Gold and What Moves it.
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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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Central Banks Back to Buying Gold

Central Banks Back to Buying Gold | Gold and What Moves it. | Scoop.it

by Simon Constable:

 

"Big changes are afoot in the gold market. The short take: The new environment will favor long-term investors who buy and hold for years over speculators who try to trade day-to-day gyrations.

 

"For one thing, central bankers are back buying gold. Think it’s no big deal? The last time we saw the so-called official sector as such a consistent and major buyer was in 1965.

 

"Central banks increased their gold hoards by 400 metric tons — each equal to almost 2,205 pounds — in the 12 months through March 31, up from 156 tons during the prior year, according to recent World Gold Council data.

 

"The council “is now confident that central banks will continue to buy gold and has added official-sector purchases as a new element of gold demand,” writes Austin Kiddle in a report for London-based bullion dealer Sharps Pixley. ..."

 

[I don't think they ever stopped, frankly.]

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oftwominds-Charles Hugh Smith: The Politics of "Consensus" Is the Politics of Failure

oftwominds-Charles Hugh Smith: The Politics of "Consensus" Is the Politics of Failure | Gold and What Moves it. | Scoop.it

by Charles Hugh Smith:

 

"... Limiting power and shrinking budgets cannot be accomplished with big-city type "consensus." Nobody "agrees" to their power and budget being slashed or their power base and revenue stream demolished. That sort of structural reform can only be accomplished by those in power losing to the will of the people: either fix what's broken or we'll vote the whole lot of you out next election.

 

"This kind of national revulsion at the "consensus reforms" of the Status Quo does occur from time to time, and the political Status Quo is thrown out en masse. ..."

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Trading Gold by Timing the Fed | Vin Maru | Safehaven.com

Trading Gold by Timing the Fed | Vin Maru | Safehaven.com | Gold and What Moves it. | Scoop.it
Gold's recent sell-off seems to be a continuing pattern of major price movements and directional changes after a significant policy event or any announcement by the Federal Reserve.

 

by Vin Maru:

 

"... Investing in this environment seems to work by trying to guess what force is dominant at the moment and how the fed will react with policy statements. The markets are moving between extremes of the Euro crash/market meltdown bet to the additional stimulus bet which seem to lift markets. This summer's trading action could continue to swing between these two extremes as we see gyrations in the gold price based on when Ben speaks. Since we have a sideways consolidation in gold developing for the summer, looking for days when Ben can move the markets might be a good strategy for lightening up on positions. While adding to positions on days when the market is extremely fearful around a Euro collapse. Eventually we will see a time (possibly later this summer) when the Fed is forced to stimulate, at which time we expect the Ben speaks = bullish gold trade will be back on."

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Fleckenstein - Stock Market Is A Farce, We’re At The End Game

Fleckenstein - Stock Market Is A Farce, We’re At The End Game | Gold and What Moves it. | Scoop.it

After the initial euphoria, following the Spanish bailout, European and US stock markets have surrendered early gains. Today King World News interviewed Bill Fleckenstein, President of Fleckenstein Capital, to get his take on where we’re headed. When KWN last spoke with Fleckenstein, he predicted that stocks would tank, and the Dow tumbled over 900 points in less than 30 days. When asked about that call and what investors should expect going forward, Fleckenstein responded, “I happen to catch that moment in time correctly. The stock market is kind of a farce, which is not to say that stocks are uniformly expensive because lots of them aren’t. On the other hand, any bid over one cent for any financial institution presupposes that you know something about what’s in the entity, and in almost all cases you can’t.

 

"This is not to say that all financial companies are worth nothing, but lots of them basically are (worth nothing). So I think there’s a lot of fluff in the S&P. But the fact that the market is not hugely expensive is why it seems somewhat impervious to some of this bad news. Plus, when you have these algorithmic trading programs on the loose, trying to ferret out what the market might be telling you is next to impossible. ..."

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Jim’s Mailbox « Jim Sinclair's Mineset

Jim’s Mailbox « Jim Sinclair's Mineset | Gold and What Moves it. | Scoop.it

From Jim Sinclair's post today:

 

"There is a historic experiment underway at the US Federal Reserve, and the US economy is the test subject. In response to the severe recession in 2008, Federal Reserve Chairman Bernanke initiated an unprecedented liquidity operation that continues today. As a result, during the last four years, the monetary base has expanded by more than 200 percent. ..."

