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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.

NEWS

Reuters
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?

COMMENTARY

Zero Hedge
Video: David Mcwilliams on the False Recovery

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

Zero Hedge
On When Central Banking Dies: China and Oil

GoldSeek
Martin Armstrong on the Sovereign Debt Crisis

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

 

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Fri, 03/30/2012 - 07:43 | 2302975 GetZeeGold
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Gold rises......again!!!

 

Fri, 03/30/2012 - 07:44 | 2302979 Ghordius
Ghordius's picture

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

Fri, 03/30/2012 - 07:46 | 2302982 GetZeeGold
GetZeeGold's picture

 

 

These aren't the droids your looking for.

 

Fri, 03/30/2012 - 07:48 | 2302985 Ghordius
Ghordius's picture

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

Fri, 03/30/2012 - 07:53 | 2302992 GetZeeGold
GetZeeGold's picture

 

 

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

 

Fri, 03/30/2012 - 07:57 | 2303001 Ghordius
Ghordius's picture

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

Fri, 03/30/2012 - 07:58 | 2303002 maxmad
maxmad's picture

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

Fri, 03/30/2012 - 08:03 | 2303007 GetZeeGold
GetZeeGold's picture

 

 

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

 

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

 

Fri, 03/30/2012 - 08:05 | 2303009 maxmad
maxmad's picture

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

Fri, 03/30/2012 - 08:25 | 2303058 GetZeeGold
GetZeeGold's picture

 

 

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

 

Fri, 03/30/2012 - 10:45 | 2303462 RafterManFMJ
RafterManFMJ's picture

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

Sat, 03/31/2012 - 07:04 | 2306001 GetZeeGold
GetZeeGold's picture

 

 

That.....plus the occasional guest spot on CNBC.

 

Fri, 03/30/2012 - 09:02 | 2303148 trembo slice
trembo slice's picture

had to downvote you for not knowing Star Wars

Fri, 03/30/2012 - 09:18 | 2303198 i-dog
i-dog's picture

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

Fri, 03/30/2012 - 09:54 | 2303312 trembo slice
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

Fri, 03/30/2012 - 10:39 | 2303440 prole
prole's picture

Wolverines!

Fri, 03/30/2012 - 10:55 | 2303509 EINSILVERGUY
EINSILVERGUY's picture

You obviously don't hang out near the Cantina

Wed, 04/04/2012 - 14:30 | 2317201 disabledvet
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.")

Fri, 03/30/2012 - 08:14 | 2303022 TWSceptic
TWSceptic's picture

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

Fri, 03/30/2012 - 08:19 | 2303041 graymnzrc
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!

Fri, 03/30/2012 - 08:39 | 2303093 mayhem_korner
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I think the CBs propaganda is getting to you.

Fri, 03/30/2012 - 09:01 | 2303147 Badabing
Badabing's picture

This is the big picture trend for gold.

http://www.the-privateer.com/chart/gold-pf.html

daily volitility dont matter!

Fri, 03/30/2012 - 09:15 | 2303186 Doña K
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). 

Fri, 03/30/2012 - 09:21 | 2303213 Melin
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.

Fri, 03/30/2012 - 07:49 | 2302986 JustObserving
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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.

Fri, 03/30/2012 - 09:26 | 2303229 Oracle of Kypseli
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.

Fri, 03/30/2012 - 09:44 | 2303288 yabyum
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!

Wed, 04/04/2012 - 14:33 | 2317213 disabledvet
disabledvet's picture

"so where's the cash then?"

Fri, 03/30/2012 - 07:50 | 2302988 Christoph830
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.

Fri, 03/30/2012 - 07:54 | 2302995 GetZeeGold
GetZeeGold's picture

 

 

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

 

Fri, 03/30/2012 - 09:46 | 2303291 Big Slick
Big Slick's picture

So YOU'RE the guy who watches that show.

