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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Gold at mid-$1,800s by year end: Thomson Reuters GFMS

Gold at mid-$1,800s by year end: Thomson Reuters GFMS | Gold and What Moves it. | Scoop.it
Supply side sluggish.

 

by Michael Allan McCrae:

 

Lack of confidence in the US economy will push gold to mid-$1,800s by year end, says Thomson Reuters GFMS that  launched its Gold Survey 2013 yesterday.

 

The consultancy conceded the recent weak gold markets but says the economic data is patchy and an underlying weakness persists.

 

“Gold is likely to remain very sensitive to US monetary policy and even though we’ve had some hawkish noise from some within the Fed, it’s difficult to see a material unwinding of the QE programme until well into 2014 and so that should continue to underpin the gold price in 2013,” writes Neil Meader, head of precious metals research and forecasts at  Thomson Reuters GFMS. ...

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Stock Crash Likely If Rally Continues: Marc Faber

Stock Crash Likely If Rally Continues: Marc Faber | Gold and What Moves it. | Scoop.it
More near-term gains in stocks portend big trouble for the market, Marc Faber of "The Gloom, Boom & Doom Report" told CNBC.
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From South Africa: How the U.S. herds the ‘sheep’ away from the gold market | Gold Anti-Trust Action Committee

From South Africa: How the U.S. herds the ‘sheep’ away from the gold market | Gold Anti-Trust Action Committee | Gold and What Moves it. | Scoop.it

... US Federal Reserve chairman Ben Bernanke has made it clear that the recovery of the US economy and the reduction of unemployment depend on the recovery of consumer spending, which requires a robust stock exchange and a return of confidence to the housing market. That is where he would want to see the money go. It may also be that he does not want to see it go elsewhere.

 

Where else might it go? The exponential rise in demand for gold and silver coins and bullion bars tells the story of a loss of confidence in conventional banking and money. How is it, then, that in the face of rising demand; a banking system in disarray; and the "printing" of trillions of dollars, that the prices of gold and silver bullion remain subdued? Is it only in the East that the lessons of the Weimar Republic have been learned? Or have the laws of economics been reversed?

 

It has been said that there are no free markets any longer, only interventions. The world's most prominent intervener, by far, is the Fed. It intervenes in the interest rate structure; it intervenes in the housing market by buying mortgage-backed securities, undertaking to continue to do so until the anticipated recovery in unemployment statistics occurs; and it intervenes in the supply of money with its regular purchase of US Treasury bonds (which is to say, it creates money "out of thin air"). The US Treasury intervenes regularly to prop up the stock market through "the Working Group on Financial Markets", also known as the "Plunge Protection Team," established under former President Ronald Reagan.

 

Now it is contended that these serial interveners do not intervene in the bullion markets which, it is asserted, operate entirely according to free-market principles. Gold has been described as the antidollar. It is the ultimate "canary in the coal mine" on matters of banking and financial wellbeing. Is it conceivable that the compulsion to intervene will have departed in the case of gold (and silver) and will leave these commodities in splendid isolation? This proposition seems improbable if the price were to tell a story that the US officials did not like. Would they, for instance, leave the gold price to find a level of $5,000, which would cause every investor to abandon the US stock and housing markets in favour of the far more lucrative gold market? Does this scenario fit the character of ...

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Central Banks Move Into Riskier Assets

Central Banks Move Into Riskier Assets | Gold and What Moves it. | Scoop.it

by Claire Jones:

 

Central bankers are putting cash into riskier assets and exotic currencies to compensate for ultra-low returns on U.S. Treasurys, according to a poll of officials responsible for almost $7 trillion in reserves.

 

The world's central bankers together manage reserves worth $10.9 trillion, most of which is held by monetary authorities in Asia and the Middle East. The bulk of their reserves, usually accumulated from attempts to curb their currencies' gains, are held in the form of U.S. government debt as well as the bonds of safer euro zone sovereigns. ...

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As Confidence In Dollar Wanes, Over A Dozen States Push For Gold As Legal Tender | Zero Hedge

In more than a dozen states, legislators are pushing for a movement back to a world where gold is considered money. As Bloomberg reports, lawmakers in Arizona are poised to follow Utah, which authorized bullion for currency in 2011.
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Gold no more safe haven, but sees central bank support: George Soros

Gold no more safe haven, but sees central bank support: George Soros | Gold and What Moves it. | Scoop.it
The price of spot gold has fallen nearly 6 percent so far in 2013, after a 12-year rally, as investors searched for better investment returns elsewhere including equities. In contrast to gold, the S&P 500 stock index is up almost 9 percent this year.