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Spain's Prime Minister: 'This Year Is Going To Be A Bad One'

Spain's Prime Minister: 'This Year Is Going To Be A Bad One' | Gold and What Moves it. | Scoop.it

by Roland Li:

 

"Spain's prime minister said Sunday that despite financial assistance of as much as €100 billion ($125 billion) for the country's ailing financials sector, the euro zone's fourth-largest economy will continue to suffer from high unemployment and shrinking gross domestic product.

 

"This year is going to be a bad one," Prime Minister Mariano Rajoy said in a press conference. He reaffirmed the previous forecast of a 1.7 percent fall in GDP this year. The country's government forecast a 24.3 percent unemployment rate in March, and Spaniards under 25 have a 52 percent unemployment rate. ...

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Too Little, Too Late - Why Spain's €100B Bailout Just Won't Do It

Too Little, Too Late - Why Spain's €100B Bailout Just Won't Do It | Gold and What Moves it. | Scoop.it
EU officials have been keen to trumpet the latest euro zone Band-Aid as a triumph for collective action and an answer to critics who accused the group of acting too slowly and with not enough money in the past.

 

by Oliver Tree:

 

"The Ghost of Big Bailouts Past seems to haunting the banking system, and it's calling up the fellow spirits of the dead -- the panic and bank runs and lack of confidence that made the end of 2008 such a spooky time," she wrote.

 

"Spain and Greece are dealing with issues that look like Bear Stearns and Lehman Brothers in their last days, only dressed up for a costume party in the eurozone."

 

"On top of this, the general consensus is that Saturday's banking loan is just a stop-gap measure.

 

"Spain, analysts contend, will require a full government bailout in the style of Greece, Ireland and Portugal in the near future. ..."

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Guess What Else China Is Hoarding | ZeroHedge

Guess What Else China Is Hoarding | ZeroHedge | Gold and What Moves it. | Scoop.it

by Tyler Durden:

 

"We already know that Chinese imports of HK gold passed all records in the month of April. It appears that the precious metal is not the only hard asset that China has set its sights on. ..."

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My Blog

My Blog | Gold and What Moves it. | Scoop.it

Egon von Greyerz tells King World News:

“... We’re seeing every week, one domino after the next that is falling. So far they are only smaller dominos such as banks, smaller countries, etc.. No (major) country has fallen, but that will come. Every single economic figure is looking worse. World trade is declining -- Chinese exports of steel were down 14% last month, US exports to the eurozone were down 5% last month and that is likely to increase to minus 20% if not more.

 

"The decline of world trade means the start of a depression...."

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This is How the Spanish Bailout Will Impact Key Markets

This is How the Spanish Bailout Will Impact Key Markets | Gold and What Moves it. | Scoop.it

Michael Pento tells King World News:

 

"... Turning to Europe today, their gross debt is just about 90% of GDP and the euro isn’t used as the world’s reserve currency. The onerous level of public sector debt is already high enough to send the bond markets in Europe’s periphery into full revolt.

 

"So here’s the big difference; U.S. financial institutions were insolvent due to rapidly-depreciating real estate related assets. But European banks are insolvent because they own the bad debt of insolvent European nations. If Europe’s sovereigns are already insolvent because they owe too much money, how can they go further into debt to bail out their banking system?

 

"Even if they are willing and able to borrow more money, their debt to GDP ratios would soar even higher and cause further downgrades of their debt. Therefore, sovereign bond prices would decline much lower and cause Europe’s banks to fall further into insolvency. ..."

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BNI depositors unable to make withdrawals

