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Showing posts with label brexit. Show all posts
Showing posts with label brexit. Show all posts

Tuesday, May 30, 2017

UK to have gold dispensing ATM machines in every major city over next few years

An interesting thing has been happening in the United Kingdom ever since the Brexit vote took place a year ago in June.  And that is that the people there have re-awakened to the monetary power of gold, and where the Brits have been one of the driving factors in Europe's recent increase in physical gold purchasing.
When Britain voted to leave the European Union, the thoughts of Yorkshire teacher Grace Hall immediately turned to her family's bottom line. 
Three days later, as UK stocks and sterling plummeted, she put those thoughts into action and deposited part of her life savings -- 25,000 pounds -- into gold. 
"My husband and I are both worried about bank failures and our cash getting swallowed up," she said. "I'm also worried about our kids' jobs and their future." 
Hall was not alone. Dealers are seeing an unprecedented amount of interest in gold, much of it from first-time buyers, to take advantage of its role as a safe haven in times of stress or unexpected "black swan" events like Brexit. 
"The speed at which people are purchasing gold is unprecedented," said Joshua Saul, CEO of The Pure Gold Company, where Hall bought and keeps her Britannia coins. 
"We are seeing people convert as much as 40 to 50 percent of their net worth into physical gold, (compared to) 5 to 10 percent in the past," he said. 
Government-owned bar and coin producer, the Royal Mint, saw a 7-fold increase in sales of 100-gram bars, around half the size of a credit card and costing around $4,400, in the two weeks following the June 23 vote. - Fortune
And a year later the move away from the Pound and the Euro into gold doesn't appear to be slowing down, which has led Ex Oriente Lux to not only install a new gold dispensing ATM machine in West London, but to also have plans to install these machines in every major city in the UK over the next few years.

Gold vending machines are to be placed in every major city in Britain after the country's first machine was switched on in a West London shopping centre. 
The company behind the gold bar vending machines plans to install 50 across Britain over the next few years, allowing ordinary shoppers to invest in the precious metal as an investment. 
Michael McCleary, a businessman from Croydon, yesterday became the first person in Britain to buy a nugget from one of the machines. He paid in cash and bought a 1g "bar" of gold, costing £47. In reality the piece of gold was smaller and thinner than a mobile phone SIM card, but came in a presentation box. - UK Telegraph

Saturday, April 1, 2017

Leprechauns are real as Ireland government to issue free gold to its citizens and foreigners of Irish descent in wake of Brexit

It appears that on April 1 two 'myths' are quickly being proved out as a new program being forged by the Irish government will see the distribution of at least one ounce of gold to every Irish citizen, and foreigners of Irish descent in the wake of Brexit.

The two myths we speak about of course are that gold is truly money and a store of wealth, and that the spirit of the Leprechaun is alive in well on the Emerald Isle.

Image result for leprechaun gold give me the gold
In an unprecedented move the Irish government is issuing and dispatching a free gold coin to all Irish citizens and foreign persons of Irish heritage. 
In a controversial move, the Ministry of Finance plans for Irish people to own at least 1 ounce of gold bullion. The Irish Finance Minister said the “little people” were exposed due to the many risks that Brexit poses to Irish companies and the Irish economy and indeed the risks posed to the EU and the euro itself. 
Irish politicians on the left have criticised the move as being “too generous.” They said that wealthy Irish Americans should not benefit from the move given that there is a homeless crisis in Ireland and given that the state was still close to bankruptcy. 
Speaking on condition of anonymity the Irish Finance Minster Mr D. O’Gill stated in his Constituency office of Donaghue’s Bar on Baggot Street:
“Sure if the Brits leave us alone to fight the mad Germans and French Looney’ in Europe, sure we will be awful trouble and it won’t belong before the whole Euro project goes up in flames, a bit of gold in the hand will do wonders to calm nerves and keep the party going”
All Irish people and those who claim Irish descent should register at the local Irish consulate. The Irish Embassy in Washington is expecting significant interest and Irish Americans began queuing the Embassy last night. - Goldcore
Currently the population of Ireland is around 4.74 million, with of course tens of millions (80 million as of the turn of the 21st century) of individuals of Irish descent living around the world, and in particular in the United States.  This means that at the current price of €1,162.14 per ounce of gold, the total cost to the Irish Treasury to facilitate this program would come out to around €92.6 billion.

