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Russian Sanctions Could See Gold Prices ‘Explode’

GoldCore's picture




 

Today’s AM fix was USD 1,302.00, EUR 938.45 and GBP 772.79 per ounce.    

Friday’s AM fix was USD 1,294.25, EUR 934.88 and GBP 769.38 per ounce.


Gold climbed $9.80 or 0.76% on Friday to $1,302.70/oz. Silver rose $0.04 or 0.2% to $19.71/oz.
Gold and silver finished up for the week - up 0.60% and 0.41% respectively.

Gold eked out small gains in European trading, as growing tensions in Ukraine are contributing to higher prices.  On Thursday prices dropped to $1,268.40 per ounce – the lowest since early February, before rallying due to tensions over Ukraine. In the last 3 sessions, gold bullion has rallied nearly 2%, as the crisis in Eastern Europe bolsters safe haven demand.



Gold in U.S. Dollars, 2 Years - (Thomson Reuters)

Today, geopolitical tensions have deepened with President Obama saying that the United States will impose additional sanctions on Russia targeting individuals and companies.

The move is expected to be followed by separate sanctions from the European Union. Washington said at the weekend the new sanctions would target individuals and companies close to Russian President Vladimir Putin, as well as new restrictions on high-tech exports to Russia's defence industry.

The geopolitical risks may overshadow a number of important reports on the U.S. economy this week.

The conflict reached a new level over the weekend, when a group of international observers from the Vienna-based Organization for the Security and Cooperation in Europe (OSCE) were abducted by pro-Russian groups. The separatists later released one of the captives due to a medical condition requiring treatment, but also said they had no intention of freeing the others. Negotiations for the release of the observers are underway, Russia saying it will help as much as possible with the situation.


Western diplomats will hold high level talks today, with the goal of agreeing further and tougher sanctions against Moscow. The BBC reported that, according to sources familiar with developments, this round of asset freezes and travel bans may target individuals at the top of Russia’s energy industry. There is even speculation that Putin himself and his considerable net worth may be targeted.  

Russia will likely react to these sanctions and retaliate. This could come in the form of financial, economic or currency warfare.

One unappreciated risk is that state sanctioned Russian hackers may target U.S. exchanges and financial infrastructure. Bloomberg reports that “U.S. officials and security specialists are warning that Russian hackers may respond to new sanctions by attacking the computer networks of U.S. banks and other companies.”

Cybersecurity specialists consider Russian hackers among the world’s best at infiltrating networks and say evidence exists that they already have inserted malicious software on computers in the U.S.


There are concerns that small numbers of computer experts could have the ability “to cripple the U.S. economy in a few days.”


putin_gold_bars.jpg

Veteran gold analyst, George Gero, who is the precious metals analyst at RBC is not a man for hyperbole or overstatement. Indeed, he has been quite bearish on gold in recent years. However, he believes that Ukraine and the deepening crisis, could have a “massively bullish impact on gold prices.”


He told
CNBC the following:

"One of the largest suppliers of gold, and of course platinum, is Russia and if they're going to be involved in sanctions, and more problems with Ukraine, and deliveries are curtailed—and there is already a problem in South Africa between the miners of platinum, palladium and the mining companies. All of that could somehow explode on the upside and curtail deliveries, meaning higher prices."

Russia is the fourth-largest producer of gold, outputting 7% of the world's total supply according to the British Geological Survey. Were Russia to retaliate by banning the exports of all precious metals and by selling some of their large foreign exchange reserves and diversifying into gold, silver, platinum and palladium, it would likely lead to migh higher prices for all precious metals.


There is also the strong possibility of increased safe haven demand. This is likely to materialise should economic or even military conflict materialise.

HSBC point out that geopolitical incidents and a short term increase in geopolitical tensions tend to see gold prices rise, prior to the fleeting impact abating and prices falling again.

However, the risk of conflict between Russia and the U.S. and EU is more than a short term risk. It is one of the greatest geopolitical challenges since the end of the Cold War. Therefore, it is likely to have a more material impact on gold prices.

