In a final poll at the Second edition of the Dubai Precious Metals Conference (see video here) 63 per cent of delegates thought gold was heading towards $3,000 by 2014 and 37 per cent voted for a tumble towards $1,000. The vote followed a lively discussion between the conference’s leading bulls and bears.
Gold guru Andy Smith came out of retirement for the event with a powerful statement of how the accumulated costs of entitlements created by democratic governments would bring the world’s financial system to its knees with debt.
Sharps Pixley CEO Ross Norman also focused on the high cost of accumulated debt and how this would spill over into an ever higher gold price. He reckoned some kind of unexpected economic event would finally trigger much higher gold prices in the near future with US debt at 380 per cent of GDP.
China-Australia to trade in national currencies
April 9, 2013, 2:20 am
Australia and China have reached a new agreement on direct trade through their respective national currencies.
“Earlier today we took a significant new step in the relationship when I welcomed a new agreement between our financial authorities” announced Australian prime minister Julia Gillard in China on Monday.
“The Australian and Chinese currencies will be directly traded on the Chinese mainland for the first time,” said Gillard.
The prime minister said that, “The important Chinese government policy objective of greater internationalisation of the Chinese currency will be significantly advanced by these decisions.”
This agreement makes the Australian dollar the third major currency to directly trade in China’s mainland foreign exchange market, after the US dollar and the Japanese yen.
“This reflects the rapid growth of our bilateral trade and the value of two-way investment, and it also creates opportunities for new financial integration,” Gillard said.
Last week, a rubicon was crossed in the precious metals market as one of the largest banks in Europe defaulted on their gold contracts, and informed their customers there was no physical gold available for delivery.
ABN AMRO, the largest Dutch bank in the Eurozone, issued a letter to their gold contract customers of failure of delivery, and instead will pay account holders in a paper currency equivalent to the current spot value of the metal.
ABN AMRO, the biggest Dutch bank, has sent a letter to its clients stating that they will no longer be able to take physical deliveries of the gold they have bought through ABN. Instead they are offered money at the current market rate for gold. Basically, instead of owning a risk free, physical asset (a gold bar or a gold coin), the bank’s clients now own a monetary claim on ABN AMRO, being exposed to the bank’s credit risk. – Voice of Russia
Over the past two months, there has been a concerted effort by the major Western banks to bring down the price of gold and silver, even as countries like Russia, Iran, and China continue to accumulate the physical metal in large quantities. Like the folly of betting against the stock markets when the Fed is pumping up equities with $85 billion per month, going against the J.P. Morgan silver short machine in the futures market has been a losing proposition for silver bulls.
Legendary gold trader Jim Sinclair sent out an email alert to subscribers over the weekend, advising investors that You must now act to exit the system! Sinclair, who as recently as 2 weeks ago advised those attending his NYC meeting that investors have 2 years to withdraw their IRA and 401k funds from the system, has changed the urgency of his call significantly, stating:
You must exit the system immediately because the Financial Nazis struck in Cyprus and now are moving directly towards you. This is simple fact, which if you ignore will be akin to the rise of the Nazis in Germany for those that knew they should, but never made the decision to leave that system.
The politicians of the western world are coming after your bank accounts. In fact, Cyprus-style “bail-ins” are actually proposed in the new Canadian government budget. When I first heard about this I was quite skeptical, so I went and looked it up for myself. And guess what? It is right there in black and white on pages 144 and 145 of “Economic Action Plan 2013” which the Harper government has already submitted to the House of Commons. This new budget actually proposes “to implement a ‘bail-in’ regime for systemically important banks” in Canada. “Economic Action Plan 2013” was submitted on March 21st, which means that this “bail-in regime” was likely being planned long before the crisis in Cyprus ever erupted. So exactly what in the world is going on here? In addition, as you will see below, it is being reported that the European Parliament will soon be voting on a law which would require that large banks be “bailed in” when they fail. In other words, that new law would make Cyprus-style bank account confiscation the law of the land for the entire EU. I can’t even begin to describe how serious all of this is. From now on, when major banks fail they are going to bail them out by grabbing the money that is in your bank accounts. This is going to absolutely shatter faith in the banking system and it is actually going to make it far more likely that we will see major bank failures all over the western world.