Merkel And Sarkozy Plans Fail To Assure Markets - New Record Nominal Gold High (USD London Fix)

Tyler Durden's picture

From GoldCore

Merkel and Sarkozy Plans Fail to Assure Markets - New Record Nominal Gold High (USD London Fix)

Gold is mixed in various currencies today after French President Nicolas Sarkozy and German Chancellor Angela Merkel unsurprisingly failed to deliver a solution to the euro zone debt crisis.

The London AM fix in USD was a new record nominal high. Gold’s London AM fix this morning was USD 1,792.00, EUR 1,240.39, GBP 1,089.96 per ounce (from yesterday’s USD 1,779.00, EUR 1,236.18, GBP 1,086.81 per ounce see LBMA).

Bloomberg ‘Chart of the Day’

Euro gold is higher again today despite the meeting and at €1,238/oz remains close to record nominal highs of €1,283/oz. Sterling is down 0.45% against gold after the poor UK jobs number. The Swiss franc has surged against all currencies including gold but remains over 1,400 CHF/oz.

Gold in Euros – 30 Day (Tick)

The Merkel Sarkozy plans to centralize financial and economic governance in the EU has failed to calm markets and there is further weakness in stock markets today.

A key aim of the meeting was to restore confidence in the euro. In the short term this has not been achieved and it is highly unlikely that it will be achieved in the long term.

Centralised financial and economic governance will not be a panacea to the current debt crisis. It does nothing to address the root cause of the problem which is massive indebtedness and the saddling of taxpayers with massive liabilities incurred by banks.

Concerns about currencies and currency debasement is leading to continued safe haven demand for gold.

Cross Currency Rates

Demand for coins and bars in Europe remains strong and is increasing. It remains small compared to allocations to other asset classes suggesting that recent increases in demand for physical are sustainable.

Demand for bullion in Asia remains robust as seen in premiums in India, Singapore and Hong Kong. Gold bar premiums in Hong Kong remain steady at 50 cents to $1.00 per ounce above spot gold.

Higher and record nominal prices is not deterring store of value and safe haven buyers internationally. This should support gold and ensure that any correction is again short and shallow.

For the latest news and commentary on gold and financial markets follow us on Twitter.

NEWS

(Reuters) -- Gold steady, euro zone crisis seen lingering
http://www.reuters.com/article/2011/08/17/us-markets-precious-idUSTRE7781Q420110817

(Reuters) -- Paulson held onto gold in Q2, Soros cuts further‎
http://www.reuters.com/article/2011/08/16/us-hedgefunds-holdings-gold-idUSTRE77F3TI20110816

(Bloomberg) -- Venezuela May Move Reserves From U.S. to ‘Allied’ Countries, Says Lawmaker
http://www.bloomberg.com/news/2011-08-16/venezuela-may-move-reserves-from-u-s-to-allied-countries-says-lawmaker.html

(Financial Times) -- Perry compares Fed stimulus to treason
http://www.ft.com/intl/cms/s/0/54f2fb5a-c82b-11e0-9852-00144feabdc0.html#axzz1V5FjKJN1

(Financial Times) -- Merkel and Sarkozy pledge to defend euro
http://www.ft.com/intl/cms/s/0/ec93d346-c7cf-11e0-9501-00144feabdc0.html#axzz1V2nWKjdO

COMMENTARY

(The Telegraph) -- Collapse in German growth will add to euro rebellion
http://blogs.telegraph.co.uk/finance/jeremywarner/100011561/collapse-in-german-growth-will-add-to-euro-rebellion/

(The Telegraph) -- Europe's Fiscal Overkill
http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100011574/europes-fiscal-overkill/

(NY Times) -- Gordon Brown: Saving the Euro Zone
http://www.nytimes.com/2011/08/16/opinion/16iht-edbrown16.html?_r=1

(Gold Standard Institute) -- The Gold Standard Newsletter (August)
http://www.goldstandardinstitute.net/GSI/wp-content/uploads/2010/06/TheGoldStandard8.pdf

(Got Gold Report) -- Gene Arensberg: Comex commercials, swap dealers put floor under silver
http://www.gotgoldreport.com/2011/08/comex-commercials-and-swap-dealers-put-floor-under-silver.html

Jon Stewart on the Media Ignoring Ron Paul
http://www.youtube.com/GoldCoreLimited

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Manipulism's picture

This two fucks want to give us Asshat King Rombuy.

