Gold Rises And Silver Surges In Q1 2012 - Fiat Currency Devaluation Continues

Tyler Durden's picture

From GoldCore

Gold Rises And Silver Surges In Q1 2012 - Fiat Currency Devaluation Continues

Gold’s London AM fix this morning was USD 1,660.75, EUR 1,245.31, and GBP 1,038.68 per ounce.

Yesterday's AM fix was USD 1,655.75, EUR 1,245.86 and GBP 1,041.22 per ounce.

Gold fell $3.00/oz or 0.18% in New York yesterday and closed at $1,660.10/oz. Gold traded sideways in Asia prior to seeing a slight climb to $1,665.55/oz in late Asian trading and is now trading in Europe near $1,662.65/oz.

Currency Ranked Returns - Q12012 (Bloomberg)

Gold has been trading in a tight box around $1,660/oz today, as eurozone finance ministers meet in Copenhagen to discuss the scale of the permanent “bailout fund” set for July.

Gold has been stuck in range of roughly $1,630/oz to $1,700/oz in recent weeks as risk appetite has returned after the latest European debt “solution” which saw the battered can kicked down the shortening road once again.

Nothing has been solved with regard to the European debt crisis, and debt crises in Japan, the UK and the US now loom.

The misguided panacea of heaping debt upon debt and shifting debt onto government balance sheets, debt monetisation and currency debasement is leading to continuing currency devaluations internationally.

Despite this or maybe because of this - risk appetite returned with a vengeance as evidenced in equities internationally rising to multi-month and multi-year highs and the slight weakness in gold in March.

So far in 2012, gold has performed well and is set to end the first quarter in 2012 with gains in all major currencies.

Gold is 6.3% higher in US dollars, 3.2% higher in euros, 3.1% higher in pounds, 2.25% higher in Swiss francs and 12% higher in Japanese yen which fell sharply in the quarter.

Gold YTD – (Bloomberg)

Silver outperformed gold to the upside and rose 16% in dollars and 12% in pounds and euros, 7% in Swiss francs and 20% in Japanese yen.

These currencies fell versus rare and finite gold and silver in the quarter and this trend looks set to continue in the coming months as negative real interest rates and currency debasement continue.

Global Commodity Prices & Data – (Bloomberg)

The strike in India has slowed the physical demand for gold but there are signs that the 14-day strike may soon end which could be the impetus for a bounce in gold.

Coin and bar demand in western markets has eased in Q1 as risk appetite returned and the public has again been lulled into a false sense of security.

XAU-EUR Currency – (Bloomberg)

Global ETF demand has remained robust in March and in Q1, with global ETFs holdings have increased by 1.5 million ounces. Much of this buying is likely to be hedge funds and institutions rather than retail.

Central bank demand is likely to have continued and there have been reports of many creditor nation central banks continuing to diversify their FX reserves. This trend will continue and there is also the possibility that some western central banks may also feel the need to diversify their meagre foreign exchange holdings into gold in order to protect against monetary risk and the real risk of a monetary or currency crisis.

XAU-GBP YTD – (Bloomberg)

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


Gold hovers around $1,660/oz; traders eye euro zone meet

The Financial Times
Russia’s gold sale was first in five years

The Financial Times
Brics nations threaten IMF funding

The NY Times
BRICS Leaders Fail to Create Rival to World Bank

The Globe and Mail
Canada will scrap the penny this year; nickel next?


Zero Hedge
Video: David Mcwilliams on the False Recovery

Audio: HSBC’s Steel Says Gold Is ‘Reasonably Attractive’

Zero Hedge
On When Central Banking Dies: China and Oil

Martin Armstrong on the Sovereign Debt Crisis

Resource Investor
Bullion: Is it Part of Your Currency Reserve?

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GetZeeGold's picture



Gold rises......again!!!


Ghordius's picture

it's not rising, it's the rest that is falling

GetZeeGold's picture



These aren't the droids your looking for.


Ghordius's picture

droids? no clue what you are talking about. keep stacking though making some sense to me would be appreciated ;-)

GetZeeGold's picture



Make sense? That's exactly what they would be expecting us to do.


Ghordius's picture

trying to frustrate PsyOps operatives again? nasty, nasty... but at least your nick and your avatar are unambiguos

maxmad's picture

So keep stacking dollars then GZG?  sounds like the trap Bernanke wants for you!

GetZeeGold's picture



They don't call him Dr. Evil for nothing.


