The End Of All Crossroads

Where the TAXI makes a stop, to ponder upon which road mayhap be true

Tag: gold

Gold could be the panacea for global banking woes: Sprott

SPOILER: DO-NOT-FALL-FOR-THAT!! This all-coming ‘goldrush’ is artificially supported in order to actually KEEP the US Dollar’s status-quo in tradings – that is, until it finally collapses.

I repeat: BEWARE. Do not fall for that trick, as it’s what banks would like the most. That’s exactly why they pay people like this to write essays like these.

I warned ye.

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Marc Howe | November 30, 2012

On the eve of the implementation of the Basel III capital rules governing the world’s largest financial institutions veteran investor Eric Sprott points to gold as the most convenient and over-looked solution to the global banking system’s woes.

https://i2.wp.com/lookingglassreview.com/assets/images/John_Sutter_and_the_California_Gold_Rush.jpg

The Basel Committee on Banking Supervision, responsible for devising guidelines for the world’s leading financial institutions, has spent the past four years since the Great Financial Crisis drafting a new set of international banking regulations to prevent the recurrence of similar catastrophes.

The new rules are slated to take effect on 1 January 2013, yet only months prior to their scheduled implementation they have already triggered refractory responses – particularly in the United States, due to their complexity and adverse impact on profits.

In a trenchant essay on the new regulations Sprott highlights what he believes to be one of their chief defects – their treatment of gold as an asset class.

Sprott notes that Basel III regulators cling to the notion that AAA-government securities should comprise the preponderance of high quality liquid assets which banks are required to hold.

Such securities are no longer esteemed by the financial community as safe harbor holdings due to the sovereign risk issues blighting a number of indebted nation-states, as well as the propensity of governments to issue blithely issue debt.

According to Sprott, precious metals such as gold could be the solution to the instability of the global banking system were they conferred with a heightened liquidity profile under the new Basel III framework.

Sprott writes that this would “open the door for gold to compete with cash and government bonds on bank balance sheets – and provide banks with an asset that actually has the chance to appreciate.”

Non-Western central banks have already cottoned on to this and included gold as a key component of their foreign exchange reserves, while two banking jurisdictions in particular – Turkey and China – “have openly incorporated gold into their capital structures.”

The People’s Bank of China recently made remarks which would imply that the government wishes to capitalize on their growing gold stockpile by integrating the domestic market with the international market, and Sprott speculates that China “may have already cornered most of the world’s physical gold supply” in anticipation of the day that Western banks realize that the precious metal is preferable to Treasuries.

 

SOURCE:
http://www.mining.com/gold-is-the-panacea-for-global-banking-woes-sprott-53227/

CME Declares Force Majeure at Manhattan Gold Depository

“Force majeure, a contract clause that frees parties from liability due to an event outside of their control, for the facility.”

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Published November 26, 2012

Dow Jones Newswires
CME Group Inc. (CME) on Monday said that Manfra, Tordella and Brookes Inc., one of the exchange’s gold depositories, will not be able to delivery metal as the lower Manhattan company deals with “operational limitations” almost a month after the arrival of Hurricane Sandy.

MTB, one of five depositories licensed to deliver gold against CME’s benchmark 100-troy ounce gold contract, held 29,276 troy ounces of gold and 33,000 troy ounces of palladium as of Nov. 23, according to data from CME subsidiary Comex.

In a notice to customers on Monday, CME declared force majeure, a contract clause that frees parties from liability due to an event outside of their control, for the facility.

CME said that individuals holding MTB warrants, or certificates for a specific lot of metal stored in the depository, may receive gold delivered from Brinks Co. (BCO) in New York. MTB is responsible for any additional costs incurred by customers receiving metal from Brinks, CME said.

“This shouldn’t have a material impact on the way market participants are doing business,” a CME spokesman said. “They’ll still contact MTB if they want to take delivery on contracts,” and MTB will arrange for delivery through Brinks.

