• Tag Archives Switzerland
  • Governments to Control Large Cash Transactions

    I have been pointing out the crisis we face moving forward. The gist of this is the total fiscal mismanagement of government for which we, the people, are always blamed. This hunt for taxes has led down the path of arguments for eliminating currency. While people think Bitcoin is an answer, they do not understand government’s hunt for taxes no less the lack of a true rule of law. The government need only pass a law that anyone who fails to report what they have in Bitcoin is criminal and they get to confiscate all your assets.
    Switzerland has its ‘wealth tax’ which they argue is nothing just 0.02%. However, it requires you to report all assets worldwide. They then know precisely what you have and it is merely one vote away at anytime to raise the tax or impose criminal penalties for failure to report everything. Yet, once Switzerland has that info, under G20 they must share it with all other governments.

    This post was published at Armstrong Economics on Aug 16, 2017.


  • How to Cash In When the Fed’s Sweetheart Deal with the World’s Biggest Banks Turns Sour

    I recently showed you why ‘don’t fight the Fed’ is likely the most profitable investment advice you can get.
    Now I’m going to show you why it works so well.
    And while I do that, I’m going to blow the door off the hinges and expose how the Federal Reserve’s outsized influence and tight relationships with some of the planet’s biggest, most powerful banks can make or break markets…
    …and lead you to some of the biggest gains you’ve ever seen: 100% sure money.
    Meet the Fed’s ‘Accomplices
    Big surprise: the U. S. Federal Reserve does things a little differently than your ‘usual’ bank.
    You see, the Fed handpicks a small group of (very) privileged dealers to trade with.
    They are officially called ‘Primary Dealers,’ and today there are 23 of them. These banks are based in Canada, France, Switzerland, Japan, Germany, the United Kingdom, and of course, the United States. The foreign banks the Fed deals with maintain a presence in New York City.

    This post was published at Wall Street Examiner on August 10, 2017.


  • Can Switzerland Survive Today’s Assault on Cash and Sound Money?

    ‘Switzerland will have the last word,’ wrote Victor Hugo in the late 19th century. ‘It possesses one of the most perfect forms of government in the world.’ A contemporary of his, Frederick Kuenzli, a scholar of the Swiss Army, boasted: ‘No purer type of Republican ideals, no more fixed and devoted adherence to those ideals can be found in all the world than in Switzerland.’
    On many levels, there is reason to believe that, indeed, Switzerland remains a unique oasis of rationality and intelligence in the ocean-wide bloodbath that is contemporary Western fiscal and social self-sabotage. On the other hand, there is the Swiss National Bank – the central bank – that oddly appears to be encouraging the same monetary policy dance-with-death that has tripped up the country’s masochistic neighbors. How viable yet is the Swiss element in that which we still admire as the nation of Switzerland? First the good news:
    Direct democracy is alive and kicking: No mere opinion poll, the power and vibrancy of the referendum – one that can be launched by any local who can gather 100,000 signatures in support – constitutes one of the most impressive displays of true citizen-republicanism that there is. There is an upcoming vote on the Swiss Sovereign Money Initiative – a movement to obstruct financial speculation; recent referendums that were voted into law include a phasing out of nuclear energy to be replaced by renewables, and easier naturalization of third-generation immigrants.

    This post was published at Ludwig von Mises Institute on August 7, 2017.


  • The West lost at least another 1000 tonnes of large gold bars in 2015

    Over the last number of years, one of the most interesting trends in the physical gold world is the ongoing conversion of large 400 ounce gold bars into smaller high purity 1 kilogram gold bars to meet the insatiable demand of Asian gold markets such as China and India.
    This transformation of 400 ounce bars into 1 kilogram bars is an established fact and is irrefutable given the large amount of evidence which proves it is happening, as has been documented on the BullionStar website and elsewhere.
    It is also something which causes plenty of excitement in the gold world as it underscores the huge movement of physical gold from West to East, and the continual depletion of gold inventories from locations such as the London Gold Market.
    The general movement is one of 995 purity 400 ounce gold bars coming out of gold-backed ETFs, central bank gold holdings and other wholesale gold holdings, and these bars making their way to the Swiss refineries where they are transformed / smelted / recast into smaller 9999 high purity gold bars. The smaller gold bars are then exported from Switzerland to India, China, Hong Kong, and the Middle East.