The concept of MAD or mutually assured destruction was what prevented war between the superpowers during the Cold War. Today, there appears to be a lack of awareness regarding the risk of mutually assured economic destruction.

New research shows the importance of owning gold bullion in a pension. The research looks at the important role that gold bullion can play as a diversification in pension portfolios >>> Guide To Gold In UK Pensions

 

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Tue, 04/29/2014 - 10:51 | 4707702 Emergency Ward
Emergency Ward's picture

Meanwhile, Back in the States:  Diane Feinstein shakes hands with James Clapper in deal that allows Obama Administration to continue murdering at whim anybody, anytime, anyplace, in secret.

Photo and story -- http://www.theguardian.com/world/2014/apr/28/drone-civilian-casualties-s...

Tue, 04/29/2014 - 09:21 | 4707324 MFL8240
MFL8240's picture

There are concerns that small numbers of computer experts could have the ability “to cripple the U.S. economy in a few days.”

 

Please! The internet was invented by Al Gore and he can save us!!

Tue, 04/29/2014 - 09:06 | 4707260 johnnyarrowmaker
johnnyarrowmaker's picture

So Comex control the (paper) price of gold?  Now that can only happen whilst they have enough physical gold to satisfy delivery requests.  Now just remind me, how many days of physical have they got left? Hmmm?

Tue, 04/29/2014 - 09:22 | 4707329 MFL8240
MFL8240's picture

Not if you are buying options on futures, no Gold requirement needed.  That is how the criminals have made it this far!

Tue, 04/29/2014 - 09:02 | 4707247 Latitude25
Latitude25's picture

In 1934 dollars gold today is at $14.78 per ounce.

http://www.financeandeconomics.org/fmq-update-and-valuing-gold/

Tue, 04/29/2014 - 06:31 | 4706916 medium giraffe
medium giraffe's picture

Russian sanctions could lead to a lot of things exploding.

Tue, 04/29/2014 - 19:33 | 4709870 MeelionDollerBogus
Tue, 04/29/2014 - 11:26 | 4707859 Timebandit-44
Timebandit-44's picture

Like Shanghai, HKG and Beijing fixing the rate. After all THEY have it. The real stuff that is. Currency wars will make it so.u

Tue, 04/29/2014 - 07:46 | 4707017 quasimodo
quasimodo's picture

True that, gold price not one of those things though. Is this an infomercial?

 

Tue, 04/29/2014 - 06:15 | 4706910 JamesBond
JamesBond's picture

From the Urban Dictionary:

 

Pump Monkey: A relentless self-serving cheerleader for financial markets generally motivated by an ulterior motive, e.g. a liar.

"Experts" who promote their own "book," or investment strategy with an aim toward personal gain. Economic recovery is dependent upon pump monkeys bolstering consumer confidence.
Tue, 04/29/2014 - 05:12 | 4706853 mumbo_jumbo
mumbo_jumbo's picture

well i bet you hope so, right?

hope, however, is not a a plan.

Tue, 04/29/2014 - 10:52 | 4707715 MeMongo
MeMongo's picture

" everyone has a plan,  until they get punched  in the face"

Mike Tyson

Tue, 04/29/2014 - 19:20 | 4709865 MeelionDollerBogus
MeelionDollerBogus's picture

Unless, like Fight Club, your plan is to get punched in the face to get the party started.

Tue, 04/29/2014 - 02:02 | 4706706 mijev
mijev's picture

If the hackers took out the bullion banks' networks, It would be interesting to see how gold reacts without the smackdowns.

Mon, 04/28/2014 - 22:37 | 4706335 savagegoose
savagegoose's picture

 

There are concerns that small numbers of computer experts could have the ability “to cripple the U.S. economy in a few days.”

i thought USA only ever acted  from a posistion of strngth?

 

I call bullshit on this, why pick a fight with your superiours,   false flag alert!

 

Mon, 04/28/2014 - 22:30 | 4706316 waterwitch
waterwitch's picture

Looks like Putin's right hand is whacking off (figuritively).

