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Obama Victory: Increased Gold And Silver Storage In Zurich And Asian Capitals

GoldCore's picture





 

Today’s AM fix was USD 1,715.00, EUR 1,347.42, and 1,075.84 GBP per ounce. 
Yesterday’s AM fix was USD 1,730.50, EUR 1,345.86, and GBP 1,080.75 per ounce.

Silver is trading at $31.85/oz, €25.10/oz and £20.00/oz. Platinum is trading at $1,546.75/oz, palladium at $607.30/oz and rhodium at $1,100/oz.

Gold rose $2.10 or 0.12% in New York yesterday and closed at $1,718.30. Silver hit a low of $31.209 then recovered in late trade but still finished with a loss of 0.56%.

Gold rose for a third day yesterday after confirmation that President Barack Obama won re- election, while stock markets fell sharply and treasuries headed for the biggest advance in 11 weeks.

Robust investment demand continues and may intensify after the election and exchange traded products backed by gold attracted $2.5 billion of inflows in October alone.

Total inflows in commodities ETPs were $3.1 billion last month, taking assets under management to $201.6 billion for Blackrock Inc alone according to Bloomberg.

Many analysts believe that President Obama’s re-election is the “best- case” scenario for precious metals due to implications for monetary and fiscal policy. Obama faces chronic high unemployment, weak economic growth and the upcoming fiscal cliff, not too mention very difficult geopolitical challenges in the form of Israel, Iran, Russia and China.

Today, The European Central Bank has its rate decision at 1245 GMT and they are expected to leave rates unchanged.

The Bank of England decided to leave its benchmark interest rate at a record low and pause its stimulus plan after the British economy emerged from a double-dip recession in the third quarter.

Investors are now again focussing on the US fiscal cliff which will enact $600 billion in tax hikes and severe budget cuts, if no action is taken by the US Congress, than the US will fall deeper into its recession.


XAU/GBP Currency 2 Years – (Bloomberg)


XAU/EUR Currency 2 Years – (Bloomberg)

Gold bullion is not only supported by the uncertainty of the “fiscal cliff” but the Eurozone debt crisis is set to deepen again.

There remains the real risk of an exit from the single currency by one or more members and of course the risk of a global recession and Depression which will be responded to by more loose monetary policies by various central governments.

More of the world's rich are moving their gold, silver and other valuables away from the economic turmoil in the West to the Asian capitals of Singapore and Hong Kong according to Reuters (see commentary).

This is prompting vaulting and storage specialists in the increasingly prosperous region to increase their capacity by creating extra vaulting space.

Depositories in Asia report that there are a lot of enquiries from European banks, not because the banks themselves necessarily want to move the assets to Asia, but because their clients are asking them to.

These clients include rich Asians who want their valuables closer to home as well as Westerners.

Singapore and Hong Kong are two of the favoured destinations. Both have seen a significant increase in gold importations in 2012.

With Chinese demand for gold and silver surging depositories are looking to cater to the huge growing swathe of wealthy Chinese and this is leading to increasing vaulting services being offered in Singapore, Hong Kong and now even Shanghai. 

China is on its way to overtake India as the world's biggest gold consumer this year, as India's gold demand has taken a blow on record rupee prices and higher import tax while Chinese consumers' appetite for gold remains resilient.

We have firsthand experience of this increasing preference for secure bullion storage  as we have seen an increased preference for storage in Zurich and Hong Kong. 

Zurich remains the preferred destination for most western investors and of investors internationally but we and other bullion providers are seeing some western clients opt for secure storage in Asia.

There is a definite sense amongst some of our American and European clients that storing gold in Zurich and Asia is safer than in London, New York, Delaware or elsewhere in U.S. and this trend is set to continue.

Throughout history capital has flowed to where it is most favourably treated and today there is a definite move to own capital and assets outside of massively indebted and near insolvent western democracies.