    This post was published at Bullion Star on 31 Jul 2017.


  • June Swiss gold exports: 90% moving east — Lawrie Williams

    The latest figures for gold exports from Switzerland just further emphasise that physical gold is continuing to move eastwards in a big way. The country’s gold refineries sent 74% of their gold exports to Greater China (the Chinese mainland and Hong Kong) and India alone, while if we add in other south and east Asian nations – Malaysia, Singapore, Taiwan, Thailand and South Korea – and the Middle East – Turkey, the UAE, Lebanon and Jordan – fully 90% of Swiss gold exports that month moved to this region.
    Why is this so significant? Switzerland produces no gold of its own, but its gold refineries between them are the world’s largest gold exporters taking gold bullion and scrap from mines and other sources, including good delivery 400 ounce bars, and re-refining these into the smaller sizes in demand in Asia and the Middle East and re-exporting the bullion mostly to these eastern nations.
    The latest Swiss figures also support the anecdotal evidence of extremely tight supply, with the Swiss refineries struggling to source enough gold to meet the eastern demand. In June, Switzerland exported in total 162.1 tonnes of gold while only importing 124.9 tonnes – a shortfall of 37.2 tonnes. This is the second month in a row where Swiss gold exports were substantially larger than imports – the figure for May was around 39 tonnes.

    This post was published at Sharps Pixley


  • JULY 27/GOLD UP $ 10.45 WITH SILVER UP 13 CENTS/GOLD/SILVER EQUITY SHARES FLOUNDER AT THE END OF THE DAY SIGNALLING A POSSIBLE RAID TOMORROW//EU IS FORCING 3 COUNTRIES TO ACCEPT MIGRANTS AGAINST …

    GOLD: $1260.30 UP $10.45
    Silver: $16.59 UP 13 cent(s)
    Closing access prices:
    Gold $1259.50
    silver: $16.58
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1269.54 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1263.20
    PREMIUM FIRST FIX: $6.34
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1267.86
    NY GOLD PRICE AT THE EXACT SAME TIME: $1262.60
    Premium of Shanghai 2nd fix/NY:$5.26
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1262.05
    NY PRICING AT THE EXACT SAME TIME: $1263.00
    LONDON SECOND GOLD FIX 10 AM: $1261.10
    NY PRICING AT THE EXACT SAME TIME. $1261.20
    For comex gold:
    JULY/
    NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 4 NOTICE(S) FOR 400 OZ.
    TOTAL NOTICES SO FAR: 175 FOR 17500 OZ (.5443 TONNES)
    For silver:
    JULY
    112 NOTICES FILED TODAY FOR
    560,000 OZ/
    Total number of notices filed so far this month: 3282 for 16,410,000 oz
    XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
    WE HAVE NOW ENTERED OPTIONS EXPIRY WEEK:
    LONDON BASED OPTIONS EXPIRY: JULY 31.2017 AT 11AM OR SO.
    (OTC/LBMA CONTRACTS)
    Judging from the way the gold/silver shares traded today, it sure looks like the boys are going to orchestrate another humdinger of a raid against us tomorrow.

    This post was published at Harvey Organ Blog on July 27, 2017.


