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Gold and What Moves it.
Tracking all things that relate to and affect the price of gold.
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China's Shandong Gold snares majority stake in Australia's Focus Minerals | MINING.com

China's Shandong Gold snares majority stake in Australia's Focus Minerals | MINING.com | Gold and What Moves it. | Scoop.it
Deal is the biggest transaction of its type for a mid-tier gold miner in recent years

 

Shandong Gold has obtained a 51% equity stake in Aussie gold producer Focus Minerals (ASX:FML) following the completion of an AUD$225mn placement to the northern Chinese miner.

 

The Australian reports that Focus shareholders gave the go-ahead to the deal earlier this month, and that the company hopes to use the cash injection to push forward development of existing gold projects in the Goldfields-Esperance region of Western Australia.

 

The company plans to spend $18m on drilling to expand ore reserves and $22m on the exploration of tenements situated in Laverton, Coolgardie and Treasure Island. ...

Hal's insight:

I've said it before. And I'll say it again, China is making moves to corner the mining industry. And with good reason.

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China's SGE to raise Gold margins to 13%

The exchange will raise margins on gold contracts, including the gold spot deferred contract, to 13 percent from 12 percent from the settlement of Dec. 28.

 

SHANGHAI(BullionStreet): China's leading gold exchange, The Shanghai Gold Exchange said it will again raise margins and daily price moving limits for its gold contracts.

China's largest exchange for precious metals attributed this decision on the increased volatility in the precious metal sector.

The exchange will raise margins on gold contracts, including the gold spot deferred contract, to 13 percent from 12 percent from the settlement of Dec. 28.

Limit for daily price movement will rise to 10 percent from 9 percent from Dec. 31, the exchange said in a statement on its website. ...

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Trader Dan's charts of the Yen and gold priced in Yen.

Trader Dan's charts of the Yen and gold priced in Yen. | Gold and What Moves it. | Scoop.it

Witness the Japanese Yen as it continues to plummet following the path desired by the new political leadership. The point is not being lost on gold as it continues to hover near record highs when priced in terms of that currency.

Hal's insight:

Click over for the full piece. It is instructive to look at gold priced in out currencies.

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Europe reluctant to use Gold reserves to fight debt crisis

Across Europe, economic growth is faltering and in many Eurozone countries, sovereign debt yields are dangerously high.

 

LONDON(BullionStreet): Despite WGC requests to use a portion of gold reserves to back sovereign debt, European nations remained unmoved , analysts said.

 

Across Europe, economic growth is faltering and in many Eurozone countries, sovereign debt yields are dangerously high.

 

Analysts said backing sovereign debt with gold reserves would lower sovereign debt yields and give some of the Eurozone's most distressed countries time to work on economic reform and recovery.

 

The World Gold Council has been exploring ways that Eurozone Member States could use their gold reserves to help bring down the cost of borrowing. ...

Hal's insight:

Shocker. They all know just how important that gold is going to be when the printing presses run out of paper or throw a cog.

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Jesse's Café Américain: Gold Daily and Silver Weekly Charts - Bounce

Jesse's Café Américain: Gold Daily and Silver Weekly Charts - Bounce | Gold and What Moves it. | Scoop.it

Another divergence today as gold and silver went higher in a bounce as stocks plunged, particularly overnight.

Today was a quadruple witch and I am sure that those playing the miners on leverage and with option have been eviscerated, which is probably the plan.

A short holiday week or two is coming up. Look for more shenanigans.

Hal's insight:

Click through for his beautiful charts.

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Gold tries to regain footing after nervous week | MINING.com

Gold tries to regain footing after nervous week | MINING.com | Gold and What Moves it. | Scoop.it
Gold price has been performing contrary to conventional wisdom.

 

Spot gold managed to add almost $10 an ounce on Friday to change hands at $1,655 in afternoon trade, but failed to recover much from a week that saw the metal give up more than 2% or $35 in value.

 

Gold has been losing ground ever since the US Fed's announcement on December 12 of a major shift in monetary policy.

 

Conventional wisdom in the gold market has been that when central banks flood the markets with cheap money under quantitative easing programs gold benefits thanks to its status as an inflation hedge.

 

But that link now appears to have been severed.

