Tag - Gold

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Friday, April 3 2020

Germany Hoarding Gold to Prepare For Currency Reform, Italy Dishoards

The Germans are wary of inflation, for which they hold physical gold as insurance. In the 2011 survey by CFin, more than 80% of the respondents said to “buy gold because of the preservation of value and protection against inflation.”

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Tuesday, March 24 2020

Huge spreads occurring in gold prices

The London Bullion Market issued this statement to Kitco News:

“The London gold market continues to be open for business. There has, however, been some impact on liquidity arising from price volatility in Comex 100-oz ounce futures contracts. LBMA has offered its support to CME Group to facilitate physical delivery in New York and is working closely with Comex and other key stakeholders to ensure the efficient running of the global gold market.”

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Gold futures prices soar over $100 on London spot confusion

Trading has been wild Tuesday morning amid unconfirmed reports that London spot gold price quotes have become unreliable or have been pulled as U.K. market-makers shut down due to the Covid-19 outbreak and the U.K. government ordering the country on lock-down. Apparently, big gold traders and commercials in Europe who normally base their trading decisions on the London spot price rushed to buy Comex gold futures when they could not get London what they felt were accurate London spot gold prices.

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Monday, March 23 2020

In gold market coverage, Reuters confuses key points on demand, supply and pricing

This surge in demand for physical bullion is across the board and is not just in Singapore, with dealers globally facing the same demand surge for physical. Given the huge increase in demand, there is now a supply squeeze in the precious metals supply chain, with gold refineries, mints and wholesalers running out of stock. These bullion shortages are getting worse every day, and there are long delays on replenishing inventory.

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Saturday, March 21 2020

The Royal Canadian Mint - Temporary Suspension

The Royal Canadian Mint is implementing a temporary suspension of production effective Friday, March 20, for a period of two weeks.

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Thursday, March 19 2020

The Window to Purchase Precious Metals with Fiat Currency is Closing

More and more refineries, mints and fellow bullion dealers are suspending their operations indefinitely.

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Wednesday, March 18 2020

The Demise Of The Financial System Is Imminent

Due to Coronavirus, the Swiss refiners are now cutting down on production as they must reduce the work shifts. At some point it is possible that production must shut down completely. At this stage decisions are taken from day to day. This is likely to lead to shortages of both gold and silver in the short to medium term.

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Monday, March 16 2020

Will Gold be the Last Man Standing as Perfect Storm hits Markets?

On the demand side, there is very strong and prolonged demand for physical investment precious metals bars and coins. In any properly functioning market, if demand is greater than supply and there is little supply at the current price, then the price goes up or re-rates to a higher level. But this has not been the case with the gold price. Why? Because the price has been subdued and has led to a mis-allocation of supply. Lack of supply leads to an increase in wholesaler premiums, which in turn leads to an increase in retailer premiums to reflect the demand situation. This in turn leads buyers to notice the price disconnect of physical from the price of ‘paper’ precious metal and question the incumbent price discovery mechanism. If only the same was true of financial reporters, who continue to regurgitate ‘margin call’ hearsay.

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Sunday, March 15 2020

Price Of Physical Gold Decouples From Paper Gold

By now it is abundantly clear that the physical gold market and paper gold market will disconnect.

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Saturday, March 7 2020

In Gold We Trust 2020 Preview Chartbook

As a team, Ronald-Peter Stöferle and Mark Valek analyze the state of the global financial markets, monetary dynamics and their influence on gold price developments like no other.

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Monday, March 2 2020

Physical Gold Demand at Record Levels, Paper Gold Price Disconnect

Over the last week, the gold price has made new all-time highs in many major currencies, which has benefited the many savers and investors in gold whose home currencies are those other than the US dollar.

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Saturday, February 29 2020

The Greatest Gold Quotes of All Time

People have treasured gold for millennia. They’ve draped it over the bodies. They’ve used it as money. They’ve even adorned their tombs with the yellow metal. As beloved as it is, it should come as no surprise that gold has been the subject of many famous quotes.

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Peak Gold a Longer-Term Story

Looking ahead longer-term, a key driver of the yellow metal’s price is expected to be a steady decline in global output year after year. The following chart, borrowed from Barrick Gold CEO Mark Bristow’s presentation this week at BMO Capital Markets Global Metals & Mining Conference, shows that global gold production will begin to taper off starting next year, and by the end of the decade, should be at multi-year lows. No region is expected to see an increase in production.

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Monday, February 24 2020

Gold Past $10,000

The money to push gold over $10,000 per ounce has already been printed.

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Tuesday, February 11 2020

China’s gold market not immune to a wider downturn

As the Chinese economy continues to be disrupted by the outbreak of the novel coronavirus and parts of China’s economy come to a virtual standstill, it would be unrealistic to expect that the Chinese gold market, the world’s largest, will not be adversely impacted.

From quarantined cities to lower consumer demand, from reduced flight traffic to closed frontiers and boarders, the economic shock to diverse sectors of the economy, including the domestic gold market, should not be underestimated.

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Friday, January 31 2020

Hitting Zero: 700 Years of Declining Global Real Interest Rates

One of the key drivers … for the US dollar gold price is real interest rates. It is thought that when interest rates on long-term sovereign bonds, minus inflation, are falling, it becomes more attractive to own gold as it is a less risky asset than sovereign bonds (gold has no counterparty risk).

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Wednesday, January 15 2020

Europe's Renewed Interest in Gold

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.

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China’s Gold Hoarding: Will It Cause the Price of Gold to Rise?

There are reasons to think that the gold price will rise faster than expected.

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Monday, January 6 2020

The West-East Ebb and Flood of Gold

The West-East ebb and flood pattern holds that physical gold migrates from the West to the East when the gold price declines, and from the East to the West when the price of gold rises. What causes this pattern is that gold trades more like a currency than a commodity and that in the past decades, the West has mainly set the price. Cultural differences between West and East can explain the pattern.

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Saturday, December 21 2019

Paul Volcker: The Man Who Vanquished Gold

Mr. Volcker certainly deserves credit for curbing the Great Inflation of the 1970s. However, he also merits a lion’s share of the blame for unleashing the Great Inflation on the US and the world economy in the first place. For it was Mr. Volcker who masterminded the program that President Nixon announced on August 15, 1971, which unilaterally suspended gold convertibility of US dollars held by foreign governments and central banks, imposed a fascist wage-price freeze on the US economy, and slapped a 10 percent surcharge on foreign imports.

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