Tag: goldmoney

Investors seeking allocated gold

Another weak day for gold and silver yesterday has continued during Asian and European trading today, with gold falling below $1,750 and silver once again trading under $32.50. Yesterday brought mixed economic news: one the hand, claims for unemployment benefits in America shot higher while corporate earnings from giants such as Google disappointed; but strength in the Philadelphia Fed’s manufacturing survey gave the bulls something to cheer about. The Dollar Index gained 0.40%, with the greenback also strengthening against a broad basket of emerging-market currencies, as that familiar “risk off” trading returned. Action in gold at the moment may be disappointing for some, who may have been expecting an endless […]

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Not all that glitters is gold

| September 21, 2012 | Articles: Insights
Not all that glitters is gold

This week we saw another gold counterfeit scandal, this time out of New York, with tungsten-filled gold bars being discovered by a highly reputable dealer. It is very hard to detect tungsten fakes by traditional measures, since tungsten (atomic number 74) has a high density, which is 19.3 times that of water, and comparable to that of gold (atomic number 79). In other words, its weight is very similar to that of gold. However GoldMoney’s ultrasound testing of gold bars is the perfect solution, as it can easily detect impurities of this sort and ensures that the bars meet the stringent GoldMoney Standard of quality. This latest technology guarantees that there is not a […]

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Euro gold price taking off

| September 17, 2012 | Articles: Gold Silver Prices
Euro gold price taking off

After reaching a new all-time high of €1,365 per troy ounce last week, the price of gold looks ready to celebrate the new “unlimited” fashion at the ECB with some healthy action of its own, expect the following months to be very exciting. The temptation to print is just too strong, the old school bundesbankers stepped out and those left behind are more than happy to sound tough in press conferences, but still accommodate the politicians with easy money. The truth is that without free, unlimited money, they would actually have to make hard choices. Imagine that! The horrifying thought of having to choose between ice-cream and chocolate cake, instead […]

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Bernanke pours US economy another tall stiff drink

| September 15, 2012 | Articles: Gold Silver Prices
Bernanke pours US economy another tall stiff drink

As expected, Federal Reserve Chairman Ben Bernanke didn’t disappoint yesterday: “QE3” is here at last, though it wasn’t called that by him. The Fed is now committed to open-ended purchases of $40 billion’s worth of mortgage-backed securities (MBS) a month in order to stimulate the housing market and to keep long-term interest rates subdued. The FOMC also pledged to persist with “Operation Twist” (swapping short-term US government debt for longer-duration paper) and prolonged its forecast for how long it will keep interest rates at record lows. The Fed promised to keep rates at current levels until the summer of 2015, where previously it has cited 2014 as the outer limit. “QE […]

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German court ruling pushes euro higher

| September 12, 2012 | Articles: Gold Silver Prices
German court ruling pushes euro higher

Stocks, commodities and the euro have all risen this morning following the German Constitutional Court ruling in favour of German participation in the European Union’s new “European Stability Mechanism” (ESM) fund. The €500 billion ESM is designed to help eurozone countries stave off sovereign default. The court stated that the €190bn “ceiling” on German contributions can be only raised by lawmakers, which implies that the bill for German taxpayers could easily run higher. The EURUSD briefly nudged above $1.29 this morning, and looks like it could be in the early stages of a move that takes it back up to around $1.50. Similarly, the Dollar Index has fallen below 80.00 […]

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The silver streak has only just begun

| September 10, 2012 | Articles: Gold Silver Prices
The silver streak has only just begun

Following Friday’s dramatic price surge in response to the Bureau of Labor Statistics’ August jobs numbers, precious metals have cooled a little in trading this morning. Wednesday’s German Constitutional Court ruling and Thursday’s FOMC verdict are the big market-moving events to watch out for this week. The European Central Bank’s insistence that its unlimited purchases of sovereign debt from troubled eurozone nations will be “sterilized” offered a sop to the Germans, though some have doubts about this. Robert Wenzel points to a little commented upon ECB press release that announces the suspension of “the application of the minimum credit rating threshold” on collateral used to access short-term loans from the bank. At […]

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Fear Index update August 2012: Speeding up

| August 29, 2012 | Articles: Insights
Fear Index update August 2012: Speeding up

Despite the pause in monetary stimulus and the huge expectations built up over QE3, the truth is that US money supply continues to grow at a healthy pace, proving that the supposedly “sterilised” Operation Twist is still inflationary. US July M3, as calculated by shadowstats.com, is over $14.6 trillion, well on its way to reaching $15 trillion this year. The US national debt stands close to $16 trillion – it being a signature of our current debt-based money system that total debt always exceeds total money supply, as when the central bank creates money out of thin air it simultaneously creates an equivalent amount of debt plus interest. Anybody who understands […]

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The purpose of market intervention

| August 27, 2012 | Articles: Insights
The purpose of market intervention

Interventions in markets by governments and central banks are routine and we take them for granted. No one questions them, but they can create dangerous distortions. Their reason for intervening is to take price determination away from markets and consumers. The authorities and big business do not like leaving prices to free markets because prices are subjective: in other words, prices are decided by the desires of the consumer and not the cost of production. This is the central plank in the Austrian School’s explanation of economic theory in free markets, and it therefore follows that what consumers actually want and at what price must in turn determine prices through […]

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Euro hopes boost gold and silver prices

Euro hopes boost gold and silver prices

Hopes for a further crisis response by the European Central Bank (ECB) cheered the markets yesterday, with a declining dollar giving support to rallies in commodities and precious metals prices. Though discounted and criticised by the German Bundesbank, the market continues to be optimistic that the ECB will soon act to cap peripheral bond yields. These hopes might in part be attributed to the growing dissent between the Bundesbank and the ECB, as it is looking increasingly likely that the Bundesbank would be left standing when push comes to shove. A clear hint could be seen in the publically voiced support for the ECB’s bond purchases by the German member […]

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Luzi Stamm: Champion of a new Swiss gold initiative

| August 3, 2012 | Articles: Experts Talk
Luzi Stamm: Champion of a new Swiss gold initiative

Luzi Stamm was first elected to the Swiss National Council, representing the FDP (Liberal Democrats), in 1989. In 2001, as a result of debates over possible European Union membership for Switzerland, Mr Stamm changed parties – establishing his new political home at the SVP (Swiss People’s Party). During elections to the National Council in 2007 he was the second most voted for politician in his canton of Aargau, and was re-elected as National Councillor. Now Mr Stamm and three other members of the Swiss National Council have started a signature campaign aimed at repatriating the portion of official Swiss gold reserves that are held outside Switzerland. The “gold initiative” (its […]

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James Turk: Gold & Silver Bottoming as Euro Troubles Reemerge

With investors around the world are wondering what to expect after key European elections, today King World News interviewed James Turk out of Europe.  Turk told KWN that gold and silver are bottoming, but first, here is what Turk said investors should expect after Europe’s elections:  “The incumbents were routed in some important elections over the weekend here in Europe, Eric.  The two parties in Greece that supported the EU bailout and all of the austerity it requires only received 31% of the vote between them.  Five other parties received enough votes to have members in the Greek Parliament.” James Turk continues: “These diverse groups probably mean any coalition to form a […]

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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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Savings, investment, and the Keynesian preference

| March 31, 2012 | Articles: Insights

Neo-classical economists underestimate the importance of the link between savings and investment. The two should be regarded as linked together: you need savings to be available for investment in new …

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Gold and silver prices holding above important support

Gold and silver are holding above important support levels, despite selling pressure yesterday. The gold price moved back above $1,660 this morning, after flirting with $1,650. The silver …

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