 

Mon, 04/28/2014 - 21:25 | 4706094 gann1212
gann1212's picture

yup just start asking for payments in gold for gas and oil and game over. only has to be 10% of the bill and u will see gold take off. will they do it i dont know but i dont see why not. if u are going to give the finger to the dollar then go ahead and do it. america is certainly giving u the finer thats for sure.

Tue, 04/29/2014 - 10:05 | 4707509 sessinpo
sessinpo's picture

gann1212     yup just start asking for payments in gold for gas and oil and game over. only has to be 10% of the bill and u will see gold take off. will they do it i dont know but i dont see why not. if u are going to give the finger to the dollar then go ahead and do it. america is certainly giving u the finer thats for sure.

---

Why bother? Why not just demand payment in your own currency. Russia demands payment in Russian currency, thus strengthening their currency.

What do you think keeps the US Dollar afloat? It is because everyone has to raise dollars to settle debts.

Mon, 04/28/2014 - 21:19 | 4706082 pupdog1
pupdog1's picture

I wonder what an outfit named GoldCore does.

Mon, 04/28/2014 - 21:05 | 4706033 Walt D.
Walt D.'s picture

All Putin needs to do is to stop Russian Companies from accepting Dollar or Euro payments and leaving them in hostile US/EU controlled banks. Make EU countries pay up front in metals or commodities before they will send them any more gas. If Germany has to pay gold for gas, Merkel will have to pressure to US to return their gold. If US does not have the Fed will end up having to buy gold. The Fed can create fiat money out of thin air. Merkel can not print gas or gold.

Tue, 04/29/2014 - 19:18 | 4709860 MeelionDollerBogus
MeelionDollerBogus's picture

Pffft, Germany can just get a delivery of gold from the USA. What, that could happen, right?
Right? :-)

Mon, 04/28/2014 - 22:51 | 4706367 TheReplacement
TheReplacement's picture

But that is short term.  Germany could require payment of taxes in gold, especially import/export stuff.  One domino after another and viola, gold standard.  Would it not be more tempting to ask for payment in a gold backed currency?

Russia could sell rubles for gold to Germany.  Then they sell them oil for rubles.  Having to use rubles would be far more humiliating than gold.

Tue, 04/29/2014 - 02:35 | 4706746 Global Observer
Global Observer's picture

Russia could sell rubles for gold to Germany.  Then they sell them oil for rubles.  Having to use rubles would be far more humiliating than gold.

Excellent anlysis. Russia doesn't have to back rouble by gold. They only have to price their exports in roubles and insist on payment in roubles for their exports. Central Bank of the Russian Federation can agree to buy gold from foreign central banks for roubles at the prevailing market rate for gold in roubles.

Tue, 04/29/2014 - 10:01 | 4707494 sessinpo
sessinpo's picture

Global Observer     Excellent anlysis. Russia doesn't have to back rouble by gold. They only have to price their exports in roubles and insist on payment in roubles for their exports. Central Bank of the Russian Federation can agree to buy gold from foreign central banks for roubles at the prevailing market rate for gold in roubles.

---

I will take this one further on your excellent comment. Don't you all realize that this is exactly what the US government has done and what all fiat currencies do? Thus, you have downward pressure on PMs and upward pressure on fiat. Everyone needs to raise (buy) fiat to settle debts and do financial transactions.

Mon, 04/28/2014 - 21:05 | 4706031 AdvancingTime
AdvancingTime's picture

I think not only do people appear to lack an awareness regarding the risk of mutually assured economic destruction but but after the last several wars america has fought they feel war is "no big deal." The idea of America getting involved or jumping into a war in Ukraine would have been hard to imagine a  few years ago. As I write this we are engaged in a war of words but the potential for this to escalate into a shooting war is real.

Allowing events to deteriorate into a major war or possibly into what some see as World War III is becoming a reality. As insane as it appears this could become the final outcome. The location of this as a military confrontation is right in Putin's backyard and this is a strong advantage for Russia. It is silly to think Putin and Russia will back down. This means poking the bear is not a smart move. It cannot be emphasized enough this government was not elected by the people and that the military of Ukraine is divided and extremely weak. More about this subject in the article below.

http://brucewilds.blogspot.com/2014/04/war-in-ukraine-bad-idea_26.html

Tue, 04/29/2014 - 10:06 | 4707520 TPTB_r_TBTF
TPTB_r_TBTF's picture

The Ukraine War is a proxy war.  Not WWIII.