  • Tricked on the Fourth of July

    I do not celebrate the fourth of July. This goes back to a term paper I wrote in graduate school. It was on colonial taxation in the British North American colonies in 1775. Not counting local taxation, I discovered that the total burden of British imperial taxation was about 1% of national income. It may have been as high as 2.5% in the southern colonies.
    In 2008, Alvin Rabushka’s book of almost 1,000 pages appeared: Taxation in Colonial America (Princeton University Press). In a review published in the Business History Review, the reviewer summarizes the book’s findings.
    Rabushka’s most original and impressive contribution is his measurement of tax rates and tax burdens. However, his estimate of comparative trans-Atlantic tax burdens may be a bit of moving target. At one point, he concludes that, in the period from 1764 to 1775, “the nearly two million white colonists in America paid on the order of about 1 percent of the annual taxes levied on the roughly 8.5 million residents of Britain, or one twenty-fifth, in per capita terms, not taking into account the higher average income and consumption in the colonies” (p. 729). Later, he writes that, on the eve of the Revolution, “British tax burdens were ten or more times heavier than those in the colonies” (p. 867). Other scholars may want to refine his estimates, based on other archival sources, different treatment of technical issues such as the adjustment of intercolonial and trans-Atlantic comparisons for exchange rates, or new estimates of comparative income and wealth. Nonetheless, no one is likely to challenge his most important finding: the huge tax gap between the American periphery and the core of the British Empire.
    The colonists had a sweet deal in 1775. Great Britain was the second freest nation on earth. Switzerland was probably the most free nation, but I would be hard-pressed to identify any other nation in 1775 that was ahead of Great Britain. And in Great Britain’s Empire, the colonists were by far the freest.

    This post was published at Gary North on July 04, 2017.


  • TECHNOCRACY INC: Now Charging for Roads By the Mile

    The Mayor of London, Sadiq Khan, has published a transport strategy that outlines his vision of the future of transportation in Britain’s capital. The strategy conforms to his pledge to be London’s ‘greenest mayor’ as it will reduce motor vehicle traffic while simultaneously encouraging walking and cycling. As a way to discourage motor vehicle journeys, Khan plans to charge drivers a distance-based fee for using city roads. While the scheme is likely to represent an important new revenue stream for the city (or the firm that wins the contract), the plan also seems to resemble parts of the global elite’s technocratic agenda.
    First of all, London’s proposal is not the only one of its kind. Various forms of road charging are in use in countries around the world, with many more proposed; the type that charges motorists based on the distance they drive is often called a ‘vehicle miles traveled tax’ (VMT tax). This type of scheme has so far been implemented in Germany, Austria, Slovakia, the Czech Republic, Poland, Hungary and Switzerland, as well as in several locations around the United States, such as Oregon with its OReGO program. Other similar schemes are being tested in countless locations internationally. Numerous think tanks and governments – including the UN and EU – have been urging the adoption of VMT taxes for some time, in what is clearly a coordinated international push.
    An obvious problem with this idea is that charging for road use according to distance driven will discriminate against lower-income people and small business, but favour wealthier individuals and larger corporations. When Khan says, ‘we have to make not using your car the affordable, safest and most convenient option’, he is clearly saying that using a car would become less affordable under the scheme. This broadly fits with the UN’s Agenda 21 plan, which aims to reduce the use of motor vehicles by the general public – as we shall see.

    This post was published at 21st Century Wire on JUNE 30, 2017.


  • Gold Market Charts – June 2017

    This monthly series analyses recent developments in the world’s largest physical gold markets such as India, China, Russia and Switzerland and features charts as diverse as Swiss gold imports and exports, Russian Federation gold reserves, Shanghai Gold Exchange physical gold withdrawals, and COMEX gold futures vault inventories. The featured charts have been created by the GOLD CHARTS R US market chart website.
    Shanghai Gold Exchange (SGE) – Gold Withdrawals Shanghai Gold Exchange (SGE) gold withdrawal data for the month of May was reported by the Exchange to have reached 138 tonnes. Note, these gold withdrawal figures refer to actual withdrawals of physical gold bars from the Exchange’s vast vault network, and are a suitable proxy for estimating Chinese wholesale gold demand.

    This post was published at Bullion Star on 28 Jun 2017.