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A Look on Gold from the Non-USD Perspective | Przemyslaw Radomski, CFA | Safehaven.com

A Look on Gold from the Non-USD Perspective | Przemyslaw Radomski, CFA | Safehaven.com | Gold and What Moves it. | Scoop.it
This was a week of declines for precious metals, very strong ones, indeed. It seems that the main culprit was not the U.S. dollar, that should have actually helped the whole sector, as it declined heavily too, but the fears concerning the ...
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The Fed Is Confiscating The Wealth Of The Middle Class By Destroying The Value Of The Dollar

The Fed Is Confiscating The Wealth Of The Middle Class By Destroying The Value Of The Dollar | Gold and What Moves it. | Scoop.it

Americans need to take a serious look at how the purchasing power of the dollar is being destroyed.  Rampant poverty, declining real incomes and higher prices are all the guaranteed results of a Federal Reserve that remains committed to destroying the value of the dollar.   A dollar saved today that has less purchasing power a year from now equates to the "silent" destruction of the dollar, an event which has gone virtually unnoticed and unprotested by the American public.

 

Act #4 of the Fed's endless money printing campaign directly monetizes over a half a trillion dollars of U.S. deficit spending annually.  In addition to financing the Federal debt with printed dollars, the Fed has also explicitly endorsed  an inflation rate of 2.5% as being "acceptable."

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Why The Manufacturing Jobs Are Not Coming Back | ZeroHedge

Why The Manufacturing Jobs Are Not Coming Back | ZeroHedge | Gold and What Moves it. | Scoop.it
There are a plethora of reasons underpinning the fact that manufacturing jobs are not coming back to the USA. Perhaps the simplest is purely economic.
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London Gold Market Report 21st December - FAST NEWS - Mineweb.com Mineweb

London Gold Market Report 21st December - FAST NEWS - Mineweb.com Mineweb | Gold and What Moves it. | Scoop.it

Gold and silver head for 4th straight weekly drop but "Indian and Chinese demand jumps" as prices come down.


by Ben Traynor:


LONDON  - 

 

Gold prices hovered around $1650 an ounce Friday morning in London, having earlier hit fresh four-month lows, while stocks edged lower and US Treasuries gained despite little evident progress in Washington to avoid the so-called fiscal cliff.


Silver traded either side of $30 an ounce meantime, having yesterday dipped below that level for the first time since August, while oil prices dipped slightly and copper ticked higher.


"Precious metals continued to stall overnight," says a note from refiner MKS.

"Sentiment has clearly...as a result of a number of key support levels being tested or coming into play...[although] gold did not decline any further overnight buoyed by physical bids from both Europe and Asia...there is still a strong drive by the speculative side of the market to short and is evident by the heavy selling into rallies on Comex." ...




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Sinclair incandescent – biggest manipulative play in gold ever

Sinclair incandescent – biggest manipulative play in gold ever | Gold and What Moves it. | Scoop.it

Lawrence Williams writes:

 

... Sinclair reckons that what this is achieving is to drive gold into Asian hands at bargain prices, thereby ultimately transferring global economic leadership from West to East.  This is a process which can only be accelerated by this kind of intervention in the markets (whoever is making them), particularly if one assumes that China is taking this opportunity to build its gold reserves on the way towards making the yuan at least a part of the next global reserve currency.  While China is not currently reporting any increase in its official gold reserves, it is widely assumed that it is probably doing so anyway, but just not reporting this, as it has also failed to do in the past.  The theory in part is that China recognises that if it does report a big gold reserve increase then this on its own will drive the gold price very sharply higher, thus making additional physical gold accumulations much more expensive.  The U.S. has gained huge economic advantages in managing the world’s principal reserve currency for many years now and this has not gone unnoticed by China (which is already facilitating some global trade in yuan rather than in dollars – a process which is likely to grow and grow).

 

The world order is changing – a process which is being facilitated, Sinclair feels strongly, by the U.S.’s own economic mismanagement leading to an enormous debt burden which has now reached proportions from which there can be no return.  Gold is going to $3,500 and above an QE to infinity is his oft repeated mantra.  

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PwC : Majority Gold executives see bullish Gold next year

Underpinning higher gold prices has been central bank buying, a reversal from the last two decades in which nations were net sellers of gold, according to the report.

 

TORONTO(BullionStreet): Despite some recent negative reports, more than 80 percent of gold executives believe gold is going to rise again next year, according to PricewaterhouseCoopers Gold Price Report.

 

Michael Cinnamond, partner and leader of the B.C. mining practice at PricewaterhouseCoopers said lofty gold prices since 2000 add weight to the gold executives’ optimism.