Oh and by the way... April Fools!

Tuesday, February 14, 2017

Trump could drive a dagger into the heart of the EU should he get Greece to dump the Euro for the dollar

With Greece once again rushing to the forefront of events within the European Union over their never ending debt crisis, political and economic analysts directly point to the Southern European nation as the catalyst that could end the Euro currency experiment forever.

And ironically the Black Swan that could bring about not only an end to the Euro, but perhaps even put a dagger in the heart of the EU itself, is Donald Trump and his version of dollar diplomacy.

Image result for trump vs the european union
Donald Trump's pick for EU ambassador Ted Malloch claimed senior Greek economists are looking into taking on the American banknotes if the country turns its back on the European currency. 
Due to Greece's crippling financial crisis, officials are said to be desperately searching for an alternative to the Eurozone, which would 'freak out' Angela Merkel, according to Malloch.  
Prof Malloch was interviewed on Greek TV, where he said Greece leaving the EU would be the best option for residents, and added the current situation is 'simply unsustainable'.
'I know some Greek economists who have even gone to leading think tanks in the US to discuss this topic and the question of dollarization,' he said, according to local press.
 'Such a topic of course freaks out the Germans because they really don't want to hear such ideas.' 
The likely candidate for the Brussels envoy job has previously stated he expects the Euro to crash by 2018. - Daily Mail
Three years ago, when Greece fought their last debt battle against Germany and the EU Troika, it was Russia who offered to backstop Greece should they choose to leave the EU and default on their sovereign debt.  But that was back in 2013 when Barack Obama was President of the United States, and now the entire environment has changed since President Trump is a staunch supporter of seeing the European Union breakup for a return to nationalism.

Image result for greece should dump the euro

The Euro currency is already doomed to die, and for European nations currently reliant upon the continental currency for their monetary system it may be a case of the first ones out the door will have the benefit of making the best deals.  And this assessment has already proven accurate for the UK following their Brexit from the EU, and now it is upon Greece to make their most important decision on whether to start anew with a chance at a better future, or remain slaves to Brussels and lose everything when the Union and currency collapse whether they leave or not.

Thursday, January 12, 2017

Gold up over $1200 and crosses 50 day moving average setting the stage for a move in either direction

The gold price crossed an important psychological barrier in early morning trading on Jan. 12 that places the metal at a crossroads to either move extremely higher, or fall back if it fails to hold the key resistance level.

On Thursday gold went above $1200 for the first time since its severe beatdown following the November Presidential elections when bullion banks dumped so many naked shorts into the futures market that it was the equivalent of three years worth of mine production.  This led to gold falling below its 50, 100, and even 200 day moving averages until it settled at a bottom of around $1125.

Since then however, it has begun a steady climb back to $1200, aided by investors covering numerous amounts of short positions that in some cases went back to bad bets made during the time of the Brexit vote.

However now that it has breached its new 50 day moving average, it will take on some strong resistance that should it succeed in holding this price, will assuredly move much much higher as loss of confidence in global currencies will aid in the move once again towards gold.

As one can see from the daily gold futures price chart below, it breached the 30-day SMA of $1,161.82 with a strong bullish candle. The commodity will now face stiff resistance from expected selling pressure near $1,200, which earlier acted as a crucial support. Calls of $1,200 as support are still etched in my mind, but probably too much faith was put into that. The 50-day simple moving average of $1,200.98 will pose additional stress on the commodity. But I am optimistic, and with adequate time and patience, the metal can cross this bear's mansion as well. - Seeking Alpha

Tuesday, November 8, 2016

Brexit II moment for gold and stocks as markets are completely priced in for Hillary victory

Election day 2016 has finally arrived, and it is not only the American people who are preparing for a change in leadership but also the markets.  In fact, thanks to a simple press conference done on Sunday by FBI Director James Comey, the markets exploded yesterday with expectations that Hillary Clinton would come out successful in the Nov. 8 vote.

But as many analysts have discussed over the past month, the outcome of today's Presidential election could actually trigger a Brexit part deux type event, as stocks, gold, and currencies are completely priced in for a Clinton victory, and this means that today's trading could actually be life changing for individuals if Donald Trump ends up winning.

