Tag: central banks

Gold Price Demand Drivers

| May 11, 2012 | Articles: Insights

Central bank old demand is a relatively price-insensitive force that’s strong day-to-day, clearing the market of stock when available. It enters the market in a way that leaves the market relatively undisturbed, writes Julian Phillips of GoldForecaster. But the rest of demand is very different. It’s this other demand that will drive the Gold Price. Some of it is price sensitive, some not. Some is price sensitive in a surprising way. Some simply takes tonnage without being in itself a driving force. There are some forces that have no intention of holding gold for longer than their short-term view persists and then will sell it again. Within the above parameters, it’s extremely difficult to […]

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David Stockman: The Emperor is Naked

Source: Karen Roche and JT Long of The Gold Report  (5/4/12) A “paralyzed” Federal Reserve Bank, in its “final days,” held hostage by Wall Street “robots” trading in markets that are “artificially medicated” are just a few of the bleak observations shared by David Stockman, former Republican U.S. Congressman and director of the Office of Management and Budget. He is also a founding partner of Heartland Industrial Partners and the author of The Triumph of Politics: Why Reagan’s Revolution Failed and the soon-to-be released The Great Deformation: How Crony Capitalism Corrupts Free Markets and Democracy. The Gold Report caught up with Stockman for this exclusive interview at the recent Recovery Reality […]

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Why gold money?

| May 7, 2012 | Articles: Insights

Recently Rob McEwen of McEwen Mining Co. and Michael Crofton of Philadelphia Trust discussed the pros and cons of the gold standard. In this debate, Mr McEwen made an excellent case for gold as “the ultimate currency”. He argued that using gold as currency could help restore fiscal discipline in governments; and that, in essence, it already is the world’s reserve currency. Conversely, Mr Crofton stated all the typical arguments against the gold standard: that there is not enough gold in the world for everyone; that it would prevent the authorities from controlling the monetary system; that it would hinder the government’s debt financing, etc. Here are some of my responses to […]

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ECB rate decision pressures gold

The European Central Bank’s decision yesterday to leave interest rates unchanged at 1% pushed more traders out of commodities, with precious metals coming under more selling pressure following the news. Gold is now floating around $1,630 while silver has fallen just below $30 – an area however where we should see strong bids coming in for the white metal. Likewise, gold should encounter strong buying support below $1,650, though a lot depends on the latest US nonfarm payrolls report due out today. A disappointing number will encourage speculation that Helicopter Ben and the Federal Reserve will engage in more quantitative easing; but a stronger number will dampen such expectations, and could pile […]

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No Support from Physical Gold Bullion Market while Spain Banks Downgraded

Gold Bullion prices held above $1660 per ounce Monday morning in London – holding on to last week’s 1.1% gain – while stocks fell, commodities were broadly flat and US and German government bonds gained as Spain continued to generate headlines. “On the physical front [however] things were looking not as one might have hoped for [last week]”, says a note from Swiss bullion refiner MKS. “There’s no support from the physical market,” one Hong Kong dealer told newswire Reuters this morning.  Prices for Silver Bullion fell this morning to $31.10 per ounce – 0.6% down on Friday’s close. Gold Bullion prices in Euros meantime hit their highest level in almost two weeks this morning, touching […]

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Egon von Greyerz: Bankrupt Nations Desperate to Save Financial System

Today Egon von Greyerz told King World News that bankrupt nations are now printing money in a desperate effort to sustain the current global financial system. Egon von Greyerz is founder and managing partner at Matterhorn Asset Management out of Switzerland. Von Greyerz also reiterated that tens of trillions of dollars still need to be printed. Here is what Greyerz had to say about the situation: “There is so much happening in the world now. We’ve had another package here, just under 400 billion euros (for the IMF). This is an absolute drop in the ocean. Spain needs many times that (amount). I’ve talked about trillions and maybe even tens […]

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Gold’s Long-term Picture Remains Bullish

