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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Can Gold Make Sense If the Dollar Does Not Collapse? | Przemyslaw Radomski, CFA | Safehaven.com

Can Gold Make Sense If the Dollar Does Not Collapse? | Przemyslaw Radomski, CFA | Safehaven.com | Gold and What Moves it. | Scoop.it
We follow up on our essay on gold and the dollar collapse from December 4, 2012. In that essay, we speculated what could happen with gold if the U.S. defaulted on its debt in real terms. Today, we describe possible scenarios in the opposite ...

... The implosion of the dollar and the global currency system is not imminent. Can anyone - with 100% certainty - rule out the case in which the countries around the world agree to inflate all currencies gradually until the debts are mostly erased? Or - again with 100% certainty - can anyone say that nobody will come up with a solution that would not lead to U.S. dollar's destruction?

If the widely discussed collapse of the dollar never materializes, in spite of the current debt levels, can it still be a good idea to hold on to gold? It can, particularly if you consider that we are in a bull market and there are no clear indications that this market is to end any time soon. What is more, we haven't seen a pronounced phase of exponential growth in prices, nor have we experienced the craze of the third stage of the bull market when everybody and their brother would jump at the opportunity to buy precious metals. ...
Hal's insight:

No one knows the future. But you can look at the leaves on the tree and get a sense of season.

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Jesse's Café Américain: Fed Statement: QE and Exactly As Expected

Jesse's Café Américain: Fed Statement: QE and Exactly As Expected | Gold and What Moves it. | Scoop.it
The Fed will be expanding its Balance Sheet at $45 Billion per month in what seem to be non-sterilized purchases of government obligations, in addition to their existing program of purchasing $40 Billion in mortgage securities each month.

This is a 'save the banks' program that will have no serious effect on the real economy. And if austerity is enacted in order to support this subsidy to finance, the effect on the real economy will be devastating.

So one could say that this is QE without a forseeable end, except perhaps in meaningful reform or a de facto default, whichever comes first.

Significantly there is no purchasing of non-traditional instruments such as equities or more private, non-bank held debt.

As for the policy, there is no real change, just an affirmation of what they are currently doing. ...
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Tom Luongo's comment, December 12, 2012 1:26 PM
and that money will still be used to punish anyone who thinks they can invest in anything not approved by the bankers.
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Fed ties interest rates to 6.5% unemployment

Fed ties interest rates to 6.5% unemployment | Gold and What Moves it. | Scoop.it
The Federal Reserve on Wednesday agreed to buy more Treasury bonds to keep long-term interest rates low and maintain support for a halting economic recovery.

by Paul Davidson:

12:55PM EST December 12. 2012 - The Federal Reserve on Wednesday agreed to keep a key short-term rate near zero until the unemployment rate is 6.5% or lower. Economists said it was an unprecedented move by the central bank.

The Fed also said it will continue buying 445 billion a month in Treasury bonds to keep long-term interest rates low and help support a halting economic recovery.

The move was widely anticipated and key stock indexes rose 0.5% shortly after the announcement. The yield on the 10-year Treasury bond rose to 1.67%. ...
Hal's insight:

I'm shocked, shocked, I say. Haha. Yeah. right. I'm not.

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Gold bug spreads through Latin America | MINING.com

Gold bug spreads through Latin America | MINING.com | Gold and What Moves it. | Scoop.it
Mexico, Brazil, Colombia, Argentina and Paraguay have recently been adding to their bullion holdings. And this might be only the beginning.

In the wake of widespread reports pointing at central banks rushing to restock their coffers ever since the German government submitted gold demands to London and New York bankers, Latin American countries seem to also be catching the gold bug.

Mexico leads the way, buying close to 100 tonnes in a couple of months last year. Now Brazil has increased its gold reserves for the second straight month, reaching the highest level in 11 years, as data from the International Monetary Fund shows.

Brazil, home Latin America’s largest economy, seems to have much further to go, as gold still accounts for a mere 0.8% of its reserves.
Hal's insight:

It's going around the globe now.

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Gold & Bond Markets Are Now At A Massive Inflection Point

Gold & Bond Markets Are Now At A Massive Inflection Point | Gold and What Moves it. | Scoop.it
Today Bill Fleckenstein spoke with King World News about gold and the bond markets now being at a massive inflection point. Fleckenstein, who is President of Fleckenstein Capital, also believes that the Fed will come to be, “... viewed as the enemy that it should have been viewed as all along.

“The angst people have about gold, you would think it was down 20% on the year instead of up. For the last twelve years while gold has been increasing in price, people have been uncomfortable and there has been a lot of talk about the bull market being over.