 

LONDON(BullionStreet): Institutional investor George Soros said gold has been destroyed as a safe-haven asset, but expects continued central bank buying to support prices, Reuters reported. 

"Gold was destroyed as a safe haven, proved to be unsafe. Because of the disappointment, most people are reducing their holdings of gold," Soros told the newspaper in an interview published at the weekend.

"But the central banks will continue to buy them, so I don't expect gold to go down. If you have the prospect of a crisis, you will have occasional flurries or jumps. So gold is very volatile on a day-to-day basis, no trend on a longer-term basis." ...

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oftwominds-Charles Hugh Smith: The Real Cyprus Template (the one you're not supposed to notice)

oftwominds-Charles Hugh Smith: The Real Cyprus Template (the one you're not supposed to notice) | Gold and What Moves it. | Scoop.it

The Real Cyprus Template reveals the core-periphery Neocolonial-Financialization Model in all its predatory glory.


Much has been said about "the Cyprus Template" (the so-called bail-in, where deposits are expropriated to recapitalize the insolvent banks), but virtually nothing has been written about the Real Cyprus Template. Longtime correspondent David P. (proprietor of Market Daily Briefing) charted some very interesting data that enables us to follow the money--specifically, Eurozone money in the "foreign deposit sources" (deposits in Cyprus banks that originated from outside Cyprus).
It appears the key preliminary step of the Real Cyprus Template is that money-center banks in Germany and other "core" Eurozone nations pull their money out of the soon-to-implode "periphery" nation's banks before the banking crisis is announced. ...
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Gold Trader: "Once This Bottom Is Formed, We May Never See Gold At These Levels Ever Again." | Bull Market Thinking

Gold Trader: "Once This Bottom Is Formed, We May Never See Gold At These Levels Ever Again." | Bull Market Thinking | Gold and What Moves it. | Scoop.it

I had the chance yesterday to speak with technical gold trader Gary Savage, publisher of the “Smart Money Tracker”, daily gold market commentary and trading service, which has outperformed most of the world’s hedge funds in 2011 and 2012.

 

It was a powerful conversation as Gary commented on the panic selling we’ve seen over the last few days, sharing his view that “once this bottom is formed, we may never see gold at these levels ever again.”

 

Despite continued and relentless selling, Gary commented that, “Gold isn’t in a bear market, it’s [just] been in a consolidation since the top of September 2011. If you pull up a 13-year chart, it shows that gold is not in a bear market, not even close. The miners however, are in bear market, and they have been for 19 months now, and they’ve lost 50%. That’s about an average cyclical bear market…[So] I think the miners are [primed] to bottom along with gold at this yearly cycle low, which I don’t think occurred today, but I think we’re within a day or two of that final bottom.“  ...

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Jim Rogers: "I Suspect They'll Take The Pension Plans Next; I For One Am Worried, And I'm Taking Preparations" | Bull Market Thinking

Jim Rogers: "I Suspect They'll Take The Pension Plans Next; I For One Am Worried, And I'm Taking Preparations" | Bull Market Thinking | Gold and What Moves it. | Scoop.it
I was able to reconnect for an interview with legendary Quantum Fund manager and commodities bull, Jim Rogers.

 

I was able to reconnect for an interview with legendary Quantum Fundmanager and commodities bull, Jim Rogers. This was an especially groundbreaking interview, as Jim shared thoughts on what governments around the world will be taking next, and what he’s doing right now to protect his personal bank accounts following the Cyprus collapse.

 

Speaking towards the frightening implications of the Cyprus banking collapse, Jim said that, “It’s been condoned [now] by the IMF, the European union, and everybody else in sight; that a government in need, can take assets. We all knew they could tax us…but this is the first time that I’m aware of, that they’ve gone in and taken bank accounts. They took gold from people in the U.S. in the 1930′s…but I’ve never heard of them taking bank accounts. [Now] they’re doing it. So be careful [because], now they can take your bank account under this precedent.“

 

When asked if bank account confiscation will be going worldwide, Jim said, ”Well, it’s now in their bag of tricks, but yes, they can do anything they want too now. I for one am worried and I’m taking preparations. Who knows if I’m right or not, but I’d rather be safe than sorry as all of those people who had money in Cyprus have learned. They thought they had a normal bank account…but now it’s been [taken] with the sanctions of many governments and institutions.”

 

Jim also urged that, “If people have money in any account, anywhere in the world…cut it down to under the guaranteed amount. They might take that too someday when things get desperate, because the precedent has been set, but that’s where I would start if I had money in the bank anywhere in the world.” ...

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Eric De Groot: Fighting Fire With Fire Produces Godzilla-Like Outcomes

Eric De Groot: Fighting Fire With Fire Produces Godzilla-Like Outcomes | Gold and What Moves it. | Scoop.it

While "fighting fire with fire" (fighting crippling, historic, and failing debt burdens with unprecedented currency devaluation and stimulus - $1.4 stimulus announced today by Japan) extinguishes oil well fires with ease, it tends to produce Godzilla-like (destructive) outcomes when used as financial/policy solutions. ...

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Ed Steer in his Gold & Silver Daily on physical buying.

Ed Steer in his Gold & Silver Daily on physical buying. | Gold and What Moves it. | Scoop.it

... At the bullion store yesterday, it was the third day in a row where business was farabove normal...and only towards the end of the day did things slow down a bit...but only a bit.  We've sold more platinum and palladium in the last three days than we have in the last three months combined.  Lots of gold sales, too...but the vast majority of sales are silver...and it has always been that way.  The mood is different now. People are worried...about interest rates...the banks...Cyprus...you name it.  The idea of making a buck is still part of the buying equation, but it has become the secondary reason to buy since the Cyprus incident...especially considering the revelation that the Canadian government is considering the same policy with its own "too-big-to-fail" banks. ...

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Can a Cyprus-like "bail-in" occur with Gold?

Can a Cyprus-like "bail-in" occur with Gold? | Gold and What Moves it. | Scoop.it

The U.S. dollar, the world's de facto reserve currency since the Bretton Woods agreement in 1944, is more directly threatened by gold than any other currency. Much of the downward pressure on gold and the ramped-up negative publicity campaign against gold is likely a direct result of this competition.

 

By Nick Barisheff
Events in Cyprus have led to the realization that people who have worked hard and put their savings into a bank are technically lenders to the bank. In the case of insolvency they are “unsecured creditors,” and not automatically entitled to their own funds. Understandably, this has caused a great deal of concern amongst depositors and investors alike, especially to someone who has viewed economic activity from the standpoint of gold, as I have, for the past fifteen years.

A significant crisis in confidence is beginning to develop thanks to the light shined on the dark underbelly of central banking by the Cyprus fiasco. Central bankers know that the only thing keeping their Ponzi scheme, our modern fiat currency economic model, alive is confidence. The most important tools central bankers have in their arsenal are the right to create unbacked fiat currency, fractional reserve banking and the perception management resources they use to prevent mass withdrawal of funds. The right to create unbacked currency is the crown jewel privately owned central banks have fought to possess for hundreds of years .This privilege has come under more scrutiny over the past few years, thanks in large part to the Internet and to former Texas congressman Dr. Ron Paul, who educated an entire generation about the true nature of the Federal Reserve and its private ownership. 

Fractional reserve banking, which allows banks to lend out nine dollars for every dollar invested, works until there is a loss of confidence and people rush to ...

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Young Vs Old: A Tale Of Two US Job Markets | Zero Hedge

Young Vs Old: A Tale Of Two US Job Markets | Zero Hedge | Gold and What Moves it. | Scoop.it

Because we have discussed the issue of the age-bifurcated US jobs market extensively before, we are delighted to not have to say much if anything this time around, as absolutely everything is still the same. Since the arrival of Obama, the US workforce has been effectively split into two separate job markets: those 54 and younger (condolences) and those 55 and older. Specifically, since January 2009, the number of jobs created has been focused solely on the gerontocratic component of the US labor pool, those aged 55 to 69 (or more - gray line below), and who can no longer afford to retire as expected thanks to Bernanke's genocidal ZIRP policies which have made a mockery of savings. These older workers have seen a grand total of 4.02 million cumulative jobs created. Everyone else (or those 54 and younger - red line below)? A grand total of 2.8 million jobs lost, and now deteriorating once more, with those in the prime work demographic of 25-54 having lost the most jobs, 2.2 million, since the coming of Obama.

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Embry - This Is Heading Toward A Catastrophic Ending

Embry - This Is Heading Toward A Catastrophic Ending | Gold and What Moves it. | Scoop.it

Today John Embry told King World News we are now headed toward a catastrophic ending.  Embry also warned KWN to expect tremendous chaos going forward as the world moves into the first global hyperinflation.  Belowis what Embry, chief investment strategist at Sprott Asset Management, had to say:

 

“You can’t create more and more debt, which is required to get economic activity moving forward at a decent pace.  They will try, but ultimately it will reflect itself in inflation.  So what we potentially face is the first global move toward hyperinflation in world history.

