Tag - Fiat Gold

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Wednesday, August 10 2016

Gold Back to Futures on London Metal Exchange After 30 Years

Three decades after London’s exchange-traded gold contract flopped, it’s coming back.

The LME’s previous attempt at trading gold lasted three years with the venture, London Gold Futures Market, closing in 1985 because of a lack of domestic investor and speculator interest.

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Tuesday, August 9 2016

The Charade Continues - London Gold and Silver Markets set for even more paper trading

Today the London Metal Exchange (LME) and the World Gold Council (WGC) jointly announced (here and here) the launch next year of standardised gold and silver spot and futures contracts which will trade on the LME’s electronic platform LMESelect, will clear on the LME central clearing platform LME Clear, and that will be settled ‘loco London’. Together these new products will be known as ‘LMEprecious’ and will launch in the first half of 2017.

However, although these contracts are described by the LME as delivery type ‘Physical’, settlement of trades on these contracts merely consists of unallocated gold or silver being transferred between LME Clear (LMEC) clearing accounts held at London Precious Metals Clearing Limited (LPMCL) member banks (i.e. paper trading via LPMCL’s AURUM clearing system).

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Thursday, May 26 2016

Billionaires Are Wrong

Typically the billionaires are ahead of the curve, making their investments before the market recognizes the trend, and increasing their wealth while everyone else wonders what happened. High net worth individuals and other savvy investors realize that owning gold is one of the best ways to manage systemic risk. However, in this case both Druckenmiller and Paulson have the right idea but the wrong execution. Instead of acquiring physical bullion stored on an allocated basis, these billionaires chose proxies of gold in the form of ETFs. Their investments in ETFs may ultimately negate the very reason for investing in gold in the first place. Only physical gold provides true diversification outside of the financial system. Physical gold is immune from counterparty risk or liquidity constraints. Investing in gold proxies may work under normal conditions for short-term trades and hedging strategies, but will be subject to the same systemic risks that financial assets will incur. The time when you need the protection of gold the most is the time when these proxies are most likely to fail and not provide the portfolio protection of bullion owned directly.

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Sunday, April 10 2016

Here’s Why You Should Stay Away from Gold ETFs

Your risk? You decide you want gold bullion but can’t get any. Your only option is to sell the fund for cash. Either way, you don’t own any gold.

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Saturday, April 9 2016

Warren Buffett’s Father, Gold, and Liberty

When our wealth is stolen (by the trillions of dollars), via the money-printing of which we were warned by Keynes, Howard Buffett, and Greenspan, where does all this stolen wealth go? It disappears into the vaults of the wealthy oligarchs who control those printing presses, along with their friends (like the Oracle of Omaha).

How do the ultra-wealthy become ultra-wealthy? They do it the old-fashioned way: they steal their fortunes from the people. Gold (and a gold standard) protects the wealth of the people from having that wealth stolen. It stops those oligarchs from “creating wealth” (i.e. stealing ours).

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Wednesday, April 6 2016

CME Group Achieved Record Average Daily Volume of 16.9 Million Contracts per Day

CME Group, the world's leading and most diverse derivatives marketplace, today announced that first-quarter 2016 volume averaged a record 16.9 million contracts per day, up 13 percent from first-quarter 2015. CME Group first-quarter 2016 options volume averaged a record 3.5 million contracts per day, up 22 percent versus first-quarter 2015, with electronic options averaging 1.8 million contracts per day, up 26 percent over the same period last year. March 2016 volume averaged 14.3 million contracts per day, up 4 percent from March 2015. Open interest at the end of March was 106 million contracts, up 16 percent from year-end 2015.

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Saturday, March 5 2016

Gold Demand Trips Up BlackRock as ETF Halts Share Creation

BlackRock Inc. on Friday temporarily stopped issuing new shares in its $7.7 billion iShares Gold Trust, as surging interest in the precious metal caught the world’s largest money manager off guard.

