Author: Lawrence Williams Posted: Tuesday , 26 Aug 2014
LONDON (MINEWEB) -
By all accounts in the mainstream media, gold demand in Asia, and in particular in China and India, has been slipping dramatically this year which some see as the principal reason behind current price weakness. But all may not be as the reports suggest. Is Chinese demand, as suggested by the enormous slippage in gold imports though Hong Kong really as bad as the figures appear to show?
Reuters reports Hong Kong net gold exports to mainland China in July as falling to the lowest level since June 2011 at 22 tonnes (Bloomberg reports the figure as 21 tonnes). Compare this with the heady days last year when such gold imports exceeded 100 tonnes monthly for 6 months in a row from May to October. If this is an accurate indication of Chinese gold demand weakness then this is indeed something of a blow for gold bulls. ...
Click through for the rest. China and Russia are to me the ones to keep you eyes on. Particularly, China.
Having recklessly impaired the original clean source of healthy naturally effervescent American spring water abundantly spouting up from the bedrock below, the misguided monetary authorities have dangerously attempted to artificially inseminate the clouds above, in the hopes of drenching the parched U.S. soil with torrential rain, so as to generate their much heralded and forever promised green shoots. Regrettably for us all, when these artificially seeded clouds eventually do burst, they will produce nothing but the toxic inflationary rains of StealthFlation.
Under the imposition of StealthFlation, the Velocity of Money lies dormant while increasing Inflationary risks build below the surface. ...`
Click through for the rest. Really good metaphor he opens with.
Russell tells King World news: “The Aden sisters (they flew up from Costa Rica to attend my 90th birthday party), have studied gold for decades -- they are indeed gold experts. In their recent report, the Adens note that gold runs in cycles. Gold tends to form key bottoms every 7-8 years, and it forms key tops every 11 years. The Adens believe that gold is now in the process of forming an important bottom, prior to the beginning of a new bull market to start next year. ...
The Fed is being forced to end its bond-buying, cutting off the "free money for financiers" that has sustained a frothy stock market.
While the Federal Reserve presents itself as free to do whatever it pleases whenever it pleases, the reality is the Fed's own policies are constraining its choices. Take the taper of U.S. Treasury bond purchases--the heart of quantitative easing (a.k.a. QE or more accurately free money for financiers). You probably know how this works:the U.S. government runs a deficit, as it spends more than it collects in tax revenues. This deficit is funded by the sale of Treasury bonds. ...
Things are going to get "fun". Click through for the rest of the article and all the charts.
When we first wrote about this, we actually caused a bit of a stir but the primary vote on The Swiss Gold Initiative was still over six months away. Now, with the date of the vote rapidly approaching, it is time to begin reviving this issue.
Interest is beginning to build, awareness is growing and the date of the national referendum has been set. Later this year, on November 30, the good people of Switzerland will finally get an opportunity to make their voices heard. The Swiss Gold Initiative can be roughly stated in three parts:
The halting of all Swiss gold salesThe repatriation of all Swiss gold that is held in foreign vaultsResume backing the Swiss Franc with gold, at a minimum level of 20% ...
Money manager Axel Merk is worried about financial risk and that it is being downplayed. Merk says, “I am very concerned. I am spooked about the equity markets. The folks that buy stocks buy them because they have to keep up with the markets. The folks that buy gold buy it because they like gold. Just recently, you have a down turn, and you don’t have this rush to sell gold right now because the folks holding it are strong hands. Whereas in the stock market, if you have a wave of sellers, who says everybody is not going to rush for that same exit at the same time.”
Merk elaborates on being “spooked on the equity markets” and explains, “I fear a crash. The reason I fear a crash is that when you have a market that goes up relentlessly, and volatility goes down and complacency is high, that means folks are buying equities that are not aware of the risks of the stock market. The moment the fear comes back to the market, for whatever reason, those guys are gone in a heartbeat. ...
