Flows this week

In Europe, institutional and individual investors alike are showing renewed interest in gold. The reasons for this trend are manifold: negative interest rates, the set-back of equity markets in Q4/2018, slowing economic growth, and a growing distrust in the sustainability of the global political and economic order and the stability of financial markets.

The co-chief investment officer of the world’s biggest hedge fund has said gold could surge to a record high above $2,000 an ounce as global political uncertainties increase.

Jensen also told the paper he believed the US Federal Reserve would let inflation run hot for a while, creating the circumstances for higher gold prices as investors turn to the precious metal to hedge inflationary forces.

The true colours of the Germany government in its war on gold and war on citizen privacy are now obvious for all to see. Precious metals dealers in Germany will now have to keep details of all transactions above €2,000 for a statutory retention period of 5 years, and dealers must grant access to these records should supervisory authorities request them. Like all statists, with the data now being recorded, the authorities will in future have a temptation to ask for it.

COTs this week

CME raises gold margins by 11% & silver margins by 6%

UK flows for October

COTs last week

But with only 1173 tonnes of real physical gold held in the LBMA commercial vaults that is unconnected to ETFs out of a total of 3076 tonnes, this means that only 38% of the gold in the LBMA commercial vaults is available to support the London gold market. However, in reality, out of the ‘record’ 8228 tonnes of gold which the LBMA claims is held in London, only 14% of this total (1173 tonnes) is available to ‘underpin’ the giant gold trading and clearing casino that is the London gold market on any normal trading day.

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