The US will not openly be involving troops in Ukraine's war. 

 

Ukraine has been duped into fighting a proxy war for the West.  Too bad for them...

It wonT be all that bad because Ukraine troops will be routed quickly with minimal loss of life, and

Ukraine will take up its rightful place as a vassal in Putin's Empire.

Tue, 04/29/2014 - 19:17 | 4709858 MeelionDollerBogus
MeelionDollerBogus's picture

World wars start from proxy wars and tiny tinders.

Mon, 04/28/2014 - 21:00 | 4706005 atthelake
atthelake's picture

Gold has been around $1300 for a while... up/down on a daily basis. Oil price changes a few pennies a day.

 

Mon, 04/28/2014 - 20:58 | 4706004 atthelake
atthelake's picture

To keep track of oil and gold prices... oilprice.com

 

Mon, 04/28/2014 - 20:03 | 4705871 Herdee
Herdee's picture

Putin is still holding his cards tight.The first of the big poker cards will come out in May during the meeting with China.The actions taken by the States & Europe have been poorly planned and hastily thought through.Don't underestimate the financial power of China in helping Russia out.This could really backfire against the U.S, but I think that China knows that it holds the balance of power because they want the EU to remain a big trading partner too.So,I think the Europeans are going to roll over.

Tue, 04/29/2014 - 02:05 | 4706711 zebrasquid
zebrasquid's picture

May Day!

Tue, 04/29/2014 - 19:17 | 4709855 MeelionDollerBogus
MeelionDollerBogus's picture

But it's still April! Hey... how about we rename May 1st to.... Maypril Fool's Day?

Mon, 04/28/2014 - 20:55 | 4705994 logicalman
logicalman's picture

I have a real problem being one of the game pieces in a game I really don't want to take part in.

Call me funny.

Tue, 04/29/2014 - 19:15 | 4709849 MeelionDollerBogus
MeelionDollerBogus's picture

Oh, don't be sour. You get to move 1 whole space forward.
The Kerry can move 2 spaces, forward, backward, left or right, then one more to the sideways of direction just used.

Mon, 04/28/2014 - 19:33 | 4705779 paint it red ca...
paint it red call it hell's picture

Here, let me hold my breath.....

Mon, 04/28/2014 - 19:16 | 4705750 takla
takla's picture

Putin 3,obummer -3

Mon, 04/28/2014 - 19:12 | 4705740 FieldingMellish
FieldingMellish's picture

Geopolitical tensions cause a run into the dollar and away from gold. As counterintuitive as that is, that is the way it is since COMEX controls the price.

Mon, 04/28/2014 - 18:59 | 4705711 wildblue09
wildblue09's picture

Financial analysts have covered every aspect of the out of control bankster madness but none of them could see this interesting gold making technology breakthrough coming. 

The gold manipulation cycle has almost run its course. Dr. Paul Craig Roberts is out now saying Fort Knox is empty, the naked shorts are now outed and it is getting harder to find an ounce of the real metal. Germany requested 1500 tons repatriated and received 5 tons.

I see gold reaching as high as $10 K an ounce and then moving downward from there in the longterm 15 - 20 year period.

The pace of technology today is breath-taking and after 200 Lab trails proving its new patent pending precious metals technology, a Canadian Research Company now has a new LENR method for making high yield gold from barren waste seed ores.

Yes indeed we make real gold and view the development as both scalable and highly commercial with an eventual price point near that of aluminum.

To see a video of a classic Garage start up about to go stratospheric see:   https://vimeo.com/90037448

The company is in due diligence mode with TreveriMarket.com to do a US $5.0 million raise to construct a pilot plant. This will move the project from the Lab where large gold beads were produced to where we can start pouring gold bars.

The technology discovery story will break on Kitco.com. They are sitting on a major article waiting for the Treveri deal to put up the investor landing page.