Investors had piled into the fund so fast that BlackRock didn’t register in time with the U.S. Securities and Exchange Commission to issue more shares. The suspension means that the share price of the fund may deviate from the price of its underlying assets the physical gold until issuance resumes, probably within two or three business days, according to a person familiar with the matter.

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Thursday, February 25 2016

CME Raises Gold Margins

CME Raises Gold Margins

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Monday, January 18 2016

India's gold bonds seen luring investors in search of safe haven

The second tranche of India's sovereign gold bonds, whose sale began on Monday, is likely to draw good response from investors, as they are priced below market rates for the metal and sharemarket turmoil spurs investors to diversify holdings.

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Friday, April 10 2015

Annual gold trade reaches $22 TRILLION

Global trading volumes in 2014 was three times more than the 183,600 tonnes of the precious metal that have been produced in human history.

At an estimated $22 trillion trading value per year, the gold market dwarves turnover on the Dow Jones Industrial Index and that of the S&P 500 combined, German and UK government bonds and even some of the top currency pairs.

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Wednesday, February 18 2015

Paulson Keeps Gold Stake as Investors Lose Love for Metal

Paulson & Co., the largest holder of the SPDR Gold Trust, kept its stake at 10.23 million shares in the three months ended Dec. 31, a government filing showed. The position was unchanged for a sixth straight quarter.

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Soros Fund cut Market Vectors Gold Miner ETF stake in Q4 2014

Soros Fund Management LLC cut its stake in Market Vectors Gold Miners ETF by 27 pct in the fourth quarter of 2014

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Tuesday, July 22 2014

2 Reasons to Check Out Sprott’s New Gold Miner ETF

What makes it so appealing? There are two aspects of this fund that I like when compared with the other gold miner ETFs on the market. The first is that it doesn’t simply try to mimic a market-cap weighted index.

The second thing that makes the Sprott Gold Miners ETF attractive is that each quarter the fund is re-weighted. This means that the fund is going to take profits on its outperformers and reallocate this capital to the underperformers.

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Tuesday, July 15 2014

The End of the Paper-Gold Market?

An important subject in precious metals markets which does not draw enough attention from commentators in this sector are the inherently fraudulent paper-called-gold (and paper-called-silver) “products” which the bankers peddle to the foolish. Numerous, previous commentaries have drawn attention to various facets of this fraud.

However, my own reporting on this subject changed dramatically, beginning in the spring of 2013. Astute readers will recall that this marked the beginning of an extraordinary series of events. First the One Bank (and its lackey politicians) introduced the world to its newest form of serial stealing : the “bail-in”.

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Wednesday, July 9 2014

Indians on the run. Also, read the new fine print.

At one time the hottest selling funds in India, gold exchange traded funds, have largely fallen out of grace with the investing community.

Gold ETFs also have a new element of risk. These schemes, which earlier held physical gold equivalent to the unit holders’ investments, could now tend to lend a portion of these, as part of a government move to meet gold demand through domestic sources.

In other words, ETFs in India do not directly hold all the gold their investors have paid for. This has introduced an element of credit risk to these funds, analysts maintain.

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Wednesday, June 18 2014

Your gold ETF has changed

Gold exchange traded funds (ETFs) have a new element of risk. These schemes which earlier held physical gold equivalent to the unit holders’ investments, now lend a portion of these, as part of a government move to meet gold demand through domestic sources.

This means they no longer directly hold all the gold their investors have paid for. This introduces an element of credit risk to these funds, say experts.

Goldman Sachs Asset Management runs India’s largest gold ETF. It issued a note to investors last month that the risk profile of the product had changed. “A situation could arise where the issuer is unable to return the principal physical gold to GS Gold BeES (their scheme) upon maturity or in case of an early redemption. Such inability to return physical gold could arise on account of liquidity problems or general financial health of the issuer,” said the note.

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