Tag - Gold

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Sunday, October 21 2018

Blockchain Could Track the Globe’s Gold Bullion by 2019

The tracking of gold bullion from its origin through its ownership and use cycle could prevent theft. It could also prevent illegal sales, smuggling, and use funding conflict and terrorism. Blockchain technology presents a way to remove illegal or unethical gold from the markets.

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Wednesday, October 17 2018

Fractional reserve bullion banking and gold bank runs

Below is a series of post explaining how bullion banking operates, which is necessary for a true understanding of how susceptible it is to a gold bank run, as well as understanding how a price suppression (as opposed to manipulation) would work, in respect of what backs paper gold and how much physical is needed to support the system.

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Wednesday, October 10 2018

5 Charts That Show Why Gold Belongs in Your Portfolio Now

The annual “In Gold We Trust” report by Liechtenstein-based investment firm Incrementum is a must-read account of the gold market, and its just-released chartbook for the 2018 edition is no exception.

The strengthening U.S. dollar has lately dented the price of gold, and rising interest rates are making some yield-bearing financial assets more attractive as a safe haven. But as Incrementum shows, there are many risks right now that favor owning gold in your portfolio.

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Friday, October 5 2018

In Gold We Trust Chartbook

Charts from the 2018 presentation

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Advocacy Group Raises Questions About Cambodia's Gold Imports

Cambodia imported about $15 billion worth of gold during five years from Singapore, according to government statistics compiled by nongovernmental organization Mother Nature Cambodia — a figure so large, corruption monitor groups say it raises alarms about potential financial crimes, particularly smuggling.

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Tuesday, October 2 2018

LBMA Clearing and Vaulting data reveal the absurdity of the London 'Gold' Market

On a monthly basis, the London Gold Market looks to be trading about 130,000 tonnes of gold (assuming 22 trading days per month). On an annualised basis, the 189 million ounces (5880 tonnes) of gold traded each day in London (based on the August clearing figures and a 10 to 1 trading multiple) and assuming 250 trading days in a year, would imply that 47.25 billion ounces of gold are traded each year in the London OTC gold market, or 1.47 million tonnes of gold.

But importantly, the London Gold Market, along with COMEX are the two most influential trading venues for gold price discovery and for establishing the international gold price, even though the trading in both venues is far removed from trading physical gold.

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Thursday, September 6 2018

Asia’s super rich advised to add more gold to their portfolios to protect assets amid storms pounding equity markets

Advisers to Asia’s super rich think their clients should put more of their money into gold, taking advantage of price declines to buy the yellow metal amid volatile global markets and US-China trade tensions, a new report said.

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Wednesday, September 5 2018

Japan braces for gold smuggling rush in shadows of tax hike

As Japan prepares to raise the consumption tax for the first time in half a decade next year, the Ministry of Finance worries that gold smuggling will also get a boost.

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Monday, September 3 2018

As Emerging Market Currencies Collapse, Gold is being Mobilized

Physical gold takes centre-stage in times of crisis precisely because it has tangible value, is not issued by any central bank, monetary authority or government, cannot be debased and has no counterparty or default risk. The fact that sophisticated physical gold markets exist in most if not all of the economies currently stricken by currency weakness also allows gold, with its deep liquidity, to be quickly harnessed.

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Sunday, September 2 2018

Gold could yet make a comeback as a reserve currency

So, how can Iran, Russia, and Turkey escape the sanctions stick? They could make their currencies as good as gold. This would provide an attractive escape.

Gold is already an international currency that holds its purchasing power over time. It is also a currency that is not issued by a sovereign. So, it has no political baggage to carry.

In addition, gold is already widely revered and used in Iran, Russia, and Turkey.

In 1997, Bob Mundell predicted that “Gold will be part of the structure of the international monetary system in the 21st century.” As has often been the case, Mundell’s prediction might just be prescient.

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Wednesday, August 29 2018

Venezuela to Sell Gold Ingots to Pensioners as Inflation Soars

President Nicolas Maduro said Venezuela will begin to sell certificates backed by gold ingots as a savings mechanism starting next month.

The certificates, backed by 1.5 grams and 2.5 grams of gold, are meant as tools for pensioners and others to save money and use as credit lines to acquire cars and other items, Maduro said in a televised address. The gold is meant as a more stable way for Venezuelans to hold their diminishing funds as inflation in the socialist nation runs at over 100,000 percent.

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Tuesday, August 28 2018

Jim Sinclair & Bill Holter - The World Is Venezuela

$174,000 per Ounce Gold Not Funny-Scary - Jim Sinclair & Bill Holter

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Thursday, August 23 2018

So That’s How It’s Going To Be, Vanguard?