Gold’s Long-term Picture Remains Bullish

Lately, gold has been a disappointment to many investors while it has been mostly treading water. Gold has traded well beneath its all-time high of $1,924 an ounce on September 6th and well above its subsequent low near $1,520 which took place in late December. Many anticipated higher prices this year,but the year isn’t over yet, and neither is gold’s long-term spectacular, secular bull market. We are now in one of those periods of consolidation that tries the souls of gold investors, tests their resolve and challenges their staying power. This is when the market takes a breather and adjusts to prepare for the next major move. If you need […]

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Gold Prices Rally, Netherlands On Edge of Downgrade, Central Banks Add to Gold Reserves

Gold Prices rallied to $1643 per ounce by Tuesday lunchtime in London – 1.2% up on yesterday’s low, but still shy of where they closed last week – ahead of tomorrow’s Federal Reserve decision and with Eurozone concerns focusing on the Netherlands. Based on the PM London Gold Fix, Gold Prices remain 3% below their 200-day moving average. Silver Prices rallied back above $31 an ounce by Tuesday lunchtime – though they remained around 2% off where they began the week – while European stock markets edged higher following Monday’s steep drop and commodities also made gains this morning. The Euro meantime regained a bit of ground against the Dollar, though remained below last week’s […]

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The myth of riskless debt

| April 22, 2012 | Articles: Insights

Much has been learned from the ongoing financial debacle that has been painfully rattling the world’s financial structure in recent years. Foremost among these valuable lessons is the realisation that all financial assets have risks. Even the bonds of many sovereign nations are being called into question, and rightly so. Though often deemed to be “riskless” because of a country’s ability to extract tax from its citizens, logic tells us that nothing in life is risk-free. This conclusion can also be reached by even a cursory reading of monetary history, or in a more meaningful and instructive way, just by closely observing financial events in recent years. Unquestionably, sovereign bonds have risks. […]

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Michael Pento: Markets to Plunge This Summer, the Eurozone & the Effect on Gold

With investors concerned about the action in equity markets, as well as gold and silver, today Michael Pento, of Pento Portfolio Strategies, writes for King World News to warn that global stock markets will plunge this summer. Pento had this to say about the situation: “I would have thought that the decoupling myth between global economies would have been completely discredited after the events of this past credit crisis unfolded. Back in 2007 and early 2008, investors were very slowly coming to the realization that the U.S. centered real estate crisis was going to dramatically affect our domestic economy.” Michael Pento continues: “However, the prevailing view at the time was […]

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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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Jim Sinclair: Expect Another $17 Trillion of QE & War in Gold

On the heels of the Fed members commenting publicly, legendary trader and investor, Jim Sinclair, told King World News that even though we have already seen $17 trillion of money printing, we should expect another $17 trillion going forward.  KWN also asked Sinclair how he knew, from the beginning, that there would be ‘QE to infinity,’ before anyone else.  But first, here is what Sinclair had to say about the action in gold: “$1,650 is a comfortable number (for central planners).  Haven’t you seen the tremendous jawboning and market intervention to hold gold in that range at $1,650?  $1,764 and they lose control.  That begins the move which is exponential.” Jim Sinclair […]

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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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Asian Traders Buying Gold on Dips, Longer-Term Investment Driven by Low Rates & Inflation Fears

Prices quoted for Buying Gold fell together with the US Dollar on Thursday morning in London, dropping away from $1660 per ounce and falling harder in other currencies as commodities also edged lower. Silver Prices slipped back to $31.50 per ounce, some 1.1% lower for the week so far. The Euro rose almost 1¢ to a 1-week high of $1.3170, pushing the price for Eurozone investors Buying Gold down 1.2% from Tuesday’s late 1-month high of €1271 per ounce (€40,868 per kilo). “Gold is struggling, weighed down by…faltering investor interest,” says today’s note from South Africa’s Standard Bank. “Physical demand on the other hand has been supportive, with particularly strong buying coming out of the Far East […]

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