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Gold Storage In Switzerland Increasing Due To Swiss Tradition Of Respecting Private Property

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Today’s AM fix was USD 1,237.50, EUR 913.08 and GBP 754.30 per ounce.
Friday’s AM fix was USD 1,245.25, EUR 915.29 and GBP 763.07 per ounce.

Gold climbed $13.60 or 1.07% Friday, closing at $1,251.20/oz. Silver rose $0.31 or 1.58% closing at $19.99/oz. Gold and silver were both up for the week at 0.64% and 0.60%, respectively. Platinum edged up $4.85, or 0.4%, to $1,360.25/oz and palladium fell $0.60, or 0.1%, to $715.60/oz.

Gold is lower today for the first time in three days as continuing speculation regarding possible ‘tapering’ by the Fed contributes to poor sentiment. The Bank of England and ECB meet this week and market participants await central bank policy decisions and will look for guidance regarding the continuation of ultra loose monetary policies.


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As ever, it is important to watch what the Fed and central banks do rather than what they say. 

U.S. data including nonfarm payrolls, third quarter GDP and manufacturing PMI will be released this week, giving more insight into the fragility of the U.S. economy. The nonfarm payroll report on Friday is awaited and a poor number should see another spike in gold.

Gold was 0.64% higher last week which was important from a technical perspective and after the very poor November. Seasonally, November is one of gold’s best months but gold ended November trading on Friday down 5.4%, its biggest monthly loss since June.

Gold will likely be supported by increased physical demand which has picked up at these lower price levels. Demand could pick up sharply again if prices fall below $1,240.

Tradition Of Respecting Private Property Makes
Allocated Gold In Switzerland Popular
Dukas Copy TV interviewed Research Director, Mark O’Byrne, over the weekend and discussed gold’s recent poor performance, the paradigm shift that is the “enormous” Chinese gold story and  Switzerland’s increasing importance in the global gold market.

The key points from the interview were the following:

? The U.S. economy is weaker than is believed and the recent positive jobs number in itself does not indicate an economic recovery.

? Warning that anything can happen in the short term and prices can be volatile. That is one of the reasons why  people should consider dollar cost averaging and gradually accumulating a position.

?  Gravity of situation not understood by people. Fact that the U.S. has to print $85 billion every month to buy its own mortgage and government debt is astounding.


Gold in U.S. Dollars, 10 Days - (Bloomberg)

? Inflation has not happened yet but it will and those who own gold as hedge against inflation will again be rewarded in the medium to long term.

? The China gold story is enormous.  There is a paradigm shift with China’s per capita consumption of 1.3 billion people increasing from near zero in 2003. This is because from 1950-2003 gold ownership was banned in China under Chairman Mao. It has been increasing every year since 2003.

? At present, China is producing and importing nearly half of global gold annual production almost 1,000 tons. This is just the gold that is imported through Hong Kong. There is also a huge amount of gold imported into other Chinese cities.

? While 1,000 tonnes is a lot in terms of tonnage, in dollar terms it is very small and at today’s price it is worth just under $40 billion. This is roughly what the Federal Reserve prints in just two weeks - every two weeks!

? Institutional physical gold is flowing into Switzerland from London. Large London Good Delivery bars (400 oz) are being melted down in refineries in Switzerland and made into smaller formats, such as kilo bars, for shipment to Asia.


Gold in U.S. Dollars, 5 Years- (Bloomberg)

 ? Switzerland and Germany have the highest per capita consumption of gold in Europe due to their understanding of the risks inherent in paper currencies and gold’s value as a store of wealth.

 ? People internationally are opting to store gold in allocated accounts in Switzerland due to their tradition of respecting private property and the fact that their economy is very sound. Therefore it is a good place to diversify assets in order to protect wealth.

? GoldCore remain negative on gold in the short term due to the poor technicals and momentum. However, the medium and long term outlook is positive and we believe gold can surpass its inflation adjusted price from the 1980s of $2,400/oz in the coming years.

The ‘GoldCore on Gold’  video can be watched here.

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Mon, 12/02/2013 - 18:53 | Link to Comment Son of Loki
Son of Loki's picture

Tradition!

 

Reminds me of that Fiddler on the Roof song, "Tradition":

 

https://www.youtube.com/watch?v=gRdfX7ut8gw

Mon, 12/02/2013 - 17:58 | Link to Comment Pancho Villa
Pancho Villa's picture

The Swiss tradition of banking privacy is now history. The Swiss now have a tradition of caving in to demands by the US government. I wouldn't rely much on the Swiss tradition of respecting private property. If the US government wants your gold, it will find some way to force the Swiss to surrender it.

Mon, 12/02/2013 - 15:55 | Link to Comment The Heart
The Heart's picture

You bet they are storing it there in Switzerland.

