by Adrian Ash - Bullion Vault
October 8th, 2012
Wholesale US dollar gold prices slipped 0.4% from new 11-month highs in London trade Friday morning, dipping beneath $1,790 per ounce as European stock markets crept higher.
Wholesale silver bullion prices eased back below $35.00 per ounce – but also held 1.1% up for the week – as commodities held flat and major-economy government bonds ticked lower.
The Euro currency held above $1.30 despite a sharp drop in Germany's industrial orders data.
Latest US jobs market data were due just ahead of the start of New York trade, with analysts expecting on average a rise of 113,000 last month from August.
"The labor market needs to improve for QE3 to end and, if it does not improve as the Fed wants, other [monetary policy] measures will be introduced," reckons Standard Bank strategist Steven Barrow.
"If the third round of quantitative easing leads to further weakness of the US dollar, [other] central banks may be prompted to switch more cash reserves into gold," says Evy Hambro, co-manager of the UK's giant Blackrock Gold & General mining-stock fund.
The chart of dollar gold prices, says a new report from Hambro's team, "has turned decidedly bullish with the 50-day moving average rising above the 200-day moving average.
"The last time this happened was in February 2009...shortly after the implementation of QE1. Then, gold was $900 and never looked back. Should we witness a similar rally, prices would be taken to $2,400 by midsummer next year."
Bank analysts and trading desks today cited "further support" for gold prices from geopolitical tension over fighting on the Syria-Turkey border, plus the fast-spreading industrial unrest in South Africa – world #6 for gold mining output.
Japan's Toyota Motor Corp. said workers would return today to its Durban plant after it granted the 5.4% pay rise demanded during 4 days of wildcat stoppages.
Read the original article here
Americans may finally be waking up to the realization that their best defense against more than 20 years of Fed mismanagement is a shiny yellow metal.
These days there is no shortage of chatter about the Federal Reserve's latest round of quantitative easing (aka QE3), and I detect there is a small, yet growing, level of dissatisfaction with the Fed's policies. It seems that savers have finally begun to find their voice -- somewhat in light of the fact that their money is slowly being stolen by the Fed's money printing.
From the stock bubble of the late 1990s, to the even bigger and more devastating housing bubble, to its recent policy of guaranteeing inflation and offering little reward to savers, the Fed has eviscerated the middle class and made poor people poorer.
Though it could be argued that people with wealth have benefited, that is not something that they necessarily asked for (excluding the Wall Street banksters). In sum, the Fed is a devastatingly powerful organization, and it is hellbent on a path of continued destruction.
What brings up this rant is that a reader of my daily column (at www.fleckensteincapital.com; subscription required) recently asked me, where is the outrage about all of the above, and other unintended consequences I haven't mentioned?
That is a very good question. As noted, there seems to be a little bit of backlash brewing, but given the damage that has been inflicted on this country and on other places where central (planning) bankers loom large, it is damn little.
Time to stop turning the other check
I was incensed with the policies of Alan Greenspan, beginning in the mid-1990s, as readers of my columns can attest, and I would say my anger crested with the 2008 mania, when I wrote my book, "Greenspan's Bubbles: the Age of Ignorance at the Federal Reserve."
I had expected after the stock market bubble that the Fed would be forced to behave, but that was naïve and incorrect. Still, I felt certain after the second debilitating, debt-laced bubble that folks would demand more of the Fed (though I did know how it would respond, with stimulus, which is why I closed my short-only fund in early 2009). Thus, it has been disappointing to me that there hasn't been more outrage on the part of the masses.
Granted, the Fed may seem like an obscure subject, but it really isn't that hard to figure out who the main culprit is. Many others besides myself have written about it for many years now.
This is not to say that we have a functioning Congress; we don't. But had the policies of the Fed not been what they were for the past 20 years, we could never have gotten this far off the rails, nor could so many promises have been made that will be broken regarding prospective health care and retirement benefits.
To thine own wealth be true
I must admit I have become somewhat desensitized to the Fed's views, because I reached the point of outrage early on and exorcised my own demons to some degree with my book. But nonetheless, that is no excuse for those people who are being harmed. Americans need to stand up and insist that the Fed desist from its insane policies and demand sound money. (Thursday's Wall Street Journal op-ed by Sean Fieler, "Easy Money Is Punishing the Middle Class," was a fine step in that direction.)
Is that likely to happen soon? Unfortunately, no, since it would also require members of Congress to care about the country instead of their own careers. So in the near term at least, this is probably also a naïve hope on my part.
Thus, until the world's bond markets or average Americans demand sanity, all we can do is protect ourselves from the policies of the irresponsible, incompetent and, to some degree, egotistical madmen by owning gold.
GLD to world: You have a new friend request
On that subject, I think it is worth pointing out that the idea of gold as a currency or portfolio diversification asset may be in the process of going mainstream, with the catalyst being European Central Bank President Mario Draghi's ongoing transformation into Fed Chairman Ben Bernanke, even as the Fed goes nuts with money printing.
Read the rest of this story from MSN Money here
Gold rose in New York on speculation investors will boost demand after the metal's drop to an almost two-week low. Silver gained for the first time this week, Bloomberg reported.
Prices fell to US$1,738.30 an ounce yesterday, the lowest price since Sept. 13, on signs Europe's economy is still worsening. The Shanghai Composite of shares rallied 2.6% on speculation China may take more steps to boost growth. Gold is heading for the best quarterly gain in two years as the U.S., Europe and Japan announced quantitative easing.
The futures for December delivery advanced 0.3% to $1,758.40 an ounce by 7.50 a.m. on the Comex in New York. Prices are up 9.6% this quarter, 4.2% this month and 12% this year.
Prices in New York on Sept. 21 climbed to a six-month high of $1,790 an ounce.
Gold Today –New York closed down at $1,770.60 up $13. Asia took it up to $1,778. London calmed it ahead of the Fix which was set at $1,774.50 and in the euro at €1,361.439. The euro weakened slightly $1.3020, down half a cent. Ahead of New York’s opening gold stood at $1,773.60 and in the euro at €1,363.15.
Silver Today – Silver rebounded overnight, to $34.78. Ahead of New York’s opening it stood at $34.67.
Gold (very short-term)
Gold should consolidate with a stronger bias, today in New York.
Silver (very short-term)
Silver should consolidate with a stronger bias, today in New York.
Gold & Silver – After QE3 came out last week, in the States, China indicated it would stimulate when needed and the Eurozone got the go ahead for bond-buying, where necessary. Japan has now joined the foray and is stimulating to the extent of $126.7 billion. This caught the world by surprise but explained why gold was buoyant ahead of London’s opening. The yen is weakening as a result.
The Yen is still being treated as a ‘safe-haven’ currency even though the Bank of Japan has made it clear that they will engineer a weaker Yen for a long time now. The same is true of the Swiss Franc, with both countries placing its export competitiveness above the value of its currency. The concept of any currency as a measure of value has now departed completely. Such currency market changes leave room for gold and silver to act as that measure of value, as currencies fall against them. This also enhancse investor’s views of the precious metals being the only place to retain wealth. During the 42 years of the “currency experiment” with no gold or silver standing behind currencies we have seen the gold price multiply from $35 to $1,770. That’s over 50 times in 42 years. And there’s much more to come it seems, with the assistance of governments. If one was fortunate to get out at anywhere above $800 back in the eighties and back in at $300 that number goes up to 64 times $35. That’s better than trading and less nerve racking.
Read the rest of the article here
Gold Today – Gold closed in New York at $1,568.40 down $19. Asia took it up to $1,977 ahead of London’s opening at which point it held steady. The morning Fix today was set at $1,576.50 down $20 and in the euro at €1,284.004 down 9€, while the euro stood at €1: $1.2278 down 50 cents. Ahead of New York’s opening gold stood at $1,577.44 in the middle and in the euro at €1,284.46.
Silver Today – Silver was lower in New York at $26.8 before rising higher in London ahead of New York’s opening at $27.10.
Gold (very short-term)
Gold should have a stronger bias today, in New York.
Silver (very short-term)
Silver should have a stronger bias today, in New York.
Gold & Silver – The brief relief for Spain with the first tranche of €30 billion for their banks was over pretty quickly. Today sees Spain impose another €65 billion austerity cuts into an economy already shrinking rapidly. While sensible and necessary, the danger is that cutbacks will spur greater shrinkage, which we believe it will. Then you have the Catch-22 situation of greater shrinkage leading to a deeper recession, then greater deficit then the need for greater cutbacks. There comes a point where desperation sets in and social unrest becomes ugly. Will this spread to a greater E.U. crisis? It seems to be in Portugal, which is just ahead of Spain in this situation.
Continue reading this article here
(Reuters) - Gold eased on Tuesday after news of missing client funds from another U.S. futures brokerage prompted commodity investors to lessen positions.
The selling erased early gains that occurred amid optimism for a European Union aid package for Spain.
Bullion weakened after PFGBest late on Monday told customers their accounts had been frozen. An U.S. industry body said about $220 million in customer funds were not in the brokerage's bank accounts.
U.S. investment bank Jefferies Group said on Tuesday it has started to liquidate trading positions of PFGBest.
Gold rose 1 percent early after EU ministers agreed to provide aid to ailing Spanish lenders. They set a maximum of 100 billion euros ($123 billion) of which some 30 billion euros would be available by the end of July if there was an urgent need.
Original post: June 28, 2012
Will the U.S. fall into a fiscal abyss in a decade or two? In this video, MSN Money columnist Anthony Mirhaydari explains how critics believe the country is approaching a cliff as soon as 2024.
As he answers questions from MSN Money's Facebook community, Mirhaydari also discusses investments that do well in a debt hole environment, such as gold and other inflation hedges.
Click on this link here to watch this informative video from MSN Money columnist Anthony Mihaydari from MSN Money's "Ask an Expert" series.