In a notice posted to its website dated Nov. 12, MTB said the firm “sustained substantial damages” following Hurricane Sandy’s arrival in New York City on Oct. 29, and had curtailed its operations.

The force majeure will remain in effect until further notice from the exchange, the CME said. The delivery period for CME’s December-delivery precious metals futures begins on Friday.

Write to Matt Day at matt.day@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Copyright © 2012 Dow Jones Newswires

SOURCE [BEWARE]: Fox Business
http://www.foxbusiness.com/news/2012/11/26/cme-declares-force-majeure-at-manhattan-gold-depository/#ixzz2DSIx5mxu

Brazil Boosts Gold Reserves to the Highest in More Than 11 Years

SPOILER:

Some of ye might have already heard a bit about this ‘buy-gold’ advicing that some grid & offgrid sources have been preaching.

Now, ponder with me. ‘Tis been a while that BRICs countries have been realigning their axis of international support – by buying gold and expanding spheres of influence abroad. For these tophat people all around the globe, remember, the world is a mere diorama – weren’t it true, there wouldn’t be unfairness and iniquity worldwide.

But why, you do ask, would they stockpile in such a moment of Time?…

…’tis easy. The dollar is really, REALLY about to collapse. And that be nay just me saying – ’tis been said by both in- and offgrid economists. Check this:

Governments worldwide are for long well-aware that there would be the day that the dollar will eventually collapse – that’s due to several factors:

1. Dollar, as SEVERAL other currencies, is ‘fiat money’ – made out of nothing.

2. Dollar’s value is NOT based upon what grid economists and pundits barf to ye – it is solelly based on OIL. You can’t perceive it so easily because of the many layers that hide this truth, but come to think with me: what is the most sold and bought commodity worldwide? ‘Tis PETROIL, crude oil. If ye still believe nay, look around ye and reason that, be the product nay composed, ’tis but either refined and/or transported by using one (or SOME) of crude oil’s derivates. Again, ’tis so dilluted into yer life that it becomes unnoticed.

3. Nations are swapping their assets from dollars to other solid, steady currencies/commodities – and EVERY country that tried to sell oil for other than dollar was either stormed by drones or troops, or destabilised by coups and turmoils.

…and why are the BRICs increasing gold reserves, while the US APPARENTLY does nothing? That’s something I think I’m better comprehending day by day – but let us talk about it at another Time.

EVERYTHING you consume makes this wheel spin faster and faster. Think about it.

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“The IMF figures showed continued strong buying by central banks,” said Dan Smith, a commodities analyst at Standard Chartered Plc in London. “This continues the trend of recent months and we expect this to support gold prices.”

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By Nicholas Larkin – Nov 21, 2012 9:51 AM GMT-0200

Brazil raised its gold reserves for a second month in October to the highest level in more than 11 years as emerging nations from Kazakhstan to Russia boosted holdings by more than 40 metric tons.

Brazil’s holdings expanded 17.2 tons last month to 52.5 tons, the most since January 2001, according to data on the International Monetary Fund’s website. The country’s 1.7-ton purchase in September was the first since December 2008. Kazakhstan’s holdings increased 7.5 tons, Russia added 0.4 ton and Turkey’s reserves rose 17.5 tons, the data show. Germany, the second-biggest holder, after the U.S., cut gold holdings by 4.2 tons, the first reduction since June.

Brazil
Brazil has in recent years become an Economic
power-house and is now included in the G7 (Group of 7)
nations meetings. The economy is rated @ 2517 Billion USD.
With a 4.7% unemployment in 2011 and an export surplus it
it is doing rather well. (CLICK EACH IMAGE FOR ITS SOURCE)

Central banks have been expanding reserves as the metal heads for a 12th straight annual gain and investors hold a record amount in bullion-backed exchange-traded products, data compiled by Bloomberg show. Nations bought 373.9 tons in the first nine months of the year and full-year additions will probably be in the “bottom end” of 450 to 500 tons, the London-based World Gold Council estimates.