Sometimes we are convinced it was completely by design, and not a weird little coincidence, that one of Germany’s most sprawling red light districts is just steps away from the European Central Bank. This fact becomes comically obvious right around happy hour... as self-congratulatory ECB economists and their bureaucratic bank underlings crowd the bars and cafes after work which are simultaneously frequented by pimps, thugs, and other assorted low-lifes. One would be forgiven for legitimately asking the question: which of these professions has done more damage to humanity? My [fiat] money’s on the bankers.
The 30 statistics that you are about to read prove beyond a shadow of a doubt that the middle class in America is being systematically destroyed. Once upon a time, the United States had the largest and most prosperous middle class in the history of the world, but now that is changing at a staggering pace. Yes, the stock market has soared to unprecedented heights this year and there are a few isolated areas of the country that are doing rather well for the moment. But overall, the long-term trends that are eviscerating the middle class just continue to accelerate. Over the past decade or so, the percentage of Americans that are working has gone way down, the quality of our jobs has plummeted dramatically and the wealth of the typical American household has fallen precipitously. Meanwhile, we have watched median household income decline for five years in a row, we have watched the rate of homeownership in this country decline for eight years in a row and dependence on the government is at an all-time high. Being a part of the middle class in the United States at this point can be compared to playing a game of musical chairs. We can all see chairs being removed from the game, and we are all desperate to continue to have a chair every time the music stops playing. The next time the music stops, will it be your chair that gets removed? ...
Demand for silver has plunged as much as 75% in India since the beginning of this fiscal even as prices have fallen almost Rs 4,000 per kg to Rs 43,000 compared to the previous year. Silver demand falls 75% in current fiscal; Traders blame poor monsoon and robust equity market
The Silver Institute has released a report titled “The Outlook for New Electrical and Electronic Uses of Silver.” The report identifies three key potential growth areas for silver demand: flexible electronics; light emitting diodes (LEDs); and interposers. These three growth areas combined have the potential to add another 20 million ounces of silver to total demand by 2018.
The report was produced by Metals Focus, the London-based independent precious metals research consultancy, on behalf of the Silver Institute.
Highlights of the report include:
According to Metals Focus, silver industrial demand, which accounts for over 50 percent of global demand, is expected to grow 5 percent per year from 2014-2016, outpacing forecasted global GDP growth. ...
Any state that moves to opt out of using the dollar as a medium of exchange is dealt with, forcibly if deemed necessary. The tactics are threefold - economic blockade (sanctions), the funding of an internal revolution, perhaps assisted by ...
We are witness to the greatest struggle of our age - the battle to maintain global dollar hegemony, and with it US economic, military and political dominance of the entire planet - and this struggle is now coming to a head. ...
Today, the world economy is in uncharted territory. Never before has the developed world carried this much debt. Never before have the central banks of those same countries expanded their balance sheets so much. Never before has so much sovereign debt been outright monetized. Never before have major financial institutions been officially designated as “too big to fail” and thereby been granted special license to assume gigantic risks. Dr. Lacy Hunt, economist and current executive vice president of Hoisington Investment Management Company, expects the macroeconomic situation to get worse from here...
I've stated before, gold has risen to where it is as a function of the debt that is being created globally. I believe that because of that gold's price point is being "massaged" so as not to cue in the majority to the danger we face economically around the globe.
Thus, we find central banks continuing to buy as much of the physical as they can without drawing undo attention to debt problem that is building pressure up like a volcano.
The advent of computer generated trading algorithms heralded a quantum leap forward in the quest for 24/7 control of markets. No longer were humans beings required to do such unseemly things as man trading desks or worry a whit if free markets were, if even infrequently, attempting to function. Algo precision has made even the blackest of black swan events seem to turn lily white in their utter non-eventfulness. No more significant Dow or bond crashes, and best of all, no gold rallies exceeding (exactly) 1.00%, or the occasional 2.00%.