  • JUNE 27/DOW FALLS 98.89/NASDAQ FALLS 100.53 AFTER IMF SAYS THAT THE DOLLAR IS 20% OVERVALUED AND THAT THE USA WILL EXPERIENCE TEPID GROWTH/GOLD UP A FRACTION AND SO IS SILVER/SWITZERLAND EXPORTS …

    GOLD: $1246.40 UP $0.10
    Silver: $16.58 UP 2 cent(s)
    Closing access prices:
    Gold $1247.50
    silver: $16.68
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1253.94 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1243.80
    PREMIUM FIRST FIX: $10.03
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1262.15
    NY GOLD PRICE AT THE EXACT SAME TIME: $1250.00
    Premium of Shanghai 2nd fix/NY:$12.15
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1240.85
    NY PRICING AT THE EXACT SAME TIME: $1241.85
    LONDON SECOND GOLD FIX 10 AM: $1245.25
    NY PRICING AT THE EXACT SAME TIME. $1244.25
    For comex gold:
    JUNE/
    NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 77 NOTICE(S) FOR 7700 OZ.
    TOTAL NOTICES SO FAR: 2850 FOR 285,000 OZ (8.8646 TONNES)
    For silver:
    JUNE
    2 NOTICES FILED TODAY FOR
    10,000 OZ/
    Total number of notices filed so far this month: 993 for 4,915,000 oz
    XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
    END
    We have now officially entered options expiry week:
    comex options expiry : Tuesday June 27 finished tonight
    London options expiry: Friday June 30
    first day notice Friday June 30
    The big news is the fact that the mainstream media are commenting on the unusual trading of gold and silver.
    Also the IMF stated that the dollar is overvalued by 20% and that their growth is quite anemic. This should be the catalyst to explode the price of gold and silver.
    end
    Let us have a look at the data for today
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    In silver, the total open interest SURPRISINGLY FELL BY ONLY 1479 contract(s) DOWN to 203,137 DESPITE THE RAID AND THE FALL IN PRICE OF SILVER THAT TOOK PLACE WITH YESTERDAY’S TRADING (DOWN 7 CENT(S). In ounces, the OI is still represented by just OVER 1 BILLION oz i.e. 1.0150 BILLION TO BE EXACT or 145% of annual global silver production (ex Russia & ex China).
    FOR THE NEW FRONT MAY MONTH/ THEY FILED: 2 NOTICE(S) FOR 10,000 OZ OF SILVER
    In gold, the total comex gold SURPRISINGLY ROSE BY 214 CONTRACTS DESPITE THE RAID IN THE PRICE OF GOLD ($9.90 with YESTERDAY’S TRADING). The total gold OI stands at 450,301 contracts.
    we had 77 notice(s) filed upon for 7,700 oz of gold.
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    With respect to our two criminal funds, the GLD and the SLV:
    GLD:
    We had a big change in tonnes of gold at the GLD: a withdrawal of 2.64 tonnes from the GLD
    Inventory rests tonight: 853.66 tonnes
    SLV
    Today: no change in silver inventory at the SLV:
    THE SLV Inventory rests at: 339.888 million oz

    This post was published at Harvey Organ Blog on June 27, 2017.


  • James Rickards: Gold Will Start Heading Higher On ‘Dwindling’ Supply

    James Rickards via Daily Reckoning
    Gold was down after the Fed’s hike, but I expect it to start heading higher again. Too many powerful forces are driving it behind the scenes. Dwindling physical supply is a major one.
    ***
    On a recent visit to Switzerland, I was informed that secure logistics operators could not build new vaults fast enough and were taking over nuclear-bomb proof mountain bunkers from the Swiss Army to handle the demand for private storage.

    This post was published at Gold Core on June 19, 2017.