Rickards says that Trump "will probably win" and, if he, does stock markets will crash 10% and gold will rise $100 over night. 
The markets and polls believe Clinton will win and that is priced into markets in the same way that a 'Bremain' was priced into markets prior to the 'Brexit' vote. 
“If Hillary wins nothing happens, if Trump wins you will have an earthquake.” 
Should Trump win, which looking at the polls is not an impossibility, gold would likely surge $100 per ounce overnight, says Rickards. 
What Hillary did was appalling and there will be ‘another reckoning on November 8th’ which the market has failed to price in, creating a good scenario for gold. He says you don’t have to agree that Trump will win, but agree that that in reality he could win. 
For Rickards, this is an excellent opportunity for investors, particularly those who have an allocation to physical gold which he believes is set to rise in the coming months and years. - Zerohedge

Wednesday, October 5, 2016

London dumps 1,000 tons worth of gold contracts on Oct. 4 to allow pre-Brexit shorts to cover before price explosion

On Oct. 4 gold fell by more than $40, and nearly $100 over the past few days as the Chinese holiday provided the perfect environment for London to dump 1,000 tons of gold contracts onto the market to drive down the price.

According to long-time gold analyst Andrew Maguire, the London gold cartel facilitated a massive shorting of gold futures contracts to drop the price back down to pre-Brexit levels so that bullion banks and other insiders could cover their short positions still open after gold spiked $100 back on June 24.

Eric King:  “Andrew, we’re seeing a massive takedown in the gold and silver markets today along with the shares, what’s really happening here?  What is really taking place?” 
Andrew Maguire:  “Close to a staggering 1,000 tonnes of paper gold has been rinsed out in the paper gold markets today…. 
Andrew Maguire continues:  “That’s just below the targeted 100-day moving average that was taken out earlier today.  Before this is finished today, this will exceed over a shocking 1,000 tonnes of paper gold that will have been rinsed. 
This takedown is a complete joke, and the wholesale market is all over (on the buy side of) this paper takedown.  This is a desperate effort by Western officials to cover massive offside pre-Brexit over-the-counter short positions put on by their agent bullion banks near the $1,275 level. - King World News
Each year approximately 2500 tons of gold are produced, making this paper contract dump equivalent to 40% of the world's entire gold production for 2016.

With the European banking system standing on the precipice of another liquidity crisis, and the Chinese beginning their new paradigm as a member of the IMF's SDR global currency, expectations of gold skyrocketing upward in the coming weeks or months left the bullion banks with little choice but to try to pull off a massive manipulation play to cover their several billion dollar short position that had left them vulnerable when they had bet against a Brexit vote.  And when China comes back online after their holiday ends this weekend, expect the price to climb back up over $1300 as it regains all its losses imposed upon it from yesterday's gambit.

Tuesday, September 6, 2016

Despite declines in gold price in August, demand for the metal hit a four year high

Now that the summer market doldrums are over following the turning of the calendar on Labor Day, gold is acting as it normally does heading into its biggest price months of the year.

In fact, so far on the first trading day in September, gold is up over $14 and should go much higher very soon since economic data from manufacturing just about assured there will be no Fed rate hike when the FOMC meets later this month.

Live New York Gold Chart [Kitco Inc.]

Yet despite the fact that gold lost some of its gains during August, an interesting statistic emerged on Sept. 6 which puts alot into perspective for the rest of the year.  And that is that demand for gold by individuals hit a four year high last month, meaning that new support is now in the market to take gold much, much higher.
Private investor appetite for gold hit a four-year high last month, swelling net purchases on the BullionVault trading platform by almost half a tonne. 
The financial jitters triggered by the Brexit vote and record low interest rates have spurred demand for the safe-haven commodity over recent months, driving total holdings at BullionVault to 35.7 tonnes. 
Although the number of private buyers slipped 6pc in August, those willing to reduce the holdings they have built up over summer dropped 49pc to boost the net demand. 
As a result BullionVault's Gold Investor Index up to a new 3-year high of 56.0, reaching its highest level since April 2013 from July's 53.4 reading.
Adrian Ash, head of research at BullionVault, said: “Private investors continue to grow their gold holdings against a trend of both rising prices and rising financial risks. 
“Last time net gold investing demand was this strong, prices were retreating hard from the late 2012 rally. August 2016 in contrast marked the fourth time running that average monthly gold prices rose against the dollar, a pattern not seen since the metal peaked with the global financial crisis in summer 2011." - Telegraph

Wednesday, August 3, 2016

As European banks continue to collapse following the stress test, gold buying accelerates on the continent for investors seeking safe havens

Another day, another severe decline in European banks stocks.  This has become the norm in Europe ever since the stress test results have shown that a large majority of financial institutions on the continent are either under-capitalized, or flat out insolvent.

