What is currently unfolding in the gold market is truly astonishing, especially in Asia. Ggld coin demand is exploding also in Europe and mints can’t keep up with demand. Things are so extreme in Asia that (a lack of) storage is becoming an issue. Which other financial asset sees demand exploding when prices go down?
The Central Bank of the Russian Federation finally got around to updating their website for December—and for the first time in four months they added to their gold reserves. This time it was 700,000 troy ounces. Their total gold reserves that they’re reporting on their website now totals 33.3 million troy ounces. For all of 2013 they added 2.5 million troy ounces to their ‘reported’ reserves, which is about 79.5 metric tonnes.
2013 was an absolutely seismic year for gold, but the way in which the tectonic plates shifted has yet to be fully understood. I firmly believe that in the years to come, when we look back at the great game being played in gold, we will pinpoint January 16, 2013, as the day when it all began to unravel. That day, the day the Bundesbank blinked and demanded its bullion, will be shown to be the beginning of the end of the gold price suppression scheme by the world’s central banks; and then gold will go on to trade much, much higher.
Should they keep their reserves in Germany? In my opinon, all countries should. Does it make sense that the Fed doesn’t allow viewings “in the interest of security and of the control process” when they allow tourists to see the vault? In my opinon, no. But it is clear to me that their public statements and lack of action reflect the fact that they consider the repatriation as “irrational” rather than showing any distrust in the US or France central banks.
History does not repeat itself, but it does rhyme. The question is: with which period exactly does it rhyme? This article presents a scenario that has remained rather underexposed: today’s gold market resembles the one of the 60ies, in particular the London Gold Pool. It shows increasingly more compelling similarities, and all recent developments point to an unfolding London Gold Pool scenario.
The Swiss Gold Coin Initiative is a unique, politically realistic and potentially far reaching reformation of the monetary system. The next step is the collection of 100 000 signatures in Switzerland. To get started requires about the same number Dollars Considering the dangers in today’s paper money system and in view of the anticipated benefits of the initiative its realization is not only a urgent opportunity, but a moral obligation for whoever can contribute to it.
The ultimate test came two weeks ago, when gold touched again the same price level as in June. The gold price jumped quickly higher. The double bottom was not only a powerful technical signal, it was also confirmed in the physical market with another explosion in demand. The Royal Mint in the UK, the US Mint, Perth Mint in Australia and the Shanghai Exchange in China all reported an explosion in physical gold demand.
Suchecki writes: “Indian Jewelers will not want the Indian Government to think their gold import tax policy is not working. Thus, gold purchased from smugglers will be increasingly reported by jewelers as Scrap/Recycled and they will report record demand of Indians turning in their old jewelry to be updated to new, fashionable designs.”
Silver is a critical element which has been used in a growing number of industries, applications and devices. In fact, most of us are simply not aware how many times a day we are using silver; the grey metal is in medicine, solar panels, electrical switches, automotive, electronic devices, etc. This infograpic, created by Physicalgold.co.uk, gives an overview of some important uses of silver in daily life.
In this short but fascinating interview on Bloomberg TV, Jim Rickards summarizes today’s controversial gold market situation in just a couple of minutes. He says the gold market is technically very bullish, but basically one needs to understand all aspects of the market (not only the declining price). In particular, the key of gold’s bullish situation is related to the physical market which is right now being redefined by China.
You could go into a vault in london a couple of years ago. The vaults were packed to the rafters with gold, and the gold would trade from me to you to somebody else. You can walk into those vaults today and they are virtually empty. All that gold (26 million ounces) has been transferred from London and has gone to Switzerland where it has been recast to higher grade formats and shipped off to Hong Kong and then to China never to return.