“This is a chunky purchase by a central bank, and the gold market will likely sit up and pay attention,” Edel Tully, an analyst at UBS AG in London, wrote today in a report, referring to Brazil’s addition. “Today’s news confirms much of the market chatter at the time that official sector buying was taking place and was one of the key factors that gave prices a reasonable floor last month.”

Germany’s Reserves

Germany holds 3,391.4 tons, the IMF data show. The Bundesbank declined to comment on the past month’s gold reserves, spokeswoman Susanne Kreutzer said, adding that the central bank reserves 7 tons a year to sell to the Finance Ministry for minting. The year started on Sept. 27, she said. The Bundesbank sold about 0.7 ton to the finance ministry in June and 4.7 tons in October 2011 to mint commemorative coins.

Germany
Germany is considered the flag-ship of European economies.
Germany holds a 78.8% debt ratio to economy, above the 60% limit standard set by EU for stability, while being mad at Greece and PIIGS for doing the same.
Germany faces a $285 Billion USD repayment/refinance of debt in 2012 but sees no problem of finding lenders, since Germany’s economy
looks great compared to the rest of the industrialized world.

Gold for immediate delivery was little changed at $1,726.99 an ounce by 10:57 a.m. in London. It’s gained 10 percent this year. Holdings in gold-backed ETPs reached a record 2,604.9 tons yesterday, data compiled by Bloomberg show.

“The IMF figures showed continued strong buying by central banks,” said Dan Smith, a commodities analyst at Standard Chartered Plc in London. “This continues the trend of recent months and we expect this to support gold prices.”

Turkey’s bullion holdings have increased due to it accepting gold in its reserve requirements from commercial banks. Belarus expanded holdings by 0.1 ton in October and Mexico reduced them by 0.2 ton, the IMF data show.

Gold accounts for about 0.5 percent of Brazil’s total reserves and 20 percent of Kazakhstan’s, according to the World Gold Council. That compares with more than 70 percent for the U.S. and Germany, the biggest bullion holders, the data show.

To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net

To contact the editor responsible for this story: John Deane at jdeane3@bloomberg.net

SOURCE:
http://www.bloomberg.com/news/2012-11-21/brazil-boosts-gold-reserves-to-the-highest-in-more-than-11-years.html

Soros Buying Gold as Record Prices Seen on Stimulus

By Nicholas Larkin and Debarati Roy – Nov 20, 2012 7:39 PM GMT-0200

Gold’s 12-year rally, the longest in at least nine decades, is poised to continue in 2013 as central bank stimulus spurs investors from John Paulson to George Soros to accumulate the highest combined bullion holdings ever.

Bank of England’s glittering stash of £156 BILLION in gold bars stored in former canteen under London. (click image for sourcepage)

The metal will rise every quarter next year and average $1,925 an ounce in the final three months, or 11 percent more than now, according to the median of 16 analyst estimates compiled by Bloomberg. Paulson & Co. has a $3.66 billion bet through the SPDR Gold Trust, the biggest gold-backed exchange- traded product, and Soros Fund Management LLC increased its holdings by 49 percent in the third quarter, U.S. Securities and Exchange Commission filings show.

Central banks from Europe to China are pledging more steps to boost growth, raising concern about inflation and currency devaluation. Investors bought 247.5 metric tons through ETPs this year, exceeding annual U.S. mine output. While both sides said talks Nov. 16 between President Barack Obama and Congress over the so-called fiscal cliff were “constructive,” the Congressional Budget Office has warned the U.S. risks a recession if spending cuts and tax rises aren’t resolved.