“With the exception of a few brief periods, when gold did what it was supposed to exactly when everyone thought it should, people have been uncomfortable owning it. I think that’s the definition of a bull market. ..."
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If One Has Wealth To Preserve, The Time For Action Is Now

If One Has Wealth To Preserve, The Time For Action Is Now | Gold and What Moves it. | Scoop.it
Robert Fitzwilson tells King World News:

"... If one has wealth to preserve, the time for action is now. There are no pitchforks or torches visible yet, but there will come a time when the “free” mob will demand that governments consume all wealth. Real assets, particularly gold, silver and agricultural real estate have historically been considered safe ground. Switch out of fiat money and fixed income before it is too late. It is your best chance to stay wealthy and emerge from the old financial system not only intact, but perhaps wealthier than you ever imagined.”
Hal's insight:

Practically everyone is demanding something for nothing of their governments. This will not last.

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My Gold Plan targets India's huge unorganized Gold markets

Uttar Pradesh, largest populated state in the country accounts for 8 per cent of India's gold demand which translates to Rs 25,000 crore at current prices.

NEW DELHI(BullionStreet): My Gold Plan, jointly launched by India's Reliance Money Precious Metal and World Gold Council has attracted over 2000 approved distributors so far.

According to Reliance Money Precious Metal ( RMPM), the Plan is targeting enrolling over 10,000 jewellers and distributors across the country for its recently-launched My Gold Plan.

Targeting the huge unorganized gold markets in India, the world's largest gold consumer, RMPM said it will aggressively increase distribution and fulfilment reach across India within the current financial year.

Recently, Reliance Money launched My Gold Plan whereby customer can invest a minimum of Rs 1,000 per month which would be used for buying gold and customer can redeem the same for 24 karat pure gold coins or jewellery at the end of scheme.
Hal's insight:

This is a desire for getting everyone that sells the yellow metal in India on the same page. Interesting plan. Click over for the full piiece.

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Google parks $10 billion in Bermuda, avoiding $2 billion in taxes — RT

Google parks $10 billion in Bermuda, avoiding $2 billion in taxes — RT | Gold and What Moves it. | Scoop.it
Google reportedly avoided another $2 billion in taxes thanks to outsourced banking, which has already dubbed "immoral" and an "embarrassment" in media as austerity budgets reshape Europeans' lives.
Hal's insight:

Now why would they do that? Hmm? It is starting to sound to me like businesses in the US are not liking where the politicians are pointing.

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Tom Luongo's comment, December 11, 2012 8:55 PM
they don't like it one bit. and the capital controls will only get worse, Hal.a
Tom Luongo's curator insight, December 11, 2012 8:56 PM

Good for them.  I'm not google's biggest fan but the U.S. government doesn't need anymore of their money to make our lives more miserable while google literally improves everything we do daily.

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This Is What Is Going On Behind The Scenes In The Gold War

This Is What Is Going On Behind The Scenes In The Gold War | Gold and What Moves it. | Scoop.it
"Eric King: “John you had mentioned to me before we went on the air that one of the reasons Goldman (Sachs) may have made that call (for the end of the gold bull market) is because they are trying to buy gold for China on the cheap. I know you’ve seen the chart from Egon von Greyerz that shows Chinese gold production, plus net imports. It’s a shocking chart when you really look at the growth there.”

"Hathaway: “Absolutely. Look, it’s not just China. Central bank buying, I’ve seen it in a couple of places and we track it, has really picked up. So what does that tell you? It tells you that people who are long our paper, they are starting to get it. ..."
Hal's insight:

If you missed this piece by King World News from a couple of days ago it's worth a second look. Whenever there's weakness some of the globes biggest central banks are buying.

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oftwominds-Charles Hugh Smith: Essays in Fragility: Our One-Off Economy

oftwominds-Charles Hugh Smith: Essays in Fragility: Our One-Off Economy | Gold and What Moves it. | Scoop.it
Hal's insight:

Charles Hugh Smith writes:

 

"If you set out to create an increasingly fragile economy, you'd do precisely what the Federal Reserve and our political "leaders" have done.


"All the extraordinary measures deployed since 2008 to jumpstart the U.S. economy are one-offs: either they cannot be repeated or they have lost their effectiveness.
"As a result, we now have an extraordinarily fragile one-off economy that is dependent on "emergency" measures that cannot be withdrawn even as their utility in the real economy dwindles by the day. ..."
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Iran buys $7 billion Gold from Turkey till Nov-2012

Turkey has been importing Iranian oil and gas, and has been compensating the Islamic Republic in gold, beginning in February.
Hal's insight:

ANKARA(BullionStreet): Gold remained the back bone of Turkey's trade with Iran this year as the yellow metal accounted for 40% of total turnover till November this year.

According to Iranian news agency IRNA, total trade between Iran and Turkey have risen nearly 50 percent this year to $20 billion in a 10-month period ending in November.

The Of the $20 billion in trade, $7 billion resulted from Turkish exports of gold to Iran.. Turkey has been importing Iranian oil and gas, and has been compensating the Islamic Republic in gold, beginning in February.

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VIDEO: Seeing $315 billion worth of gold is 'quite disappointing' | MINING.com

VIDEO: Seeing $315 billion worth of gold is 'quite disappointing' | MINING.com | Gold and What Moves it. | Scoop.it
Like a mausoleum
Hal's insight:

by Michael Allan McCrae:

 

Professor Martyn Poliakoff toured the Bank of England's gold vaults, which contains $315 billion worth of bullion, and felt a little sad.

"In some ways, seeing these bars is quite disappointing because gold is an exciting element. It has interesting chemistry, and it's just sitting here doing nothing," said Poliakoff, who hosted a gold episode of The Periodic Table of Videos.

"It's enormously impressive. It's a bit sad, like a mausoleum where the dead gold is sitting, waiting for people to remember it when it could be doing exciting reactions."

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Next stage QE will be further boost for gold and silver

Next stage QE will be further boost for gold and silver | Gold and What Moves it. | Scoop.it
Tomorrow we expect to hear news of more Treasury buying by the Fed which it will do by raising the amount of Mortgage bonds it buys from $40 billion a month to $45 billion a month
Hal's insight:

by Julian Phillips: 

BENONI - 

Tomorrow we expect to hear news of more Treasury buying by the Fed which it will do by raising the amount of Mortgage bonds it buys from $40 billion a month to $45 billion a month. They view this stimulus as what’s needed to sustain the economy and reinforce improvements in industries such as autos and housing, which appear to have picked up.

The Fed’s latest round of quantitative easing will total $1.1 trillion, with about $620 billion in mortgage-backed securities and $500 billion in Treasuries. They have to get the economy up to a speed where the momentum will carry it forward without this support. If they fail and momentum slows then the whole QE program will turn toxic and create accelerating monetary inflation. That’s why so many worry about quantitative easing so much.

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The Golden Truth: Government Waste In Extremis

The Golden Truth: Government Waste In Extremis | Gold and What Moves it. | Scoop.it
Dave in Denver writes:

Just so everyone is clear, "in extremis" is a Latin phrase that essentially means "to the point of death."

Our Government is growing, spending and transferring private wealth to the point at which our system is nearing its death. Just to be clear, I'm not referring directly to the tax policy debate or the so-called "class warfare" discussion. My own view is that the tax system is so irrevocably convoluted that nothing short of a full "reset" will fix that problem.

What I'm referring to is the fact that the Government is taking taxpayer money and paying many of its employees an absurdly egregious amount of compensation. Here's two examples that hit the news in the last 24 hours: " $822,000 Worker Shows California Leads U.S. Pay Giveaway" LINK Pay for State-sponsored psychologists and school Administrators seems to be leading the way. Psychologists? Give me a break. I never signed up to pay for that.

We all know that including retirement benefits, the average pay per employee for Government workers is a little over $100k/year. For now, all of that is guaranteed. Contrast this with the average private sector all-in compensation which a little over $60k/yr, with nothing guaranteed.

But here's a fact that is even more outrageous: the top 90 employees for Fannie Mae and Freddie Mac get paid an average of a little over $1 million/year LINK That figure just blows my mind given that FNM/FRE exist only because of trillions in taxpayer subsidies. I can guarantee you that at least 90% of those people making an average of $1 million per year could never in their wildest dreams make even 1/3 of that amount in the private sector. No way. I would bet the life of my dog on that. ...
Hal's insight:

Click through for the rest. That Fannie and Freddie info doesn't suprise me... just depresses me.

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Obama Likely To Approve Gold Sanctions on Iran As Currency Wars Escalate | ZeroHedge

Obama Likely To Approve Gold Sanctions on Iran As Currency Wars Escalate | ZeroHedge | Gold and What Moves it. | Scoop.it
Turkey’s trade balance may turn on whether President Barack Obama vetoes more stringent sanctions against Iran after the U.S. Senate passed a measure targeting loopholes in gold exports to the Islamic Republic.

Turkey’s gold trade with neighbouring Iran has helped shrink its trade deficit over the past year according to Bloomberg.
Hal's insight:

What? No, he can't. Bernanke says gold isn't money. So it can't be sanctioned.