And as investors rush to find any type of safe haven asset in the midst of new central bank stimulus threats and negative interest rates, the one place they are turning to en masse is the one asset that protect one's wealth above all others.

Gold.


Gold prices have bounced back from recent dips and are likely to continue to climb as investors seeking haven from market turmoil in Europe pour money into the precious metal. 
James Butterfill, executive director and head of research and investment strategy at ETF Securities, said gold has proven to be resilient since the U.K. voted to leave the European Union in June. 
"Since Brexit, we've seen $1.5 billion of inflows into our gold product. Clearly, gold is popular," he said on CNBC's Squawk Box. - CNBC

Sunday, July 17, 2016

First Brexit and now the failed coup in Turkey helping to keep the gold rally forging ahead

Long before the June Brexit vote and the failed coup attempt in Turkey that took place on Friday, gold has been climbing since the beginning of the year and remains the best performing asset in the global financial system.  But it is events such as these, coupled with many more taking place in Italy, Japan, and even the United States, that will keep the gold rally forging ahead and ensure that the price will rise and overtake its all-time high before the end of the year, or early into 2017.

In fact, even after six days of the gold price falling due risk on speculation in the equity markets thanks to rumors of new quantitative easing and 'helicopter money', the price shot up $10 alone in after-hours futures when word hit that a coup attempt was taking place against Turkish President Erdogan.

The Turkish lira fell to a three-week low versus the US dollar in late trading on Friday in New York due to news of the coup in Turkey, which likewise spurred safe haven bids for 
US Treasury bonds, paring their earlier losses. 
The Turkey lira was last down 5.0 per cent at 3.0300 lira per dollar. 
“Have you seen the latest headlines on Turkey? That probably has something to do with it. This dollar surge is very much headline-driven,” said Vassili Serebriakov, currency strategist at Credit Agricole in New York. 
Spot gold prices turned higher, reversing earlier losses in late trade on Friday in New York on the Turkish news. Gold was up 0.23 per cent at US$1,337.73 per ounce at 4:42 p.m. New York time (4:42 am Hong Kong on Saturday, July 16), moving off intraday lows of $1,322. 
“Gold has been frog-marched $10 higher over the last hour when it became apparent that there has been an attempted coup in Turkey,” said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York. - South China Morning Post
Whether it is a banking crisis going on right now in Italy, the upcoming U.S. Presidential elections, the growing threat of war over the islands in the South China Sea, or global bond yields now encompassing over $14 trillion in sovereign debt, the biggest winner from all of this will continue to be gold.  And as each day passes, more and more investors and individuals are turning towards the metal as the only real protection from economic and geo-political chaos.

Tuesday, July 12, 2016

Post Brexit benefits continue as South Korea seeks new free trade agreement with Britain

Back in the days of slavery, having the shackles removed was both a fearful and hopeful time for those who had lived in bondage as the new world of freedom meant infinite possibilities, but also the realization that one was now responsible for their own choices and livelihoods.
This is exactly what voting to leave the European Union after several decades now means for the UK and for the British people.  And not unlike what the Russian people experienced following the fall of the Soviet Union, in the short-term the environment will be difficult, but in the long-term the outcome could lead to greater economic and social growth.
As the EU was a domineering and closed union, the centralized system stifled free trade and was intrinsically built to give advantages to some within Europe while leaving most others to wallow in economic stagnation.  But now that Britain has broken its own chains and started the ball rolling towards self-determination, nations and economies from around the world are preparing to commit to new trade agreements with the UK, since they no longer have to deal with a technocratic bureaucracy that more often than not fined foreign businesses rather than cultivated relationships with them.
free trade

