The Federal Reserve's $10 billion announced reduction in bond purchases is really insignificant. Here is why.
Gold now suffers from a ‘smokescreen’ designed by the United States, which stores 74 percent of global official gold reserves, to put down other currencies and maintain U.S. dollar hegemony.
Despite the prodigious amount of gold China produces and imports to serve local demand, what is coming to light this week is the significant amount of gold the People’s Bank of China has stealthily accumulated.
According to the Russian Ministry of Natural Resources, the country has the second largest gold reserves in the world at 12,500 tonnes (over 400 million ounces).
The Gold Miner's crystal ball proved accurate this week. Essentially, the end results of the Feds QE game are known. We just don’t know how much longer it will or can be played. In the meantime, take some advice from the wise Chinese.
China has announced plans to further liberalize gold imports and exports allowing a larger number of traders to enter the market. It sounds to us like China anticipates that the current level of unprecedented gold demand and imports is becoming the new normal.
From "fiscal cliffs" to “QE" and "taper talk”, and now the "debt ceiling" debate, can anyone take the US Government seriously when it comes to budgetary and monetary policy? No matter what they call it, the result is always the same.
We think “taper talk” is a tactic utilized by the Fed to present and instil the perception that they will, one day, return to responsible monetary policy.
The Indian government finally succeeded in stifling gold imports in August after several months of trying. They probably shouldn’t pop the cork on the victory Champaign just yet though as one month does not necessarily constitute a trend. What are the implications?
The best seasonal time to buy gold is now!
The new reality is that China is the world’s biggest producer and consumer of gold. Therefore, they will be the primary movers and shakers in the gold market going forward.
This week's discussion details the current laundry list of unprecedented events heralding significant long-term structural changes in the gold market.
The recent construction and leasing of massive vaults in major Asian financial centres is just one more piece of evidence that physical gold is in high demand and flowing from west to east.
In the face of unfriendly US monetary policy, China is very likely taking advantage of low gold prices to exchange some of their US dollar based reserves for gold.
Friday July 26.