Author Archive: GoldMoney

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Delhi Declaration highlights economic tensions

Gold and silver prices were flat over the course of yesterday – apart from a dramatic dip and recovery mid morning EDT; the bears managing to knock the gold price down to $1,635 briefly, before news that the Indian central bank was cutting interest rates by 50 basis points encouraged buying. Silver lost around 1.1% at the same time as the decline in gold, but recovered to close up slightly for the day. Indian gold demand is 50% below demand at the same point last year, and traders in the country had hoped that the upcoming Akshay Tritiya festival would compensate them for the disruptions to metal trading that they have experienced recently. […]

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Gold Wars by Ferdinand Lips in Spanish

| April 17, 2012 | Articles: Insights

Spanish speakers rejoice! The late Ferdinand Lips’s epic book Gold Wars: The Battle Against Sound Money as Seen From a Swiss Perspective has just been published in Spanish for the first time, with sponsorship from the GoldMoney Foundation. The first versions of the book (in English and German) were published back in 2001 – on the cusp of gold’s latest bull market. Gold Wars makes a thorough case for the gold standard, and shows how and why governments and central banks turned against gold over the course of the 20th century. Lips is particularly scathing about how the financial elite in his own country, Switzerland, turned against their own sound money tradition – calling this […]

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ECB bond buying will increase

There is little evidence of clear short-term price trends in gold, silver, platinum or palladium at the moment, with the metals all hostage to violent day-to-day gyrations in hedge fund sentiment. “Risk on” buying is triggered by hints that the Federal Reserve is getting ready for “QE3”, and sees metal prices bid up along with equities and commodities. It also leads to selling of the US dollar and Treasuries. “Risk off” occurs whenever Fed officials appear cautious about more stimulus, and sees precious metals – along with commodities generally and equities – promptly sell off again, and the dollar and Treasuries rally. Everything in the short-term is pretty much tied […]

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Currency wars will boost gold

| April 16, 2012 | Articles: Insights

Gold and silver got whacked again on Friday, prompted this time by news that economic growth in China came in at a disappointing 8.1%. This was down from 8.9% in the previous quarter, and the slowest rate for three years. Chinese consumer prices were up 3.6% in March – below the government’s 4% target and considerably off the 6.5% reached last July. The BBC notes that the People’s Bank of China is likely to take further measures to “loosen monetary policy” in response to this disappointing data. At the same time, Spain’s debt woes are creating fresh enthusiasm for the dollar as a “safe haven”. The Dollar Index is back above 80, […]

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Gold jumps on bearish talk from Fed

We got a classic example of how “jawboning” by Federal Reserve officials can move markets yesterday, with New York Fed President William Dudley and Bernanke’s deputy Janet Yellen both sounding cautious about the US recovery –Yellen noting that “further easing could be warranted if the recovery proceeds at a slower pace than expected.” Boom – up went equities and commodities, which had moved lower in recent days as a result of the problems in Spain. Platinum and palladium were up 1.4% and 2.6% respectively, while the silver price gained 3.2%. June-delivery Comex gold gained 1.2% to settle at $1,680.60. $1,680 is of course the overhead resistance level that has contained […]

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The Fed and inflation

Europe is firmly back in the news again, with the European Central Bank hinting that it may resort to further easing measures in order to relieve the pressure on Spain. Benoit Coeure, executive director at the European Central Bank, pointedly noted yesterday that market fears over economic problems in Spain were “not justified”. He remarked: “Will the ECB intervene? We have an instrument, the securities markets programme (SMP) which hasn’t been used recently but it still exists.” The news on gold and silver price action remains essentially the same as yesterday, with both metals flat in trading over the last 24 hours, though platinum and palladium have been forced lower by weakening market sentiment, […]

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Pain in Spain rattles investors