Friday, July 8, 2016

The big winner in the Brexit vote may be China and the RMB

Prior to the UK Brexit vote two weeks ago, the City of London had already begun issuing Yuan denominated bonds to help begin the internationalization of the Chinese currency.  And with Britain choosing to break away from the oligarchical government that was being run out of Brussels, a new allegiance with China and their monetary system could aid in lessening Britain’s financial struggles, and make China the biggest winner in the Brexit outcome.
London’s role as a major offshore yuan hub is likely to survive Britain’s decision to leave the European Union, but the vote could help foster the Chinese currency’s internationalization by encouraging multiple yuan hubs in the bloc.
In the aftermath of the referendum, market-watchers and domestic Chinese media had raised fears London’s leading role as an offshore yuan hub would be undermined, potentially setting back Beijing’s efforts to internationalize the yuan.
But as the dust begins to settle, some bankers and analysts believe the pessimism was overdone. That is not to say there will not be an impact, but the move may encourage China to foster yuan trading in cities in mainland Europe and so expand the currency’s global footprint.
“We expect London to keep its status as the world’s largest foreign exchange center though some of the city’s other financial services may have the risk to be moved to other countries following Brexit,” said Andrew Fung, head of global banking and markets at Hang Seng Bank, adding FX trading is currently the key part of the yuan’s internationalization. - Sputnik News
chinadollar

Read more on this article here...

Thursday, July 7, 2016

Don’t blame Brexit as global recession and financial crises were here long before UK vote

The powers that be have learned to never let a crisis go to waste.  And in the wake of last month’s Brexit vote which they desperately didn’t want to happen, mainstream financial analysts and central bankers are now shifting the UK vote into the perfect excuse to blame the oncoming global recession and financial collapse on that event and on the British people.
But for any real economist who isn’t a paid shill of the establishment, knowledge that the global economy and global financial systems were rushing headlong into crisis occurred long before the June 24 vote.  And following the Federal Reserve’s stress test that ended last week, not only did two large European banks fail the test, but in Italy where no banks were deemed to be in trouble by the U.S. central bank, the first bailout outside of Greece is now taking place, and two institutions in London are halting redemptions in the nation’s largest property funds.

Wednesday, July 6, 2016

Gold nears $1400 per ounce as gold soars beyond post-Brexit high

Gold prices have recovered from recent pullbacks and consolidations to be just $30 from $1400 per ounce, and higher than its $100+ move following the UK's Brexit vote.

Prices appear to be moving up as bond yields collapse in the U.S. Treasury and go negative in many European markets.  In fact, bond yields in Switzerland are now completely negative going out to the next 50 years.

Brexit is a sideshow to the world economy, and gold remains an important asset in any portfolio, says Marc Faber, editor of the Gloom, Doom and Boom Report. 
Brexit is a sideshow to the world economy, which began weakening the end of 2014, according to Marc Faber, editor of Gloom, Doom and Boom Report. 
In an interview with CNBC on June 28, Faber cited as evidence the strong performance of Treasury bonds, saying “over the last 12 months U.S. long-term Treasuries are up 20%, and they are up 15% year to date.” 
Faber believes that the British vote to leave the EU could lead to more quantitative easing. “Brexit will give a perfect excuse to the Federal Reserve not to increase interest rates and be most likely to launch QE4,” he said, adding that such a movement could give a boost to stock markets. 
But long term, Faber believes all investors should hold some gold, calling it a “no brainer” in an environment of money printing. 
“Is gold near term overbought? Yes, it is,” Faber said. “But longer term, I think every investor should have some cash, which he would keep in yen or in dollars or in euros, and should have some of this cash in gold.” - Streetwise

Sunday, July 3, 2016

Sweden begins ball rolling to try to cut off gold acquisition by the masses as price begins to soar

One of the major reasons why the bullion banks have been able to keep the price of gold and silver down over the past four years is because only 1% of Americans and Europeans actually own the physical metals, or have not changed their investing paradigms to seek intrinsic safe havens rather than trust in paper assets.  But since the beginning of the year, and with last week's 'shot heard round the world' in the UK over their Brexit vote, central banks along with sovereign governments are now deathly afraid the people will finally wake up and rush to the door to get their hands on precious metals.

And following the past two trading days of extreme movements upward in both gold and silver, one nation announced a sudden bank policy in which they will no longer allow bank deposits to be used to purchase gold or silver in an attempt to keep the masses from moving out of negative yield bonds and into real wealth protection.

