Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
US House Prices Trend Forecast 2019 to 2021 - 20th July 19
MICROSOFT Cortana, Azure AI Platform Machine Intelligence Stock Investing Video - 20th July 19
Africa Rising – Population Explosion, Geopolitical and Economic Consquences - 20th July 19
Gold Mining Stocks Q2’19 Results Analysis - 20th July 19
This Is Your Last Chance to Dump Netflix Stock - 19th July 19
Gold and US Stock Mid Term Election and Decade Cycles - 19th July 19
Precious Metals Big Picture, as Silver Gets on its Horse - 19th July 19
This Technology Everyone Laughed Off Is Quietly Changing the World - 19th July 19
Green Tech Stocks To Watch - 19th July 19
Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals - 18th July 19
AI Machine Learning PC Custom Build Specs for £2,500 - Scan Computers 3SX - 18th July 19
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Inevitable US, UK, Japan, Euro Debt Downgrades Lead to Further Currency Debasement And Gold Safe Haven Demand

Commodities / Gold and Silver 2012 Feb 14, 2012 - 07:30 AM GMT

By: GoldCore

Commodities

Best Financial Markets Analysis ArticleGold’s London AM fix this morning was USD 1,721.00, EUR 1,303.10, and GBP 1,091.80 per ounce.

Yesterday's AM fix was USD 1,727.00, EUR 1,302.22, and GBP 1,093.17 per ounce.


Cross Currency Table – (Bloomberg)

Gold fell overnight in Asia despite the Moody’s European downgrades and very gold friendly news regarding the very poor Japanese and US fiscal positions. Moody’s Investors Service cut the debt ratings of six European countries including Italy, Spain and Portugal and said it may strip France and the U.K. of their top Aaa ratings

Gold rose in Japanese yen again this morning after the Japanese announced that they are further expanding their “asset-purchase program” while keeping interest rates at zero and increasing the size of its “powerful monetary easing” to ¥65 trillion ($835.83 billion) from ¥55 trillion, with the net ¥10 trillion increase earmarked for the purchase of Japanese government bonds.

Gold Spot $/oz (Bloomberg)

Safe haven demand for gold continues due to concerns that Greece’s “bail out” is yet another short term panacea and Moody's downgrade of various European nations' ratings have reignited contagion fears.

Greece is but a small pebble in the pond when compared to the huge levels of debt seen in Japan, the UK, the US. The Moody’s downgrade may cause ripples in markets which could lead to waves which could coalesce a tsunami of financial contagion across Europe and much of the world.

While all the focus has been on Greece in recent days, the global nature of the debt crisis came to the fore yesterday and overnight. This was seen in the further desperate measures by the BOJ and Moodys warning that the UK could lose its AAA rating. Some of us have been saying for some years that this was inevitable but markets remain myopic of the risks posed by this.

Possibly the greatest risk is that of the appalling US fiscal situation which continues to be downplayed and not analysed appropriately. President Obama unveiled a massive $3.8 trillion budget yesterday and he is to increase Federal spending by 53% to $5.820 trillion by 2022.

U.S. NATIONAL DEBT CLOCK

The Outstanding Public Debt as of 14 Feb 2012 at 11:00:00 AM GMT is:

The estimated population of the United States is 312,222,693 so each citizen's share of this debt is $49,221.89.

The National Debt has continued to increase an average of $3.98 billion per day since September 28, 2007.

The US government is projected to spend over $6 trillion a year by 2022. Still bizarrely unaccounted for is the ticking time bomb of unfunded entitlement liabilities - Social Security and Medicare, which Washington continues to deal with by completely ignoring them.

While Washington and markets are for now ignoring the fiscal train wreck that is the US. This will change with inevitable and likely extremely negative consequences for markets – particularly US bond markets and for the dollar.

The coming US sovereign debt crisis in conjunction with the massive fiscal challenges facing the UK, Japan and Euro Zone countries makes gold an essential diversification today.

Indeed, not owning gold and those who advise against owning gold are irresponsible and imprudent in the extreme.

For breaking news and commentary on financial markets and gold, follow us on Twitter.

OTHER NEWS
(Reuters Global Gold Forum) -- The world's first yuan-denominated gold ETF has got off to a lukewarm start on the HK stock exchange today, but the expectation in the analyst community is that demand will pick up as investors become more familiar with this sort of product.

(Bloomberg) -- Gold Held in Exchange-Traded Products 0.1% From All-Time High
Gold holdings in exchange-traded products backed by bullion stood at 2,390.065 metric tons yesterday, data compiled by Bloomberg show. This is about 0.1 percent, or 2.9 tons, from a December 13 record of 2,392.976 tons.

(Bloomberg) -- Touradji Sold Entire Stake in SPDR Gold Trust in Fourth Quarter
Touradji Capital Management LP, founded by Paul Touradji, sold its entire stake of 45,000 shares in the SPDR Gold Trust as of Dec. 31, a U.S. Securities and Exchange Commission filing showed today.

The SPDR trust is the biggest exchange-traded product backed by physical gold.

(Bloomberg) -- GLG Partners Sells Stake in SPDR Gold Trust in Fourth Quarter
GLG Partners LP sold its stake in the SPDR Gold Trust, an exchange-traded product backed by the precious metal, during the fourth quarter, a filing with the U.S. Securities and Exchange Commission showed.

GLG held no shares as of Dec. 31, down from 94,675 at the end of the third quarter, according to a 13F filing today. SPDR is the biggest exchange-traded product backed by gold.

(Bloomberg) -- Ethiopia Buys More Gold, Fuelling Money Supply, AFDB Says
Ethiopia’s central bank bought more gold from artisanal miners in the 2010-11 fiscal year than it planned to purchase within five years, fuelling money supply growth, the African Development Bank said.

The National Bank of Ethiopia acquired 6,615 kilograms (212,677 ounces) during the period, compared with the 5,250 kilograms it planned to buy over the 2010-15 period, the Tunis- based lender said in an e-mailed statement today. In the first quarter of the current fiscal year, the bank bought $109.5 million of gold from miners, 52 percent more than planned, it said.

“This unprecedented purchase of gold by the central bank has an effect similar to quantitative easing, as the monetary authority is injecting more money into the economy while reallocating its portfolio and building up its gold reserves,” the bank said.

Inflation in Ethiopia surged to 40.6 percent in August, stoked by what the International Monetary Fund said was “excessive” growth in money supply. Monetary expansion accounted for 40 percent of the increase in Ethiopian inflation, the African Development Bank said.

The supply of gold to the central bank increased because of a 5 percent premium over the international market price, the bank said. Ethiopia shipped 11.7 metric tons of gold in the 12 months to July 7, the end of Ethiopia’s fiscal year, according to the country’s Mines Ministry.

Gold for immediate delivery fell 0.3 percent to $1,717.88 an ounce as of 11:12 a.m. in Nairobi, paring its advance during the past 12 months to 26 percent.

SILVER
Silver is trading at $33.49/oz, €25.39/oz and £21.27/oz.

PLATINUM GROUP METALS
Platinum is trading at $1,631.25/oz, palladium at $683/oz and rhodium at $1,500/oz.

For the latest news and commentary on financial markets and gold please follow us on Twitter.

GOLDNOMICS - CASH OR GOLD BULLION?



'GoldNomics' can be viewed by clicking on the image above or on our YouTube channel:
www.youtube.com/goldcorelimited

This update can be found on the GoldCore blog here.

Yours sincerely,
Mark O'Byrne
Exective Director

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules