The issue of where a central bank stores its gold remains on the forefront. The Dutch people want to know where the Dutch gold is stored. Venezuela called home some 160 tons that previously was held in the US, London and Canada. China has made it clear where its gold is to be with the
ell, here’s an interesting tidbit from the Treasury Borrowing Advisory Committee (TBAC) compliments of Zerohedge. Their latest letter to Timothy Geithner contained the following paragraph: “There was a lengthy discussion regarding the bid-to-cover ratios…
Gold serves as the basis of the global monetary system for the simple reason that it exists as a finite, physical store of value. And unlike every issuance of debt or piece of printed money, there is no counter party risk – unless, of course, you don’t actually have the physical gold in your possession. Then it’s no more a basis of one’s reserves than all of the digital money created with a keystroke.
The Establishment disses gold while central banks, icons of the Establishment, load up big. The third quarter saw the most central bank buying for a single quarter in forty years, and this year is on pace to see the most central bank gold buying since the collapse of the Bretton Woods Agreement in 1971.
If you’ve watched the news for any length of time you’ve probably heard mention of speculators and how they seem to be responsible for much of what ills us. Last week, Japan’s Finance Minister Jun Azumi said that a massive intervention in the Yen market was necessary as there were signs of speculation. Much of the price inflation in commodities over the last decade has been…
Various reports coming out of last week’s G20 meeting in Cannes are suggesting that some member countries had proposed Germany use its gold reserves as collateral for a Eurozone bailout fund. This brought a series of quick and unequivocal responses:
When gold topped $1900, there was much talk about gold being in a bubble. With the subsequent decline, many gold naysayers declared themselves vindicated. Gold denigraters remain wrong. Gold is a long way from a bubble. That the World Gold Council has to urges Wall Street to invest as little as 3.3% in gold is evidence just how far away gold’s top is.
Many precious metals investors are perplexed in the metals inability to move higher with all the negative financial news. Athens is aflame (literally) as the euro crisis remains unsolved; the GOP seems to be foundering in deciding on which candidate will face Obama next year;and the US continues to borrow forty cents of every dollar it spends, with real solution in sight. So, why are gold and silver not surging? In my view, it’s period of consolidation, and I think that Gene Arensberg’s latest Got Gold Report back me up.
Last week, the History Channel’s series Decoded, took on the question of whether Fort Knox actually contains any gold. It is available on Youtube in three parts, in case you missed it. Admittedly I had pretty low expectations for the mainstream media’s treatment of the topic. Of course the question is never answered, but by the time it was over…
Asahi recently posted a story about Japanese pensioners who are selling their gold. Remarkably the perception of gold has been quite a bit different in Japan than around the rest of the world. The country as a whole has been a net exporter of gold since 2006 and according to the World Gold Council, Japan is the only major economy where the demand for gold is decreasing.