Does This Mean Gold Has Found A Bottom?

There could be a silver lining here. Some analysts see Vanguard’s move as a further sign that the gold market has found a bottom—and that the metal could be teeing up for a reversal.

You see, this isn’t the first time Vanguard changed the fund. In 2001, when gold was similarly near a bottom, the company removed the word “Gold” from what was then the Vanguard Gold and Precious Metals Fund.

The change coincided with a decade-long precious metals bull run that saw gold rally from an average price of $271 an ounce in 2001 to an all-time high of more than $1,900 in September 2011. That’s more than a sevenfold increase.

And now it’s dropping the fund altogether.

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Saturday, August 4 2018

Wait Until You See the Price of Gold in Venezuela Right Now

Last month in Venezuela’s capital city of Caracas, a cup of coffee would have set you back 2 million bolivars. That’s up from only 2,300 bolivars 12 months ago, meaning the price of a cup of joe has jumped nearly 87,000 percent, according to Bloomberg’s Café Con Leche Index. And you thought Starbucks was expensive.

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Thursday, August 2 2018

Gold Demand Trends Q2 2018

ETF inflows have steadied at low levels in recent quarters, making for weak y-o-y comparisons. Q2 jewellery demand dipped 2% to 510.3t, largely due to a weaker Indian market. The pace of central bank buying also slowed in Q2 (-7%). Bar and coin demand was virtually unchanged as growth in a few key markets cancelled out weakness elsewhere. Technology demand provided some relief, adding 2% to reach a three-year high. Gold supply notched up a second consecutive quarter of growth, (up 3%) reaching 1,120.2t.

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Wednesday, August 1 2018

Spotlight on the HUI and XAU Gold Stock Indexes

Probably the two best known gold mining stock indexes in the world’s financial markets are the HUI and the XAU. HUI is the ticker symbol for the NYSE Arca Gold BUGS Index. XAU is the ticker symbol for the Philadelphia Gold and Silver Index. Both of these monikers make an appearance on many gold related websites and many general financial market websites as well, so its worth knowing briefly what these indexes are and what they represent.

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Sunday, July 22 2018

Russia ditching US Treasuries for gold in bid to protect economy & diversify

Russia has left the top-30 list of top lenders to the United States by radically slashing US Treasury bills ownership. RT-polled analysts have shared their opinion on the move.

“Both political and economic reasons could be found here. The Central Bank may have thought that Russia-owned Treasuries could be frozen because of geopolitical tensions. The regulator announced in spring that it plans to diversify its reserves,” said Zhanna Kulakova, financial consultant at TeleTrade.

The analyst thinks the Russian central bank could re-invest the money from the sale into Chinese bonds and gold. “Gold is a tangible asset that can not be completely depreciated under any circumstances. In periods of global financial or political crises, gold will be much more useful than securities or cash,”

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Thursday, July 19 2018

GOLD - Blood In the Streets ?

The good news for gold bulls is that the weaker hands in the ETFs have sold out, the speculative long overhang on CME has all but disappeared and we have absorbed about 700 tonnes of leveraged selling (and we are now at levels not seen since early 2016), while the demand for physical reported by the Mints around the world are at generational lows. Indian demand is patchy and Chinese demand only adequate. I might add that the term "buy gold" on Google Trends has just slipped to a decade low. Further, gold's Relative Strength Indicator on the charts has slipped to below 24 confirming its oversold status. Not exactly blood in the streets yet - but for businesses in our space, it is certainly tough.

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Tuesday, July 3 2018

Reflections in a Golden Eye

“Significant increases in inflation will ultimately increase the price of gold. Investment in gold now is insurance. It’s not for short-term gain, but for long-term protection. I view gold as the primary global currency. It is the only currency, along with silver, that does not require a counter-party signature. Gold, however, has always been far more valuable per ounce than silver. No one refuses gold as payment to discharge an obligation. Credit instruments and fiat currency depend on the credit worthiness of a counter-party. Gold, along with silver, is one of the only currencies that has an intrinsic value. It has always been that way. No one questions its value, and it has always been a valuable commodity, first coined in Asia Minor in 600 BC.”

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Friday, June 15 2018

Why a seemingly run-of-the-mill announcement yesterday by Fed chairman Powell might signal a major turning point for the gold market.

Obviously, a healthy number of market participants share our view that the Fed is interested in stimulating the money supply and inflation, or in the very least, interested in letting the markets know it will stay out of the way should both begin to increase. That message was received loud and clear, though it might take some time for the impact to be completely understood and priced into various markets.

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