No surprises here then!Just 31 tons to go! Russia added 25 tons of gold in July putting total gold reserves at 1,969 tons. Russia should have 2,000 tons by Labor Day. pic.twitter.com/znJpTXVsQV— Jim Rickards (@JamesGRickards) August 20, 2018
Showing posts with label gold. Show all posts
Showing posts with label gold. Show all posts
Tuesday, August 21, 2018
Russia Dumping US Treasuries and Moving To Gold
Friday, March 11, 2016
Draghi's Failed Bazooka - The War on Cash Begins
Draghi's attempt to stimulate the markets yesterday, via the ECB lowering rates to zero and boosting QE, crashed and burned in spectacular fashion yesterday.
All gains by the markets and the Euro went into sharp reverse by the end of the day, as people sought shelter in gold.
What is left now for the ECB and Draghi to do?
The war on cash will now being in earnest:
1 Negative interest rates are coming
2 There will be depositor bail ins, and
3 Cash (starting with high denomination notes) will be abolished.
One way or another the ECB will try to take control of the people's finances, and use it for their own "best interests".
In layman's terms that is dictatorship!
All gains by the markets and the Euro went into sharp reverse by the end of the day, as people sought shelter in gold.
What is left now for the ECB and Draghi to do?
The war on cash will now being in earnest:
1 Negative interest rates are coming
2 There will be depositor bail ins, and
3 Cash (starting with high denomination notes) will be abolished.
One way or another the ECB will try to take control of the people's finances, and use it for their own "best interests".
In layman's terms that is dictatorship!
Monday, March 03, 2014
Putin In Another World - Markets Panic
As the crisis in Ukraine escalates, exchanges in Europe and Russia are falling and commodity prices (gold and oil in particular) are rising as people seek "safe havens" for their money.
Russian assets in particular are falling, and the Russian central bank increased interest rates (the one-week repurchasing agreement was hiked from 5.5% to 7%) in order to prop up the falling rouble.
Reuters reports that the rouble fell 2% to 36.41 against the dollar and 1.2% to 50.10 against the euro, trading at all-time lows.
The rouble-denominated MICEX index of Russian shares tumbled 9.1% to 1,314.8 points and the dollar-denominated RTS .IRTS collapsed 10.3% to 1,137.1 points.
In effect the markets are reacting out of fear and panic, as and when some clarity emerges the markets will settle. However, there will be significant periods of instability in the coming weeks as there is little evidence that clarity will emerge anytime soon; not least because (as per the New York Times) Chancellor Angela Merkel of Germany told Mr. Obama by telephone on Sunday that after speaking with Mr. Putin she was not sure that he was in touch with reality, people briefed on the call said. “In another world” she said.
Suffice to say, Putin and his cronies will have made a fortune on their gold and oil futures!
Russian assets in particular are falling, and the Russian central bank increased interest rates (the one-week repurchasing agreement was hiked from 5.5% to 7%) in order to prop up the falling rouble.
Reuters reports that the rouble fell 2% to 36.41 against the dollar and 1.2% to 50.10 against the euro, trading at all-time lows.
The rouble-denominated MICEX index of Russian shares tumbled 9.1% to 1,314.8 points and the dollar-denominated RTS .IRTS collapsed 10.3% to 1,137.1 points.
In effect the markets are reacting out of fear and panic, as and when some clarity emerges the markets will settle. However, there will be significant periods of instability in the coming weeks as there is little evidence that clarity will emerge anytime soon; not least because (as per the New York Times) Chancellor Angela Merkel of Germany told Mr. Obama by telephone on Sunday that after speaking with Mr. Putin she was not sure that he was in touch with reality, people briefed on the call said. “In another world” she said.
Suffice to say, Putin and his cronies will have made a fortune on their gold and oil futures!
Wednesday, January 16, 2013
Bundesbank Repatriates Gold Bullion
The Bundesbank is to repatriate gold reserves held abroad in order to tighten control and combat future currency crises. It will repatriate a large percentage of its holdings from New York and all of its bullion from Paris.
This move signals the demise of the the Dollar as a reserve currency (as the gold stored in the Fed can be pledged to shore up the Dollar), and the resurgence of a quasi gold standard.
The lesson is clear, if you invest in gold do not rely on mere paper certificates to validate your holding.
This move signals the demise of the the Dollar as a reserve currency (as the gold stored in the Fed can be pledged to shore up the Dollar), and the resurgence of a quasi gold standard.