They should burn in hell.

spiral_eyes's picture

gold still relatively low; DJIA used to cost 0.25 ounces of gold. we're not even near parity yet.

pendragon's picture

i thought  it was tough trading the fundamentals of equities. but that is nothing relative to trading the fundamentals of eurusd

achmachat's picture

when the gold to silver ratio falls under 30, there won't be any cheap silver left.
If you were waiting for the traditional summer dip before getting some silver, now would be the time!

centerline's picture

I am actually watching silver more than gold in terms of price movement relative to events.  I think it might be a better indicator of the defication hitting the rotary oscillator.  That is, silver can be manipulated and cornered in ways that gold cannot.  Therefore, once the cartels lose control of silver it will be a strong signal that fiat has run its course.  Poor mans gold will move fast once the masses realize that paper money is about to become worthless.

Oh regional Indian's picture

True enough Centerline. Gold, for all it's lustre, looks to be atop the same slippery pole as currencies do. 

ORI

theMAXILOPEZpsycho's picture

I do believe that silver has vastly outpaced gold in this bull run. It is generally accepted that there is between a 3rd and a 5t of the investment grade silver avaliable today compared to the 1970's bull run, and that more industrial uses are being found all the time.

What perls of enlightenment can you offer me to change my mind that silver won't continue to outperform gold??

Max UK's picture

Hey Trav, for those of us considering some diversification, could you share your views as to the respective merits and risks of platinum & palladium with respect to each other, and in general? cheers

The Onion Of Twickenham's picture

What is the European bank that apparently had to turn to the ECB last night to get USD 500 million?

Kokulakai's picture

The Jon Stewart bit on Dr. Paul is worth your time.

UGrev's picture

agreed. and you should watch it more than once to see just how the media is trying to pick the candidates for "you".

Hobbleknee's picture

They all got the same "top tier" script from their masters.

UGrev's picture

Yeah, like that wasn't a dead give-away, right? holy crap.. 

Strider52's picture

It's as obvious as it can be that they were all told *exactly* what to say, as well as *do not mention Ron Paul, or we yank your FCC license."

Also, it's now obvious that "All of your votes are now belong to us." Poll results will be skewed, Ron Paul votes will be thrown in the digital 'bit bucket', our elections are now a farce. It doesn't matter who you vote for anymore, Bush had 5,000 votes in a detroit voting machine, BEFORE the polls were even open.

Bay of Pigs's picture

Sadly, it is much worse than a farce. 

PaperBear's picture

More centralisation is precisely not what is needed. A free and lawful market is what is needed but of course the market is not free and our political leaders are now proposing more control.

The people need to select new leadership.

maxmad's picture

Concerns about currencies and currency debasement is leading to continued safe haven demand for gold.

 

Can't the Bernank just print more gold?

dcb's picture

in fact a major mistake of central banks is to attempt to stabilize markets. the current mess is in fact from exactly that. the stability makes people think they can overleverage and build fragile syystems. markets should and need to be structured to have regular shocks (hopefully smaller) and thus a robust system is developed. The opnly reason central banks act the way they do is to max profits for the bankers. in a logical sysytem the financial archetecture would have never developed as it is without dentral banks screwing it up.

Lady Heather...UNCLE's picture

...those dentral banks got vampire canines...

Oh regional Indian's picture

I suppose time will tell? Soon? 

ORI

Hulk's picture

You are a space cadet and your site is a complete waste of time...

Oh regional Indian's picture

Just curious, over a year of watching a pattern and you are still saying this? Hmmmm... I'd given you more credit than you deserve, clearly.

