GoldCore's blog

The MH-17 tragedy could mark a pivotal moment in the worst crisis between Russia and the West since the Cold War. Geopolitical risk is extremely high today. As it was in 1914. With the U.S. seeking to impose tough new sanctions on Russia, we appear to be on the verge of a new and more intense phase of currency wars and indeed of an economic war. Indeed, a millitary confronatation with all that entails cannot be ruled out ...

Gold, silver, oil and wheat (see table) surged today after confirmaton that a Malaysian passenger airliner was shot down over the Ukraine. The tragedy is set to be used by opposing sides as a stick to beat each other with and inflame an already very tense geopolitical situation. 

The sell off was greeted by Chinese buyers as Chinese premiums edged up to just over $1 an ounce on the Shanghai Gold Exchange (SGE).

Gold price drops this year have led to a marked increase in demand for gold as seen in very large increases in ETF holdings (See chart - Orange is Gold, Purple is absolute change in gold ETF holdings). The smart money in Asia, the West and globally continues to use price dips as an opportunity to allocate to gold.

Silver Up 10.3% YTD - Should Continue To Outperform Gold And Other Assets  - Silver’s Unique Properties  - Silver: Increasing Technological, Industrial and Medical Demand  - Increasing Investment Demand  - Silver Undervalued Versus Gold - Conclusion

Gold had strong chart resistance at $1,334/oz as this was the 61.8% retracement of the March to June retreat. Gold has now broken convincingly above resistance and the key 50, 100 and 200 day moving averages (see chart).

We believe that a more transparent and reliable fixing could lead to higher gold prices as we suspect that prices are artificially low at this time and do not reflect the delicate supply demand balance in the physical gold market ... Nor do they capture the degree of systemic and geopolitical risk in the world today."

This is misguided and not in the U.S. national interest and could backfire spectacularly. After a period of relative calm, currency wars look set to escalate and will make owning gold important again in the coming months.

Bloomberg reported yesterday that the German campaign to repatriate German gold from the U.S. has ended. The leader of the German gold repatriation movement, “Repatriate our Gold,” Peter Boehringer immediately refuted the article and posted in the comment section at the bottom of the article … The campaign to achieve a free market in gold and silver prices will continue.

Gold has surged over $41 and silver over 70 cents to over $1,314 and $20.46 per ounce or 3% and 4.2% respectively as oil ticks higher on the tinder box that is Iraq ... Faber recently said how he will “never sell his gold”, he buys “more every month” and believes storing gold in Singapore is "safest”.

China Gold, China’s largest gold conglomerate with primary interests in mining and also refining, is on the hunt for global acquisitions and partnerships and  appears to have designs on becoming a kingmaker in the global gold market ... We are witnessing a paradigm shift as gold moves from the West to China and the East. The ramifications of that paradigm shift have yet to be appreciated. 

Pensions throughout the western world are in peril due to the pension Ponzi scheme. Powerful forces of both the inflation caused by 100 years of the Federal Reserve debasing the dollar and a possible deflationary crisis due to massive levels of debt globally will be a double whammy which will hit traditional investments such as stocks, property and bonds. Without an allocation to gold, you are not going to have a comfortable retirement ?

The situation in Ukraine and Iraq have gone from bad to worse. There is the potential for a wider Middle East conflict as the region remains a ‘powder keg.’ Iraq may be the match that sees the region explode into chaos and war - with attendant effects on global oil prices and the global economy.

Yesterday, the IMF and World Bank issued warnings about rising interest rates, housing crashes and the global economy. The World Bank’s chief economist is inadvertantly offering important advice to investors and savers when he said that "now is the time to prepare for the next crisis ..."

In order to back the dollars now in circulation and on deposit -- about $2.7 trillion -- with the approximately 261 million ounces of gold believed to be held by the U.S. government, gold prices would have to rise as high as $10,000 an ounce. Who said gold is not money?

Bail-ins or deposit confiscation can now be used in the UK, EU, U.S. and G20 countries. Investors and savers best get prepared for the coming bail-in era. After Cyprus, which country will be the next to suffer bail-ins?