Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
BLOCKCHAIN INVESTMENT PRIMER - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20
MUST WATCH Before You Waste Money on Buying A New PC Computer System - 27th Nov 20
Gold: Insurance for Prudent Investors, Precious Metals Reduce Risk & Preserve Wealth - 27th Nov 20
How To Spot The End Of An Excess Market Trend Phase - 27th Nov 20
Snow Falling Effect Christmas Lights Outdoor Projector Amazon Review - 27th Nov 20
4 Reasons Why You Shouldn't Put off Your Roof Repairs - 27th Nov 20
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

There’s No Fever Like Gold Fever…

Commodities / Gold & Silver 2020 Jan 30, 2020 - 12:10 PM GMT

By: MoneyMetals

Commodities

In late December 2019, a bill from the German finance ministry – which had passed the lower legislative house – proposed lowering the "anonymous purchase limit" for precious metals from €10,000 to €2,000 (about $2,200), a reduction of 80%.

At the current price, one could buy less than one and one-half troy ounces of gold without activating customer ID paperwork, and for businesses – a criminal background check!

This is an additional decline from the €15,000 mandated just two years ago. Set to become law in early 2020, the effect was immediate, as long lines outside a coin shop in Cologne show.

Some of the world's largest banks – including several in Germany – have long made a habit of laundering literally billions of dollars, euros, and assorted financial instruments from questionable customers.



This all begs the question as to how further squeezing "the little man" by imposing onerous reporting over relatively tiny amounts of gold sales is going to accomplish anything constructive.

It turns out that this legislative effort is directly tied to European Union (EU) guidelines laid out in the anti-money laundering directive (AMLD5), requiring member state compliance. And some people wonder why Britain's Labour Party – whose platform proposed adding still more regulatory burdens to the population – recently suffered such a devastating defeat.

Bitcoin.com reports the EU's 5th anti-money laundering directive dictates that "non-transparent assets, accounts, and even private safety deposit boxes will now be subject to state information gathering by law."

A user on Reddit remarked:

"They don't want normal people to bank run their scam paper. Gold and hard assets is how you protect yourself from inflation. They (the governments/banks) want to know every single person that tries to get out of their cage..."

"...Gold is thus seen as one of the final hedges against irresponsible government policy, and the proposed new limits on precious metals, will leave residents of Germany with even fewer options."

A German citizen remarks:

"I live in Germany and the thing is we have had a full-blown shortage going on for weeks now. All these people in the line will go home empty handed. The smart ones have been exchanging paper for gold weeks and months ago... you have these (off-putting) ones who think the supply will wait for them when they lift (themselves up) in the last second. The retailers have been sold out for weeks already. It might clear up in January when the new law is in place, but I am not betting on it. It could also indicate that we are close to something bigger."

Here's the rub, and you can take this to the bank…

Authorities in most countries in the world, and sadly becoming more common by the day in that bastion of "democracy" – the U.S., at every level equate the desire for privacy with doing something "nefarious." Some of Merriam-Webster's numerous words define the term as "bad, evil, unethical, unlawful, wicked, wrong," etc. Take your pick.

Ignore the clueless non-observer who reels off the knee-jerk comment that "If I don't have anything to hide... It's a very dangerous slide from "Innocent until proven guilty" to just the opposite.

It's a corrosive trend that has all too-commonly become the operative principle of those whom we've elected to serve us, but who have now decided, in their finite wisdom, that we should serve them.

Not just "the man in the street." Despite the excitement (and profit-building opportunities) offered by gold and silver from 2001-11 affected not just "the man on the street" but CEOs of most mining companies who continue to project the future by looking into the rearview mirror.

anic in a Chinese Line for 40 Gram Gold

(1948) 40 grams (a tael) equals about 1-1/4 oz of gold.

The knock-on effect meant that less money was spent on discovery, leading inexorably to lower production.

The overall result is that from the last decade, 2020 Reserves (the highest and most economically recoverable category of known ore deposit) for the world's largest gold mining companies are down fully 26%.

David Morgan has long counseled newsletter subscribers to The Morgan Report, in addition to the tens of thousands who (weekly) receive The Free Morgan Report to start an accumulation program by acquiring physical gold and silver – viewing its role as insurance first, profit-potential second.

Own precious metals – i.e. honest money – paid for by fiat "paper promises." On numerable occasions, over the thousands of years in which it has reliably fulfilled these roles, gold (and silver) have turned out to be literal life-savers in their own right.

Richard Davies toured Aceh, Indonesia after the 2004 tsunami that killed 250,000 people. He noted, "I met many survivors who were able to sell jewelry they were wearing... Wearing a gold bangle is like having enough cash on your wrist to employ a builder for a year... This traditional form of finance insulated Aceh and provided its entrepreneurs with rapid access to cash."

If this doesn't get your attention, then you're just not paying attention!

Long before the move into gold becomes a full-fledged "rush," smart money with deep pockets will have been activating their own accumulation plan.

The chart below from Goldman Sachs research indicates what's been going on under the radar. Gold ETF (visible) accumulation – which by the way has now officially reached record levels – is being substantially eclipsed by the build in non-transparent gold investment, as it is ensconced around the world in private vaults, kept "in hand" near one's residence, or simply buried in the back yard.



It's not too late to accumulate! These and other data points, such as the current low level of U.S. Mint American Gold Eagle production – which follows demand – indicate that the majority of potential investors have yet to enter the gold space.

Act to strengthen your financial immune system by accumulating the desired level of metal now, before the ongoing gold-build morphs into a public-mania-infused "gold fever." And before the concept of financial privacy and flexibility has become a relic of the not-too distant past.

David Smith is Senior Analyst for TheMorganReport.com and a regular contributor to MoneyMetals.com as well as the LODE Cryptographic Silver Monetary System Project. He has investigated precious metals’ mines and exploration sites in Argentina, Chile, Peru, Mexico, Bolivia, China, Canada and the U.S. He shares resource sector observations withr eaders, the media and North American investment conference attendees.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 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