  • DOJ Moves To Seize DiCaprio’s Picasso, Rights To “Dumb and Dumber To” As Part Of 1MDB Case

    As part of the ongoing money-laundering probe of Malaysia’s sovereign wealth fund, 1MDB, which is perhaps best known for Goldman’s enabling and participation in what may end up being one of the world’s biggest, multi-billion, cross-border embezzlement schemes, on Thursday the DOJ moved to seize a Picasso and Basquiat paintings given to Leonardo DiCaprio, as well as rights to two Hollywood comedies, in complaints filed to recover about $540 million they say was “stolen” from 1MDB (with Goldman’s help).
    The DOJ filing was the latest in a long series of legal actions tied to money laundering at the fund set up by Malaysian Prime Minister Najib Razak in 2009 – who still remains in power – to promote economic development. In the complaint filed overnight, the department alleged that more than $4.5 billion was taken from 1MDB by high-level fund officials and their associates. Fraud allegations against 1MDB go back to 2009 and the fund is subject to money laundering investigations in at least six countries, including Switzerland and Singapore.
    “This money financed the lavish lifestyles of the alleged co-conspirators at the expense and detriment of the Malaysian people,” Kenneth Blanco, acting assistant AG said in a statement. The name of Goldman Sachs, which participated and directly profited from many of the 1MDB transactions, was oddly missing from today’s filing.
    Najib has denied taking money from 1MDB or any other entity for personal gain, after it was reported that investigators traced nearly $700 million to bank accounts that were allegedly in his name.
    And while we won’t hold our breath to learn why Goldman’s involvement was mysteriously dropped, Reuters reported that Leonardo DiCaprio has turned over an Oscar won by Marlon Brando to U. S. investigators probing the 1MDB money laundering. DiCaprio also initiated the return of other, unidentified items that the actor said he accepted as gifts for a charity auction and which originated from people connected to the 1MDB wealth fund, they said in a statement.

    This post was published at Zero Hedge on Jun 15, 2017.


  • Sharps Pixley Sees a 252 pct Increase in Physical Gold Demand — Ross Norman

    The elections leading to a hung parliament in the U.K. have seen a rush into physical gold by investors, as the country slips into a political vacuum. The uncertainty both in the U.K. and indeed geopolitical concerns across the globe have fed into firmer gold prices which have risen 11 pct so far in 2017 in international markets.
    Sharps Pixley report they have been inundated with investor interest with a 252 pct increase in gold demand year-on-year (May 2016 vs. May 2017) ; the business has run out of some bullion products and they are again flying in fresh metal from Switzerland and Germany in order to replenish stocks. In the June month-to-date they are on track to break all records.
    Speaking of the physical demand, Ross Norman, the CEO of Sharps Pixley commented “Sharps Pixley is the first business on the high street to make physical gold readily accessible and prominent – in our first year of business we have attracted about 40m of client interest ; the current bout of buying however is exceptional and the uncertainty surrounding UK politics has prompted a rush to safe haven assets“. He added “a sharp decline in sterling is a big win for British gold buyers and only today the price has risen above the important 1,000 per ounce level.”
    “Physical gold is not just for the privileged few and the breadth of demand demonstrates that it remains a fantastic way for ALL investors to protect their wealth. Gold in sterling has risen by 470% since 2000, that’s over 11 pct a year compounded – that’s about three times the average U.K. property over the last 16 years” enthused Norman. “In addition, investments are devoid of VAT and can be capital gains tax free and the difference between the buying and selling price is competitively priced … why wouldn’t you invest ?”
    In short, physical gold may be a “minority sport” but it has certainly demonstrated a track record in serving investors well.

    This post was published at Sharps Pixley


  • Has the Tech Bubble Finally Burst?

    Tech stocks saw a big hit on Friday with most headlines still speculating on the exact cause. Regardless of the reason, the tech sector was simply due for a pullback given the “strong positive bubbles” appearing in the U. S. Nasdaq composite, as Didier Sornette reported on our show two weeks ago.
    As he explained in Using a Supercomputer to Trade the Market, Didier and his team of researchers at ETH Zurich in Switzerland programmed one of the world’s most powerful supercomputers to scan 25,000 assets around the globe each day for “bubble signals” – accelerating oscillations combined with faster than exponential moves in price.
    Here’s a clip of that interview:

    This post was published at FinancialSense on 06/09 2017.