The lesson is clear, if you invest in gold do not rely on mere paper certificates to validate your holding.
Tuesday, October 23, 2012
Das Rheingold - The Funeral of Siegfried?
Germany, the economic "powerhouse" of Europe, is experiencing a crisis of confidence; so much so that in order to assuage some of the more extreme doubters, the Bundesbank audited its gold held in Frankfurt (lest people doubt that it had been sold off) and even allowed MPs to visit it to check for themselves.
So far so wunderbar!
Unfortunately, Germany also holds gold deposits abroad. The FT reports that Suddeutsche estimates about 1500 tonnes are held by the Fed, and about 800 tonnes by the central banks of England and France. The total value being approximately €133BN.
The German court of auditors has, not unreasonably, demanded regular audits of Germany's gold reserves abroad.
Fair enough, and perfectly reasonable, were it not for one "small" problem.
The last audits in New York were in 1979/80, and since then whilst the Bundesbank has been allowed into vault it has not been allowed to open the boxes in which the gold is allegedly stored.
As we all know markets are driven sentiment, and sentiment is affected by fear and doubt. Unless a full audit is conducted in the near future, the fear and doubt will grow to a critical mass and Siegfried may well meet his end.
Rumour has it that the US gold reserves in Fort Knox haven't been audited either, maybe the US needs to do the same as Germany and lance the boil of doubt?
Saturday, September 24, 2011
Six Weeks To Save The Euro
Six weeks is too far away (even if there was a "solution" waiting there for them).
Political timescales and market timescales are out of synch.
Our so called political "elite" are presiding over the shattered wreckage of their "world vision". They are in shock and denial that their world view has been destroyed. As such they are a danger to themselves and a danger to the world economy, as they are attempting to put in place "solutions" for a world vision that no longer exists.
IMO, Germany should leave the Euro and allow those who remain to devalue it to bring their shattered economies back from the dead.
Sadly, because those in charge still cling to the their shattered vision, the reality will be a Greek exit coupled with the PIIGS falling one by one.
In other news, gold fell last week not because of the strength of the dollar (as incorrectly reported in the media) but because news leaked to a few that gold margins were to be increased (news officially only released yesterday).
Political timescales and market timescales are out of synch.
Our so called political "elite" are presiding over the shattered wreckage of their "world vision". They are in shock and denial that their world view has been destroyed. As such they are a danger to themselves and a danger to the world economy, as they are attempting to put in place "solutions" for a world vision that no longer exists.
IMO, Germany should leave the Euro and allow those who remain to devalue it to bring their shattered economies back from the dead.
Sadly, because those in charge still cling to the their shattered vision, the reality will be a Greek exit coupled with the PIIGS falling one by one.
In other news, gold fell last week not because of the strength of the dollar (as incorrectly reported in the media) but because news leaked to a few that gold margins were to be increased (news officially only released yesterday).
Tuesday, August 02, 2011
Playing Politics With People's Lives - Satan's Sandwich
I see that the politicians on Capitol Hill have just about managed to act with some commonsense at the eleventh hour, and have passed a bill in Congress that allows the debt ceiling to be raised. The Senate is due to vote today.
Neither "left wing" democrats, nor the swivel eyed of the Tea Party are happy with the compromise.
Representative Emanuel Cleaver (Democrat), said:
"This deal is a sugar-coated Satan sandwich. If you lift the bun, you will not like what you see."
The bill raises the debt ceiling by $2.4 trillion, which theoretically will allow the government to meet its debt obligations until 2013.
However, $1 trillion will be cut immediately from government spending, with a further $1.4 trillion to be agreed by the end of the year.
The markets, having briefly rallied, fell as they digested the news that US manufacturing has grown at its slowest pace in two years.
Whilst all this self indulgent nonsense has been going on, those with an eye for playing the markets will have done very well out of the rise in value of gold then, if they anticipated the vote in favour of a deal, the fall back in value of gold.
Let us trust that those politicians who played games over this issue were not some of those who played the gold markets!
Neither "left wing" democrats, nor the swivel eyed of the Tea Party are happy with the compromise.
Representative Emanuel Cleaver (Democrat), said:
"This deal is a sugar-coated Satan sandwich. If you lift the bun, you will not like what you see."
The bill raises the debt ceiling by $2.4 trillion, which theoretically will allow the government to meet its debt obligations until 2013.
