Gold and Silver ETFs “Backed Only By The Good Faith Of Banks and Brokerages”

Today’s AM fix was USD 1,591.50, EUR 1,221.98 and GBP 1,062.42 per ounce.

Yesterday’s AM fix was USD 1,582.50, EUR 1,216.37and GBP 1,065.30 per ounce.
Both gold and silver rose by almost 1% yesterday. Gold rose $12.20 and closed at $1,593.30/oz. Silver closed at $29.15/oz.

Silver is trading at $29.08/oz, €22.44/oz and £19.51/oz.

Platinum is trading at $1,590.25/oz, palladium at $767.00/oz and rhodium at $1,200/oz.

Gold remains near the highest level in almost two weeks on prospects of further currency debasement from central banks in Europe, Japan, the UK and the U.S. and continuing robust physical demand in Asia.

The spectre of stagflation threatens the UK economy due to concerns that sterling weakness will contribute to even higher inflation amid very weak economic growth and the likelihood of a recession – likely a severe one.

Markets are pricing in a jump in inflation as inflation expectations, as measured by the difference between nominal and inflation-linked bond yields, ticked up to near 3.3% yesterday.

Recent poor economic data and the appalling UK fiscal position are rightly leading to concerns of stagflation as was seen in the 1970’s. Conditions that make owning gold and silver vitally important to own in order to protect and grow wealth.

The ECB confirmed that they will maintain their accommodative stance “as long as necessary” and the Federal Reserve and BOJ are committed to ultra loose monetary policy for the foreseeable future.

Gold in GBP – YTD (Bloomberg)

U.S. asset manager Van Eck Global has filed with the SEC to launch two gold and silver exchange-traded funds that will allow investors to redeem their shares for physical precious metals.

Van Eck Global has offices around the world and managed approximately $36.6 billion in investor assets as of December 31, 2012.

Silver in GBP – YTD (Bloomberg)

The two new products will add to Van Eck’s line-up of commodities-focused ETFs, including its Gold Miners ETF and the Junior Gold Miners ETF and mutual funds.

Van Eck filed its regulatory papers late on Monday. The gold trust filing says a "secondary objective is to provide investors with an opportunity to invest in gold through the shares and to be able to take delivery of gold bullion in exchange for their shares."

Most precious metals ETFs do not allow their shareholders to take physical delivery, and those that do often charge a higher management fee to offset the extra costs related to physical redemption.

There are currently about 20 major global gold- and silver-backed ETFs, and dozens other exchange-traded products “backed only by the good faith of banks and brokerages” according to Reuters (see News).

NEWS 

Spectre of Stagflation Haunts UK – FT

Gold Trades Near Two-Week High on Stimulus, Rising Asian Demand – Bloomberg

Gold holds near two-week high on euro zone concerns – Reuters

Van Eck files to launch redeemable U.S. gold, silver ETFs – Reuters

COMMENTARY

"Sell JPY, Buy Gold, and Go To Sleep" – Zero Hedge

My Switch From Gold to Silver Mantra – SilverSeek

Fed’s Exit Can Only Be Debt and Currency Devaluation Via Gold – GoldSeek

Gold Breakout Attempt with Higher Volume – Got Gold Report

Mark O'Byrne

Also on news-goldcore-com

Videos

Listen: The Case For Gold and How To Buy It

Gareth Soloway – This is the catapult that will send gold to new highs

Former Fed Insider Danielle DiMartino Booth Gives Us Her Interest Rate Predictions

Blog posts

SEC Action Shows Why Cryptos Are Not “As Good As Gold”

The bitcoin versus gold debate has gone on for over a decade now. In that time regulators have been scratching their heads wondering how far they can let the cryptocurrency machine run for. “This far,” seems to be the decision this week. Meanwhile gold and silver carry on, continuing to offer a simple and unassuming […]

READ MORE

Global Debt Crisis: Pretend and Extend?

Those who have chosen to invest in gold bars or to buy silver coins have often done so because they fear the mismanagement of the monetary system. This week has offered further reassurance that investors are right to want to own gold in a balanced portfolio because yet another fight about the US debt ceiling […]

READ MORE

A Showdown in Gold Is Imminent

The industry-leading In Gold We Trust Report was released this week. So convinced are the authors “that the monetary and geopolitical situation as well as the chart development of the gold price suggest that a showdown in gold is imminent” that the 2023 report is entitled “Showdown”. This is arguably one of (if not the) […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Listen: The Case For Gold and How To Buy It

Gareth Soloway – This is the catapult that will send gold to new highs

Former Fed Insider Danielle DiMartino Booth Gives Us Her Interest Rate Predictions

Blog posts

SEC Action Shows Why Cryptos Are Not “As Good As Gold”

The bitcoin versus gold debate has gone on for over a decade now. In that time regulators have been scratching their heads wondering how far they can let the cryptocurrency machine run for. “This far,” seems to be the decision this week. Meanwhile gold and silver carry on, continuing to offer a simple and unassuming […]

READ MORE

Global Debt Crisis: Pretend and Extend?

Those who have chosen to invest in gold bars or to buy silver coins have often done so because they fear the mismanagement of the monetary system. This week has offered further reassurance that investors are right to want to own gold in a balanced portfolio because yet another fight about the US debt ceiling […]

READ MORE

A Showdown in Gold Is Imminent

The industry-leading In Gold We Trust Report was released this week. So convinced are the authors “that the monetary and geopolitical situation as well as the chart development of the gold price suggest that a showdown in gold is imminent” that the 2023 report is entitled “Showdown”. This is arguably one of (if not the) […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE