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Sterling At Risk Of "Large-Scale Devaluation" As Currency Wars Intensify

Tyler Durden's picture


From GoldCore

Sterling At Risk Of "Large-Scale Devaluation" As Currency Wars Intensify

Today’s AM fix was USD 1,613.50, EUR 1,208.80 and GBP 1,041.57 per ounce.
Yesterday’s AM fix was USD 1,611.25, EUR 1,206.39 and GBP 1,041.53 per ounce.

Silver is trading at $30.13/oz, €22.68/oz and £19.56/oz. Platinum is trading at $1,700.25/oz, palladium at $765.00/oz and rhodium at $1,245/oz.

Gold slipped 0.1 percent to $1,607.06/oz on Monday after falling as low as $1,598.04/oz on Friday, its weakest since August.

Cross Currency Table – (Bloomberg)

Gold inched up Tuesday morning, however the dollar’s rise to a one month high limited bullion’s gains.

European markets are cautious ahead of Italy’s elections on Feb. 24-25th, including candidate and former Prime Minister, Silvio Berlusconi. Mario Draghi urged finance chiefs from the G20 to be “prudent” when talking about currency movements.

The Bank of Japan’s minutes to their policy meeting noted that the government’s asset purchasing plan could continue for 5 years.

The U.S. Federal Reserve’s policy minutes are available tomorrow, and will be closely scrutinized.

India's duties on gold imports may increase in an effort to decrease the country’s account deficit said an employee from the largest state run gold importer.

More violence in South Africa as 4 security guards were disfigured with machetes and at least 13 people were injured, in a labour fight at Anglo American Platinum.

Iran said it will not close the Fordow nuclear plant yesterday. Ramin Mehmanparast, spokesman for Iran's foreign ministry, commented that the reported offer was unacceptable. However, they are ready for logical negotiations, he noted.

Currency Ranked Returns in Great British Pounds – (Bloomberg)

The pound took a fresh beating yesterday as concerns of currency wars and debasement of sterling led to another sell-off and experts said the currency was at risk of a "large-scale devaluation".

Sterling trails only Japan's yen as the worst performer against a basket of international currencies this year as a 4.5 per cent decline fuels import prices and pushes up the cost of food, insurance and other necessities for hundreds of thousands of households. 

As central banks tolerate higher levels of inflation, the pound is set to weaken further across the board particularly against safe haven gold.

UBS warned that the pound seems clearly at risk of following the yen and "suffering the next large-scale devaluation."

Dealers also noted weekend comments from Bank of England rate-setter Martin Weale, who warned the pound was still too high to help the UK economy rebalance effectively. The continued pressure on the currency comes after its biggest weekly loss since June last year amid gloom over weak growth prospects. 

The Bank of England has signalled it is willing to tolerate higher inflation for longer, while the pound's safe-haven appeal has also waned as the European Central Bank makes explicit commitments to prop up Eurozone strugglers and preserve the single currency.

XAU/GBP Daily, FEB2108-19FEB13– (Bloomberg)

The yen also fell as the G20's finance ministers in Moscow shied away from criticism of Japan for weakening its currency. Prime Minister Shinzo Abe has repeatedly called for a cheaper currency in order to help the country's exporters compete.


Gold inches up but stronger dollar caps gains - Reuters

Gold Advances as Price Drop Seen Boosting Demand; Silver Gains - Bloomberg

Audit confirms U.S. gold safe at New York Fed – Los Angeles Times

Iran scolds world powers over gold sanctions "offer" – Ahram Online

France accused of cover-up over Tunisian dictator’s gold – The Times

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Tue, 02/19/2013 - 08:54 | 3255636 GetZeeGold
GetZeeGold's picture



So the game of musical chairs begins.....save me a seat.


Do they sell insurance for this kind of thing?

Tue, 02/19/2013 - 08:59 | 3255649 CPL
CPL's picture

Yes.  Silver, gold, seed and storable hard goods.

Tue, 02/19/2013 - 09:15 | 3255670 fonzannoon
fonzannoon's picture

it's funny that the TV tells me the price of gold is $1614 but if I actually wanted to buy an ounce i have to pay $1690. Also It looks like if i had to sell an ounce I could still get several percent more than $1614 from any dealer. So why exactly is gold on the TV $1614?

Tue, 02/19/2013 - 09:34 | 3255704 azzhatter
azzhatter's picture

$1690 will not get you any of mine

Tue, 02/19/2013 - 09:46 | 3255736 Black Markets
Black Markets's picture

I've irradiated all my gold to dissuade government thieves.


I can irradiated your gold too, and on a half-life that suits your own particular end-of-world theories.

Call 1-500-lock my gold


Tue, 02/19/2013 - 10:10 | 3255780 TruthInSunshine
TruthInSunshine's picture

The G7 & broader G20 issued official communiqués that none of their members will inentionally devalue its domestic fiat currency relative to any other member.

