Germany’s Best-Selling Tabloid Bild’s Front Page Encourages Readers To Buy Gold

Gold has fallen today in all major currencies except the Swiss franc which has fallen on SNB intervention rumours. Gold is trading at USD 1,791.40, EUR 1,257.10, GBP 1,107.70, CHF 1,318.80 per ounce and 136,976.00 JPY/oz.  The yen has fallen by 8.7% against gold so far in August as the yen, while rising in dollar terms, is falling sharply in gold terms (see chart below).

Gold reached new record nominal highs at $1,814.95/oz and new nominal highs in euros and sterling yesterday. Gold’s London AM fix this morning was USD 1,786.00/oz, EUR 1241.75/oz, GBP 1105.75/oz.


Cross Currency Rates

The CME announced margin requirements on gold will rise by over 22% by close of business today. This saw an initial slight sell off prior to further gains.

A rise in CME margin requirements may lead to speculative long elements getting squeezed and to short term weakness in gold. However, the scale of physical demand internationally is such that any sell off will likely be brief and reasonably shallow. 

Gold remains in a strong upward trending channel and until we see a breach of this to the downside, it should continue to move higher. Any pullback will again be used by astute buyers to accumulate bullion on the dip.

There continue to be many important breaking news stories regarding the global debt crisis and pertaining to gold – indeed it is often difficult to keep up with developments. 

One such development is today’s edition of Germany’s best selling newspaper Bild which encourages German people to buy gold due to the risks posed to the euro and to cash (see Bild article in Commentary). 

Bild Zeitung, is Germany’s biggest- selling newspaper, is the best-selling newspaper outside Japan and has the sixth-largest circulation worldwide. 

Bild encouraged German people to invest in gold as the global debt crisis continues to deteriorate and cause turmoil in global markets.

“While the companies listed on stock exchanges have lost over the past 14 days, about $8 trillion dollars in value, the price of gold climbed to a record high.”

“While money can be printed, gold reserves are limited. To date some 150,000 tonnes of gold have been mined.”

Gold “is better than cash,” the newspaper said. “While any amount of money can be printed, gold is limited,” making it “one of the safest investments in crisis times.”

The article is interesting as gold has remained taboo is much of the non specialist European press and media and was only briefly covered in recent days due to the deepening crisis and succession of new record nominal highs.

German demand for gold has been very robust in recent years and the Germans experience of the Weimar hyperinflation means that they are very aware of the risks posed by today’s excessive money printing and global currency debasement.


Gold in Swiss Francs – 5 Year (Daily)

Gold’s bull market continues in all major currencies but its recent strength has been more pronounced in dollars, euros and pounds. 

In Swiss francs, gold has seen massive consolidation for the last 12 months and looks like it could be on the verge of breaking out and moving sharply higher. 

The Swiss central bank will not and cannot allow the franc to continue to appreciate on world markets. The Swiss franc is being debased, albeit on a somewhat lesser scale than the U.S. dollar and some other currencies as Swiss money supply continues to grow rapidly and interest rates are now near zero.


Gold in Japanese Yen – 1971 – Today (Weekly)

Meanwhile, gold in yen has broken out to new 28 year nominal highs over 137,000 yen per ounce and looks set to target the record nominal high of 1980 of 200,000 yen per ounce.

Gold’s rise in yen (see chart above) has been gradual in recent years due to the yen’s relative strength versus other fiat currencies.

Yen gold is likely to rise above its nominal high of 200,000 yen seen over 31 years ago on January 18th, 1980. In the longer term, the inflation adjusted high of over ¥500,000/oz is quite possible given Japan’s dreadful economic, fiscal and monetary position.

No fiat currency will be a “safe haven” in the coming months and years.   

From the GoldCore Trading Desk: There is extremely strong demand for gold bullion in all formats at the moment. Although clients are expressing a preference for taking delivery of 1 ounce bars and coins, for allocated storage in Perth Mint and for allocated storage in Zurich. The level of demand is on a par with that seen at the height of the Lehman crisis.  However, much of the demand is from existing clients (particularly high net worth) who are increasing allocations. Retail participation has increased and is increasing but remains low. There is tightness in sections of the pre-1933 semi numismatic gold market with French Rooster gold coins becoming difficult to source in volume. Silver demand is robust but there has been no significant increase this week or in recent weeks. Similarly to gold, smart money continues to add to allocations. There continues to be signs of a degree of tightness in the market which suggests that silver may soon bottom and resume its bull market targeting $50/z again.

