By Ronan Manly, GoldCore Consultant Introduction Yes lead fades in new poll Definitely Maybe Italian leaning toward gold? Only SVP voters show a yes-majority Polls are Snapshots Sorcerers’ Apprentices EUR/CHF 1.20 - Line in the Sand Intervention or no Intervention Sovereign Wealth Fund transfers Gold Swap Tricks Conclusion Introduction
The Ebola crisis has faded from headlines but remains a risk after the death of another Ebola patient in Nebraska and the death of a suspected victim in New York yesterday. This brings the number of confirmed deaths to two in the U.S. and possibly three if the New York victim is confirmed as having had Ebola.
Russia’s central bank bought about 150 metric tons of the metal this year, announced Governor Elvira Nabiullina yesterday. The pronouncement immediately created buying in the market, prompting gold to rise to a two week high at $1,200 an ounce. Head of Russian Central Bank Elvira Nabiullina -Jr/Bloomberg
Concerns about deflation, recession and a return to the Eurozone debt crisis, may see the ECB follow Japan and print money to buy assets including shares, exchange traded funds and physical gold.
David Cameron warned last night that the global economy risked another crash and said in an article that 'red warning lights' were 'flashing on the dashboard of the global economy' and the eurozone was 'teetering on the brink' of another recession.
‘Gold wars’ are intensifying with just 16 days left to polling day in the Swiss Gold Initiative. The Swiss National Bank (SNB) and establishment parties went “all in” during the week and intensified their campaign. They suggested that passing the Swiss Gold Initiative would be a ‘fatal’ for Switzerland and would be positive only for speculators.
Joe Wickwire, research analyst and portfolio manager at Fidelity investments, presented some very grounded, reasonable arguments as to why one should buy gold at the LBMA Precious Metals Conference in Lima, Peru which concluded on Tuesday. Fidelity Investments Logo
Further proof of manipulation of gold and silver prices - if any were needed - came overnight as Switzerland’s financial regulator (FINMA) found “serious misconduct” and a “clear attempt to manipulate precious metals benchmarks” by UBS employees in precious metals trading, particularly with silver.
Currency wars are set to warm up again, after Japan's radical decision to further debase its currency through an intensification of already significant monetary easing. There was a palpable coldness from China's Premier Xi Jinping as he greeted Japan's President Abe at the APEC summit in Beijing. h/t Brian via Zero Hedge
Suspicions that the price of precious metals are frequently manipulated by a few international banks were further confirmed over the weekend. UBS agreed to settle with various international regulatory bodies investigating rigging in foreign exchange and precious metals markets.
Dr Marc Faber has again urged people in the world to be diversified, own physical gold and to be their own central bank. Dr Marc Faber on Gold In another fascinating interview with Bloomberg, Dr. Marc Faber covered Japan's massive QE experiment, the slump in oil prices and the importance of diversification and owning physical gold.
The gulf between the physical precious metals markets and the paper or electronic gold and silver markets is growing again and risks becoming as broad as it has ever been. Demand for gold and particularly silver bullion has been very high across the world in recent weeks.
Silver has had a torrid time in recent months and has fallen nearly 40% since July. In less than four months, it is down from $21.40/oz to $15.45/oz today. Silver is 70% lower since reaching over $49/oz in April 2011. The selling has accelerated in recent days and silver has fallen from $17.20/oz on October 28 and is down 12% in the last week.
Disillusionment with Europe's single currency continues to grow with the cracks beginning to show in it's heartland, Germany, where the third largest political party is now selling gold coins and bars to raise funds.
by Ronan Manly, GoldCore Consultant - Introduction - SNB Continues To Intervene In Politics - Swiss National Bank initial reaction to gold initiative - Swiss gold at the US Federal Reserve - “Stocks that were once at the Federal Reserve have been sold” - Swiss gold at the Bank of Canada, Ottawa - 1,300 tonnes of gold sold: SNB’s Michael Paprotta
Stocks globally surged, while gold fell sharply today despite renewed irrational exuberance on hopes that the Bank of Japan’s vastly increasing money printing will fill some of the gaps left by the apparent end of Federal Reserve bond buying.
As expected, the Fed announced yesterday it would end its six year money printing and bond buying programme. Given the fragile nature of the U.S. economy, Eurozone economy and indeed the global economy, Fed critics continue to believe that this may be a short term hiatus prior to a resumption of QE, if asset prices start to fall or economic growth falters.
The U.S. Mint has sold nearly 60,000 ounces of American Eagle gold coins so far in October due to increased global demand from store of wealth buyers as economic and geopolitical uncertainty increased. With only three business days left until the end of October, the U.S. Mint has sold 59,500 American Eagle bullion one ounce gold coins. On a year-on-year basis, U.S. gold coin sales in October are up 21% from 48,500 ounces in October 2013.
A cursory glance at the various financial news media this morning shows nothing particularly unusual for these unusual times. The ECB have paraded a list for stress tested banks and the market shrugged. However, there is a disturbing thread running through most of the stories to which we have become immune but which would have been considered highly unusual at almost any time in the twentieth century. And that thread is the influence of the Federal Reserve in practically every key market in the world.
by Ronan Manly, GoldCore Consultant Contents - Introduction - ‘Yes’ Campaign Launch - Paper Decays, Gold Holds Its Value - ‘No’ Campaign Launch - Alphabet Soup - Unsaleable Gold Like an Unusable Fire Extinguisher? - Swiss Electorate 5.2 Million - Double Majority Including Cantons - Referendas by the Dozen - Sometimes There are Shock Results