 

“Gold as a metal isn’t actually used for that many things. Gold is primarily jewelry or a store of wealth. I think that’s why they’re bullish on gold, with the uncertainties that exist in the world on the economic side and uncertainty over what’s going to happen in Europe,” Cinnamond said. ...

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Iraq now holds 31.07 tons of Gold in reserves

IMF said the West Asian nation made its first major move in years to boost its gold reserves in recent months.

 

WASHINGTON(BullionStreet): War torn Iraq holds 31.07 tons of gold as official reserves with a huge addition in August this year, International Monetary Fund said.

 

According to IMF's monthly statistics report, over the course of three months between August and October this year, Iraq's gold holdings quadrupled to 31.07 tonnes.

 

In the first change in its reserve in years, the country added some 23.9 tonnes in August, bringing the total to 29.7 tonnes. That was followed by a 2.3-tonne rise in September to 32.09 tonnes and then by a cut of 1.02 tonnes in October to 31.07 tonnes.

 

There was no data for November. IMF said the West Asian nation made its first major move in years to boost its gold reserves in recent months, joining central banks from emerging market economies such as Brazil and Russia in diversifying its foreign reserves. ...

Hal's insight:

Well, I guess even they know what solid money is all about.

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Buy physical gold as governments charge towards insolvency in 2013: Pento | MINING.com

Buy physical gold as governments charge towards insolvency in 2013: Pento | MINING.com | Gold and What Moves it. | Scoop.it
Tremendous macroeconomic dangers lie in wait over the next year

 

by Marc Howe:

 

Michael Pento says gold remains an essential purchase for prudent investors in the upcoming year, with the governments of OECD nations "rac[ing] towards both bankruptcy and inflation" while their central banks aggressively push for higher inflation.

 

Writing for King World News Pento, President of Pento Portfolio strategies, highlights the debt problems of the US in particular, noting that it "should now be clear to all Americans that our government is completely incapable of voluntarily reducing our fundamental problem of excess debt."

 

Pento says the monetization of surging Treasury debt means that inflation and interest rates will both surge beyond historical averages, which in turn means that deficits and debt will be significantly higher than anticipated by policy-makers. The US government will be forced to avail itself of measures from the Federal Reserve to "maintain the illusion of solvency in the future." ...

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Charles Hugh Smith: More Cliffs Than Fiscal

Charles Hugh Smith: More Cliffs Than Fiscal | Gold and What Moves it. | Scoop.it

The fiscal cliff is not the only cliff we're racing toward; there are others.


The fiscal cliff dominates the mainstream news, but it is more like a bump on the pathway to the real cliff. In essence, the path has turned down and we're picking up momentum, gaining speed as we head for the cliff. The real cliff is the gap between what has been promised and what can plausibly be collected in tax revenues: $86 trillion but one recent estimate, over $120 trillion by other guestimates. The difference is caused by the relative rosiness of the projections to control Medicare and Medicaid spending. Lower estimates assume we can stop the growth of these programs in the long-term, something that has not yet happened for the reason that the system lacks any controls to do so. This gap widens by $7 trillion a year. That is, the promises to present and future retirees and beneficiaries goes up if we count the promises made not just for 2013 but for the future. This $7 trillion is twice the entire Federal budget and roughly 50% of the nation's GDP.  Understood in this way, we can see that raising taxes by $200 billion or cutting expenditures by $200 billion is not going to keep us from hurtling off the real fiscal cliff in a few years.
Hal's insight:

Worthy read.

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Investors Must Catch The Next Massive Play To The Upside

Investors Must Catch The Next Massive Play To The Upside | Gold and What Moves it. | Scoop.it

Robert Fitzwilson tells King World News:

 

... As much as we decry the lack of enforcement and the diminution of the rule of law, it was “wild and wooly” in the late 1800s in the United States.  One form of stock watering worked as follows.  A company could be formed with the contribution of assets.  However, the stock value was tied to “par”.  Par could be declared by the board to be a multiple of the value of the underlying assets held by the company.  The issuance of the stock would allow the early holders to sell their stock at a large premium to reality.

 

It sounds familiar.  As the central bankers continue to print grotesque amounts of fiat currency, the analogy to money printing and watered stock rings true.  The differences between the scheme in the 1800s and the present are twofold.  The first is the scale.  The amounts involved are light years beyond the imagination of the operators in the 19th century.