 

Hyperfinflation has happened many times in history, but without exception it has been confined to specific countries or small regions.  This one would appear to be heading in a global direction, and because it (hyperinflation) is the most corrosive thing that can happen to a society I cringe at the thought of this coming to fruition....

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Sinclair - Stunning Shift In US Government & Fed Gold Policy

Sinclair - Stunning Shift In US Government & Fed Gold Policy | Gold and What Moves it. | Scoop.it

... Eric King:  “Jim, as you know up to now the Chinese have been mercilessly taxing the West out of its own gold.  Meaning the price of manipulation for the West has been devastating in terms of the outflow of gold out of Western vaults.  The advantage to the West of manipulating gold higher would also be to stop the flow of gold out of Western vaults because the Chinese do not like to chase price.”

 

Sinclair:  “Regardless of whatever opinions may be publicly given from Federal Reserve Governors, the Chairman, or from the US Treasury, there certainly is a very strong understanding of the history of gold and how important it is to any country, especially in times of stress.  


It is very possible, and in my opinion probable, that the importance of gold is now being recognized at very high levels.  And from this point forward, it is my strong belief that the Federal Reserve will be more friendly, rather than the enemy of gold, and the price in the market will show you that I’m correct.


An increase in the price of gold, aided by the Fed and the West, would definitely be to stop the further draining of gold out of Western central bank vaults.  China will then ...

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The Financial System Has Reached The Implosion Point

The Financial System Has Reached The Implosion Point | Gold and What Moves it. | Scoop.it

 

A profound thanks to all the short term fickle speculators in gold and silver who have shifted their portfolio allocations to stocks, bank accounts and certificates of confiscationgovernment bonds .  The shift to paper assets has provided what will in hindsight be the best buying opportunity for gold and silver since the crash of 2008. ...
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The Reality of Gold and Silver Prices

The Reality of Gold and Silver Prices | Gold and What Moves it. | Scoop.it

The funk is not gold and silver themselves, here is why; the old monetary metals have done as well or better than the Dow Jones since their credit crisis lows four years ago.

 

Look at gold below (Blue Plot) compared to the Dow Jones (Green Plot). Gold has been correcting since August 2011. So if the “bull market” in the Dow Jones is now finally catching up to gold it’s really not the big deal some in the media would have the public believe. After all, gold has closed higher for the year in the last twelve consecutive years since 2000. The Dow Jones has never done that, not even when Greenspan was blowing a bubble in the stock market.

 

This isn’t going to last forever, and when gold reverses to the upside it will leave the stock market far behind. ...

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The Bordeaux Effect | Zero Hedge

Via Mark J. Grant, author of Out of the Box,

I have seen it before. God willing, I will see it again. A world that is dislocated, on a different axis, where the economy is doing one thing and the markets are doing something else that is not connected. After almost forty years on Wall Street I have seen a great many imbalances. None quite like this one though; none as distorted.
 
As political nonsense becomes the world's normal banter; the official language in the Press is little more than printed or spoken noise.
 
It is all caused by the Fed's outpouring of money into the system which has caused carnage for savers, investors and has pushed the equity markets past anyplace that the economy can rationally support and caused bond compression that is frankly, dumb. The employment numbers on Friday are a good indicator of the real economy; a real unemployment rate of 11.6% that has been fictionalized by the amount of people no longer in the work force so that the data is seriously skewed towards political fantasy.
 
The world will return to its senses once again either driven by some "event" or by the Fed beginning some sort of withdrawal.In the meantime the markets are beginning to back-up some as moved by becoming accustomed to the continuing flood of money. It is rather like a fine Bordeaux. One meal, two meals, a week's worth of meals and the experience is marvelous but if you drink it every night for dinner the magic begins to dissipate. It is no longer special; it is something expected, it is just the normal fare. ...

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Kansas, S Carolina to follow Utah in Gold currency

Analysts said distrust of the Federal Reserve and concern that U.S. dollars may become worthless are fueling a push in more than a dozen states to recognize gold and silver coins as legal tender.

 

WASHINGTON(BullionStreet): More and more US states are following Utah to authorize bullion for currency on concerns about the dollar.

 

Arizona is all set to legalize bullion as legal tender while Kansas, South Carolina and other states are prepared for the move

 

Analysts said distrust of the Federal Reserve and concern that U.S. dollars may become worthless are fueling a push in more than a dozen states to recognize gold and silver coins as legal tender.

 

Utah became the first US state to authorize bullion for currency in 2011. ...

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Azerbaijan's SOFAZ buys 1 more ton of Gold

The gold was temporarily stored in the vaults of the Central Bank of the Republic of Azerbaijan.

