Daily Market Update

Ireland and EU Countries Must Seek ECB Approval to Manage Gold Reserves – Draghi

– EU countries must seek ECB approval to manage gold reserves: Draghi
– European Central Bank in effect tells euro-zone countries your gold is the ECB’s

by Francesco Canepa on Reuters

The European Central Bank needs to approve any operation in the foreign reserves of euro zone countries, including gold and large foreign currency holdings, the ECB’s President Mario Draghi said on Thursday.

“The ECB shall approve both the operations in foreign reserve assets remaining with the NCBs (national central banks)…and Member States’ transactions with their foreign exchange working balances above a certain threshold,” Draghi told two Italian members of the European Parliament.

“The purpose of this competence is to ensure consistency with the exchange rate and monetary policy of the Union.”

Editors note: This is an interesting and important story that should have been picked up more widely in Europe’s media and not solely on Reuters. The context is not given despite it being very important indeed.

The ECB and its President Mario Draghi realise gold is very important in terms of protecting the euro from collapsing both in terms of nations reverting to their national currencies but also in terms of the euro, dollar, pound and other fiat currencies collapsing in value, if the public loses faith in them.

The ECB President said of gold in October 2013 that gold is a “reserve of safety” that “gives you a value-protection against fluctuations against the dollar.” Draghi told an open forum at Harvard’s Kennedy School of Government, why central banks want gold and what value it offers. He said that there were “several reasons” to own gold including “risk diversification.”

The largest buyers of gold in 2018 were central banks and the largest holders of gold remain the U.S., the Bundesbank and other central banks in the indeed the IMF and the ECB itself.

Investors should prudently follow the lead of central banks internationally and gradually accumulate gold and dollar, euro or pound cost averaging into an allocated and segregated physical gold position.

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News and Commentary

ECB Tells Euro-zone Countries Your Gold Is Ours (Reuters.com)

Gold’s 1.6% Decline Leaves It Firmly Below Key $1,300 (MarketWatch.com)

Palladium sinks 6 pct in free fall, gold sheds 1 pct (Reuters.com)

U.S. fourth-quarter GDP revised down; profits weak (Reuters.com)

Deutsche Shares Plunge As Bank Discusses Raising Up To 10 Billion For Commerzbank Deal (ZeroHedge.com)

Why Central Bank Gold Demand Is Reaching New Highs (TheStreet.com)

What People Are Stocking Up on in Case Brexit Goes Bad (Bloomberg.com)

Inverted yield curve suggests the stock market has already peaked – Analysts (MarketWatch.com)

Be prepared to dump stocks ‘very quickly’ – Former Morgan Stanley Asia Chairman (MarketWatch.com)

Italy’s debt spiralling out of control and threatens the ‘single’ currency (ZeroHedge.com)


Gold Prices (LBMA PM)

28 Mar: USD 1,306.90, GBP 995.20 & EUR 1,161.18 per ounce
27 Mar: USD 1,318.25, GBP 997.78 & EUR 1,168.23 per ounce
26 Mar: USD 1,315.25, GBP 993.15 & EUR 1,162.02 per ounce
25 Mar: USD 1,319.35, GBP 1001.39 & EUR 1,165.82 per ounce
22 Mar: USD 1,311.10, GBP 998.80 & EUR 1,159.41 per ounce
21 Mar: USD 1,317.30, GBP 1002.99 & EUR 1,155.80 per ounce

Silver Prices (LBMA)

28 Mar: USD 15.19, GBP 11.58 & EUR 13.53 per ounce
27 Mar: USD 15.40, GBP 11.65 & EUR 13.65 per ounce
26 Mar: USD 15.44, GBP 11.66 & EUR 13.65 per ounce
25 Mar: USD 15.52, GBP 11.77 & EUR 13.72 per ounce
22 Mar: USD 15.46, GBP 11.75 & EUR 13.68 per ounce
21 Mar: USD 15.54, GBP 11.85 & EUR 13.64 per ounce

Recent Market Updates

– Global Risks Increasing – Underlining The Case For Gold in 2019 (GoldCore Video Presentation)
– ‘No Deal’ Brexit Risk Impacting UK and Irish Economies – Gold Gains On Recession Concerns
– America’s “Debt Crisis Is Coming Soon”
– Russia Buys 1 Million Ounces Of Gold In February – Become Your Own Central Bank
– 5 Ways to Prosper In the Coming Crisis – Goldnomics Podcast
– Deutsche Bank and Commerzbank May Become EU’s “Too Big To Fail” Bank
– Happy Saint Patrick’s Day from GoldCore
– 188 Internet Shutdowns In 2018 Show Why Physical Gold Is Ultimate Protection
– Buy Gold as Basel III Means “Central Banks and Banks Are Going To Be Buying Gold”

Mark O'Byrne
Executive Director


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