Obama’s second term is likely to see Ben Bernanke continue to devalue and debase the dollar which will lead to increased investment demand and store of wealth demand for gold and to investors seeking storage in Zurich, Singapore and Hong Kong. 

For breaking news and commentary on financial markets and gold, follow us on Twitter.


Cross Currency Table – (Bloomberg)

NEWS
Gold Rises as Investors Increase ETP Holdings to All-Time High - Bloomberg

Gold flat as US fiscal worries support dollar - Reuters

China to overtake India in overall gold demand: GFMS - Reuters

UK pension funds are holding more bonds than equities for the first time since 1950s – The Financial Times

COMMENTARY
Rich move valuables East, spooked by West's economic woes - Reuters

Angst returns on German recession fears and US fiscal cliff – The Telegraph

"Standards of living of people in the western hemisphere will continue to decline" – Zero Hedge

Hathaway: Gold Setup To Super-Surge To New All-Time Highs – King World News

 


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Thu, 11/08/2012 - 23:06 | Link to Comment cornflakesdisease
cornflakesdisease's picture

Poetry.

 

Thu, 11/08/2012 - 21:42 | Link to Comment Manic by Proxy
Manic by Proxy's picture

If you own property, what is wrong with storing gold there? A 400 oz bar of Au is worth ~$680000. Not much volume to bury/hide/sink.

Thu, 11/08/2012 - 22:04 | Link to Comment DosZap
DosZap's picture

If you own property, what is wrong with storing gold there? A 400 oz bar of Au is worth ~$680000. Not much volume to bury/hide/sink.

That's not the issue here dudeski..................its foreigners storing in a Com Bloc Nation always has been,and likely will be till we are all dead.( capitalistic island countries,that they can take over at WILL). And , No we would not dare risk a military confrontation w/ the Reds,we only go after weak links.

Thu, 11/08/2012 - 18:40 | Link to Comment Zap Powerz
Zap Powerz's picture

The next year is going to be very exciting!

And when I say "exciting" I mean "really fucking shitty and scary".

Obama does not scare me.  The people that voted for Obama scare me.  I dont live next to Obama, but I do live next to people that voted for him.  Obama isnt going to come on my property seeking food and water when he has none.  The people that voted for Obama will.  I call them "Obamazombies" and we all know how to kill a zombie right?

Thu, 11/08/2012 - 22:29 | Link to Comment Notarocketscientist
Notarocketscientist's picture

The system, in short, demands ever-increasing amounts of debt and couldn’t care less whether republicans or democrats provide it.

http://dollarcollapse.com/the-economy/now-we-can-stop-paying-attention/

Thu, 11/08/2012 - 20:33 | Link to Comment klockwerks
klockwerks's picture

Zap, right on. Prior to Tues I kept track of all the homes who had O signs in the yard. When it hits the fan and they come knockin I will ask for a voter registration card. Will tell the O supporters to go to their friend house who voted the same way to get basic water etc.

Thu, 11/08/2012 - 19:54 | Link to Comment krispkritter
krispkritter's picture

Generally you shoot them in the brain. But if they've voted for Obama they don't have one, so that makes them very hard to put down...

Thu, 11/08/2012 - 23:06 | Link to Comment cornflakesdisease
cornflakesdisease's picture

Poetry

Thu, 11/08/2012 - 22:30 | Link to Comment Notarocketscientist
Notarocketscientist's picture

The system, in short, demands ever-increasing amounts of debt and couldn’t care less whether republicans or democrats provide it.

http://dollarcollapse.com/the-economy/now-we-can-stop-paying-attention/

Thu, 11/08/2012 - 21:45 | Link to Comment Manic by Proxy
Manic by Proxy's picture

Oh, they have brains. Just not located in the cranium. Now, if you shoot them in the rectum.....

