Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Stock Market: "Relevant Waves Vs. Irrelevant News" - 10th Jul 20
Prepare for the global impact of US COVID-19 resurgence - 10th Jul 20
Golds quick price move increases the odds of a correction - 10th Jul 20
Declaring Your Independence from Currency Debasement - 10th Jul 20
Tech Stocks Trending Towards the Quantum AI EXPLOSION! - 9th Jul 20
Gold and Silver Seasonal Trend Analysis - 9th Jul 20
Facebook and IBM Tech Stocks for Machine Learning Mega-Trend Investing 2020 - 9th Jul 20
LandRover Discovery Sport Service Blues, How Long Before Oil Change is Actually Due? - 9th Jul 20
Following the Gold Stock Leaders as the Fed Prints - 9th Jul 20
Gold RESET Breakout on 10 Reasons - 9th Jul 20
Fintech facilitating huge growth in online gambling - 9th Jul 20
Online Creative Software Development Service Conceptual Approach - 9th Jul 20
Coronavirus Pandemic UK and US Second Waves, and the Influenza Doomsday Scenario - 8th Jul 20
States “On the Cusp of Losing Control” and the Impact on the Economy - 8th Jul 20
Gold During Covid-19 Pandemic and Beyond - 8th Jul 20
UK Holidays 2020 - Driving on Cornwall's Narrow Roads to Bude Caravan Holiday Resort - 8th Jul 20
Five Reasons Covid Will Change SEO - 8th Jul 20
What Makes Internet Packages Different? - 8th Jul 20
Saudi Arabia Eyes Total Dominance In Oil And Gas Markets - 7th Jul 20
These Are the Times That Call for Gold - 7th Jul 20
A Reason to be "Extra-Attentive" to Stock Market Sentiment Measures - 7th Jul 20
The Beatings Will Continue Until the Economy Improves - 6th Jul 20
The Corona Economic Depression Is Here - 6th Jul 20
Stock Market Short-term Peaking - 6th Jul 20
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

New York Times on Benefits of Gold in Currency Wars

Commodities / Gold and Silver 2014 Dec 12, 2014 - 02:58 PM GMT

By: GoldCore

Commodities

The New York Times published an important article this week in which the benefits of gold to nation states during a period of currency wars was highlighted. The article was noteworthy as the New York Times has rarely covered gold in a positive manner.


The article, entitled ‘The Golden Age’ is about the growing use of gold in geopolitical affairs. They drew attention to the gold repatriation movements in Europe and to the accumulation of the precious metals in vast quantities by the central banks of the East - particularly Russia and China.

The Times attempts to get into the mind-set of the central banks who are buying gold or attempting to repatriate their current stocks of the metal. It presents two major rationales for the current trend.

"Some that've interpreted the metal's mini-comeback as an indication that financial Armageddon, in the guise of runaway inflation, is approaching. Others have read the recent move as a symbolic way for central banks and governments to make a show of strength in nervously uncertain economic times."

The first point is one which we have covered here consistently. The article quotes Jim Rickards who interprets the policies of China and Russia as "they understand who fragile things are and they are getting ready for the demise of the dollar."

The Times refers to the unprecedented waves of money printing by central banks in recent years "which in theory can devalue sovereign currencies." Despite the fact that massive money printing programs have always led to high inflation the Times seems to believe that this time it may be different - famous last words in economic terms.

The other side of the argument as put forward by the Times does not really hold water. It suggests that the accumulation of gold is a largely symbolic act . It is being used to induce a "culture of stability."

It quotes a professor from the University of Southern California, "I doubt that the Russians or the Chinese actually believe that gold is such a great investment in terms of pure returns," he says -"But if they are trying to suggest that they are unhappy with the dollar or that they want to become a global player, then gold is very powerful."

He does not seem to realize that these two countries already are global players whose influence is growing as that of the U.S. declines. They may not view gold as an investment in the classic sense how they clearly view gold as an important monetary asset as seen in their declarations and in the enormous volumes they have been accumulating.

The New York Times is the paper of Paul Krugman and the Federal Reserve and central banks. It rarely has a critical word to say about central banks and the current fiat monetary system. Conversely, it rarely has a positive word to say about gold.

The article is thus noteworthy and suggests a realisation that currency wars are set to intensify with gold again becoming an important monetary and geo-political asset.

