Gold and Silver ETFs "Backed Only By The Good Faith Of Banks and Brokerages"

Today’s AM fix was USD 1,591.50, EUR 1,221.98 and GBP 1,062.42 per ounce.

Yesterday’s AM fix was USD 1,582.50, EUR 1,216.37and GBP 1,065.30 per ounce.
Both gold and silver rose by almost 1% yesterday. Gold rose $12.20 and closed at $1,593.30/oz. Silver closed at $29.15/oz.

Gold remains near the highest level in almost two weeks on prospects of further currency debasement from central banks in Europe, Japan, the UK and the U.S. and continuing robust physical demand in Asia.

The spectre of stagflation threatens the UK economy due to concerns that sterling weakness will contribute to even higher inflation amid very weak economic growth and the likelihood of a recession – likely a severe one.

Markets are pricing in a jump in inflation as inflation expectations, as measured by the difference between nominal and inflation-linked bond yields, ticked up to near 3.3% yesterday.

Recent poor economic data and the appalling UK fiscal position are rightly leading to concerns of stagflation as was seen in the 1970s. Conditions that make owning gold and silver vitally important to own in order to protect and grow wealth.

The ECB confirmed that they will maintain their accommodative stance “as long as necessary” and the Federal Reserve and BOJ are committed to ultra loose monetary policy for the foreseeable future.

Gold in GBP – YTD (Bloomberg)

U.S. asset manager Van Eck Global has filed with the SEC to launch two gold and silver exchange-traded funds that will allow investors to redeem their shares for physical precious metals.

Van Eck Global has offices around the world and managed approximately $36.6 billion in investor assets as of December 31, 2012.

Silver in GBP – YTD (Bloomberg)

The two new products will add to Van Eck's line-up of commodities-focused ETFs, including its Gold Miners ETF and the Junior Gold Miners ETF and mutual funds.

Van Eck filed its regulatory papers late on Monday. The gold trust filing says a "secondary objective is to provide investors with an opportunity to invest in gold through the shares and to be able to take delivery of gold bullion in exchange for their shares."

Most precious metals ETFs do not allow their shareholders to take physical delivery, and those that do often charge a higher management fee to offset the extra costs related to physical redemption.

There are currently about 20 major global gold- and silver-backed ETFs, and dozens other exchange-traded products “backed only by the good faith of banks and brokerages” according to Reuters (see News).


Tonight at 19:00 GMT, everything you need to know about Silver in 60 minutes. Details here.



Spectre of Stagflation Haunts UK - FT

Gold Trades Near Two-Week High on Stimulus, Rising Asian Demand - Bloomberg

Gold holds near two-week high on euro zone concerns - Reuters

Van Eck files to launch redeemable U.S. gold, silver ETFs - Reuters


"Sell JPY, Buy Gold, and Go To Sleep" - Zero Hedge

My Switch From Gold to Silver Mantra - SilverSeek

Fed's Exit Can Only Be Debt and Currency Devaluation Via Gold - GoldSeek

Gold Breakout Attempt with Higher Volume - Got Gold Report