Thu, 11/08/2012 - 15:39 | Link to Comment unirealist
unirealist's picture

What is significant is that these new vaults are meant to hold PHYSICAL gold.  Not the paper gold that most investors have preferred in the past.  Paper gold is easier to trade, while physical is safer to own.  The trade-off is tilting now in favor of the latter.

Gold is being withdrawn from re-hypothecated holdings in London and NY, and locked up in Zurich and the Far East.  The awesome power of leverage is about to reverse its direction...

Thu, 11/08/2012 - 15:30 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Hey everyone,checkout kitcos gold lease rate chart and data for it.
Some serious terrorism just went down on the one year lease on gold.
Central banks loaded up thier favorite bullion banks and paid them well to take it.
FUCK YOUS central bankers.

Kitco is a very decietful site.
They had the rate showing different from the chart so your eye does not notice the rate drop if you just look at the chart.
They do this ALL THE TIME.
And I call them on it.As usual they change it(make correction) because I have e:mailed them and there is now,official record of this being noticed(legal ramifications)....
Fuck Kitco....
Decietful fucks.

Thu, 11/08/2012 - 17:12 | Link to Comment lakecity55
lakecity55's picture

i just use those bums for the website.

Thu, 11/08/2012 - 16:38 | Link to Comment Quinvarius
Quinvarius's picture

This is useful info on the matter.  Remember that the lease rate is not the flat rate to "lease gold".  The lease rate is LIBOR minus GOFO.  And LIBOR is a crock.

http://www.lbma.org.uk/pages/index.cfm?page_id=55&title=gold_forwards&show=2012

Thu, 11/08/2012 - 16:33 | Link to Comment Bay of Pigs
Bay of Pigs's picture

KITCO is fucking useless anymore. Their charts are suspect.

GoldCore isnt far behind.

Thu, 11/08/2012 - 18:23 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

For sure Kitco is usless. I just go to thier site to see what bullshit they are pumping,and lies they are telling.And to keep them honest .

And Jon Nurdler,well you know...he's a nerd.

Thu, 11/08/2012 - 16:35 | Link to Comment CunnyFunt
CunnyFunt's picture

With the exception of Daniela Cambone, I agree, Kitco is useless.

Thu, 11/08/2012 - 15:11 | Link to Comment hawk nation
hawk nation's picture

We are in a recession and by the middle of the next year we will be in a depression

To fundamentally change america will require collapsing it

Socialism works well untill the other person runs out of money

Thu, 11/08/2012 - 15:33 | Link to Comment LawsofPhysics
LawsofPhysics's picture

"Socialism works well untill the other person runs out of money"

----------------------------------------------------------

Yes, unfortunately the banks and financial fucks (who have captured your representation) haven't figured that out yet.  Got physical?  You better.

Thu, 11/08/2012 - 15:10 | Link to Comment The Continental
The Continental's picture

Gold is barbarous, only suitable for Holocaust evacuees. Therefore these foriegners are barbarians. We need to bomb them into their senses! They hate us for our freedom [from gold].

Thu, 11/08/2012 - 15:02 | Link to Comment sethstorm
sethstorm's picture

That's nowhere that the US can't get to if they really had to.

Thu, 11/08/2012 - 13:34 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Better to buy silver here IMHO.

Thu, 11/08/2012 - 13:27 | Link to Comment GubbermintWorker
GubbermintWorker's picture

Gold bitchez!

Thu, 11/08/2012 - 16:33 | Link to Comment _underscore
_underscore's picture

That's the best damn 'gold bitchez' I've seen here in quite a while.

Thu, 11/08/2012 - 14:19 | Link to Comment DosZap
DosZap's picture

More of the world's rich are moving their gold, silver and other valuables away from the economic turmoil in the West to the Asian capitals of Singapore and Hong Kong according to Reuters (see commentary).

IMHO,China is not even going to have to purchase any Gold,they will just seize this.Anyone storing their Gold in a Communist controlled country, is asking for a Prep H job.