A new Golden Age cometh. The golden rule - those who have the gold will make the rules ...

‘Golden Age’ is worth a read and can be read here
Must read guide to Currency Wars here

MARKET UPDATE
Today’s AM fix was USD 1,223.50, EUR 984.31 and GBP 779.15 per ounce.
Yesterday’s AM fix was USD 1,219.50, EUR 980.94 and GBP 778.24 per ounce.

Spot gold fell $2.30 or 0.19% to $1,225.10 per ounce yesterday and silver slipped $0.03 or 0.18% to $17.05 per ounce.

Gold is still on track for a 2.6% weekly gain so far, its strongest since mid-October, as safe haven demand and short covering have given support.

Gold in USD - This Week  (Thomson Reuters)

Gold in Singapore ticked marginally lower again overnight prior to seeing slight gains on the open in London as European shares saw falls. Asian shares were mixed but shares in Asia were lower for the week and shares in the U.S. and Europe are also heading for losses this week.

This is supporting gold and it remains just below its highest in more than six weeks. Gold rose this week as equities and the dollar tumbled on global growth concerns and political uncertainty in Greece.

Gold appears to be consolidating above the 1,200/oz level and is supported by robust global demand particularly from China and India and the still uncertain outlook for debt saturated western economies and the U.S.

The U.S. House of Representatives averted a government shutdown late last night, narrowly passing another massive $1.1 trillion spending bill. The vote followed a long day of drama and discord on Capitol Hill that highlighted fraying Democratic unity and featured an uneasy alliance between previous enemies President Barack Obama and House Speaker John Boehner.

The FTSE pulled back again Friday, in broad-based losses that pushed the FTSE 100 benchmark toward its worst weekly drop in more than two years.

The FTSE 100 is heading for a fifth consecutive decline, to round off a week when oil prices tumbled to five-year lows and investors begin to worry about the global economy. The London benchmark is set to be down 5.6% this week, which would be the largest weekly drop since March 2012, according to Reuters data (see chart).

Technically, the FTSE looks like it is topping out with a triple top and has all the hallmarks the beginning of a bear market.

FTSE 100 - 1995 to December 12, 2014  (Thomson Reuters)

Improvement sentiment this week is seen in the holdings of SPDR Gold Trust, the world's largest gold exchange-traded fund. Holdings of New York's SPDR Gold Shares <GLD>, rose 0.13 percent to 725.75 tonnes on Thursday – a third straight day of inflows. they are up by 4.8 tonnes so far this week, a second week of net inflows and their biggest weekly rise since early July.

Chinese demand for gold remains robust. Volumes on the Shanghai Gold Exchange (SGE) for the benchmark spot gold contract climbed yesterday to a three-week high.

Members of the century-old Chinese Gold & Silver Exchange Society in Hong Kong should be able to start trading the yellow metal in Shanghai from March, allowing them to tap into mounting demand in China, the world's leading gold buyer.

The CGSE has been accepted by the Shanghai Gold Exchange as a strategic trading member, allowing CGSE members to do business on the main and international boards of the Chinese exchange, Haywood Cheung, president of the CGSE, told Reuters in an interview.

Cheung said the CGSE was building a system to link into Shanghai trading, which was expected to be ready in March next year. Its members would be able to trade for themselves and for clients.

The connection between the two exchanges will also benefit the CGSE's plan to set up a trading floor and bonded warehouse for gold in a free-trade zone, Qianhai, in Shenzhen city in China's southern province of Guangdong, home to thousands of jewellery makers.

Gold in USD - 5 Years (Thomson Reuters)

The trading floor and and a bonded warehouse will be one of the largest in the world and able to hold a very large 1,500 tonnes of gold. It will be ready in the first half of 2017, Cheung said.

Spot platinum was flat at $1,243.50 an ounce and is heading for a second weekly increase, the longest such stretch since July. Palladium fell 0.3 percent to $818.75 an ounce, snapping three days of gains. The metal rose to $823 yesterday, the highest since Sept. 24.

Silver continues to consolidate above $17 per ounce and was 0.5% higher to $17.28/oz - a second weekly advance. The gold silver ratio at 71 ($1226/$17.27) is very favourable to silver and leading to continuing steady weekly demand for silver - in bar format but especially for silver eagles and maples.  

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