Fiscal Reset, inflation, stock prices down, unemployment up, all the rest of it…. bring it on.

Tue, 04/29/2014 - 19:13 | 4709844 MeelionDollerBogus
MeelionDollerBogus's picture

Unless it can be made cheaper than mining, and physics shows it can't because of the energy required, it's a worthless technoloogy for those who need gold for anything but nuclear applications and that's very, very few humans, planet-wide.

Tue, 04/29/2014 - 04:03 | 4706812 honestann
honestann's picture

What you're talking about is "nuclear fission" or "nuclear fusion" to create gold.  Either you create gold by breaking apart larger atoms, or you fuse together smaller atoms.  You really should look into what is involved in nuclear fission and nuclear fustion before you buy into some dorky claim that joe schmoe can do this in his garage.

While nuclear fusion works, they'd need to create an environment like that near the core of the sun.  You really should look up what those temperatures and pressures are before you get too excited.

To create gold with nuclear fission, they'd need to create a nice big blob of some [unknown] super heavy atoms, and let the fission process break them apart... assuming they can find some element or combination of elements that break into gold, which is doubtful.  The problem with this approach is... the super heavy atoms they'd need to start with probably cost about ten million times more than gold, if they even exist, so creating gold like that has a return on investment somewhere around 0.000001%.

Tue, 04/29/2014 - 11:03 | 4707749 MansaMusa
MansaMusa's picture

Maybe we could lease lab time at CERN lab and use their Large Hadron Collider?  Diamonds are being created in labs now as we speak.

Tue, 04/29/2014 - 05:20 | 4706860 Dr. Sandi
Dr. Sandi's picture

Obviously your garage is more boring than some of ours.

I use my Mr. Fusion to power the lawnmower.

Tue, 04/29/2014 - 05:36 | 4706871 honestann
honestann's picture

I don't have a lawn.  I guess that's why I didn't notice that product.  Can I buy one on amazon, or they're only available near White Rock, NM?

Are you sure your name isn't Sandia?

Mon, 04/28/2014 - 19:18 | 4705753 bonin006
bonin006's picture

Is this from the same people that gave us the Bre-X miracle?

http://www.mineweb.com/mineweb/content/en/mineweb-fast-news?oid=238495&s...

 

Tue, 04/29/2014 - 04:02 | 4706811 ebear
ebear's picture

Making gold is easy!  

 

Mix 79 protons, 118 neutrons and 79 electrons together in a bowl

stir lightly then bake at 100B degrees Kelvin for  .5 ms

cool, then serve!

Tue, 04/29/2014 - 10:12 | 4707536 TPTB_r_TBTF
TPTB_r_TBTF's picture

thanks for the recipe!

 

i'll bet we drive some Global Warming Alarmists nuts,

when we start baking gold.

Mon, 04/28/2014 - 18:57 | 4705707 Funny Money
Funny Money's picture

Gold up 2%.  IT'S A TREND!!!

Mon, 04/28/2014 - 19:06 | 4705727 machineh
machineh's picture

He believes that Ukraine and the deepening crisis, could have a “massively bullish impact on gold prices.”

And I believe that a massive asteroid strike will end life on earth next Tuesday.

So it don't matter.

Mon, 04/28/2014 - 21:00 | 4706010 HardAssets
HardAssets's picture

So I'm not the only skeptic when it comes to 'predictions' about the gold 'priice' ?

Burn me once, shame on you - - - burn me twice . . . shame on me.

Burn me multiple times & I get to the point where I no longer listen much. Charts might get an occasional glance out of habit, but they are of little value when dealing with pure criminality.  So ya just stack a little physical on a regular schedule as you can afford it.

Someday I may wake to a huge surprise on the gold price. Doesn't matter, its insurance. If/when that event happens & 'they' lose control, there's likely to be a lot of bad stuff going on that will need my immediate attention.

Good luck everyone.

Mon, 04/28/2014 - 18:40 | 4705667 logicalman
logicalman's picture

So, I have 10 kilos of gold, but I'm bleeding from every orifice and puking my guts up due to radiation sickness.

Bullish????

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