Thu, 11/08/2012 - 15:08 | Link to Comment Jolly.Roger
Jolly.Roger's picture

I trust the Chinese Communist party more than the Democrats or Republicans. 

 

Thu, 11/08/2012 - 21:58 | Link to Comment DosZap
DosZap's picture

I trust the Chinese Communist party more than the Democrats or Republicans.

Dead Even at this time, however at least for close to 200 yrs we WERE a nation in which most in power did have the country, and the peoples interests at heart.I was raised in that last generation.

We were a nation of law, ruled by the Const & the BOR's, and if you crossed it,your ass  was dead,and if a politician, you were really DOA,as far as prison time, and end of public service.

Thu, 11/08/2012 - 19:04 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

The devil you know doesn't make him less of a devil.

Thu, 11/08/2012 - 16:01 | Link to Comment rustymason
rustymason's picture

There's a distinction without a difference!

Thu, 11/08/2012 - 16:13 | Link to Comment Ghordius
Ghordius's picture

The distinction is that the Chinese gov is encouraging it's people to buy gold

Thu, 11/08/2012 - 15:28 | Link to Comment Urban Redneck
Urban Redneck's picture

Chinese citizenism is equally as bad as American citizenism

Thu, 11/08/2012 - 17:10 | Link to Comment akak
akak's picture

To be precise, according to AnAnnoyingUs, the all-encompassing evil to which you refer is actually "US 'american' citizenism", and can be characterized by the following attributes:

 

1) Smithian economics
2) Farming the poor
3) Exploiting the weak
4) Monolizing the speeching means
5) The crustiest bit of the mattering thing
6) The middle class being the king class
7) Inability to self-indict (never a problem with other citizenisms)
8) Spreading citizenism to primitive societies in the past (such as Eastern Island) and time-traveling via magical lightning-powered flying rickshaw of Benjamin Franklin inventionism of US 'american' fabled past
9) Eternal nature
10) Blobbing-up
11) Makes AnAnnoyingUs laugh

Thu, 11/08/2012 - 15:34 | Link to Comment LawsofPhysics
LawsofPhysics's picture

It's the same thing.  the goal is to have a world that works for chinese wages.  Shouldn't be long now.

Thu, 11/08/2012 - 13:32 | Link to Comment knukles
knukles's picture

Storage overseas, just what ya' want.
Just like the Fed, believe me, it's in the vault, right there in a nice tidy little pile, all for you, sweet-cakes.

Trust me, Gold Bitchez.

Thu, 11/08/2012 - 21:36 | Link to Comment Manic by Proxy
Manic by Proxy's picture

What's wrong with storing gold at the bottom of your local body of water?

Thu, 11/08/2012 - 16:15 | Link to Comment victor82
victor82's picture

Isle of Man is where you want to go, imho. A friend of mine has offshored there for years. All his physical.

Small business people in the U.S. were sticking it down to see if the Kenyan Usurper (ht: this is for you, frank) would get sent to Mexico to be tried by his victims with Eric Holder. No such luck. So, now the layoffs are coming Fast and Furious, so to speak.

Do not be surprised when export currency and banking controls come. All banana republics do this. Ours is only a larger version of Somocismo. Has been ever since Eisenhower left town. And I say this as a guy who voted for Reagan twice.

Thu, 11/08/2012 - 18:23 | Link to Comment Burticus
Burticus's picture

After 4 years, it seems that you should just be able to use "K.U." and we would know you mean the "Kenyan Usurper".

Thu, 11/08/2012 - 14:04 | Link to Comment Tinky
Tinky's picture

To characterize your view as "overly simplistic" would be an understatement.

Thu, 11/08/2012 - 21:10 | Link to Comment Uncle Remus
Uncle Remus's picture

Ah, but you did understand it.

Please drive thru.

Thu, 11/08/2012 - 23:15 | Link to Comment Enslavethechild...
EnslavethechildrenforBen's picture

Jewsury is unsustainable, bomb Israel, free Iran

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