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Germans buy more gold on economic uncertainty - FAST NEWS - Mineweb.com Mineweb

Germans buy more gold on economic uncertainty - FAST NEWS - Mineweb.com Mineweb | Gold and What Moves it. | Scoop.it
A study by Heraeus shows that Germans are increasingly buying gold because of fears about economic uncertainty, with about half keeping their physical gold at home.

HAMBURG (REUTERS) -

Germans are increasingly buying gold because of fears about economic uncertainty and a third of them are now considering gold as part of their investments, a study from German precious metals group Heraeus Holding GmbH said on Tuesday.

There had been increased gold demand from German investors in recent months because of worry about actions taken by the European Central Bank and U.S. Federal Reserve as the two central banks sought to counter the euro zone crisis and slow U.S. economic growth, the study said.

German private investors now owned 8,000 tonnes of gold, Heraeus said. ...
Hal's insight:

Perhaps people are getting wise to the central banking scheme.

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$27 billion injected into Amazonia mining by 2016 | MINING.com

$27 billion injected into Amazonia mining by 2016 | MINING.com | Gold and What Moves it. | Scoop.it
Vale's Carajas iron ore mine is the biggest but some 60 gold explorers are also active in the Brazilian region.

BNAmericas reports by 2016 mining companies will invest around $26.9 billion in mining projects in the Brazilian region know as "Amazonia Legal".

Brazil mining chamber said projects in Amazonia which encompasses the states of Acre, Amapá, Amazonas, Pará, Rondônia, Roraima, Tocantins, Mato Grosso do Sul and Maranhão include the expansion of Vale's Carajas mine, copper projects near the town of Parauapebas and a project by Alumina Rondon.
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Ed Steer's Gold & Silver Daily on SLV and GLD etfs

Ed Steer's Gold & Silver Daily on SLV and GLD etfs | Gold and What Moves it. | Scoop.it
On SLV and GLD etfs Ed Steer writes in his daily:

"... The short position in GLD increased by 7.89 percent...and now stands at 23.8 million shares, or 2.38 million ounces....and increase of 1.74 million shares.

"As of the end of November, SLV was owed over 596 tonnes of silver...and GLD was owed 74 tonnes of gold. If the shorts had to cover these positions by depositing the required amount of each metal in each ETF, the price of gold and silver would be much higher...especially silver.

"Since the metal wasn't available...or if it was, it wasn't available at current prices...the authorized participants shorted the shares rather than be forced to drive the price up by purchasing the silver and gold in the open market. ..."
Hal's insight:

Fascinating, isn't it?

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Gold awaits outcome of Fed meeting

Gold awaits outcome of Fed meeting | Gold and What Moves it. | Scoop.it
Markets rallied Wednesday as investors were optimistic that a deal would be reached to avert the so called fiscal cliff.

NEW DELHI(BullionStreet): My Gold Plan, jointly launched by India's Reliance Money Precious Metal and World Gold Council has attracted over 2000 approved distributors so far.

According to Reliance Money Precious Metal ( RMPM), the Plan is targeting enrolling over 10,000 jewellers and distributors across the country for its recently-launched My Gold Plan.

Targeting the huge unorganized gold markets in India, the world's largest gold consumer, RMPM said it will aggressively increase distribution and fulfilment reach across India within the current financial year.

Recently, Reliance Money launched My Gold Plan whereby customer can invest a minimum of Rs 1,000 per month which would be used for buying gold and customer can redeem the same for 24 karat pure gold coins or jewellery at the end of scheme.
Hal's insight:

This may be the case in the short term but frankly the long term out look for gold doesn't appear to me to care what happens with the cliff. It's just noise. The train is running at full speed and the brakes are burned out. All this stuff they are attempting to do at this point is little more than a piece of caution plastic strip stretched across the tracks.

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'Cliff' Talks at Standstill: 'It's Getting Worse, Not Better'

'Cliff' Talks at Standstill: 'It's Getting Worse, Not Better' | Gold and What Moves it. | Scoop.it
Talks to avoid the "fiscal cliff" showed little progress Wednesday, with Republicans publicly rebuking the Obama administration and one House member saying "it's getting worse, not better."
Hal's insight:

Haha.

 

as if this is a surprise. Does anyone really expect the politicians to do anything with common sense and fiscal responsibility anymore? 

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On the Death of Certain Dreams

On the Death of Certain Dreams | Gold and What Moves it. | Scoop.it
Author of THE DEBT GENERATION

"All nations, all peoples, I think, have dreams of themselves, of their better selves, of the people they imagine they could be. They are not rational and are often not even true. But then again dreams do not have to be true. We just have them. Or perhaps they have us. But those dreams have been dying recently. The dreams of whole nations have been withering and dying. As if some disease of our imagination’s immune system were turning hope against us. And we find ourselves collectively adrift, mourning for the people we thought we could be. ..."
Hal's insight:

This piece resonated with me. I sen the death of dreams around me quite a bit of late. And working with a number of business owners as I am privileged to do, I also see the birth of some dreams during these difficult times. One of the things that I am reminded about is that not all those dreams will make it. But some will. And these people are not the type to stop dreaming when difficulty arises.

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The Essential Newbie Guide for Buying Gold & Silver

The Essential Newbie Guide for Buying Gold & Silver | Gold and What Moves it. | Scoop.it
Hal's insight:

JS Kim writes:

 

(4) Gold and Silver Prices ARE actively suppressed by bankers

 

No, this is not a conspiracy but simply fact. Don’t let the analysts out there that say such claims are conspiracy and false convince you of their misinformation campaign. The circumstantial evidence of Central Bank and bullion bank gold and silver price suppression schemes is as overwhelming as the circumstantial murder evidence that existed against OJ Simpson. I’ve outlined some of this evidence in the video below for your review. As well, visit www.gata.org for a mountain of evidence. Thus, since all banking forces conspire to keep gold and silver prices low and not to drive the price higher, this supports my thesis that gold and silver prices are still cheap today. Remember, I was making these claims more than six years ago and ridiculed for my claims back then though the claims of gold and silver price suppression are much more accepted as fact today. Remember, the philosopher Arthur Schopenhauer said this about truth:“All truth passes through three stages: First, it is ridiculed; Second, it is violently opposed; Third, it is accepted as self-evident.” In 2006, many in the commercial investment industry ridiculed for my firm stance that gold and silver prices were being manipulated downward by bankers. I believe that now we are still in the stage when the truth about gold and silver price manipulation schemes are still being violently opposed but that we will soon be moving into the stage when this truth becomes self-evident.

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US Mint Gold coin sales jump 132% in November

US Mint also reported sales of 3,159,500 ounces in American Eagle Silver Bullion coins for November 2012, more than double the sales of 1,384,000 ounces in American Eagle Silver Bullion coins reported during November 2011.
Hal's insight:

WASHINGTON(BullionStreet): US investors are flocking to gold, especially in coin form as uncertainties over fiscal cliff strengthened post presidential elections.

US Mint said sales of American Eagle gold bullion coins more than tripled in November of this year from 41,000 ounces sold in November 2011 to 131,000 ounces.

The U.S. Mint also reported that gold sales increased 132% from 59,000 ounces in October 2012 to 136,500 gold ounces in November 2012.

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Secret IMF report: Hide gold loans and swaps for market manipulation | Gold Anti-Trust Action Committee

Secret IMF report: Hide gold loans and swaps for market manipulation | Gold Anti-Trust Action Committee | Gold and What Moves it. | Scoop.it
Hal's insight:

Dear Friend of GATA and Gold:

 

"Western central banks conceal their gold loans and swaps because information about them is "highly market-sensitive" and accountability about them would hinder secret currency market interventions by central banks, according to a confidential report by the International Monetary Fund obtained this week by GATA.

 

"The report, provided to GATA by its researcher R.M., was written in March 1999 as the IMF staff proposed to strengthen financial reporting standards for central banks. The report shows that the objections by gold-lending central banks were decisive in weakening the standards. While the first draft of the new reporting rules would have required disclosing central bank gold loans and swaps, the revised rules, later adopted, allowed central banks to hide their gold loans and swaps within their gold reserves and even not to disclose the amount of their monetary gold at all, just the value assigned to it. ..."

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The Golden Truth: More On Real Unemployment

The Golden Truth: More On Real Unemployment | Gold and What Moves it. | Scoop.it
Hal's insight:

Dave in Denver writes:

 

Just walk into any Starbucks in any urban area after 11 a.m. and see who's using the free wifi -  a thoughtful, long-time friend of mine on the credibility of the Government's employment report


Although it gets mentioned in non-mainstream media sources of analysis, the ever-shrinking size of the U.S. labor force has become serial in nature, to the point at which this economic defect has become endemic to our system.  Huh?

Every month embedded in the Government employment report is a statistic called "civilian labor force participation rate."  This number is basically the number of people who are employed PLUS the number of people looking for a job divided by the population.  The result is the "labor force."  So the headline unemployment rate would be the number of people looking for a job divided by the size of the labor force. This number was reported to be 63.6% last Friday.  This is lowest it's been since 1981.

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