 

BAKU(BullionStreet): Azerbaijan's State Oil Fund (SOFAZ) purchased one more ton of gold on the first week of this month to make the total at 4 tons.

 

UK’s Brinks Global Services completed the purchase for SOFAZ in compliance with the rules set forth by the LBMA. The gold was temporarily stored in the vaults of the Central Bank of the Republic of Azerbaijan.

 

The State Oil Fund of Azerbaijan, the sovereign wealth fund, was set up in December 1999 by the Presidential Decree as an extra-budgetary entity which accumulates and manages oil and gas revenues of the country.

 

The Fund’s primary objectives are to help maintain macroeconomic stability in the country and to generate wealth for present and future generations. As of 01 January, 2013, assets of SOFAZ totaled $34 129.4 mln. ...

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Eric De Groot: The Gold Era Is NOT Over!

Eric De Groot: The Gold Era Is NOT Over! | Gold and What Moves it. | Scoop.it

Those that follow headline BS rather than the message of the market will have the pockets picked. We've seen this headline before, but once again, the Gold Era Is NOT over. 

While the headline maximize fear with disinformation, such as the Gold Era is over, they mask the transfer of paper control behind the scenes. The recent decline should send gold's DI (chart 1) already concentrated above 60% higher and potentially above the previous peak of 81. This rise will help 'the boys' cover their short position into weakness. NL%OI (net long as a percentage of open interest) currently at -18.25% remains well below the 2008 low of -12.87%. In other words, “the boys” could use a little help from friends in ...

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Economic Signs of the Times: Is it a recovery yet? (Weekly report, 04-04-13)

Is it a recovery yet? (Weekly report, 04-04-13) 
A recovery would be indicated by weekly initial jobless claims holding below 500,000. (See this post.)

IT'S A RECOVERY! (And it has been a recovery for every week since the Nov. 25, 2009 report, with the exception of the Aug. 19, 2010 report.)

"The Labor Department said Thursday that 385,000 people filed for initial jobless benefits. That was up 28,000 from a week ago." (CNNMoney)

Jobless claims at four-month high, cast shadow over jobs market(Reuters) ...
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One Ton of Gold Seized in Small Car: On the Scene

April 4 (Bloomberg) -- Betty Liu reports on Italian police finding one ton of gold in a car. She speaks on Bloomberg Television's "In The Loop. (Source: Bloo...
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This is what big money does to escape. You also might think of it like the a flock of birds taking off before an earthquake. hat tip to www.zerohedge.com

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Pakistan buys 2.7 tons of Gold during first 8 months last fiscal

Pakistan imported about 2,645 kilogram of gold worth of $143.633 million was imported during the period under review as compared to the import of 1,805 kg valuing $96.917 million during same period of last year.

 

NEW DELHI(BullionStreet) : Pakistan imported nearly 2.7 tons of gold during the first eight months of the last fiscal year.

 

According to Pakistan’s commerce ministry, country imported about 2,645 kilogram of gold worth of $143.633 million was imported during the period under review as compared to the import of 1,805 kg valuing $96.917 million during same period of last year.

 

Pakistan's gold imports surged by 48.2 per cent as against the same period of last year.

 

Analysts attributed the increase in gold imports into the country mainly to the decrease in the global gold price which is witnessing declining trend since September 2012 when its price touched the highest level of $1795 per ounce.

 

Whereas the gold price on Thursday hit the lowest of $1539 per ounce. In Pakistan markets, the price has also gone down to Rs. 58700 per tola. ...

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Charles Hugh Smith: "The Carrot's in Reach:" The Myth of a Self-Sustaining Recovery

Charles Hugh Smith: "The Carrot's in Reach:" The Myth of a Self-Sustaining Recovery | Gold and What Moves it. | Scoop.it

The carrot of self-sustaining recovery will remain out of reach, for the policies presented as the path to recovery preclude the "virtuous cycle" everyone desires.


The enduring myth of the post-2008 era is that central-planning money printing and deficit spending would soon spark a self-sustaining recovery. Once consumers and businesses stepped up their own borrowing and spending, the central bank and state would then pare back money printing and deficit spending, as the increase in private-sector spending would fuel further borrowing and spending, i.e. become self-sustaining. The reality is the mythical self-sustaining recovery is the carrot dangled in front of a credulous public:though we're constantly reassured "we're almost there" (the promised land of self-sustaining recovery), the mythical recovery remains out of reach, no matter how much money is printed or borrowed and blown in fiscal stimulus. There are several key reasons for this.1. As noted yesterday, consumption is... 
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