Everybody is discovering what the criminals in the fed have done by selling off everyones gold to the chinese, basically saying to countries like Germany, tough titty, said the milk to the kitty!

http://www.youtube.com/watch?v=NyemAwLD2N0

Mon, 12/02/2013 - 14:17 | Link to Comment Sufiy
Sufiy's picture


FED "Operation Twist": Bitcoin Crashed To $820 from $1120 on BitStamp


  Welcome to the adult world of the alternatives to FIAT currencies and "End The FED" fighters. Please never mix again the religion and Investment Valuation.    In a thin Sunday trade - before the Chinese market opens - Bitcoin has collapsed from $1120 to $820 at the BitStamp today. You still can buy with Bitcoin a few copies of the very important book for all Bitcoin "investors": "Extraordinary Popular Delusions and the Madness of Crowds."   We congratulate all traders, who has sold it higher than their purchase price. You are welcome to follow us with other 100 Crypto-Currencies now, but better watch Gold and Silver in the next few days. http://sufiy.blogspot.co.uk/2013/12/fed-operation-twist-bitcoin-crashed-...

Mon, 12/02/2013 - 17:10 | Link to Comment Anasteus
Anasteus's picture

A standard illuminati propaganda. By the way, bitcoin is back at $1060.

It's also necessary not to mix investment with gambling. Investment is medium and long term decision based on fundamentals and overall perspective, not interested too much in every jump up or down in the manipulated chart scheme. The volatility of bitcoin is understandable; it's a new currency connected to fears of many but still doing surprisingly well. However, at this moment I find gold and silver by far the best buy because of their extremely oversold status. Both, sound and virtual money, have demonstrated excellent fundamentals despite the ongoing brainwashing propaganda and/or artificial suppression. For those tied to fundamentals and not getting fooled nothing has changed, the situation is very much the same, a bit tough this time though. I welcome all efforts and opportunities to escape from worthless paper to a viable alternative before too many people recognize the king is naked at the same time. It's also a spark of hope in the sea of insanity. It's worth enduring the recent havoc and massive deception.

As regards other virtual currencies, yes they can and will compete with bitcoin but bitcoin is historically the first one, having gained wide attention and has expressed itself quite well as being surprisingly resistant to many attacks so far.

Mon, 12/02/2013 - 14:04 | Link to Comment Hal n back
Hal n back's picture

Safewealth is a storage company in Switzerland-about 2 months ago they sent out a memo to clients that the gold they have on behalf of clients is there. implying that other storage companies are not holding enough gold for clients--Betcha there is more to that story.

Mon, 12/02/2013 - 13:33 | Link to Comment The Wisp
The Wisp's picture

They did a rather poor Job of Protecting the Holocaust Victims accounts, always remember that Folks...

Mon, 12/02/2013 - 15:35 | Link to Comment AvoidingTaxation
AvoidingTaxation's picture

Or rather a good one.
And please, give us some context, like a phd peer reviewed study comparing for exemple (on a sample of course):
1) In % how many jews cashed out on their accounts in russia/germany/romania/switzerland/egypt if money deposited in 1925 and withdrawn 1945?

2) How many jews where helped (life) during ww2 by switzerland vs 'merika in absolute and relative term?

3) I admit that since 1948 the 'merikans are the jews best buddys.

Mon, 12/02/2013 - 14:04 | Link to Comment 123dobryden
123dobryden's picture

positive...they respect your private property while you are alive.

Mon, 12/02/2013 - 12:52 | Link to Comment FieldingMellish
FieldingMellish's picture

Only a complete idiot would allow any bank to hold his gold.

Mon, 12/02/2013 - 19:52 | Link to Comment auric1234
auric1234's picture

Banks are supposed to hold anything? I thought they were just accounting stylesheets for cross-referenced IOUs.

 

Mon, 12/02/2013 - 12:45 | Link to Comment Hulk
Hulk's picture

If the German's understand Gold as a store of wealth, why do they allow us to hold their pretend Gold ???

Mon, 12/02/2013 - 13:22 | Link to Comment holgerdanske
holgerdanske's picture

Errhh, what!!

I don't know who "we" are, but I guess the US??

I don't think the Germans allow the US to hold it's gold. There simply is none to give back, that is why they (the Germans) have to wait 7 years. They have obviously been bribed or threatened to accept that. As we know the last invasion of the US was not that successful, so unlikely they will come and fetch it!

It is a default, and it should be recognized as such, the whole drop in the price of gold started with this default. There are obviously moves afoot to get the physical, but the damned Chinese are making life a bit hard.

It is going to end badly, and the US is out on a limp. I admit it has taken longer than I thought, but it will be evident at a time and people will say, "can't believe we didn't see it." Irrespective of what Mr Armstrong says.!

Mon, 12/02/2013 - 16:33 | Link to Comment Papasmurf
Papasmurf's picture

As we know the last invasion of the US was not that successful, so unlikely they will come and fetch it!

The last invasion of the US was successful and we are still under occupation.  That invasion force landed in December 1913 at Jekyll Island. 

Mon, 12/02/2013 - 13:23 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

"we believe gold can surpass its inflation adjusted price from the 1980s of $2,400/oz in the coming years"

Which inflation level?