Here is what i do on sites I visit regularly. I develop a sense of whaich authors I wish to read, which news agencies I want to follow etc. I think you get the drift. Over a week or so, I'll develop an eye for where I need to go and don't waste my time clicking needless links.

It's easy. Meanwhile, I suggest you and Slewie get a room and put my web-site up on a machine there.

It'll get hot and steamy really fast.

ORI

http://aadivaahan.wordpress.com

DosZap's picture

ORI,'

Tell it to Sinclair,Armstrong, and Alf.....................

 

JW n FL's picture

 

Germany And France Announce Plans For Single European Government As Solution To Debt Crisis

 

http://www.youtube.com/watch?v=jZQVnRgmz3c&list=FLjAWptc6azYo&index=1

 

1 World Government on the way!!

JW n FL's picture

France & Germany: Save euro with one EU government


Reuters The Sun - 19 hours ago By VINCE SOODIN THE leaders of France and Germany tonight called on Eurozone nations to form a "collective government" to save the struggling currency. ...

4057 related articles
Germany, France Call for Common Eurozone Economic Government- Voice of America (blog)
European debt summit: Germany is using financial crisis to conquer ...- Daily Mail
More news for germany france one european government »

?


  • France & Germany: Save euro with one EU government | The Sun |News


    www.thesun.co.uk/.../France-Germany-Save-euro-with-one-EU-governmen... 

    19 hours ago – THE leaders of France and Germany tonight pressured Eurozone nations to form a ' collective government'
     Get more results from the past 24 hours


  • France and Germany call for one 'European economic government ...


    www.thesun.co.uk/.../France-and-Germany-call-for-one-European-econom...

    4 hours ago – FRANCE and Germany last night called for one "European ...

  • Freewheelin Franklin's picture

    Hitler and Napoleon, perfect together.

    Shineola's picture

    Markets act in the interest of people.   Central banks manipulate markets to their own ends.   War is always one of these ends.  Therefore, WAR on central banks is necessary for free markets and free people to survive.

    MFL8240's picture

    Let me make sure I understand what’s going on.  If Germany or France decide to destroy their productive economies to finance bailout ll for the socials’ unproductive countries of Portugal, Greece, Italy and Spain, then all will be OK and Gold will go down sending equities higher?  What happens in a year or so from now when it does not work and the entire Euro Zone is underwater??  

    I have to laugh at this insane equity game in NY and abroad where they are running stocks higher when there is no growth in Europe, slowing growth and saturation in Asia and a negative growth rate to inflation in the USA and this all continues an environment conducive to higher profits and rates of employment?  This is about as insane a theory as one could imagine.

    I almost forgot that president clown is going to put a jobs bill together in September that will cure this ills of America but wonder, why now, with what money and how is it that it took this long for you to react, or is this more bullshit.  My guess, more bullshit and pain for the stupid Electra that elected a man unqualified, with radical ideas and an intense hate for the people and traditions of the country he was elected to run.

    I would say buy more Gold but I anticipate the gangsters running things will soon move in for the kill with multiple margin rate increases after the crime syndication of Soros, GovtSacks and JP Morgan can get positioned with as many naked illegal shorts as they can buy.  This is turning into quite a system we have in America the country of freedom and free enterprise. Nothing is above board and no one can tell the truth. lol!!

    As for Europe, this utter nonsense will never work, time to begin the cleansing process.

    theMAXILOPEZpsycho's picture

    It's as crazy as crazy gets and typically that would lead us to war, only difference being before previous wars and crazy unsustainable situations you have huge political unrest, huge movements that actually threatened the government. These are some of my observations that an outside observer whould make of people/the situation in the present day; or how history will view us in no order:

    1: amazed you were actually able to buy physical bullion at a spot price determined by derivatives, leassing, and huge short positions (and that the public didn't all pile into it around 2008 when the debt and direction of the policy makers became so obviously unpayable and so obviously towards print to oblivion)
    2: amazed that people continued to spend and simply use credit instead of money as real wages declined for 40 years (though if they studied their ancient roman history, perhaps not so surprised)
    3: amazed that the policy makers where not executed for bailing out the banks (I'm betting suvivers in the future will be a tougher breed)
    4: sickened by the awful "art" fasion and literature that purports a care-free, everything is ok attitude
    5: disgusted that people continued multiplying at such rates even though resorces were so clearly diminishing