For the latest news and commentary on gold and financial markets follow us on Twitter.

SILVER 
Silver is trading at $39.16/oz, €27.58/oz and £24.22/oz. 

PLATINUM GROUP METALS 
Platinum is trading at $1,779.20/oz, palladium at $733/oz and rhodium at $1,750/oz. 

NEWS
(Bloomberg)
Gold Exceeds $1,800 as Investors Seek the ‘Ultimate Collateral’

(Reuters Africa)
Gold climbs to record top on euro crisis, Brent recovers

(Reuters)
Gold dips but stays above $1,800 after CME margin hike

(Bloomberg)
Gold Declines From Its All-Time High as CME Raises Futures Contract Margin

(Bloomberg)
PBOC Adviser Says China Needs Urgent Review of U.S. Holdings, News Reports

(Bild)
Bold: Today, there is gold in PICTURE!

COMMENTARY
(Philly)
Your Money: Going for the gold to improve portfolios

(GoldSeek)
Inflation & Deflation in a Storm

(Irish Times)
Forget gold, sink your savings into a metal so toxic it can’t be touched

(ZeroHedge)
CME Hikes Gold Margins By 22% And Gold Drops by….0.4%, Resumes Climb

(Finance and Economics)
Alasdair Macleod: Beyond the tipping point

(Howestreet)
With Gold At New Highs It’s Time To Stock Up On Silver

 

 

 

Mark O'Byrne

Also on news-goldcore-com

Videos

Episode 5 of The M3 Report with Steve St Angelo

What we can Learn from the International Gold Market

Jim Rogers Interview 2022

Blog posts

Ross Geller inspires Bank of England policy

This morning the UK pound slumped as one of the world’s oldest central banks pressed hard on the panic button. The Bank of England was seen to be shouting ‘Pivot! Pivot! Pivaat!’ as they announced they would temporarily suspend their programme to sell gilts and will instead buy long-dated bonds.  In a statement, the bank […]

READ MORE

Episode 5 of The M3 Report with Steve St Angelo

Is the energy crisis something that can be resolved? Was it always inevitable? Will renewable energy make it all OK? Are Western financial policies to blame? All this and more in today’s The M3 Report! If you’re not already subscribed to GoldCoreTV then click here right now to make sure you’re all set to watch the fifth […]

READ MORE

Brace Yourself for the Impact

Fed’s message this week – higher rates, lower economic growth, higher unemployment. The Fed hiked interest rates by 75 basis points for the third straight meeting and the statement said that the committee anticipates further increases. The Summary of Economic Projections (SEP) showed that the median projection is for a further 1.25% increase by yearend. […]

READ MORE

Featured

Rick Rule- Should You Invest In Gold 2022

READ MORE

Jim Rogers- The Worst Bear Market is Coming

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Episode 5 of The M3 Report with Steve St Angelo

What we can Learn from the International Gold Market

Jim Rogers Interview 2022

Blog posts

Ross Geller inspires Bank of England policy

This morning the UK pound slumped as one of the world’s oldest central banks pressed hard on the panic button. The Bank of England was seen to be shouting ‘Pivot! Pivot! Pivaat!’ as they announced they would temporarily suspend their programme to sell gilts and will instead buy long-dated bonds.  In a statement, the bank […]

READ MORE

Episode 5 of The M3 Report with Steve St Angelo

Is the energy crisis something that can be resolved? Was it always inevitable? Will renewable energy make it all OK? Are Western financial policies to blame? All this and more in today’s The M3 Report! If you’re not already subscribed to GoldCoreTV then click here right now to make sure you’re all set to watch the fifth […]

READ MORE

Brace Yourself for the Impact

Fed’s message this week – higher rates, lower economic growth, higher unemployment. The Fed hiked interest rates by 75 basis points for the third straight meeting and the statement said that the committee anticipates further increases. The Summary of Economic Projections (SEP) showed that the median projection is for a further 1.25% increase by yearend. […]

READ MORE

Featured

Rick Rule- Should You Invest In Gold 2022

READ MORE

Jim Rogers- The Worst Bear Market is Coming

READ MORE