 

The second is that the assets underpinning our experiment with watered currency are declining in value and economies are being hollowed out.  The watering of the currency is bad enough, but the wealth of the countries upon which the currencies are based is being simultaneously destroyed.

 

Powerful people also read history books.  They have learned that hyperinflation, runaway metals prices and runaway interest rates frighten the majority of people. ...

Hal's insight:

Click through for the full interview.

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Gold falls in thin Boxing Day trade

Gold falls in thin Boxing Day trade | Gold and What Moves it. | Scoop.it

SINGAPORE(BullionStreet): Gold dropped in Asian trade Wednesday but increased physical buying might help prices recover during the day, analysts said.

 

Gold for immediate delivery was seen trading at $1654.71 an ounce at 12.30 p.m Singapore time while US gold for February delivery was seen at $1655.84 an ounce.

 

Analysts said investors remained focus on US fiscal crisis as uncertainty over whether the world’s largest economy would be able to avoid a fiscal crisis kept investors at bay.

 

They said global markets are witnessing thin trade while markets in London were still shut on Wednesday for the Christmas holiday.

 

Hal's insight:

Thin days like this can result in big moves.

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I'm here to tell ya, just below the surface, something is definitely brewing in the silver pit.

I'm here to tell ya, just below the surface, something is definitely brewing in the silver pit. | Gold and What Moves it. | Scoop.it
I know you all probably think I'm crazy, particularly after the action this week...but I'm here to tell ya, just below the surface, something is definitely brewing in the silver pit.
 

Let's start with gold where the changes were utterly predictable. For the reporting week, price fell about $40 while total OI rose by 2,156. As you'd expect, the Large Specs reduced their net long position by 5,900 and the small specs reduced their's by 6,800. Add them together and The Cartel was able to reduce their net short position by 12,700. The Cartel net short ratio is now a solid NEUTRAL at 2.47:1. (Anything near 2:1 is bullish. Anything near 3:1 has proven to be bearish.)

 

Silver is simply remarkable. Not so much this week by itself but in the total picture since the final QE∞ cap job in early October with price above $35. For the week, the only notable change was the Large Spec gross long position. These cats h

Hal's insight:

Worth reading his thoughts here. Click through for them.

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Russian banks borrow record $61bn from Central Bank — RT

Russian banks borrow record $61bn from Central Bank — RT | Gold and What Moves it. | Scoop.it

Russian banks borrowed a record 1.9trln roubles ($61 billion) from the Central Bank of Russia during an auction aimed to boost the liquidity level of the country’s lenders.

 

On Tuesday the CBR provided 2.63trln roubles – the largest amount since 2009 – to the banks at the auction, Vedomosti daily reported. Russia’s banks are struggling for funds to finance a 40% surge in consumer credit this year amid a slowdown in deposits, as the government has kept money out of the economy by running a budget surplus. 

 

Borrowings from the central bank through repurchase auctions quadrupled this year to 1.9 trillion roubles ($61 billion), according to Raiffeisenbank, and they are likely to reach 2-2.2trln roubles by the end of the year. 


“First of all, borrowing from the CBR grew due to the liquidity gap, related to budget spending. It happens every year, but this year delays in budget payments are bigger than usual,” Ivan Kabulaev, chief executive of Investcafe told RT. ...

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Gold Demand In Asia Remains Insatiable

Gold Demand In Asia Remains Insatiable | Gold and What Moves it. | Scoop.it

As gold demand in Asia soars, vault companies are racing to keep up with storage demand.  In July, Gold and Silver Blog reported on a massive new gold vault being constructed in Hong Kong by Malca-Amit due to unrelenting physical demand for gold in Asia.  The new vault was designed to hold 1,000 metric tonnes of gold and as of July, had already taken in 2,400 tonnes of gold owned by gold exchange traded funds.

 

It turns out that Malca-Admit should have built a much larger vault.  As demand for physical gold continues to increase, other companies have joined the race to provide secure depositories for wealthy investors.  The Wall Street Journal reports that demand for high-security vault capacity in Asia is soaring in Singapore, Hong Kong and Shanghai. ...

Hal's insight:

Click over for the rest. They've got some interesting photos.

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Going for gold? Don't forget the vault | Gold Anti-Trust Action Committee

Going for gold? Don't forget the vault | Gold Anti-Trust Action Committee | Gold and What Moves it. | Scoop.it

By Clementine Wallop
The Wall Street Journal
Thursday, December 20, 2012

http://online.wsj.com/article/SB1000142412788732446160457819084137470416...