    ...anyway, on bullion. Silver is the one to go for now with a ratio of around 47:1. I hope there is a hit and run soon. I'm not sure they want $2000 gold in the headlines for a little while. If we get a knock down to $1630 or thereabouts expect major institutional buying. If that knock down happens maybe silver could go down to $35 in sympathy. I'll be having a little play on margin if that happens.

    Bicycle Repairman's picture

    "an intense hate for the people"

    Do you mean those yokels that cling to their bibles and guns?  /sarc

    thunderchief's picture

    There was huge short covering in silver last week when they smashed the price down 3 dollars in a few hours.  I don't see why people squabble over a couple dollars when buying silver.  And the ratio is truely obscene.  Gold will peak in many different things at different times.  It is peaking in silver now.  My guess is it will never peak in USD.

    overmedicatedundersexed's picture

    TD from PAAS yahoo board:

    A Gata member analysed certain mining companies and this is what he discovered:

    "Here are some numbers for yesterday(Aug. 15, 2011) of short sales as a percentage of total volume traded:
    AEM 48%; GG 35%; RGLD 46%; AG 42%; NEM 58%; SLW 33%; PAAS 47%"

    I have no idea if this data is correct as i do not have access to shorting data day to day..

    TD would be of interest to many here if we could get confirmation of the above.

    Flakmeister's picture

    The hedge... long physical, short the miners....

    DosZap's picture

    Get ready for ANOTHER increase on GOLD contracts...............................they basically killed Silver here that way I look for them to do the same on GOLD.

    But, it won't matter................keep stacking.

    thunderchief's picture

    We are above 40 in silver again.

    I hope it keeps a head of steam behind it the rest of the year.

    The Short the miners and go long the metal play may be long overdone, as the miners are now way on sale compared to the metals, so I can't seem them getting beaten down much more, even in a market nose dive, and then there is the short squeeze.  If they get taken down anymore you will see lots of M&A's

    DosZap's picture

    Someone give me a "CLUE", WHY are Plat, and Pal, doing so well?

    These are strictly (Except for Plat),Industrail metals, and should be down, not up.

    Are folks buying for just any kind of hedge?.

    Plat has some problems on delivery/supply...............so I can see it more so, but pal, is a mystery.

    Flakmeister's picture

    Plat is now undervalued relative to Au, Pal as well....

    Also, you can count on two hands the number of significant Pt and Pd mines in the world...

    SWC is good buy now.... I have added to core positions on the recent pull back...

    thunderchief's picture

    I believe platinum and palladium are up because they are extremely scarce.  Palladium is primarily produced in Russia.  Good luck getting some of those bars in the future.  Platinum is so scarce and has so many uses (think defense) I would not be suprised if that is the first thing the government confiscates.  Good luck getting those bars in the future too. 

    Nage42's picture

    Pretty sure Plat and Pall are shadow tagged as strategic metals for Mil, Pharma, and BioEng.  Very unique properties of non-reactive that there are not really suitable subs for.

    In near-term, econ downturn would normally spell ohes noes! for Pt/Pd cause half is used in env protection devices for truck/car exhaust (when there's a money shortage the env suffers...), but considering the energy requirements to get especially Pt out of the ground, Pt is a "future novel devices," "critical Mil," and "effectively peak oil play"  what with power brown-outs in S.Africa as-is and energy prices are _nothing_ now compared to what they'll be in 10 years.

    Betting men with big brass balls would play the GSR and throw in some shifts in/out of Pt and Pd at peaks and troughs... no point pricing them in fiat anymore, what with sovereigns playing "race to the bottom" to protect exports.

    summary:  World's a bit of a clusterfsck, but Pt and Pd have _got_ to play a part in our future if we're going to survive (i.e., efficient solar, BioMed, GeneEng et al.).