Why the hell are people ignoring that clear, unambiguous statement?



Tue, 02/19/2013 - 10:15 | 3255831 francis_sawyer
francis_sawyer's picture

The idea of 'irradiating' gold always struckme as somewhat odd...


After all ~ it just sits underground in a vault anyway, right?... I mean ~ you might as well bury it an outhouse...

Tue, 02/19/2013 - 09:50 | 3255748 sessinpo
sessinpo's picture

 fonzannoon  "it's funny that the TV tells me the price of gold is $1614 but if I actually wanted to buy an ounce i have to pay $1690. Also It looks like if i had to sell an ounce I could still get several percent more than $1614 from any dealer. So why exactly is gold on the TV $1614?"


That is the spot cash price (actual current spot as of this reply is about $1610). Retailers have to make money to so they charge a premium. Do you expect people or companies to do things for you for free? My question is this. If gold is going to $2000/oz or $3000/oz or whatever higher price, why would an individual or company sell at these lower prices.


Would it not make sense for the company to be buying at  $1700/oz and then resell it later at the higher price?

Tue, 02/19/2013 - 10:32 | 3255890 fonzannoon
fonzannoon's picture


The price of something is whatever someone is willing to pay for it should you decide to sell it.

So even if you go by the dealers. They are paying over spot (last I saw around $1650). I get that people have to make money. That was not where I was going. I am more interested in what they are paying to buy it.

Where I am going is this. The difference between the paper price and the phyz price seem to becoming more pronounced.

Reading some comments it is possible I saw the wrong buy price, which would invalidate my comment. I should just go back to watching america's next top piece of shit, someone please wake me up when it gets interesting.

Tue, 02/19/2013 - 09:57 | 3255764 Non Passaran
Non Passaran's picture

1650 on Bullion Direct (for example) right now, while Kitco is showing 1612.

I bought some early this week, paid similar mark up.

Hope it goes down to 1560 so that I can go totally crazy on it.

Tue, 02/19/2013 - 09:15 | 3255675 ParkAveFlasher
ParkAveFlasher's picture


[back up the truck]

All Rights Reserved, ParkAveFlasher Universal Media 

Tue, 02/19/2013 - 09:51 | 3255752 EscapeKey
EscapeKey's picture

currency swaps - aka "one type of paper for another"...

i still can't accept how utterly absurd it is for all the main currencies to be valued relative to eachother.

Wed, 02/20/2013 - 21:48 | 3261891 MeelionDollerBogus
MeelionDollerBogus's picture

Floating currencies vs each other to balance trade actually makes perfect sense.

What doesn’t make sense is that private markets are expected to produce the goods, perform the trade transport & trade agreements, but have their goods regulated out of the market by bribed lawmakers and to have the currencies themselves issued at exponential rates vs the base-rate of production OF the goods by a government/central controller.

That’s the part which doesn’t make sense.

Having exponentially growing currency, vs goods, is fundamentally dishonest, and only dishonesty can result from central banking. THAT is the problem

Tue, 02/19/2013 - 08:56 | 3255645 Sudden Debt
Sudden Debt's picture



I just download every fucking movie on youtube from that guy!

Tue, 02/19/2013 - 14:30 | 3256776 DutchR
DutchR's picture

Thanks SD, made my day!!!

Tue, 02/19/2013 - 09:06 | 3255647 falak pema
falak pema's picture

Oh Yes they must devalue fast! 

Cameron is trying to sell arms and all to India.

A devaluation will pay itself back so fast in India; imagine all those kick backs! 

And remember this : Soros on the prowl as he howls after the £ like in 1992.

Soros Profiting From Decline In Pound, Yen - Business Insider

That guy is a predator like no other! 

Meanwhile a big spanish RE group throws in the towel : 3.6 billion E banktruptcy

Espagne: le promoteur immobilier Reyal Urbis dépose le bilan

Tue, 02/19/2013 - 09:02 | 3255655 lolmao500
lolmao500's picture

And when people are starving in the streets while the banks loot what's left of the country, they'll have a hard time making a revolution since the brits are mostly a bunch of pussified slaves with no guns... so is most of Europe.

If the American government (or any western government) wasn't run by traitors, they would send weapons to the European people to overthrow all these monarchies and banksters...

Europe will soon have a choice (and so will we)... starve or fight.

Tue, 02/19/2013 - 09:05 | 3255658 ATM
ATM's picture

First the yen, then the Pound, then the Euro, then the Dollar.

Tue, 02/19/2013 - 09:15 | 3255671 orangegeek
orangegeek's picture

The Dollar will rise, not fall, when these others tank.


The Canadian dollar is the fourth heaviest weighting against the USD - ahead of the SF

Tue, 02/19/2013 - 09:05 | 3255660 Dan The Man
Dan The Man's picture

We will lose the internet cuz of stuff like this

Tue, 02/19/2013 - 09:30 | 3255695 forwardho
forwardho's picture

When it is decided that this information is dangerous to the status quo.

