Zurich

Frontrunning: August 10

  • Grim China data keeps stimulus hopes alive (Reuters)
  • Berkshire Hathaway to Buy Precision Castparts for About $37 Billion (BBG)
  • Greece, lenders in final push to seal new bailout (Reuters)
  • Quantitative Easing With Chinese Characteristics Takes Shape (BBG)
  • Greece nears €86bn accord with creditors (FT)
  • Oil Futures Signal Weak Prices Could Last Years (WSJ)
  • Drop in long-term investment hinders eurozone recovery (FT)
  • Two shot in Ferguson amid standoff between police, protesters (Reuters)

Frontrunning: August 7

  • July job gains may favor September interest rate rise (Reuters)
  • It's all about Trump at raucous Republican debate (Reuters)
  • The 5 Most Important Takeaways From the First Debate of 2016 (BBG)
  • Republican presidential candidate Carly Fiorina wins the Web (Reuters)
  • Hedge Fund Losses From Commodity Slump Sparking Investor Exodus (BBG)
  • Winners and losers from the first Republican presidential debate (WaPo)
  • Bush turns in workmanlike debate performance, but will it be enough? (Reuters)

Frontrunning: July 29

  • Fed expected to push ahead with rate hike plan (Reuters)
  • Upbeat earnings lift European stocks ahead of Fed (Reuters)
  • Chevron to Cut 1,500 Jobs (Rigzone)
  • Can Windows 10 Revive PC Sales? (WSJ)
  • U.S. Junk-Bond Buyers Left in Dark as Private Deals Become Norm (BBG)
  • Jeb Bush Drawing Big Bucks From GOP Establishment (WSJ)
  • Myriad of Greek Risks Means Money Managers in No Hurry to Return (BBG)
  • Gas production at Gazprom set to hit post-Soviet low (FT)

Central Banks And Our Dysfunctional Gold Markets

Many investors still view gold as a safe-haven investment, but there remains much confusion regarding the extent to which the gold market is vulnerable to manipulation through short-term rigged market trades, and long-arm central bank interventions. First, much of the gold that is being sold as shares, in certificates, or for physical hoarding in dubious "vaults" just isn't there. Second, paper gold can be printed into infinity just like regular currency. Third, new electronic gold pricing — replacing, as of this past February, the traditional five-bank phone-call of the London Gold Fix in place since 1919 — has not necessarily proved a more trustworthy model. Fourth, there looms the specter of the central bank, particularly in the form of volume trading discounts that commodity exchanges offer them.Today, there is no “official” price for gold, nor any “gold-exchange standard” competing with a semi-underground free gold market. There is, however, a material legacy of “real versus pseudo” gold that remains a terrible menace. Buyer beware of the pivotal difference between the two.

GoldCore's picture

Clearly, Russia puts great strategic importance on its gold reserves. Both President Putin and Prime Minister Medvedev have been photographed on  numerous occasions holding gold bars and coins as a display of economic stability and strength. Since early 2007 Russia has sold gold only twice, in 2012, in small amounts.

Frontrunning: July 20

  • Gold Plunges to Lowest Since 2010 (BBG)
  • In Greek crisis, one big unhappy EU family (Reuters)
  • Greek Banks Reopen Their Doors (WSJ)
  • Greek reshuffle hints at autumn election (FT)
  • Angela Merkel signals conditions for Greek debt talks (FT)
  • Dollar hits three-month high on rate view, pans gold (Reuters)
  • History Shows Iran Could Surprise the Oil Market (BBG)
  • ‘Charlie Hebdo’ Will Cease Publishing Cartoons of Prophet Muhammad (Newsweek)
GoldCore's picture

Goldman Sachs proposes that society should bend to the needs of the financial and monetary system rather than reform of that system. At any rate, the proposals put forward by them are unlikely to achieve any kind of long-term solution to the problem of massive unsustainable debt faced by the western world and Japan. 

GoldCore's picture

The ‘war’ word is being increasingly heard internationally as the U.S., EU, Russia and China adopt provocative postures over various disputes including Ukraine and in the Pacific. War with the U.S. is “inevitable” if the U.S. involves itself in the dispute which has arisen over the Spratley Islands in the South China Sea according to China's state controlled newspaper the Global Times.

FIFA "Rampant" Corruption Exposed Following DOJ Indictment, 14 Arrested In Swiss Hotel - FBI/DoJ Press Conference Live Feed

That FIFA has been a hotbed of corruption, shady backroom dealings and outright crime for years, has been known to anyone who has a passing interest in football. Which is why we were surprised to learn this morning that none other than the US Attorney General, seemingly content with all the wristslaps handed out to criminal US foreign banks (and subsequent SEC waivers) gave FIFA the red card in a charge detailing "rampant" corruption in international soccer hours after 14 officials were arrested on accusations of a 24-year scheme to enrich themselves through FIFA, whose office was searched in a series of dawn raids in Zurich.