“We see gold as a hedge against the follies of politicians,” said Michael Mullaney, who helps manage $9.5 billion of assets as chief investment officer at Fiduciary Trust in Boston. “It’s a good time to garner some protection in portfolios by having some real asset like gold.”
Longest Streak

Gold advanced 11 percent to $1,728.85 in London this year, headed for a 12th consecutive annual gain, the longest streak in data compiled by Bloomberg going back to 1920. Prices reached a record $1,921.15 in September 2011. The Standard & Poor’s GSCI gauge of 24 commodities slipped 0.3 percent and the MSCI All- Country World Index (MXWD) of equities climbed 8.2 percent. Treasuries returned 2.7 percent, a Bank of America Corp. index shows.

Bullion held through ETPs, the first of which listed in 2003, reached a record 2,604.2 tons yesterday, valued at $144.9 billion. That exceeds the official reserves of every nation except the U.S. and Germany, World Gold Council data show. The SPDR Gold Trust (GLD) alone holds 1,342.2 tons.

 

Global Teutonic Zionists – Working towards that New World Order: 1) Lord Jacob de Rothschild. 2) His spooky son, Nathaniel. 3) Baron John de Rothschild, who recently said they are working towards global governance. 4) Sir Evelyn de Rothschild. His wife Lynn Forrester is a big mover and shaker in the Democratic party. 5) David Rockefeller, Sephardic Crypto-Teutonic, who’s son Nick told film director Aaron Russo about 9/11 in advance. 6) Nathan Warburg. His family was not only instrumental in creating the Federal Reserve, etc. they were also behind the rise of Adolf Hitler. 7) Henry Kissinger, Globalist genocidal schemer. 8 George Soros, another Teutonic schemer and NGO manipulator. 9) Paul Volcker, Crypto-Jew big-time Globalist and economic advisor to Obama. 10) Larry Summers, Crypto-Teutonic economic advisor to Obama. 11) Lloyd Blankfein, CEO to the rapidly growing Goldman Sachs banking behemoth. 12) Ben Shalom Bernanke, current Teutonic master of the Federal Reserve (a private entity, neither “Federal” nor a “Reserve”). What’s the common denominator here? (click image for sourcepage – ’tis a nice political blog, albeit somewhat homophobic, in my opinion. Nothing is perfect, after all…)

Soros increased his investment in the trust to 1.32 million shares in the third quarter, the most since 2010, a Nov. 14 SEC filing showed. The stake, with each share representing about a 10th of an ounce, is valued at $221.4 million. Prices advanced 60 percent since January 2010, when Soros called gold the “ultimate asset bubble.” Michael Vachon, a spokesman for the 82-year-old who made $1 billion breaking the Bank of England’s defense of the pound in 1992, declined to comment.
Official Reserves

Paulson, who became a billionaire in 2007 by wagering against the subprime mortgage market, owns 21.8 million shares in the SPDR Gold Trust, making him the biggest shareholder, a Nov. 15 SEC filing showed. The 56-year-old raised his stake by 26 percent in the second quarter and his holding of about 66 tons exceeds the official reserves of nations from Brazil to Bulgaria to Bolivia.

The New York-based hedge fund company reduced its investments in Anglogold Ashanti Ltd. (ANG) and Gold Fields Ltd., the third- and fourth-biggest producers. Armel Leslie of Walek & Associates, a spokesman for Paulson’s fund, declined to comment.

Paul Touradji’s Touradji Capital Management LP sold all of its 82,000 shares in the SPDR Gold Trust in the third quarter, according to an SEC filing. Lone Pine Capital LLC, the hedge fund run by Stephen Mandel Jr., cut its stake by 31 percent to 2.6 million shares, and Dan Loeb’s Third Point LLC lowered its bet by 10 percent to 130,000 shares, filings showed last week. Officials from all three companies declined to comment.
Nine Strategists

While some investors expect stimulus to devalue currencies, the median of nine strategist estimates compiled by Bloomberg show the U.S. Dollar Index, a measure against six major trading partners, will average 82.8 next year, from 80.9 now. Steven Englander, Citigroup Inc.’s head of G-10 strategy, said in an interview this month that the currency market is signaling it isn’t yet convinced the Federal Reserve will fulfill its pledge to pump record amounts of cash into the economy through 2015.

