London Gold Market Report
from Ben Traynor, BullionVault
Wednesday 8 May 2013, 07:30 EDT
“Safe Haven Demand Lower” for Gold as Stock Markets Hit New Highs
WHOLESALE market prices for buying gold climbed back above $1460 an ounce during Wednesday morning’s London trading, in line with its range over the last week, as stocks gained and longer-dated US Treasuries dipped ahead of an auction of 10-year bonds later today.
Silver climbed back above $23.90 an ounce, while copper [...]
RICE SAYS IMF MISSION IS IN KIEV
Cyprus Market‏@russian_market1 h
Ukrainian capital inflows at risk after Cyprus bailout
Cyprus Market‏@russian_market2 h
As I told you yesterday for many Western journos people from USSR are all Russians: but main Cyprus damage will be felt in.. UKRAINE.
Cyprus Market‏@russian_market2 h
CYPRUS DOWNSIDE RISKS FOR UKRAINE CURRENCY; CYPRUS SITUATION MAY TIP UKRAINE INTO FINANCIAL CRISIS
Cyprus Isn’t Calm, It’s Paralyzed
“People are worried.”
Cyprus Market‏@russian_market4 h
RUSSIA TO USE 36 WARSHIPS, MARINES, AIR [...]
There is a widespread sense that what is happening in the European economy today is unprecedented – the fallout of an attempt at economic union without political commitment to fiscal transfers. There is some truth in this, but European exceptionalism is a myth. In many ways, the countries of Europe’s periphery are reading from a script that has already been played out by many developing countries. And there is much [...]
China’s central bank and commercial lenders sold more foreign currency than they bought for the first month this year in April, indicating capital may have flowed out of the world’s second-biggest economy.
Chinese banks sold a net 60.6 billion yuan ($9.59 billion) of foreign currency in April, according to calculations based on preliminary data released by the People’s Bank of China yesterday. That compares with 124.6 billion yuan of net purchases in March.
The government [...]
Bank of Korea Governor Kim Choong Soo urged major central banks to plan an orderly withdrawal of excess liquidity and said that further easing may hurt emerging economies and the global economic recovery.
Extra loosening “could do more harm than good when the financial markets are already flooded with cheap liquidity but remain nonetheless timid in their lending to the private sector,” Kim said in a speech prepared for a [...]
by Simon Black of Sovereign Man
They Will Actually Pay You To Store Your Gold
Here’s something you don’t see every day: Banks in Vietnam will actually pay YOU to store your gold in one of their safe deposit boxes. I was pretty surprised to find this out for myself; neither Simon nor I have seen it anywhere else in the world except here.
This is actually how banking used to be. The original bankers were goldsmiths– big [...]
European CEOs Move Cash to Germany In Case of Euro Breakup
By Manuel Baigorri and Richard Weiss
Dec. 9 (Bloomberg) — Grupo Gowex, a Spanish provider of Wi-Fi wireless services, is moving funds to Germany because it expects Spain to exit the euro. German machinery maker GEA Group AG is setting maximum amounts held at any one bank.
“I don’t trust Spain will remain in the euro zone,” said Jenaro Garcia, founder and [...]
Risk correlations will likely remain high, at similar levels to what we have seen since 2007/2008. Broader macro shocks continue to dominate country-specific factors and most FX cross rates.
Broad USD weakness to persist in the background, with the trade deficit averaging around US$45bn per month, private capital flows into the US (excluding foreign flows into treasuries and official flows into agencies, corporate bonds and equities) have averaged zero in recent [...]
(Reuters) – China raised banks’ required reserves on Sunday for the fourth time this year, extending the fight against excessive liquidity and stubbornly high inflation in the world’s second-largest economy.
The reserve rate rise, which followed an increase in benchmark bank interest rates on April 5, was the seventh since China stepped up efforts against inflation in October and underscored the government’s determination to keep the [...]
Perhaps the greatest mystery in the world of finance and economics is why Fed Chairman Ben Bernanke refuses to acknowledge that paper money creation by central banks produced the â€œglobal savings glutâ€ which, according to him, destabilized the global economy and led to the crisis of 2008.
Six years ago, Bernanke unleashed his Global Savings Glut (GSG) theory on the world. Since then, he has made [...]
China ramped up its rhetoric against the United States on Tuesday, with a Chinese credit ratings agency accusing the United States of the intent not to repay its debt by deliberately weakening its currency.
The China and the United States have exchanged words in recent years about the strength of the Chinese currency against the U.S. dollar and the U.S. trade deficit with China. The United States relies heavily on capital [...]
Policymakers from Brazil to South Korea and China on Thursday pledged to come up with fresh measures to curb capital inflows after the U.S. Federal Reserve said it would print billions of dollars to rescue the economy.
The frosty reaction from emerging economies makes any substantive deal on global imbalances and currencies at next week’s Group of 20 meeting that Seoul is hosting even less likely.
by Kevin Yao and Simon Rabinovitch
Seems the Chinese bankers are more intelligent than the US ones.
The global economy has yet to find its feet, with the U.S. recovery slowing and imbalances within the euro zone worsening, a Chinese central banker said in comments published on Friday.
In unusually candid remarks, Li Dongrong, an assistant governor of the People’s Bank of China, also warned that a continuation of ultra-loose policies in rich [...]
1) China local governments loan default fears
“About two trillion yuan (300 billion dollars) in loans to Chinese local governments are at serious risk of default, an investigation published in state media warned on Thursday.
The government probe found that around 26 percent of the 7.66 trillion yuan lent to local authority finance vehicles by the end of June were in danger of going bad, said a [...]
IMF has once again done only a lip service without any tangible suggestion even towards a long term solution.
The reality is â€œvolatile capital flowâ€ is an advantage for private capital from developed countries flowing into emerging countriesâ€¦.Simply because they get better returns. US investment abroad consistently produced 2% plus return against foreign investment in US since the 1970s. Most of these private capital [...]
The Federal Reserve said on Tuesday it stood ready to provide additional support to bolster a modest economic recovery, suggesting it may be preparing to do more to keep unemployment from rising and prices from falling.
The U.S. central bank made no shift in monetary policy at the end of a one-day meeting, although it expressed somewhat greater concern about the sluggish pace of economic growth [...]