Saturday, October 14 2017

Where Gold Trade Goes If London Loses Its Grip

More important, the float the giant stockpile of gold that underlies trading is heavily concentrated in the city. More than 7,000 tons of gold and 32,000 tons of silver, collectively worth almost $320 billion, are stored in hidden vaults managed by the Bank of England, JPMorgan Chase & Co., HSBC Holdings Plc, ICBC Standard Bank Plc and others, the LBMA said. And as long as the gold’s here, and the industry is willing to adapt to change, London will probably remain a force in the gold market.

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Friday, October 13 2017

Why Can’t Gold Keep Up with Bitcoin?

Gold has for hundreds of years been a safe haven of steady growth investment, due to its stability and attachment to geopolitical events. Through the years, and changes in monetary policies, even the inflation of currencies, gold has remained steady.

However, there’s a new kid on the block when it comes to a store of wealth, especially one that is unmatched by any centralized authority. Bitcoin has been ruling the roost when it comes to asset growth that is similar to gold.

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Thursday, October 12 2017

Chinese SGE Gold Withdrawals

SGW withdrawals were 214 tonnes for September

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Wednesday, October 11 2017

LME to expand trading around gold and silver reference prices

Adding further clearing members is a top priority for the exchange as it looks to expand volumes on LME precious, the suite of gold and silver spot and futures it launched in July, Chamberlain said.

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Is Gold Really a Good Hedge?

Given the solid performance of a portfolio including gold and the chance that the comfort of owning some might prevent investors from panicking at the height of a crisis, I have to conclude that the notion of gold as a hedge against serious risk aversion is true.

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Sunday, October 8 2017

Is Bitcoin Killing Gold?

Bitcoin and all the other cryptocurrencies are gaining traction, that is clearly shown by trading volumes and Google search data.But the traction the cryptocurrencies have gained is NOT killing the physical gold market.

However, I do believe the junior mining executives will have to do a better job of retaining and attracting the speculative dollars available to buy their stock. Now, more so than ever, speculators have access to new or previously forbidden sectors like cryptocurrencies and the 400+ marijuana companies in North America. Weak and struggling junior resource stocks will wither and die at faster rates.

Like it or not, gold executives and gold investors, you have a major new competitor in the form of cryptocurrencies.

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EuroStat Gold Imports & Exports

Euro imports/exports for July - 60 tonnes leaves London

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Gold Can Help India Set Global Agenda On Monetary Policy

Gold could well be on the cusp of a historic move — not merely from a price action standpoint — but from the perspective of how global monetary policy is conducted.

Gold is money and currencies have to be backed to anywhere between 40 to 100 per cent by gold for them to have legitimacy as legal tender in the free market.

The one complicating factor would be the unfunded liabilities of all major governments that could dwarf the existing currency in circulation by a factor of 10 or more (US unfunded liabilities, according to academic Lawrence Kotlikoff, could be higher than $250 trillion).

Ignoring all of those complexities, the math after making reasonable assumptions for the reserves of the Western central banks would lead to a five-figure price for gold (in $/ounce) where the first digit need not necessarily be 1.

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Saturday, October 7 2017

LBMA Transfers

Gold/Silver Transfers for August

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Turkey Gold Imports

Turkey imports for September were 28.5 tonnes.

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Intraday Averages For Gold/Silver

Intraday averages for September.

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Here’s Why Bitcoin Won’t Replace Gold So Easily

But I don’t think for a second that cryptocurrencies will ever replace gold, for a number of reasons. For one, cryptos are strictly forms of currency, whereas gold has many other time-tested applications, from jewelry to dentistry to electronics.

Unlike cryptos, gold doesn’t require electricity to trade. This makes it especially useful in situations such as hurricane-ravished Puerto Rico, where 95 percent of people are reportedly still without power. Right now the island’s economy is cash-only. If you have gold jewelry or coins, they can be converted into cash—all without electricity or WiFi.

Finally, gold remains one of the most liquid assets, traded daily in well-established exchanges all around the globe. Every day, some £13.8 billion, or $18 billion, worth of physical gold are traded in London alone, according to the London Bullion Market Association (LBMA). The cryptocurrency market, although expanding rapidly, is not quite there yet.

I will admit, though, that bitcoin is energizing some investors, especially millennials, in ways that gold might have a hard time doing. The proof is all over the internet. You can find a number of TED Talks on bitcoin, cryptocurrencies and the blockchain, but to my knowledge, none is available on gold investing. YouTube is likewise bursting at the seams with videos on cryptos.

Bitcoin is up 350 percent for the year, Ethereum an unbelievable 3,600 percent. Gold, meanwhile, is up around 10 percent. Producers, as measured by the NYSE Arca Gold Miners Index, have gained 11.5 percent in 2017, 23 percent since its 52-week low in December 2016.

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The Gold Worm on the Yuan Hook

Once the oil exporters accept the deal, they will all be permanently caught. The price of gold will begin to rise, and rise and rise as more and more oil income is exchanged for gold. Thus, the gold income received from prior oil sales will become much more valueable for the oil exporters. I do not see the price of oil going up in terms of yuan. The first sellers of oil to China in exchange for yuan, and then exchangeable for gold, will get a lot of gold for their oil. As the scheme progresses, the oil exporters will get progressively smaller amounts of gold for their oil.

As gold commences a historic rise, the dollar will suffer a historic decline in acceptability, because higher gold means a lower dollar – more dollars will be needed to purchase gold.

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Friday, October 6 2017

India Gold/Silver Imports/Exports

Indian imports for August

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US Mint Coin Sales

Sales for September

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Perth Mint Coin Sales

Sales for September

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Thursday, October 5 2017

German investment market

Germany’s gold investment market has boomed in the past 10 years. In the face of successive financial crises and loose monetary policy, German investors turned to gold to protect their wealth. In response, new product providers entered the market making it easier for people to invest. Last year, more than €6bn was ploughed into gold investment products in Germany and, encouragingly, there is room for further growth: consumer research indicates there is latent retail demand which the industry can tap into.

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Paulson Says Sprott, Others Keen to Join Gold-Investors Group

Last week, billionaire John Paulson said his firm will spearhead the creation of the Shareholder’s Gold Council to give a greater voice to institutional investors on matters including board appointments, pay plans and mergers. The group is meant to rein in what Paulson called years of bad management at many gold-mining companies.

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Gold is up this year not just in dollars but in every major currency

As long as the low interest rate environment and concerns about overvaluation in the stock and bond markets persist, asset managers and investors are likely to continue shifting resources to underpriced gold (and silver). Given forward guidance provided by the central banks, it appears those policies and concerns will be with us for years to come.

Thus far, gold's performance against major currencies has flown under the radar in financial circles and outside the notice of the mainstream media. That is not likely to remain the case for long.

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Wednesday, October 4 2017

Russia's rush for gold sees record reserves for Putin era

Meanwhile, the Bank of Russia has more than doubled the pace of gold purchases, bringing the share of bullion in its international reserves to the highest of Mr Putin's 17 years in power, according to World Gold Council data.

In the second quarter alone, it accounted for 38pc of all gold purchased by central banks. The gold rush is allowing the Bank of Russia to continue growing its reserves while abstaining from purchases of foreign currency for more than two years. It's one of a handful of central banks to keep the faith as global demand for the precious metal fell to a two-year low in the second quarter. But what may matter most is that gold is as geopolitics-proof an investment as any in the age of sanctions and a deepening rift with the US.

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