Tue, 02/19/2013 - 09:28 | 3255672 THE DORK OF CORK
THE DORK OF CORK's picture

large-scale devaluation of sterling against the Euro would wipe out what remains of the non multinational sector of the Irish economy.


Areas such as foods exports and tourism would be badly hit. (low quality , high intensity work)

Tue, 02/19/2013 - 09:16 | 3255676 orangegeek
orangegeek's picture

GBP has been falling since January 1 - for two months now.

Tue, 02/19/2013 - 09:26 | 3255688 Melson Nandela
Melson Nandela's picture

Downgrade rumors floating around twitter. So King and not Carney gets blamed. "Kitchen Sink it", link Arsenal will do against Bayern tonight.

Tue, 02/19/2013 - 09:39 | 3255716 Super Broccoli
Super Broccoli's picture

does eating horsemeat makes you stupid ?

Tue, 02/19/2013 - 09:55 | 3255720 francis_sawyer
francis_sawyer's picture

only when you plate it with broccoli... Oh wait!

Tue, 02/19/2013 - 11:26 | 3256074 hooligan2009
hooligan2009's picture

neigh laddy..eat your greens and "how can you eat your pudding if you don't eat your meat?"

Tue, 02/19/2013 - 09:48 | 3255741 Racer
Racer's picture

"The Bank of England has signalled it is willing to tolerate higher inflation for longer"


Well they with their big fat salaries maybe willing but I am not f %&*!ing willing!

Tue, 02/19/2013 - 09:54 | 3255761 sessinpo
sessinpo's picture

No one has a chose as long as fiat currency backed by nothing is required to pay bills and settle debts.


I could have all my assets in PMs, but when I have to buy food, pay utilities, etc, I have to convert back to fiat.

Tue, 02/19/2013 - 09:58 | 3255766 francis_sawyer
francis_sawyer's picture

Or ~ You could buy PM's... & also have a store of food & ammo...



Wed, 02/20/2013 - 21:48 | 3261889 MeelionDollerBogus
MeelionDollerBogus's picture

ACTUALLY no, only if the person receiving a bill from you needs to pay taxes in those fiat units. If not… you can all barter services & goods including metals.

While that sounds convoluted that’s how it works so every one of us that goes off-grid can help others go off-grid in the same manner. What kills us the most is if oil, gasoline & land can only be held, transported or acquired in a manner that can’t evade taxation paid in fiat units. THAT is the key.

Tue, 02/19/2013 - 09:51 | 3255753 Shizzmoney
Shizzmoney's picture

The U.S. Federal Reserve’s policy minutes are available tomorrow, and will be closely scrutinized.

As much as you can scrutinize redacted material.

Tue, 02/19/2013 - 10:11 | 3255813 EmileLargo
EmileLargo's picture

the pound's safe-haven appeal




Tue, 02/19/2013 - 10:25 | 3255868 Chupacabra-322
Chupacabra-322's picture

"When all else fails, they take you to war" -Gerald Celente

Tue, 02/19/2013 - 10:28 | 3255880 Ckierst1
Ckierst1's picture

Stirling ain't!  Fiat asswipe it is.

Tue, 02/19/2013 - 11:30 | 3256090 DUNTHAT
Tue, 02/19/2013 - 11:32 | 3256103 Navymugsy
Navymugsy's picture

The pound took a fresh beating yesterday as concerns of currency wars and debasement of sterling led to another sell-off and experts said the currency was at risk of a "large-scale devaluation".

And still the price of Au/Ag dawdles. Hey, maybe all the Brits can't buy gold cause they went all in on those "buy to let" schemes way back when and they're strapped for cash? Or maybe they're just out of work and broke?

Tue, 02/19/2013 - 11:47 | 3256154 DUNTHAT
DUNTHAT's picture

In my opinion Alan Greenspan let the cat out of the bag the other day with his comments on how important it is to keep the stock market up----


THEY WILL MANIPULATE THE STOCK MARKET UP, BOND MARKET UP, DOLLAR STEADY, AND GOLD/SILVER STEADY TO DOWN,  until they figure out what to do---- if ever.  We know they are screwed. They are just buying time until retirement.

Tue, 02/19/2013 - 12:15 | 3256284 IamtheREALmario
IamtheREALmario's picture

Lol ... trying to push the baby boomers through the python?

Tue, 02/19/2013 - 12:14 | 3256275 IamtheREALmario
IamtheREALmario's picture

sarcasm on ... "We have to stop the madness and agree on one global currency, or all is lost" ... sarcasm off.

Obviously the answer is not to give more control to those who created the problem. The answer is multiple competing currencies 100% backed by something that cannot be counterfeited by bankers and then letting the market sort it out.

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