Tavex
Best customer, 
We hereby announce that as of 15:30, Thursday, June 30, 2016, we can no longer accept bank transfers or bank deposits for gold and silver to our Swedish SEB account. 
The reason for this is that SEB - at very short notice - informed us that they will close down our bank account. This decision has, unfortunately, been made without first consulting us, and in addition to state in its notification letter that the decision to close our account due to “a general business decisions,” they have not yet given us any concrete reason why they decided to take this measure . 
The banking system in Sweden is operated however vigorously towards a cashless society, as you probably are aware of, and Tavex has, as one of the largest wholesale suppliers of physical notes and investment metals in Sweden, as we see it become a target for the major commercial banks. 
With that said, we are working frantically to set up a new payment system that we believe will be operational in two to three weeks. - Tavex Guld & Valuta via Silver Doctors
It is beginning in Europe, but how long until the U.S. issues their own banking restrictions where you can no longer purchase gold or silver, have your paper ETF accounts seized, or the Mint suddenly elects to shut down its supplying bullion dealers, and those who do not have gold already will be left wanting, and out in the cold.

Saturday, July 2, 2016

Gold's unstoppable rise coupled with bond crashes the final warnings for a coming monetary collapse

Contrary to central banks and financial pundits, it is the bond market, rather than the stock markets, which provide the true signals for the strength of an economy and of a currency.  And this has never been so true since the world went forward with its credit based monetary system.

Yet in addition to this, the one commodity which also acts as a warning sign for monetary and financial collapse is gold.  And it has proven accurate on at least three occasions going back to the 1970's when the precious metal was removed as a backstop for all global currencies.


As we begin the second half of 2016, some interesting events are taking place that go far beyond last week's Brexit vote and possible future ending of the European Union project.  First, the number of global sovereign bonds that now have negative yields are at $11.7 trillion, and is a number that is climbing daily.  And secondly in the U.S., where the dollar remains the global reserve currency and the U.S. Treasury the most important credit vehicle, yields for treasuries have fallen to their lowest point since the 1950's.

The yield on the benchmark 10-year Treasury note sat lower at 1.004 percent, after hitting their lowest level in four years, according to Reuters. The yield on the 30-year Treasury bond was also lower at 2.241 percent after hitting a new all-time low. - CNBC
U.S. 30-year yield hits lowest in at least 60 years.  Treasuries post highest return in 17 months in June * Bond prices pare gains after ISM PMI data beats forecast * Fed monitoring Brexit's impact on U.S. - Fed's Fischer - The U.S. Treasuries market rallied on Friday, with the 30-year yield hitting its lowest since the 1950s in a worldwide scramble for bonds on expectations of weak global growth and more policy stimulus from major central banks. - Yahoo Finance
Even during the 2008 Credit Crisis did bond yields for the 10 and 30 year never get so low, which validates that the world is rushing full on out of their own financial instruments and are willing to take even a smidgeon of return in exchange for a flight to safety.

But as we have seen since January, U.S. bonds aren't the only signal of a move out of stocks and faltering currencies.  In fact, gold has been the best performing asset for the entire year, and as more and more geo-political and economic events reveal themselves to place the global financial system on the precipice of collapse, the monetary metal will not only soar past its all-time high, but ultimately be the only true safe haven when even the dollar no longer acts as a currency of strength and stability.

Friday, July 1, 2016

Gold rises over $20 as the second half of 2016 begins just like the start of the year

As the second half of 2016 began today on July 1, gold moved up and continued the trend set back in early January of this year.  In fact, with the gold price closing up over $20 to end the week at $1342.90, it solidified the bull trend upward and closed out above four year old resistance levels.

Live New York Gold Chart [Kitco Inc.]
Gold futures continue to see more inflows as we start the second half of the year. Both technical buyers and hedge funds put new money to work in a busy pre-July 4 Friday.
We had been worried about about a rally in gold futures causing a rush for a wing vol, a way out of a call with high volatility. The upward spike in gold futures prices on Friday (to a high of $1,344.30 for the August contract traded at the Comex) kept implied volatility of options muted as some market participants sold call options against the underlying length. That meant that traders sold calls against futures that they already purchased 
Futures contract trading volume on the Comex on Friday was equivalent to 20 million ounces, and volume in front month call options are picking up. 
The GCQ $1360 calls have been the main option interest with close to 2,000 contracts being bought and sold down .5% vol. - The Street
In addition to gold spiking higher, the one asset class that did much better was its brother metal, silver.  In fact, just as gold spiked by more than $100 on Brexit day last week, silver rose by nearly $2 over the past two days as expectations of central bank money printing and historic short covering rocketed the white metal to nearly over $20 an ounce.

