Russian President Vladimir Putin has been loading up on gold.
As Bloomberg reports, the Russian central bank has amassed 570 metric tons of it in the last 10 years, making it the biggest global gold buyer.
Why is Russia’s central bank betting on gold rather than holding its foreign reserves in something with a bit of yield?
It’s a hedge against a collapse in the value of one of the global reserve currencies.
Read more: http://qz.com/52623/russias-government-has-become-the-worlds-largest-buyer-of-gold-driven-by-fears-of-currency-cataclysm/#ixzz2KbwhKCq7
Total central bank gold purchases in the second quarter were more than double the level reported just one year earlier, as emerging market governments sought to diversify away from traditional reserve currencies amid heightened economic insecurity, according to World Gold Council data Thursday.
Read more: http://www.foxbusiness.com/news/2012/08/16/world-gold-council-central-bank-gold-demand-doubles-in-second-quarter/#ixzz23iDfSFMg
by Simone Foxman
In a recent note to clients, Morgan Stanley’s FX research team revealed some surprising relationships between oil and different currencies.Essentially, their analysis boils down to one simple point: because high oil prices are currently being driven by supply-side issues, the relationship it has shared with currencies during the last few years is breaking down. We can see that in both commodity currencies like the Aussie dollar and reserve currencies like the euro.
Euro [...]
There are several good articles in The Telegraph today. Let’s take a close look at two of them.??The Death of a Currency Jeremy Warner writes Death Of A Currency As Eurogeddon Approaches
The market is starting to bet on what was previously a minority view – a complete collapse, or break-up, of the euro. Up until the past few days, it has remained just about possible to go along with the idea [...]
forbes.com
Finished off as it was by the callous executive order of a U.S. president, the gold standard cannot be resurrected the same way. As the political system inches back toward gold-backed money, a roadmap for getting there is essential.
This is exactly what Lewis E. Lehrman (with whom this writer is professionally associated via American Principles Project and the Lehrman Institute) has provided with The True Gold Standard: A Monetary Reform [...]
The eurozone has “already collapsed” and is disappearing as the region is on the brink of a banking crisis that will destroy the currency, said Zafer Onat, the chief executive of FinansInvest, a Turkish broker owned by National Bank of Greece SA. (ETE)
“I believe that the European monetary union doesn’t exist anymore,” Onat said in an interview in Istanbul today. “I think it already collapsed but no one has said [...]
From Gold Core
US Money Supply Surges Surges 33% in 4 Months – Global Money Supply to Lead to Gold $10,000/oz?
Gold is trading at USD 1,623.80, EUR 1,177.95, GBP 1,027.01, JPY 124,535.72, AUD 1587.39 and CNY 10,354/oz.
Gold’s London AM fix this morning was USD 1,623.00, GBP 1,027.02 and EUR 1178.14 per ounce.
Yesterday’s AM fix was USD 1,629.00, GBP 1,033.24 and EUR 1,180.17 per ounce.
U.S. M2 Money Supply: Accelerating Sharply in 2011
Gold prices [...]
US Money Supply Surges Surges 33% in 4 Months – Global Money Supply to Lead to Gold $10,000/oz?
Gold is trading at USD 1,623.80, EUR 1,177.95, GBP 1,027.01, JPY 124,535.72, AUD 1587.39 and CNY 10,354/oz.
Gold’s London AM fix this morning was USD 1,623.00, GBP 1,027.02 and EUR 1178.14 per ounce.
Yesterday’s AM fix was USD 1,629.00, GBP 1,033.24 and EUR 1,180.17 per ounce.
U.S. M2 Money Supply: Accelerating Sharply in 2011
Gold prices are [...]
1) Central Banks’ Demand For Gold Quadrupled In 2nd Quarter
“Central banks are topping up their gold reserves, quadrupling their total purchases from the market in the last quarter as they seek to reduce their dependence on traditional reserve currencies such as the U.S. dollar.
Even with gold prices at record highs, emerging markets’ central banks have revived the official sector’s gold-buying interest. They are diversifying their [...]
America’s possible default has resonated far and wide. Russia’s prime minister says that the current deal struck by US lawmakers will not solve the underlying issues.
Vladimir Putin believes that raising the ceiling yet again only signals delay in tackling inevitable problems.
“Actually, there’s nothing good about it. It’s just postponed making more systematic decisions,” Putin said.
The PM stressed that in doing so the US is putting pressure on the [...]
gata.org
With many Asian, Eastern European, African and Latin countries now buying gold, something is up. After fifty years of official (US and allies) gold price suppression, sovereign countries around the world are finally starting to reconsider the wisdom of putting blind faith in the dollar, or the Euro, as a store of value.
There is only one objective behind Western central banks’ gold sales [...]
A strange theory is being reported on several websites: DSK was arrested because he discovered that the USA was allegedly stalling in its pledged delivery of 191.3 tons of gold to fund the Special Drawing Rights to start what would become an alternative to reserve currencies.
The first sign that this is nonsense: it also says that DSK discovered that there’s no gold in Fort Knox.
The EU Times [...]
From Gold Core
Central Banks Favour Gold and AAA Rated Government Debt – Peripheral Eurozone Debt Cut and Reserve Currencies of EUR and USD Questioned
Stocks are higher in Europe after gains in Asia despite losses on Wall Street yesterday. Gold and silver are showing tentative gains after 1% declines yesterday. Gold is particularly strong in yen terms as the yen has weakened against all 16 [...]
by ZH
Reuters: “jitters over the euro zone sovereign debt crisis, violence in the Middle East and worries over radiation leaks in Japan conspired to blunt risk appetite.”
While the DXY continues to languish in the depths of Ben Bernanke’s sado-maso dungeon, money allocated to new reserve currencies: gold and silver continues unabated. Earlier, gold was on the verge of breaking out to fresh all [...]
by Saxplayer00o1
END THE FED! (InflationUS Video)
1) ADB official: appropriate to look at currency basket
“(Reuters) – The world should examine whether using a basket of currencies is more appropriate than the current system with the U.S. dollar as the single reserve currency, a top Asian Development Bank official said on Monday.
“The economic centre of gravity is shifting and it is shifting to Asia. So we have to [...]
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