  • China’s gold imports seen jumping 50% as haven demand booms

    China, the world’s biggest gold market, may boost imports through Hong Kong by about half this year as local investors seek to protect their wealth from currency risks, a slowing property market, and volatile stocks, according to the Chinese Gold & Silver Exchange Society.
    Mainland China is set to import about 1,000 metric tons from the territory in 2017, said Haywood Cheung, president of the century-old exchange in Hong Kong which trades physical gold and silver. That compares with net purchases of 647 tons last year and would be the biggest since 2013, data from the Hong Kong Census and Statistics Department compiled by Bloomberg show.
    Demand is rising on concerns over property, share and bond markets and the outlook for the yuan, amid a government drive to reduce leverage in the financial system. Local consumption was up 15 percent in the first quarter, with sales of bars for investment climbing more than 60 percent and dwarfing a 1.4 percent rise in jewelry buying, according to data from the China Gold Association. China also imports gold from Switzerland.

    This post was published at bloomberg


  • How To Destroy The Value Of College

    It wasn’t that long ago that I could resoundingly recommend that teens in the US who had an interest in any sort of “STEM” field go to college and get their degree.
    I’ve not been able to make that argument for the “social arts” or the “liberal arts” for close to 20 years, but as recently as 10 years ago it was still an excellent argument, even at the inflated, debt-laden price, for STEM-related fields.
    About five years ago I started to sound the alarm even in the STEM fields, as the offshoring and H1b abuse got bad enough that with few exceptions the risk had risen to unacceptable levels even in those fields, considering that your risk profile extends out at least four years from when you go to college and usually five or six.
    Now, today, it appears I was right to be concerned — and I can no longer make any sort of argument for post-secondary education at today’s prices in the United States.
    Monthly salaries plummeted 16 percent to 4,014 yuan ($590) this year for a second-straight annual decline, data from recruitment site Zhaopin.com show. The Ministry of Education estimates that 7.95 million will graduate this year, almost the population of Switzerland.

    This post was published at Market-Ticker on 2017-06-05.


  • The Internet Helped Kill Inflation In America, Says Credit Suisse

    Whether or not San Francisco Fed President John Williams is right about US inflation and employment being about as close to the central bank’s targets as investors have seen – as he told CNBC two days ago – is irrelevant: The central bank is going to raise interest rates two more times this year no matter what happens to consumer prices, says Credit Suisse Chief Investment Officer for Switzerland Burkhard Varnholt.
    That’s because it’s pointless waiting around for prices to rise when the real reason inflation is low – and will likely remain low – has nothing to do with the Fed, but with a structural shift in the US economy that’s being driven by technology giants like Amazon and Uber. Burkdard says these companies have ‘turned most companies and sectors into price takers rather than price makers.”
    ‘Well look, inflation has been gone for quite some time and what’s really killed inflation clearly isn’t the Federal Reserve’s monetary policy but the Internet – it’s the sharing economy, the network economy it’s the uber-deflationary companies like Uber, Amazon, Airbnb and the like who have transformed most companies and most sectors into price takers rather than price makers.’

    This post was published at Zero Hedge on May 30, 2017.