Thursday, June 30, 2016

As Deutsche Bank teeters on edge of collapse, rise in gold prices signal warning of pending monetary collapse

Since the price of gold has been rising steadily since January of this year, we already know that it wasn't simply last week's Brexit event which created the catalyst for gold prices to climb to a new two-year high.  And following Britain's historic move to leave the European Union six days ago, analysts are now seeing gold signal a warning sign that a larger monetary event may be just on the horizon.

Modern financial collapses tend not to come from economic recession or declines in the stock markets, but rather in liquidity crises that emerge from insolvent banks... such as from those we saw from Northern Rock in 2007, and Bear Stearns, Lehman Bros, and Morgan Stanley a year later.  And with the Federal Reserve's stress tests on banks coming to a completion, fears are emerging that Germany's largest financial institution is ready bring about a new monetary collapse.

Domestically, the largest German banks and insurance companies are highly interconnected. The highest degree of interconnectedness can be found between Allianz, Munich Re, Hannover Re, Deutsche Bank, Commerzbank and Aareal bank, with Allianz being the largest contributor to systemic risks among the publicly-traded German financials. Both Deutsche Bank and Commerzbank are the source of outward spillovers to most other publicly-listed banks and insurers. Given the likelihood of distress spillovers between banks and life insurers, close monitoring and continued systemic risk analysis by authorities is warranted. 
Among the G-SIBs, Deutsche Bank appears to be the most important net contributor to systemic risks, followed by HSBC and Credit Suisse. In turn, Commerzbank, while an important player in Germany, does not appear to be a contributor to systemic risks globally. In general, Commerzbank tends to be the recipient of inward spillover from U.S. and European G-SIBs. The relative importance of Deutsche Bank underscores the importance of risk management, intense supervision of G-SIBs and the close monitoring of their cross-border exposures, as well as rapidly completing capacity to implement the new resolution regime. 
The IMF also said the German banking system poses a higher degree of possible outward contagion compared with the risks it poses internally. This means that in the global interconnected game of counterparty dominoes, if Deutsche Bank falls, everyone else will follow. - Zerohedge
There is a reason why the 'smartest men in the room' have been not only divesting themselves and the funds they manage out of stocks, and instead are using those proceeds to buy into gold as their largest investment.  And that reason is because the global financial system is going through a fundamental sea-change, and as yet there is no clear determination on how things will play out... only that it is crucial to be in some form of physical safe haven asset that carries no counter-party risk from the paper markets.

Gold has always acted as a barometer for the strength or weakness of currencies, but in today's paper and electronic monetary system, it now acts as a warning sign on the strength of banks, markets, and economies as well.  And with central banks, sovereign governments, hedge funds, and those few who have woken up to the warnings on the horizon having bought gold to the point that supplies are now extremely tight even before the crash begins, it is unlikely that there will be much supply left at all for those who do not buy into gold now rather than wait until it is far too late to acquire it.

Contrary to mainstream rhetoric, Britain’s Brexit vote opens the door for prosperity, not decline

Freedom is a funny thing, and over the next several months the UK will have the chance to see just how successful their return to sovereignty is once they finalize their actions in leaving the European Union dictatorship.  By this, we mean that unlike the other 27 permanent and ancillary nations who must all move in lock-step with the un-elected bureaucracy ruling out of Brussels, Britain can now choose its own destiny and create new agreements that are beneficial to themselves in a world moving towards free and bi-lateral trade.
Ironically, and despite the Damocles Sword of ongoing economic sanctions, the best performing economy last year was not China, not the United States, and certainly not the Eurozone, but instead it was Russia, who because of the sanctions were forced to change their trade alliances with the West, and created an environment where they are now the global leader in energy production, and attracting investments and new trade because they centered themselves as a new hub for free and bi-lateral trade.
And assuredly, if Britain wants to find new markets and new options, Asia and Eurasia are the places to go, rather than continuing to wallow under the tyranny of the West.
global trade eu

Wednesday, June 29, 2016

Following Brexit, expectations for new rounds of QE could see gold have more $100 per day moves

The overall effects of the UK voting to leave the European Union have yet to be fully determined, but so far they have actually been little more than a barometer to the global changes taking place in which people are rejecting globalism and desiring to take back local sovereignty within their countries.