Mon, 12/02/2013 - 10:00 | Link to Comment XitSam
XitSam's picture

Bullshit.  If the Swiss had respect for private property, they wouldn't cave to US Treasury demands to reveal bank account information.

Mon, 12/02/2013 - 16:04 | Link to Comment DosZap
Mon, 12/02/2013 - 13:59 | Link to Comment Tinky
Tinky's picture

Without defending in any way the action of the Swiss banks, you are making the same mistake as many do on this issue: conflation of banks and private facilities.

The gold held in private vaults in Switzerland is quite safe. Those are private companies, and there is zero chance that any foreign government will ever be able to confiscate privately held gold in Switzerland. 

Anyone keeping gold within the banking system is a fool, so we can agree on that.

Mon, 12/02/2013 - 14:55 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Tinky, please expand on your post.  You apparently believe in your post, but you did not state a reason why we should. 

Why does being a "private company" remove the possibility of confiscation?

Are all "allocated accounts" only present in private companies?

Plus I believe many were posting about the "Swiss tradition" of respecting privacy.  I interpret that as people believing that it is no longer observed. 

Or does the "Swiss tradition" now exclude Swiss, Public companies with extensive business interests in the US and the worldwide FED umbrella?

Mon, 12/02/2013 - 15:41 | Link to Comment Tinky
Tinky's picture

Swiss banks were essentially forced to acquiesce to the U.S., ostensibly in order to help root out tax evaders, but more importantly (especially from the U.S. government standpoint) to expand the capability to track financial transactions of all citizens. The banks acquiesced beacuse of the U.S. control of the SWIFT system, and the threat that they (the banks) would be excluded from the system should they refuse to comply.

There is no doubt that this was a blow to Switzerland's reputation for privacy, but it is a mistake to conflate that event with the relative high security of storage in private vaults.

Switzerland, much like Singapore, thrives primarily due to its well-earned reputation for being a safe place to store assets. This ranges far beyond fiat currencies, as some of the most valuable art in the world, along with massive amounts of precious metals, are stored in private vaults.

No one who is paying attention would consider a bank to be a safe place in which to store highly valuable assets, and not just in Switzerland, but almost anywhere in the Western world. The reasons, however, for avoiding the banking system, are not all present when considering private storage. There are, to my knowledge, no examples of confiscation of foreign assets of the type that we are discussing from private vaults in Swiss history*. No foreign government could confiscate such assets without appealing to the Swiss government. 

Now, my view is that, again, much like Singapore, there is no chance that the Swiss government would allow such an action, as it would almost certainly lead to a complete loss of confidence, and tremendous associated flight of capital. Such a series of cascading events would essentially crush the main pillar of the Swiss (or Singaporean) economy. For those reasons, I simply don't believe that it will happen.

Some skeptics have pointed out that one of the big vault companies, Via Mat, has stopped accepting American citizens for personal storage in their Swiss facilities. That did happen, as Via Mat also operates in the U.S., was subject to serious pressure as a result, and also did not want to deal with the large headache relating to the new U.S. tax laws. There are, however, work-arounds, the most obvious of which is to use a vault that accepts American citizens.

I consider Switzerland and Singapore to be the two safest places for remote PM storage in the world. All of the usual caveats apply, i.e. only use fully allocated storage, demand serialized bars, etc.

*Yes, there are a few exceptions such as stolen Nazi art, etc., but were the Swiss government to sanction such confiscations on anything other than an an exceedingly rare basis, and only when the grounds for the actions were broadly understood to have been reasonable, the country's economy would be crushed. 

Mon, 12/02/2013 - 16:09 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Tinky, thanks for your well thought out reply.

Mon, 12/02/2013 - 13:39 | Link to Comment Papasmurf
Papasmurf's picture
Swiss Banks to Turn Over Info on U.S. Accounts

http://www.cpapracticeadvisor.com/news/11151492/swiss-banks-to-turn-over...


Mon, 12/02/2013 - 13:34 | Link to Comment Papasmurf
Papasmurf's picture
Swiss Banks to Turn Over Info on U.S. Accounts

http://www.cpapracticeadvisor.com/news/11151492/swiss-banks-to-turn-over...


Mon, 12/02/2013 - 13:23 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Swiss Tradition Of Respecting Private Property?  "Private" meaning stolen by International political despots and scoundrels.



Mon, 12/02/2013 - 13:26 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

If the US confiscates the gold of it's citizens, it will know exactly how much is being held in Swiss banks.... And recieve it faster than any german could....

Mon, 12/02/2013 - 14:16 | Link to Comment Manthong
Manthong's picture

+1 on the cave.. put similarly..

"Gold Storage In Switzerland Increasing Due To Swiss Tradition Of Respecting Private Property"

Like they respect private information.

It's a Swiss myth now.

Mon, 12/02/2013 - 16:01 | Link to Comment OutLookingIn
OutLookingIn's picture

Totally agree.

Switzerland is the "hub" of international banksterism.

Why would you put your 'chickens' in the care of a fox?

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