  • India top importer of Swiss gold for fourth successive month — Lawrie Williams

    There’s probably no better indicator of the pick-up this year in Indian gold demand, after a dismal 2016, than the levels of Swiss exports to the world’s second most populous nation. In April, India was again the principal export destination for Swiss re-refined gold, as it has been every month so far this year. In the four months of the year so far India has imported no less than 167.2 tonnes of gold from the small European nation’s plethora of top-rated gold refiners. At this rate India will import around 500 tonnes of gold from Switzerland alone and, historically, it only sources a little under half its reported gold imports from Switzerland – in Q1 this year India reported total gold imports of 249 tonnes, of which 47.7%, or 119.2 tonnes came in from Switzerland.
    While as my colleague Julian Phillips notes in a recent post on http://www.lawrieongold.com the early year peak is perhaps already behind us, ahead of the monsoon season, but then gold demand tends to pick up again from September on as the harvest comes in, and ahead of the Dhanteras and Diwali festivals in October and then again with peak wedding season coming in in November and December. Indian Hindu weddings tend to take place on auspicious dates throughout the year apart from from mid-July to end-October – Chaturmas – a period deemed inauspicious for Hindu weddings.
    Julian Phillips thus puts estimated Indian gold demand this year as likely being around 1,000 tonnes plus, although this would likely be boosted by smuggled metal, while the World Gold Council (WGC) put India’s consumer demand last year at 675.5 tonnes. There may be an element of the jewellery sector restocking ahead of an expected Goods and Services Tax imposition due to come in in mid-year which could reduce second half imports, but regardless it looks as though Indian demand is due for a major pick-up this year which will enhance the yellow metal’s fundamentals.

    This post was published at Sharps Pixley


  • New Gold Pool at the BIS Basle: Part 2 – Pool vs Gold for Oil

    This is Part 2 of a two-part series. The series focuses on collusive discussions and meetings that took place between the world’s most powerful central bankers in late 1979 and 1980 in an attempt to launch a central bank Gold Pool cartel to manipulate and control the free market price of gold. The meetings centered around the Bank for International Settlements (BIS) in Basle, Switzerland.
    Part 2 takes up where Part 1 left off, and begins by looking at developments in the BIS Gold Pool discussions during January 1980, a month in which the US dollar gold price rocketed more than 60% during a three-week period to reach a then record of $850 per ounce. Part 2 then looks at how the discussions involving these central banks evolved over the remainder of 1980 and 1981 as key high level central bankers continued to call for intervention into the gold market.
    Part 2 also looks at evidence that central bankers party to the discussions began advocating gold for oil exchanges between the West and the Saudis, exchanges which would provide real wealth (gold) to the Arabs in exchange for oil flowing to the West, while simultaneously keeping a lid on the gold price.

    This post was published at Bullion Star on 23 May 2017.


  • Central banks kept conspiring against gold long after it left the financial system

    A central bank Gold Pool which many people will be familiar with operated in the gold market between November 1961 and March 1968. That Gold Pool was known as the London Gold Pool.
    This article is not about the 1961-1968 London Gold Pool. This article is about collusive central bank discussions relating to an entirely different and more recent central bank Gold Pool arrangement. These discussions about a second Gold Pool began in late 1979, i.e. more than 11 years after the London Gold Pool had been abandoned. This article is Part 1 of a 2 part series. Part 2 will be published shortly.
    These discussions about a new Gold Pool arrangement took place in an era of soaring free market gold prices and in the midst of the run-up in the gold price to US$850 in January 1980.
    The discussions and meetings about a new Gold Pool in 1979 and 1980 and beyond which are detailed below, occurred at the highest levels in the central banking world and involved the world’s most powerful central bankers, some of whose names will be familiar to readers. The aim of these central bank discussions and meetings was to reach agreement on joint central bank action to subdue and manipulate the free market gold price in the early 1980s. Many of these collusive meetings were private meetings between a handful of Group of 10 (G10) central bank governors, and took place in the actual office of the president of the Bank of International Settlements in Basel, Switzerland.
    Above all, these central bank meetings show intent. Intent by a group of powerful central banks to manipulate a free market gold price so as to distort free market gold pricing signals. So these documents are timeless in that regard. The documents also illustrate the concern that a rising gold price in the free market creates for senior central bankers, and importantly, also shows that these same central bankers have no qualms, at least from a legal or moral perspective, of intervening to manipulate a gold price when they see it as a threat to their fiat currency monetary system.

    This post was published at GATA