The gold price staged a decent rally late yesterday, heading from an intraday low around $1,630 at 11EDT to over $1,660 over the next hour and a half. There was no obvious news catalyst for this move – no dovish Bernanke comments – apart from growing fears about Spain and Italy, something that prompted losses in equities and commodities. Aside from the gains in gold, the dollar rose slightly and US Treasury yields fell – a sure sign of growing market pessimism. Though the silver price also rallied with gold, it failed to recover above its high for the day above $31.85 – unsurprising perhaps in light of the pessimistic talk about the eurozone. […]

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Vietnam increases gold market controls

The State Bank of Vietnam is instituting a de facto nationalisation of Vietnam’s gold market, in an effort to restore confidence in the country’s currency – the dong. Vietnam is suffering from a growing current account deficit and record-high inflation. The government’s new measures will have unpleasant side effects, as more than 2,000 Vietnamese gold traders might have to close their businesses. However, private citizens will retain the right to buy gold. From May 25 the State Bank of Vietnam will in effect be the sole controller of gold trading in the country. Rules passed last year pushed many small gold traders out of business, and these new gold rules means that after the May […]

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How to play the gold mining sector – Podcast

In this podcast, Brent Cook, geologist and writer of Exploration Insights, and the GoldMoney Foundation‘s Dominic Frisby talk about the current state of the gold mining sector and how to invest in it. Cook thinks that many investors buy junior mining stocks as play on physical gold – though these are very different markets. Many companies haven’t delivered on overly-optimistic profit projections, and the market has been heading lower since the optimism highs of late 2010. As profitable, high profit margin companies have got trashed along with more speculative stocks in this downturn, Cook believes that there are some fantastic investment opportunities right now, which could pull money back into this sector. […]

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Gold bulls cheered by resumption of Indian gold trading

Comex gold futures closed higher yesterday, with the June contract up 0.9% to settle at $1,643.90 per troy ounce – buoyed by news that Indian gold imports are to resume following a 20-day strike by jewellery dealers in protest against new taxes. Platinum also eked out some modest gains, though palladium and silver struggled, with the front-month silver contract losing 0.65% (21 cents) to settle at $31.52 per troy ounce. Thus the consolidation goes on in the metals, though gold bulls will want to see the metal quickly recover back above its 50-week moving average around $1,660. Technical patterns on longer-term price charts (weekly and monthly) are far more significant in terms […]

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Gold price rallies on weak US jobs data

The gold price rallied on Friday, following news of disappointing jobs gains in America during March. Economists had forecast a gain of 205,000 nonfarm payroll jobs, but the actual figure was only 120,000. Combined with rising concerns about the Spanish economy – yields on Spanish government bonds now stand at 5.61%, up from 4.9% a month ago – and it’s little wonder that gold has recovered from the oversold state it reached last week below $1,620; the price now just north of $1,640 as of 10.30BST. The catalyst for this up move in the gold price is of course the thought that these lacklustre US jobs numbers raise the chances of further stimulus from […]

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Why people should buy gold – podcast

| April 7, 2012 | Articles: Experts Talk

In this podcast, Drew Mason, principal at St. Joseph Partners and contributor to Forbes, and Alasdair Macleod of the GoldMoney Foundation discuss the role of physical gold and silver in a …

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Savings, investment, and the Keynesian preference – a follow-up

| April 7, 2012 | Articles: Insights

There is a general belief that government finances are somehow immune from the financial reality faced by everyone else – an illusion fostered by bond markets and supported by the public’s wishful thinking. 42FPRUQ29GEG Look no further than the plight of the eurozone for evidence of the reality. Not only that, but history tells us that countries regularly default, yet we continue to buy government bonds in the belief they are less risky than any private sector debt. And if we begin to question the status quo, we are even told by financial regulators that government debt is less risky than anything else. Banking regulation enshrines it in Basel Committee guidelines, […]

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Indian gold taxes hurting traditional culture

The Indian government’s recent decision to significantly raise taxes on gold imports is being subject to increasing criticism from members of parliament, investors and dealers, with some …

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