 

Investors in Asia are increasingly dealing with a seemingly anachronistic problem: finding a place to stash their bars of gold.

 

Gold is a popular choice for those seeking to diversify their holdings and spread risk but it isn't the most mobile of assets. Still, gold has been moving east, and that has created opportunities for security companies in Singapore, Hong Kong, and Shanghai -- financial hubs where the metal's popularity is soaring.

 

Security companies are busy ordering two-ton steel doors and sophisticated monitoring systems, and hiring more armed guards as they expand their high-security vault capacity in Asia.

Hal's insight:

Oh what a problem to have... Buy steel and invest in security gaurds LOL ;-)

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US Debt & Liabilities Set To Increase A Staggering $70 Trillion

US Debt & Liabilities Set To Increase A Staggering $70 Trillion | Gold and What Moves it. | Scoop.it

Today Egon von Greyerz spoke with King World News about what the world is facing going forward as well as the recent turbulent action in the gold and silver markets.  Greyerz, who is founder of Matterhorn Asset Management in Switzerland, had this to say:  “If we look at the gold market, Eric, it’s interesting that Japanese pension funds are now actually starting to invest in gold.  And some of them are putting 1.5% to 3% of their assets in gold.  This is totally new.


“Actually, institutional investment into gold, currently, is only about 0.3%.  So we are talking about Japanese funds putting 1.5% to 3% or five to ten times as much (into gold) as the world average. 

 

"I’m convinced that in the next few years institutions will put a part of their assets into gold because they have to protect their assets against the inflation we will be experiencing. ..."


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2012 Gold Price Performance Really Disappoints Readers and Experts Alike - Ed Steer's Gold & Silver Daily

2012 Gold Price Performance Really Disappoints Readers and Experts Alike - Ed Steer's Gold & Silver Daily | Gold and What Moves it. | Scoop.it

Ed Steer writes on his Gold and Silver Daily:

 

... There were no reported changes in GLD yesterday but, surprisingly enough, an authorized participant added 774,096 troy ounces of silver to SLV.

 

The U.S. Mint had a surprise sales report yesterday...and I triple checked the first sales figure, as it showed they sold 18,000 ounces of gold eagles...zero silver eagles...and 500 one-ounce 24K gold buffaloes.  My guess is that most, if not all, of that sale went to just one buyer.

 

The data from the Comex-approved depositories didn't disappoint on Wednesday either.  It showed that no silver was brought in...but 1,542,167 troy ounces was reported shipped out the door.  The link to that activity is here.

 

Since yesterday was the 20th of the month, The Central Bank of the Russian Federationupdated their website with their November data.  It showed that they added another 100,000 ounces to their gold reserves, which now sits at 30.2 million troy ounces.  I'm beginning to wonder if, like the Chinese, the Russians aren't reporting all the gold they're squirreling away.  I guess we'll find out in the fullness of time.  Nick Laird's most excellent chart below tells all. ...

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Peru's Gold export revenue declines in October

Peru's Gold export revenue declines in October | Gold and What Moves it. | Scoop.it
Peru’s gold-export revenue dropped 17.2% in October from a year earlier on lower shipments, the central bank said.
Hal's insight:

Do you suppose that instead of exporting it, that they were banking it in their own vaults

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oftwominds-Charles Hugh Smith: The Upside of the Fiscal Cliff

oftwominds-Charles Hugh Smith: The Upside of the Fiscal Cliff | Gold and What Moves it. | Scoop.it

Facing reality is positive. That's the upside to the fiscal cliff.


There are two definite upsides to the fiscal cliff:
1. We are finally starting a national discussion of spending-taxation trade-offs 2. We are at last starting to (grudgingly) accept there is no free lunch, what I call the Free Lunch Fantasy of limitless borrowing at near-zero interest rates: taxes for upper-income wage-earners will revert to previous levels while those drawing Federal dollars must accept reductions in spending. The last decade's fantasy that we could borrow our way to prosperity while lowering taxes on upper-income earners (because it's so cheap to borrow trillions at near-zero interest rates) is finally running into reality-based resistance: interest on all that debt is starting to squeeze the spending everyone wants, and long-term rates might rise despite the Federal Reserve's constant intervention. ...
Hal's insight:

He's right and it's one of the primary reasons that I thought it would be better to let the big banks fail. Click through for the rest of his thoughts.

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