BNI depositors unable to make withdrawals / payments, payments of utility bills, mortgage payments, taxes
Peter Giordano, Adiconsum: "Grave of the Bank of Italy's attitude that takes action without considering the impact on depositors, and especially on single-income families and pensioners"
Adiconsum Bank of Italy asks for an urgent meeting and the lifting of the
The Bank of Italy authorized the suspension of payments by Bank Network Investments SpA (BNI) without communicating anything to the depositors.
Very serious and unacceptable - says Peter Jordan, Secretary General Adiconsum - the attitude of the Bank of Italy SpA in each BNI, because highly prejudicial to the interests of customers.
Bank of Italy, in fact, after extending the receivership of the bank, thus giving the impression of an imminent rescue, then gave the green light for compulsory winding up, without giving any prior notice to the depositors, leaving them in no condition to perform any type of operation, even basic ones for daily survival, such as withdrawals / payments, utilities payments, rates, taxes.
We must unfortunately note that offensive measures as those adopted to customers BNI - Giordano complaint - not an isolated case. Decisions without taking into account the heavy impact, particularly on savers in possession of a single bank account on which accrediting salary or pension, are not new to Bank of Italy, and also affected depositors of Banca MB.
The attitude of the Bank of Italy - Jordan continues - is bureaucratic and deed and as Adiconsum we asked in a letter sent to the Bank of Italy and the lifting of the BNI and an urgent meeting to define the way in which customers, especially Fixed-income families and pensioners, can perform normal daily operations.

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marco's comment, June 11, 2012 2:06 AM
the tranlslation sucks big time
'Grave of the Bank of Italy'???
Hal's comment, June 11, 2012 1:15 PM
LOL Yeah. I know Marco. It's the best I could find at the time I posted it. Hopefully, there is some more news on it out there today.
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Strong-dollar fallacy | MINING.com

Strong-dollar fallacy | MINING.com | Gold and What Moves it. | Scoop.it

by Adam Hamilton:

 

"After a shocking upset in Greece’s parliamentary elections, the US dollar surged dramatically. Soaring 5.4% in May alone, the world’s reserve currency won legions of fans among traders. “King Dollar” was universally lauded, with everyone jumping on the strong-dollar bandwagon. But this dazzling strength was merely a short-term phenomenon. Zoom out a little, and today’s “strong dollar” is a fallacy.

 

"Perspective is everything in the markets. Attaining it is challenging and takes a lot of effort, but the fruits are well worth the toil. We humans naturally tend to extrapolate the present and very recent past out into infinity, expecting short-term situations to continue indefinitely. So when prices surge rapidly like the US dollar has, traders get greedy and assume the move will persist for a long time to come.

 

"But greed, and its antithesis fear after prices have fallen sharply, are the mortal enemies of successful investment and speculation. Having perspective, keeping recent price moves firmly rooted in longer-term context, combats these dangerous emotions. While the dollar’s advance over the past month alone was amazing, how does it look in the context of recent years’ action? Truly not very impressive at all. ..."

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POLITICIANS SOON TO MAKE GOLD HOLDERS VERY RICH | The Prospector Blog

TheProspectorSite.com:

 

Elected officials around the world are in the process of making me very wealthy. Each precious metal fan should view this as the reward for staying true to the one true safe haven. I’ll be honest here, I don’t give a rat’s behind about politics since regardless what’s said, actions rarely favor the few pulling the wagon. My only interest is how political miscues affect those trying to raise families and live productive lives. Regardless, if you’re one of a hundred sitting on physical metal than prepare to soon enter the highest tax bracket.

 

"Some of us did not buy silver or gold to become wealthy, I didn’t. Sure having real money is nice but at day’s end the papers are full of unhappy wealthy. The primary benefit of owning real wealth (silver or gold) is the insulation value it provides while knuckleheads decide how much debt shackles your child’s future. ..."

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WHAT’S BETTER THAN GOLD? | The Prospector Blog

from The Prospector Site:

 

"... There are two particular metals, whose rare brilliance surpasses even the luster of gold.
I’m talking about the real royalty of rare metals —the king and queen of rare metals, platinum and palladium — and something interesting is about to happen with them.

 

"The most important aspect to consider is scarcity. Platinum is 15 times rarer than gold. All of the platinum ever mined in the history of the world would fit in a room that measures 25 cubic feet.


"Palladium is even rarer. ..."

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Will Europe solve its problems? | Uncommon Wisdom Daily

Will Europe solve its problems? | Uncommon Wisdom Daily | Gold and What Moves it. | Scoop.it

by Larry Edelson:

 

"... Uncommon Wisdom video for Monday, June 11.

 

"Well we’ve certainly seen quite a bit of action as far as the news goes. Europe’s crisis continues to unfold, the latest developments being Spain basically failing and being shut out of the credit markets.