Third-quarter demand for gold fell 11 percent, the most since 2009, as China’s slowing growth curbed purchases, the London-based World Gold Council said Nov. 15. India, the biggest buyer in the quarter, consumed 24 percent less in the year’s first nine months as bullion priced in rupees reached a record in September. The Washington-based International Monetary Fund cut its 2013 forecast for world growth twice since July, to 3.6 percent.
Inflation Adjusted

While prices rose 25 percent since November 2010, the size of the futures market, based on contracts outstanding, fell 30 percent, bourse data show. The metal, down 3.7 percent from this year’s high, has yet to exceed previous records when adjusted for inflation, with its 1980 record of $850 equal to $2,398 today, data compiled by the Fed Bank of Minneapolis show.

Hedge funds and other large speculators pared bets on a rally in futures traded on the Comex bourse in New York by 29 percent since Oct. 9, U.S. Commodity Futures Trading Commission data show. They’re still holding a net-long position of 140,162 futures and options, about 10 percent more than this year’s average, and increased wagers by 7.7 percent last week.

The Fed said Oct. 24 it will maintain $40 billion in monthly purchases of mortgage debt and probably hold interest rates near zero until mid-2015. The European Central Bank said it’s ready to buy bonds of indebted nations and the Bank of Japan raised its asset-purchase program for the second time in two months on Oct. 30.
Quantitative Easing

Gold rallied 70 percent as the Fed bought $2.3 trillion of debt in two rounds of quantitative easing from December 2008 through June 2011.

Investors buying bullion as a hedge against inflation and a weaker dollar generally earn returns only through price gains, increasing its allure as interest rates decline. It rose sixfold since the end of 2000, beating the 34 percent advance in the S&P 500, with dividends reinvested, and the 91 percent return on Treasuries. The Dollar Index fell 26 percent.

The first face-to-face meeting between Obama and leaders from Congress on the fiscal cliff yielded optimism and few details about how it would be resolved. The $607 billion of automatic spending cuts and tax increases is scheduled to take effect in January. U.S. equities and Treasuries rose Nov. 16 and gold futures were little changed.
Options Trading

Credit Suisse Group AG’s Tom Kendall, the most accurate gold forecaster tracked by Bloomberg over the past two years, sees prices averaging $1,880 in the fourth quarter next year and UniCredit SpA’s Jochen Hitzfeld, ranked second, expects $1,950. Deutsche Bank AG’s Daniel Brebner, the next most accurate, predicts $2,300 in the third quarter.

Options traders are also bullish, with the seven most widely held contracts conferring the right to buy at prices from $1,800 to $2,200 between November and March, Comex data show.

Central banks added to reserves for 19 consecutive months through August, the longest streak since 1964, IMF data show. Nations from Russia to South Korea to Mexico bought more to bring combined holdings to 31,461 tons, equal to about 18 percent of all the metal ever mined.

Barrick Gold Corp. (ABX), the world’s largest producer, will report a 41 percent gain in profit to a record $5.04 billion next year, the mean of 10 analyst estimates compiled by Bloomberg shows. The Toronto-based company’s shares fell 25 percent this year and will gain 43 percent in the next 12 months, according to the average of 23 forecasts.
Monetary Stimulus

Analysts predict Newmont Mining Corp. (NEM) and AngloGold Ashanti, the next-biggest, will also report the most profit ever next year.

“It looks as though global monetary stimulus is likely to continue, particularly in the wake of growing fiscal austerity,” said Alan Gayle, a senior strategist at RidgeWorth Capital Management in Richmond, Virginia, which oversees about $47 billion of assets. “That puts pressure on the monetary authorities to stimulate the economy and that will debase the currencies and put a bid under gold.”

To contact the reporters on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net; Debarati Roy in New York at droy5@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

 

SOURCE: Bloomberg
http://www.bloomberg.com/news/2012-11-20/soros-buying-gold-as-record-prices-seen-on-stimulus-commodities.html