However, $1 trillion will be cut immediately from government spending, with a further $1.4 trillion to be agreed by the end of the year.
The markets, having briefly rallied, fell as they digested the news that US manufacturing has grown at its slowest pace in two years.
Whilst all this self indulgent nonsense has been going on, those with an eye for playing the markets will have done very well out of the rise in value of gold then, if they anticipated the vote in favour of a deal, the fall back in value of gold.
Let us trust that those politicians who played games over this issue were not some of those who played the gold markets!
Monday, July 25, 2011
Playing Politics With People's Lives
The markets are beginning to realise that, thanks to the intransigence of the politicians, the US may well default on its debts. The opening sessions in all major countries this week saw falls in their key indexes.
Sadly, the politicians are more concerned with playing politics with people's lives rather than raising the country's $14.3 trillion debt ceiling.
Some cynics are of the view that the chaos caused (and flight to gold - today it touched an all time high of $1,622.49 per ounce) by the ongoing impasse in raising the debt ceiling is benefiting those with an interest in gold.
Let us trust that those politicians who are blocking a deal are not found to have significant holdings of gold.
Sadly, the politicians are more concerned with playing politics with people's lives rather than raising the country's $14.3 trillion debt ceiling.
Some cynics are of the view that the chaos caused (and flight to gold - today it touched an all time high of $1,622.49 per ounce) by the ongoing impasse in raising the debt ceiling is benefiting those with an interest in gold.
Let us trust that those politicians who are blocking a deal are not found to have significant holdings of gold.
Monday, February 14, 2011
Shockingly Bad Value
The OFT have issued a scathing report about the business practices of various cash for gold companies, that buy people's gold jewelry at below market price and smelt it down.
CashMyGold, Cash4Gold and Postal Gold have all agreed to change their business practices as the OFT was concerned that people were being "locked into" accepting offers for their gold.
The firms state that customers can reject their cash offer. However, failure to contact the firm in the short time frame offered was taken as consent.
People who are desperate enough to use these firms are being given a very poor deal, as the prices that they can obtain from even pawn brokers are higher than offered by the cash for gold firms.
Which? found that these firms offered an average of 6% of the retail price of the gold, compared with an average of 25% offered by pawnbrokers and high street jewellers.
As Which? noted, this is "shockingly bad value"; it quite correctly warned people not to use them.
CashMyGold, Cash4Gold and Postal Gold have all agreed to change their business practices as the OFT was concerned that people were being "locked into" accepting offers for their gold.
The firms state that customers can reject their cash offer. However, failure to contact the firm in the short time frame offered was taken as consent.
People who are desperate enough to use these firms are being given a very poor deal, as the prices that they can obtain from even pawn brokers are higher than offered by the cash for gold firms.
Which? found that these firms offered an average of 6% of the retail price of the gold, compared with an average of 25% offered by pawnbrokers and high street jewellers.
As Which? noted, this is "shockingly bad value"; it quite correctly warned people not to use them.
Friday, March 14, 2008
The Flight To Commodities
Fear and panic are sweeping the world's financial markets as the effects of the ongoing credit crunch, self inflicted by the greed and stupidity of the banks, claimed another high profile victim.
Carlyle Capital Corporation (CCC), a $21BN mortgage fund, collapsed. This fund, although it invested in "high quality" mortgages, had leveraged itself to hilt. Thus proving the old adage, don't invest with money that you can't afford to lose.
The City is bracing itself for a string of similar fund collapses.
The result of this carnage is that there is a flight away from financial products to commodities. Gold is leading the way, breaking through the $1000 an ounce barrier.
This should come as "heartening" news to Gordon Brown who, when he was chancellor, sold much of Britain's gold reserves off for less than a third of that amount.
Could someone please ask him why he did that?
Carlyle Capital Corporation (CCC), a $21BN mortgage fund, collapsed. This fund, although it invested in "high quality" mortgages, had leveraged itself to hilt. Thus proving the old adage, don't invest with money that you can't afford to lose.
The City is bracing itself for a string of similar fund collapses.
The result of this carnage is that there is a flight away from financial products to commodities. Gold is leading the way, breaking through the $1000 an ounce barrier.
This should come as "heartening" news to Gordon Brown who, when he was chancellor, sold much of Britain's gold reserves off for less than a third of that amount.
Could someone please ask him why he did that?
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