John Embry tells King World News: “We just hit a new high on the S&P today. I can’t say I’m surprised because there’s been so much intervention in these markets as they attempt to maintain confidence in the system. All the economic releases in the United States are being falsified....
Click through for the rest.
We've gotten to a point where you can't believe anything that the media or politicians tell you. The road back from that is going to be messy.
Today a 42-year market veteran warned King World News that we are just at the beginning stages of a global hyperinflation. Below is what Egon von Greyerz, founder of Matterhorn Asset Management out of Switzerland, had to say in this fascinating interview.
Greyerz: “Eric, markets are behaving exactly as one would expect at the end of a major economic era. That is, markets are totally divorced from the reality of what is going on both economically and geopolitically. Markets are now in a manic phase, driven by false hope and momentum....
Click through for the rest. If only hyperinflation was all that the globe is about to experience. I am beginning to think we are about to see something unlike and far worse than what has gone before.
The debt and leverage that Washington and Wall Street have built up over the years will eventually blow up. And when it does, it could be "worse than 2008." But there is at least one way to protect yourself. And today Dave Gonigam explains how you can get started before any of this occurs. Read on...
Author: Prabhudatta Mishra (Bloomberg) Posted: Thursday , 21 Aug 2014
Controls on gold imports by India will probably be permanent as the world’s largest consumer after China seeks to sustain a reduction in the current account deficit, according to the country’s biggest refiner.
The government may keep a rule that requires importers to supply 20 percent of their cargo to jewelers for re-export or introduce a system of quotas or licenses, said Rajesh Khosla, managing director at MMTC-PAMP India Pvt. The industry has to recognize there will be a “quantitative restriction” whatever policy is in place, he said in an interview in New Delhi.
India represented 25 percent of global demand last year and overseas purchases fell 43 percent in the first half of 2014 because of the curbs, World Gold Council data showed Aug. 14. Finance Minister Arun Jaitley kept the limits in his budget in July as he sought to narrow the deficit and support the rupee ...
Janet Yellen is scheduled to speak to the world on Friday from the central bank’s annual gathering in Jackson Hole, Wyo. The Fed chairwoman will say, “Blah, blah, blah, blah, blah.”
After that, Mario Draghi, head of the European Central Bank, will take the stage and also say, “Blah, blah, blah, blah,” albeit in Italian-accented English.
Even if Yellen and Draghi say exactly the opposite, Wall Street — which is like an industrial-size clothes dryer on the high setting — will spin whatever words come out of the mouths of the world’s two most important bankers into the magical phrase, “Low interest rates will last forever.” ...
August 20 (King World News) - Why The Next Mania In Gold Will Be Parabolic
Looking back on it now, the Cold War was more Ali vs. Cooperman than Batman vs. Superman; but at the time, the world lived in fear of a cataclysmic resolution to the conflict. It seems like a lifetime ago; but those years between 1946 and 1991, when communism finally gave up the ghost, were fraught with fears over a rogue USSR.
Throughout the entire episode, the price of gold — the ultimate barometer of fear — performed as one would have expected it to — once Richard Nixon removed the shackles on August 15, 1971, of course. ...
Interesting read. Check out the charts. Certainly some food for thought.
EDGWARE (Scrap Monster): Tocqueville Asset Management sees gold ’s fundamentals very much like what it was fifteen years before. According to John Hatahaway and Douglas B. Groh, the gold’s set up is very much similar to what was experienced in 1999. During that time, gold was at the end of a 20-year bear market. Today, the huge drop in gold prices from a high of $1900 per ounce to less than $1200 per ounce in a short span of 2.5 years makes it a similar case, they observed.
According to them, geopolitical issues away from the headlines influence the demand for gold. Europeans are probably more conscious of gold today than they might have been six months ago. People want to get their wealth in a safe place. That will reinforce demand for gold as time goes by. ...