 

Fri, 03/30/2012 - 07:56 | 2302998 Mark Wilson
Mark Wilson's picture

BAC up 70% YTD

Fri, 03/30/2012 - 08:00 | 2303004 maxmad
maxmad's picture

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

Fri, 03/30/2012 - 08:10 | 2303015 Christoph830
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

Fri, 03/30/2012 - 08:08 | 2303011 Fred C Dobbs
Fred C Dobbs's picture

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

 

 

 

Fri, 03/30/2012 - 08:12 | 2303016 GetZeeGold
GetZeeGold's picture

 

 

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

 

Fri, 03/30/2012 - 08:18 | 2303039 GetZeeGold
GetZeeGold's picture

 

 

Maria.......is that you?

 

Fri, 03/30/2012 - 09:10 | 2303173 Badabing
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!

Fri, 03/30/2012 - 08:15 | 2303030 Mark Wilson
Mark Wilson's picture

 

 

Which one of you bought this guy's gold?

http://www.youtube.com/watch?v=PFvERbcoXO0&feature=channel

 

Fri, 03/30/2012 - 10:01 | 2303327 Big Slick
Big Slick's picture

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

Fri, 03/30/2012 - 08:16 | 2303035 JaylP6
JaylP6's picture

Stock market bottom April 2012 - http://stockmarketbottom.com

Fri, 03/30/2012 - 08:22 | 2303049 tradewithdave
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? 

 

http://tradewithdave.com/?p=9728

 

 

Wed, 04/04/2012 - 14:37 | 2317222 disabledvet
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"!!!!!!

Fri, 03/30/2012 - 08:30 | 2303067 yogibear
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.

LOL,

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

Fri, 03/30/2012 - 08:36 | 2303086 gookempucky
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.

SILVER LINING?

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

Fri, 03/30/2012 - 08:37 | 2303087 silverdragon
silverdragon's picture

Silver Bitchez

Fri, 03/30/2012 - 08:39 | 2303091 kralizec
kralizec's picture

Hi Ho Silver, Away!

Fri, 03/30/2012 - 09:07 | 2303165 UTICA CLUB XX PURE
UTICA CLUB XX PURE's picture

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...

Fri, 03/30/2012 - 10:16 | 2303369 Treeplanter
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.

Fri, 03/30/2012 - 09:44 | 2303281 nah
nah's picture

surging... i dont know man dont think i feel it

Fri, 03/30/2012 - 11:13 | 2303563 GoldenGal
GoldenGal's picture

Geitner told everyone to buy gold...which means it is circling the drain....Just a mattr of time before this barbarous relic dies

Fri, 03/30/2012 - 11:36 | 2303620 Treeplanter
Treeplanter's picture

Geitner is irrelevant, even as a cooler.  Go to King World News for better informed opinions.   A massive market crash would most likely take gold down, but it and silver would likely bounce back quicker than anything.  The Federal Reservr Note is destined to be a bararous relic.

Fri, 03/30/2012 - 13:48 | 2304143 prole
prole's picture

Gotta love the paperbug trolls! What would we do without them?

GoldenGal

"....... gold... it is circling the drain....Just a mattr of time before this barbarous relic dies" That is great news GoldenTroll, who I doubt seriously is female, (maybe shemale)  could you give me an idea of how much "time" before gold dies?  I will be loving life if gold goes back to 250 per ounce or hopefully 21 per ounce ... Oh the stacking would be epic, while others rush to dump the "dead relic" When can I expect this please let a brother know????? 
Fri, 03/30/2012 - 23:45 | 2305653 silverdragon
silverdragon's picture

Prole,

Agreed, ref the paper bug troll turds.

Fri, 03/30/2012 - 15:31 | 2304511 GoldenGal
GoldenGal's picture

NEW PROLE- gold will die as I have been channeling info from the thetans.we will have a ne financial system......and Tom Cruise will be our new president

Fri, 03/30/2012 - 16:32 | 2304763 prole
prole's picture

Sorry, IC you're just kidding around. "Hungarian goy" keeping a low profile after his "Gold collapses $100 tomorrow" call ... I believe that was yesterday?

Ah, HungarianGoy, care to defend that call sir??? non??

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