"World Insecurity” May Have “Positive Impact On Gold" - King, Ex BOE

GoldCore's picture


Today’s AM fix was USD 1,308.25, EUR 977.33 and GBP 779.37 per ounce.

Friday’s AM fix was USD 1,317.50, EUR 984.02  and GBP 784.23 per ounce.

Gold fell $0.20 or 0.01% on Friday to $1,311.40/oz and silver rose $0.01 or 0.05% to $19.97/oz. For the week, gold rose 1.40% and silver slipped 1.82%.

Mervyn King at Diggers and Dealers Conference in Perth

Gold is marginally higher in London this morning after gold in Singapore fell to test $1,305/oz overnight. Futures trading volume was 40% below the average for the past 100 days this morning and trade remains lackluster with many traders on holidays.

Geopolitical tensions remain high and should support gold. Yesterday, artillery shells exploded on the outskirts of the Ukrainian city of Donetsk as government forces aggressively targeted and called on pro-Russian separatists to surrender.

In the Middle East, the United States conducted a third day of air strikes in Iraq yesterday against the Islamic State insurgent group. Israel and the Palestine held their fire early on Monday at the start of a new 72 hour ceasefire proposed by Egypt.

Silver for immediate delivery fell 0.3% to $19.84 an ounce. Spot platinum fell 0.3% to $1,470.63 an ounce, while palladium was flat at $864 an ounce.

Premiums for gold bars in India remain low. Chinese gold premiums remain at $2 to $3. While silver premiums are rising as silver inventories on the Shanghai Gold Exchange (SGE) have fallen significantly in recent months.

"World Insecurity” May Have “Positive Impact On Gold" - Ex BOE Mervyn King
In his keynote address to the Diggers and Dealers conference in Perth, former governor of the Bank of England Mervyn King had positive thoughts on gold, arguing world insecurity could have “a positive impact on gold.”

He said that global geopolitical and economic uncertainty will boost commodity prices including gold.

Gold in U.S. Dollars - 5 Years (Thomson Reuters)

He also warned that all countries would have to face up to mounting debt levels and said that central bank’s ultra loose monetary policies were not the answer.

"We are beginning to discover that the reason the world recovery is so slow is that monetary policy isn't the answer now, and other policies need to be put in place to rebalance the world economy," he said.

"No one country on its own will find it easy to do this.”

"It will require a recasting of relationships between different major economies and that requires an acceptance that trade surpluses will have to diminish in order to allow the countries that previously borrowed a great deal to to reduce their trade deficits, and gradually reduce their indebtedness”.

"That requires a change to the global economy as a whole, not just to any one country."

King echoed the IMF’s Lagarde recent declaration that the world needs a “global economic reset”.

See our important guide to coming ‘reset’ here Currency Wars: Bye, Bye Petrodollar - Buy, Buy Gold

 "World Insecurity” May Have “Positive Impact On Gold" - King, Ex BOE

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foxenburg's picture

So Mervyn King, who got everything wrong that it was possible to get wrong when he was running the BOE now has a second career getting paid millions flitting around the world  telling people how to get it right. I suppose he could do a duet with the Bernank.

Bossman1967's picture

Hmm price gonna tank I say so it will be a good time o buy shortly. My goals are to buy and hold till prices go way beyond the existence of the king dollar shit paper

RaceToTheBottom's picture

So now I should listen to Lagarde?

Nope, not about anything.

MFL5591's picture

Just figuring this out now?  Pathetic!

TeethVillage88s's picture

Who's plan was this to create world insecurity?

US Military was Predicting Race Riots in the 1980s... and was Predicting Middle East Wars at the same time.

Now Everything is being questioned. All Institutions and political parties are suspect. World Wars are recorded over 6000 years so far. Machiavellian Strategies are not new. Even the Catholic Church & Jesuits were said to have used the most terrible methods to gain control over people & Resources. Hidden Networks, Secret Clubs, Religious Alliances, Geopolitical Alliances... Who's plan is this?

Looks like we are living through the 1960s all over again.

Riots, Racism, Assassination, Civil Unrest, Counter Culture Movement, Wars, Economic Turmoil...

Wait, maybe it is worse today. Rabbi in Miami Assassinated over weekend, Young Black man killed by police sparks Riot, Nazis Rise in Ukraine & Paris, Wealthy Politicians do nothing to address wages & jobs problems...

President Obama does nothing to help Minorities get better jobs, get more skills, get more education, get more benefits in current jobs for full time hours, medical coverage, pensions, retirement...

Pol in USA across the board fail to address Domestic Problems and weakness in Economics, Banking, Pension Systems, Wall Street Monopoly, advantages of Big Corporations & Wealthy, ... but they push for Open Borders & Amnesty to push down Wages & Benefits which hits Minorities the most.

Davalicious's picture

Gold won't take off until the USD collapses. They can keep the USD party going as long as they want. Some guy in Belgium buys up US treasuries with USD the Fed slips him. It is only a problem for the "little people" as anyone who gets a vote on this sees the money before the inflation takes effect.

What we learned since this all started is that is that markets are a mugs game for all except top level insiders.

TeethVillage88s's picture

I have a hard time verifying the Belgian Bulge Story.

Check page 35 of both TICData reports (2002 & 2013) for Belgium, Cayman Islands, and Luxemburg. LT US Treasuries go from $10 Billion to $366 Billion. (partly due to safe haven effect, but also due to Financial System on Steroids) Or just take a look below to refresh your memory.

Interesting of the $26 Trillion in Foreign Owned US Assets put out by BEA.GOV on IIP Data, looks like about half is accounted for in the 2013 Data Report as Equities, LT Corporate Debt, LT Agency Debt, LT Treasuries. Which leaves me to conclude foreign owned US Real Estate must be about $12-14 Trillion (page 30). But I am not an Economist or Financial guy. Maybe Europeans are also buying US Real Estate.


I haven't updated below with May Data yet.

Last Data is from April 2014.

Belgium 2002 = $10.8 B, then 2013 = $163 B, Today $366 B
Cayman Islands 2002 = $10.7 B, then 2013 = $66 B, Today ??
Canada 2002 = $8.4 B, then 2013 = $46.6 B, Today $60.5 B
China 2002 = $95 B, then 2013 = $1,272 B, Today $1263 B
Hong Kong 2002 = $37 B, then 2013 = $89 B, Today $155 B
Ireland 2002 = $6 B, then 2013 = $91 B, Today $112 B
Japan 2002 = $260 B, then 2013 = $1,023 B, Today $1210 B
Luxemburg 2002 = $20.2 B, then 2013 = $107 B, Today $141 B
Philippines 2002 = $3 B, then 2013 = $36 B, Today $34 B
Poland 2002 = $7 B, then 2013 = $31 B, Today $30 B
Russia 2002 = $3 B, then 2013 = $138 B, Today $116 B
Switzerland 2002 = $28 B, then 2013 = $157 B, Today $178 B
Taiwan 2002 = $0 B, then 2013 = $183 B, Today $175 B
United Kingdom = $45.7 B, then 2013 = $130.6 B, Today $186 B