Monday.
Albert Cheng, managing director of the Far East for the Gold Council, addressed the region’s demand prospects in an interview with Kitco News on the sidelines of the annual London Bullion Market Association conference in Berlin. The conference is taking place as gold hit $1,300 an ounce for the first time.
“I’m sure jewelry demand in Asia will be affected temporarily, because both the consumers and the trade need to adjust to this new price level,” he said.
Still, he looks for the demand pattern to return. He pointed out that 20% of the gold buying in the key consuming nations of China and India is for wedding gifts. Those with a budget have to adjust and may end up buying smaller jewelry pieces, he continued.

“But in the long run, they need to readjust their budget levels,” he continued.
Gold jewelry in Asia tends to be in a high number of carats, either pure gold or close to it, he explained. Jewelry is bought not just for adornment but as an investment.
Meanwhile, he suggested exchange-traded funds are likely to become more popular in Asia. These are products that trade similar to a stock but track the price of the commodity.