However, central banks are probably ecstatic for the Brexit event since it will soon be used as the excuse they needed to begin new rounds of quantitative easing (QE) after refusing to acknowledge just how bad economic conditions truly are.

“The U.S. Federal Reserve may even embark on a fourth round of quantitative easing, or QE4, Faber said in an interview on Bloomberg Television on Wednesday, adding that he typically buys bullion every month. While he also likes gold shares, they need to correct first after recent gains, he said. 
“If Brexit is used as an excuse, the central banks will print more money, QE4 in the U.S. is on the way and the depreciation in the purchasing power of currencies will continue,” Faber said in the interview from Hong Kong. “In that situation, you want to own some gold.” - Marc Faber, Bloomberg News
When the news of the Brexit vote hit the airwaves on late Thursday/early Friday, gold instantly shot up $100 per ounce to its highest gain in a single day in history, and back to its highest levels in three years.  And when you couple in the fact that many of the big name investors and hedge funds were buying gold in exorbitant amounts prior to the vote in the UK, the indicators backing a resurgence of gold go far beyond Brexit, and signal deteriorating conditions in the monetary and economic arenas.
“This is going to be a huge crisis. Alan Greenspan was on CNBC saying this is the worst thing he has seen in his career. He’s not talking about what has already happened. He’s talking about what is ABOUT to happen. He understands how screwed up the economy is because he helped screw it up. . . . One of these days, you are going to see gold moving up at $100 clips routinely when people really perceive the dangers in the fiat world and come to grips with how much money these central banks are going to PRINT…” - Silver Doctors

Monday, June 27, 2016

Gold will continue to soar because of global financial conditions that go beyond Brexit

Both investors and those people worried about protecting their wealth need to realize that the outlook for gold goes far beyond Friday's Brexit results.  In fact, the referendum for Britain to leave the European Union is more like a Bear Stearns event rather than the 'Lehman Moment' theme saturating the media since it represents the actions of a single entity rather than the overall domino effect that Lehman Brothers was to the global banking system.

And when you couple in the fact that gold had been rising since the very first days of 2016, and is the best performing asset this year in all markets, the expectation for gold to rise much greater is still there because the underlying problems within the global financial system have not gone away simply because of the Brexit.

Expectations for more rallies in gold aren’t just borne from the Brexit news. What happens in other markets, including equities and currencies, will impact gold’s outlook more directly. 
Brexit is “a global monetary event, with destructive effects in individual economies,” said Brien Lundin, editor of Gold Newsletter. 
‘If everyone is trying to depreciate their currency, including the U.S., what can they depreciate it against?’ 
“The standard central-bank prescription is to ease, to depreciate their currency,” he said. 
“But if everyone is trying to depreciate their currency, including the U.S., what can they depreciate it against?” 
“Only gold will stand tall during the turmoil. And over the long term, it won’t because it’s supposed to be a ‘safe haven’, but because it’s the only safeguard against fiat currency depreciation,” said Lundin. - Marketwatch
Prior to Friday's Brexit vote, there was more than $10 trillion in bonds worldwide that have a negative yield, and this will only continue to grow.  This means that trying to find a safe haven in bonds will leave you with less money than you started with at maturity, and opposite the effects if you instead moved your cash into gold.

No, last week's Brexit vote is simply one big warning sign on the road to the next global financial crisis, and just like from 2007-2011, the barometer for this will be the price of gold and not the stock markets, currency markets, or other asset classes.  And if you want to see what the people in the line of fire are choosing, just look at the Brits who are trying to buy gold hand over fist, but are quickly realizing that supplies are quickly becoming unavailable in their local markets.
A British gold broker says sales are at an all-time high since UK voters decided to leave the EU. 
"There has been record online sales on the GoldCore website . . . the phones are ringing off the hook," says GoldCore founder Mark O'Byrne in a news release
On the day Brexit results were announced spot gold popped $70 per ounce peaking at $1,330
Other gold sellers like BullionVault, CoinInvest.com and The Royal Mint all reported a surge in sales
On the same day the Brexit results were announced, "buy gold" Google searches soared 400% in the United Kingdom, according to Google Trends. - Mining.com