Don't tell anyone......but I'm not stacking dollars.


maxmad's picture

not to worry GZG, I personally witnessed the "boating accident."

GetZeeGold's picture



I really thought I could jump the shark. The Fonz made it look so easy.


RafterManFMJ's picture

What do you do for recreation? 
Oh, the usual. I bowl. Drive around. The occasional acid flashback. 

GetZeeGold's picture the occasional guest spot on CNBC.


trembo slice's picture

had to downvote you for not knowing Star Wars

i-dog's picture

Did I miss a war? Damn! I knew I should have got that teevee fixed way back when.

trembo slice's picture

don't worry they're reenacting the destruction of Alderain in Iran soon, so you'll get to watch it on TV


You obviously don't hang out near the Cantina

disabledvet's picture

"Star Wars Episode 4." Very clever actually. Anywho "when currency and gold fall together you have bigger problems than mere gold." And no "it's not silver." let me ask all you smart pants out there "how much cash do Central Banks hold in reserve." ("and I'll take my answer off the air" as they say on National PUBLIC radio.")

TWSceptic's picture

If all else falls, then the one thing that doesn't is perceived to be rising.

graymnzrc's picture

Everyone, please stop! Gold is in an obvious downward trend (lower highs and lower lows).

My question to most of you here is: Are you hedged for the possibility that the world currency does NOT completely implode?

I have no problem with being prepared in case it actually does implode but you have to also account for the fact that it might not. Otherwise you might as well start preparing for the next arrival of the comet Hale-Bopp.

Umm sorry, I almost forgot....GOLD Bitchez!

mayhem_korner's picture



I think the CBs propaganda is getting to you.

Badabing's picture

This is the big picture trend for gold.

daily volitility dont matter!

Doña K's picture

@ Gray

Yes! Many of us are prepared.

If you are 1/3 physical 1/3 cash and 1/3 agriland, you have the trifecta. What can possibly shake you?

Needless to say, we got ipads for the kids, (just in case they get hungry), a Cayenne for mama, (just in case oil does not disappear) and electric car for dad (just in case gas gets to $10/gallon). 

Melin's picture

"I have no problem with being prepared in case it actually does implode but you have to also account for the fact that it might not."


If the fiat fiasco doesn't bring collapse, it will most likey be because some sanity insinuated itself back into Western Civ.

Win/Win for stackers.

JustObserving's picture

Central banksters are terrified that gold and silver rising shows the bankruptcy of their ponzi currencies.  Just the daily growth in US debt and unfunded liabilities can buy 70% of the world's silver bullion. So gold and silver must be suppressed to make paper money appear valuable.  This will not work for long.

Oracle of Kypseli's picture

Something tells me that there is no physical gold available for sale. (of any significant quantity) That, is why they supress the price and settle contracts with cash that they print.

Get your coins now, before they stop making them.

What if, the favored banks are loading up now and then let the price skyrocket in which case the banks are solvent again?

Parabolic rise on its way.

yabyum's picture

Tho coin guy has plenty. Her is even offering a small rebate on fractionals 1/10, 1/4, & 1/2. Gold and silver are on sale!! GIT SUM!

disabledvet's picture

"so where's the cash then?"

Christoph830's picture

Morning Joe ripping gold right now. Wouldn't be surprised if this is just an offshoot of Bernanke's Gold Bashing Tour. TPTB shitting their pants, I love it.

GetZeeGold's picture



More coffee for Morning Joe.......STAT!!!


Big Slick's picture

So YOU'RE the guy who watches that show.


maxmad's picture

dead cat.... it will be zero soon enouth...

Christoph830's picture

Not while Ben is still at the helm and not while Buffett still walks this Earth...sorry but that's just reality

Fred C Dobbs's picture

I bought 1 St Gaudins and 2 Liberties Thursday for 1711 federal reserve notes each.  




GetZeeGold's picture



Tune into CNBC where they will explain to you why that was a really really bad idea.


GetZeeGold's picture that you?


Badabing's picture

I picked up one more OZ yesterday and as I added it to my stash I noticed “unlike a boating accident “ it all just vaporized!

Big Slick's picture

Thanks for posting Mark.  What a great video.  Great tour of that exquisite gold coin collection.

JaylP6's picture

Stock market bottom April 2012 -

tradewithdave's picture

If gold is in a prisoner's dilemma who has the dominant strategy and what is the measure of a Nash equilibrium if "money is a technology" as promoted by The Economist magazine?



disabledvet's picture

Sounds like something Tom Keene would say. "Gold is an asset" Tom! "but like all the others it's only as good as you can borrow against it." DELEVERAGING bitchez! "Enough to blow up an entire Continent"!!!!!!

yogibear's picture

Bernanke says he can print over any problem. If  nobody wants US debt anymore, Bernanke can just raise the bar and purchase 100% of US debt from nothing.

As long as Asia and the oil nations keep selling in US dollar Benanke's game continues. When it stops it should be an eye opener for Bernanke, the academic, and the rest of the member doves of the federal reserve.


Fed purchased a stunning 61% of the total net Treas issuance

gookempucky's picture

Old news------ as gold buying continues unabated in this 2012 period-consider ourselves lucky to get any gold or silver for personal safe keeping.



Wednesday , 04 May 2011

MEXICO CITY (Reuters) - 


Mexico massively ramped up its gold reserves in the first quarter of this year, buying over $4 billion of bullion as emerging economies move away from the ailing U.S. dollar, which has dipped to 2-1/2-year lows.

The third biggest one-off purchase of gold by any country over the past decade took Mexico's reserves to 100.15 tonnes -- or 3.22 million ounces -- by the end of March from just 6.84 tonnes at the end of January, according to the International Monetary Fund and Mexico's central bank.

Gold has gained 11 percent this year, driven by concern over euro zone debt and the violence in the Arab world, as well as by the U.S. dollar's 7.6 percent decline against a basket of currencies .DXY.

Sergio Martin, chief economist for HSBC in Mexico, said the government probably saw gold as a highly liquid asset that would reduce exposure to the falling greenback.

"They're probably thinking that getting out of dollars and into gold makes sense because we know that the dollar has some trend to depreciate in the near future at least," said Martin. "I don't think they're going to lose money with this."

Mexico's foreign currency and asset reserves hit a record $128 billion in April, making the gold purchased mostly in February and March worth nearly 4 percent of that total. Mexican central bank data on gold holdings only exists through March.

The central bank did not respond to a request for comment.

According to the International Monetary Fund, Latin America's No. 2 economy now owns $4.93 billion worth of gold, which hit a record $1,575.79 an ounce on Monday.

Other emerging economies such as China, Russia and India have also beefed up bullion reserves over the past few years.


Credit Suisse precious metals analyst Tom Kendall said it was worthy of note that Mexico, whose economy is very closely tied to the United States, had taken this step.

"The size (of the purchase) is certainly pretty chunky to have been accomplished in that space of time. So it certainly gives another sizable layer of support to gold's position in the international reserves system," he added.

George Milling-Stanley, managing director of government affairs at the World Gold Council industry group, said Mexico was following a recent trend among central banks to restore a "prior balance between gold and currency reserves."

"This is further supported by the fact that the May IMF numbers show continued buying by Russia and Thailand of 18.8 tonnes and 9.3 tonnes respectively," he added.

Mexico's reserves rank it 33rd among the top official holders of gold. The United States is the largest official holder of gold, with 8,133 tonnes, which account for 73.8 percent of its total international reserves.

China is the sixth largest holder of gold, with 1,054.1 tonnes, or just 1.6 percent of total reserves, while eighth-ranked Russia now has some 811 tonnes of gold, up from 788.78 in January, according to the IMF data.

Silver, which hit a record price earlier this year, may also have been on Mexico's buying list, said Martin at HSBC.

"I think Mexico has moved from second to first place in the list of global silver producers, so they may have been buying silver to help the price

kralizec's picture

Hi Ho Silver, Away!


But my Eric Sprott PSLV that I bought at near its all time high of $22.06 is only at $13.58. But I'm hoping it will go back up when Silver hits $50 OZ...

Treeplanter's picture

Sell the spike, wait for the dip to buy, repeat, and you can buy metal to hold with the pofits.  The hard part is making yourself sell while your asset is rising and then making yourself wait for a proper dip to buy.   The miners are more risky than PSLV but they tend to have more momentum than the spot prices.  This long term bull market may be the most overlooked opportunity in history, especially since the bullion banks and Fed can be relied upon to create significant dips for buying back in and collecting real metal.  I quit using stops in the past because high volatility made them a head ache.  With the growing anxiety over a massive market crash I'm making myself use them.  I want to have cash to buy miners and metal at the bottom of such a crash.