The current U.S. bond market faces a "liquidity cliff" and looks like an asset "bubble" that could burst when interest rates start to rise, according to the senior U.S. securities regulator. This is something we have been warning of in recent months. The consequences of the bursting of the bond bubble would be rising interest rates, which would likely impact property and stock markets and benefit safe haven gold bullion.
The Perth Mint's sales of gold coins and bars hit their highest in nearly a year in September as a fall in U.S. dollar denominated gold led to some buyers to accumulate bullion on the dip and the risks of terrorism and war led to safe haven demand.
Alan Greenspan, former Chairman of the Fed, had an article entitled “Golden Rule - Why Beijing Is Buying” published in Foreign Policy, the journal of the influential Council on Foreign Relations in which he extols the virtues of gold as “universally acceptable.”
Singapore continues its push to be a global gold hub. The new exchange traded Singapore kilobar gold contract will launch in less than two weeks - on October 13. The new contract is a 1 kilogramme physically deliverable gold contract for the Asian and global wholesale gold market.
Gokhran, the Russian precious metals and gems repository, said it has been buying gold bullion in 2014 and will likely to start buying palladium bullion in 2015, Interfax news agency reported this morning, citing the head of Gokhran, Andrey Yurin. GOKHRAN, Russian State Precious Metals and Gems Repository
With escalating conflict in the Middle East, an unresolved conflict in the Ukraine, and various other geo-political risks on the horizon such as the contagion risk of Ebola, it would be expected that the longstanding 'safe haven' qualities of gold would come into play as they have done in the past.
Russia and ex Soviet States Kazakhstan, Kyrgyz Republic and Azerbaijan continued to accumulate significant gold reserves in August in a trend that we highlighted last month. See 'How to Buy Gold and When to Sell' Webinar Here
▶ Where is Venezuela's 366 tonnes of gold? ▶ Does Venezuela still control and own unencumbered it’s own gold reserves? Former President Hugo Chavez and a London Good Delivery Gold Bar (400 oz)
Despite the recent bout of price weakness, gold American eagle coin sales from the U.S. Mint have picked up significantly from last month. The latest bullion coin sales figures from the U.S. Mint show a tentative pickup and robust retail bullion demand, with September sales stronger for both the American Eagle and American Buffalo gold coins as well as for the American Eagle silver 1oz coins.
Shanghai Gold Exchange International Board China is slowly moving to dominate the global gold market and it is important to join the dots regarding a few key recent developments in China relating to gold. When the International Board of the Shanghai Gold Exchange (SGE) was launched last Thursday September 18 during an evening trading session, it was notable that the first transactions were put through by a diverse group comprising HSBC, MKS (Switzerland), and the Chinese banks, ICBC, Bank of China and Bank of Communications.
The result of the Scottish independence referendum was announced early this morning, with 55.3% of voters wanting to stay in the United Kingdom (UK) and 44.7% wanting Scotland to become an independent nation. Voter turnout was exceptionally high at nearly 85% (about 3.6 million people), which was not surprising given the importance of the referendum.
The silver price has remained subdued this year, falling just less than 5% year-to-date, and is now near a 14 month low. Naturally, investor psychology has been affected by the price weakness. Quoted today in Bloomberg News, Mark O’Byrne, director of GoldCore said that “sentiment remains quite bad in the silver market.”
The U.S. financial position continues to deteriorate badly and in the last 12 months has increased by over $1 trillion dollars.
Gold Webinar - Your Questions & Answers' Today September 16, 2014 at 1300 EST, 6pm BST > See here The Death Of The Indian Gold Market Has Been Greatly Exaggerated
“I Want To Be Diversified, I Want To Own Some Gold” - Faber Veteran investor Marc Faber, author of The Gloom, Boom and Doom Report, reiterated the need for gold in a diversified portfolio when interviewed last week on CNBC.
There is now less than one week of campaigning remaining before the Scottish Independence Referendum, which takes place next Thursday, September 18. The pro-union ‘no’ vote campaign is back in the lead this week after the latest opinion poll from pollsters YouGov put them at 52%, marginally ahead of the pro-independence ‘yes’ campaign.
China Gold Congress in Beijing The China Gold Congress is currently in full flight in Beijing. The three day Congress is China’s biggest gold industry event of the year, drawing in participants from across the Chinese and international gold sectors including central banks, mining companies, bullion banks and refiners.
Russia-Iran Oil-for-Goods Contracts Representatives of the Russian and Iranian governments met in Tehran yesterday for the 11th meeting of the Iran-Russian Trade Council, where details of a ground breaking oil-for-goods swap between the two heavily sanctioned countries were revealed.
Macro Factors Dominating Gold Price As US Dollar Outweighs Physical Demand And Investor Flows With gold trading in a narrow range below $1,300 and remaining relatively weak, it is worth pausing at this juncture to look at the combination of factors that are affecting its price formation.
As ISDAFIX Becomes Next LIBOR, Can GOFO Manage To Avoid The Spotlight? In the wake of the recent LIBOR benchmark interest rate rigging scandal and successful prosecution of a number of global investment banks for participating in LIBOR manipulation, a new interest rate rigging scandal is gathering steam.