 

"I don’t believe Europe’s leaders will come together again. It may look like that on the surface. They’re holding emergency meetings, but they have yet to come up with any kinds of policy or procedures to stem this crisis.

 

"And in the long run, even if they can kick the can down the road for a few more months, they’re not going to be able to stem a complete sovereign-debt crisis and the breakup of the euro. So that’s what we’re dealing with now.

 

"This will eventually migrate to the United States and we will see a sovereign-debt crisis here in our country as well. ..."

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FOCUS: Speculative Buyers Mostly Return To Precious Metals -CFTC - Forbes

FOCUS: Speculative Buyers Mostly Return To Precious Metals -CFTC - Forbes | Gold and What Moves it. | Scoop.it
By Debbie Carlson Of Kitco News http://www.kitco.com/ Editor's Note: Watch Kitco Video News at the IPMI (International Precious Metals Institute) Conference Direct From Las Vegas June 9-12, 2012 (Kitco News) - After cutting bullish exposure to New...

 

"... Prices for most of the U.S. metals futures rose during the most recent reporting week that ended June 5. Comex August gold rose $65.90 an ounce to $1,616.90 as of June 5. July silver gained 61.4 cents an ounce to $28.405. Nymex July platinum lost $12.40 to $1,440.50 an ounce, while June palladium rose $14.50 an ounce to $618.05. Comex July copper fell 17.3 cents to $3.2890 per pound.

 

"Managed money accounts piled back into gold, adding 15,090 gross longs versus subtracting 6,011 gross shorts, raising the net-long position to 98,426 contracts, the biggest position since May 1. Producers and swap dealers both cut gross longs and added gross shorts, lifting their net-short position.

 

"Non-commercials in the gold legacy report added 23,624 gross longs and sliced 4,333 gross shorts, increasing the net long position to 129,423 contracts, its highest level since May 1. Commercials cut gross longs and added to gross shorts, raising their net-short position. ..."

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One on One with Paul Craig Roberts « Jim Sinclair's Mineset

from Jim Sinclair:

 

"There has been plenty of calamitous news surrounding the European debt crisis. Greece is insolvent. Spain just got a big bank bailout, and Ireland wants a new bailout deal. No matter how bad it looks in the EU, Paul Craig Roberts says the problems in Europe are “nowhere near as big as the ones here.” The U.S. is printing massive amounts of money to paper over the mess, but it won’t work. Roberts says a collapse of the U.S. dollar could happen at any moment. It could be triggered by any number of things such as war or a derivatives meltdown. When a former Assistant Treasury Secretary (under the Reagan Administration) and a PhD in economics sounds the alarm bell, people should take cover. Dr. Roberts says, “The cliff dive we are experiencing in housing isn’t over,” and precious metals prices are “being suppressed.” Roberts says, “Gold prices should be rising. Why? Because the debt is rising.” What is the reason why Dr. Roberts thinks the suppression game has gotten so intense? Dr. Roberts says, “The fact that they are driving the price down suggests to me the situation is getting more desperate.” Greg Hunter interviews Paul Craig Roberts one on one about these subjects and more." - click through for the video interview.

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India May Be First of the BRIC Economies to Skid Back Into Junk Status

India May Be First of the BRIC Economies to Skid Back Into Junk Status | Gold and What Moves it. | Scoop.it
Rupee falls after S&P says cut to junk status possible for Asia's third-largest economy...

 

by Martin Baccardax:

 

"... The ratings company said India's slowing growth and political gridlock could hamper efforts to liberalise Asia's third largest economy and potentially put its BBB- rating, which was set in April of this year, at risk of a downgrade into sub-investment grade, or junk, status.

 

"The combination of a weakening political context for further reform, along with economic deceleration, raises the risk that the government may take modest steps backward away from economic liberalization in the event of unexpected economic shocks. Such potential backward steps could reverse India's liberalization of the external sector and the financial sector," said S&P credit analyst Joydeep Mukherji, author of the report "Will India be the first BRIC Fallen Angel"?

 

A "fallen angel" refers to a company or country which has seen its credit or debt rating elevated into investment grade status (ie, BBB- or higher) only to see it cut back into sub-investment grade, or junk, status. The term BRIC, first coined by then Goldman Sachs economist Jim O'Neil, refers to the emerging market economies of Brazil, Russia, India and China. ..."

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China`s gold-investment demand to grow more than 10%

China`s gold-investment demand to grow more than 10% | Gold and What Moves it. | Scoop.it

by Bloomberg News:

 

"Gold-investment demand in China may gain more than 10 percent this year as buyers seek a haven from Europe's debt crisis and the prospect of weakening currencies, according to the country's largest bullion bank.

 

"Investors here want to hold part of their assets in gold to hedge for the risks, especially now that the financial crisis has evolved into a sovereign crisis," Zheng Zhiguang, general manager of the precious-metals department at Industrial and Commercial Bank of China Ltd., said in an interview in Shanghai.


"China will topple India this year as the largest bullion market as rising incomes bolster demand, the World Gold Council forecasts. Gold may gain for a 12th year in 2012 as European policy makers strive to avoid a breakup of the euro zone and the U.S. Federal Reserve weighs more stimulus to aid the recovery. Investors in China, facing lackluster equity markets and property curbs, are looking more to the metal, Zheng said June 6. ..."

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If the Gold Standard Scares You, How About a Parallel Currency Option? - Forbes

If the Gold Standard Scares You, How About a Parallel Currency Option? - Forbes | Gold and What Moves it. | Scoop.it

by Nathan Lewis:

 

"A friend asked me: “What country today, besides the United States, could transition to a gold standard system?”

 

"The technical answer is: any of them. However, that is not what she meant. What she meant is: what country could do so, without causing unacceptable levels of economic turmoil?

 

"That is a more difficult question. The basic problem facing a country like Nicaragua, Pakistan, Cambodia — or China — is that the major international currencies, such as the dollar, euro, pound and yen, are highly variable compared to gold. ..."

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Gold holds firm after aid for Spanish banks lifts Euro

Gold holds firm after aid for Spanish banks lifts Euro | Gold and What Moves it. | Scoop.it

by Jan Harvey:

 

"... A bailout for the European banks is a positive for the euro and in a way a positive for gold, but it may take some of the risk attraction of gold away, so there is some negativity there as well," Mitsui Precious Metals analyst David Jollie said.

 

"For the other metals, it may be a bit more positive, in the sense that the euro crisis seems a little more distant," he added. "But at the moment no-one is quite sure whether this is just pushing things down the road, or whether it is the start of a solution to the euro problem. That is the key question."

 

"Subsiding risk aversion lifted European equities and pressured the cost of insuring Spanish debt against default...."

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The US Fed will participate in all the Euroland rescues. « Jim Sinclair's Mineset

The US Fed will participate in all the Euroland rescues. « Jim Sinclair's Mineset | Gold and What Moves it. | Scoop.it

by Jim Sinclair:

 

"... The US Fed will participate in all the Euroland rescues.

 

"OTC derivatives have broken the Western Financial system. Whatever is required here or in Euroland will be provide as "QE to infinity."

 

"Do you recall the many GB and EU voices that condemned QE when Bernanke was papering the world? Have you noticed those voices have been quiet for months now? ..."

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A golden idea to save (or doom) the euro

A golden idea to save (or doom) the euro | Gold and What Moves it. | Scoop.it
Germany is proposing a European Redemption Pact that will push euro zone countries to back debt with their bullion reserves...

 

by Eric Reguly:

 

"... Two questions. If Europe goes for the gold-backed deal in an effort to save its sorry butt, what does this say about the credibility, or lack thereof, of fiat currencies around the world? And would it save the euro from extinction? Desperate times require desperate measures. We can all agree the euro is a pig. A pig stuffed with gold is an entirely different beast."

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Euro zone agrees to lend Spain up to 100 billion euros

Euro zone agrees to lend Spain up to 100 billion euros | Gold and What Moves it. | Scoop.it
BRUSSELS/MADRID (Reuters) - Euro zone finance ministers agreed on Saturday to lend Spain up to 100 billion euros ($125 billion) to shore up its teetering banks and Madrid said it would specify precisely...
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Today’s Bullets Of Doom

Today’s Bullets Of Doom | Gold and What Moves it. | Scoop.it
I thought this was bad: Overheard on shoreline: "I'm looking at the Space Shuttle. THE ONE THAT LANDED ON THE MOON!" *head desk*— Mike Cane (@mikecane) June 04, 2012 This is wo...
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