September Gold News 2015

China added to their gold reserves once again in August. The Chinese central bank purchased 520,000 ounces or 16.2 tonnes to take their total official holdings to 54.45 million troy ounces according to data released by the Peoples Bank of China.

In July China ended six years of silence surrounding their gold holdings by announcing they had increased their stockpile by 57%. In doing so they over took Russia as the fifth largest holder of gold.

Russia purchased 29.9 tonnes or 1 million ounces in August to take their total holdings to 42.2 million ounces.

The former Soviet states of ...

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After years of speculation is the world about to learn some of the world’s largest financial institutions have been rigging the gold and silver price? Ever since Duetsche Bank was raided by Germany’s financial regulator, Bafin, and Barclays Banks was fined £26 million for manipulating the London Gold Fix, many are speculating the world’s most powerful banks have been manipulating the price of both gold and silver.

Yesterday the situation go a lot worse when Swiss regulator WEKO launched their own investigation into potential price rigging. As well as regulatory investigations a number of lawsuits have been filed in the ...

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Analysts are warning of dire financial consequences if commodity giant Glencore is unable to take control over is debt load. Glencore has one of the world’s largest commodity derivative trading desks in the world.

The share price dropped 30% after investment company Investec reported Glencore’s debt was significantly higher than its industry average and the company has a lower margin asset base. The cost of insuring Glencore debt surged on the news.

Investec warned if commodity prices don’t recover soon it will be extremely difficult for the company to repay its debts.

In many ways Glencore is more like Lehman ...

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Swiss regulators are to investigate Barclays Bank, HSBC, Deutsche Bank, Morgan Stanley, Mitsui Bank and two Swiss based banks over potential manipulation of the precious metals markets.

The Swiss Competition Commission (COMCO) said the financial institutions under suspicion potentially colluded with each other to rig the gold, silver and platinum markets. COMCO indicated there is evidence banks may have worked together to manipulate prices, namely the bid offer spread.

The investigation is expected to conclude in 2017 and if found guilty the maximum penalty the banks could face is a fine.

The European antitrust regulator is also conducting their own ...

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It seems the Bank of England (BoE) is preparing the groundwork to ban cash. Last week BoE chief economist, Andy Haldane, warned policymakers should be ready to implement radical measures to support the economy including banning cash.

Now former Bank of England policymaker Charles Goodhart believes high denominated bank notes should be removed from circulation. He suggested the central banks of Switzerland and the ECB are acting irresponsibly by issuing the 1,000 franc and 500 euro notes. The former banker argued high denominated notes are used widely within the black economy and are fuelling illegal activity. He is also believes ...

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The gold price rose yesterday and global stock markets fell after U.S. economic data disappointed the markets. The U.S. Department of Commerce confirmed that durable good sales fell in August and the Department of Labour confirmed unemployment applications are on the rise.

The gold price has risen 5% since the Federal Reserve decided against an interest rate rise last week. Rates in the U.S are now unchanged since June 2009.

Poor economic data may give the Fed an excuse to keep rates unchanged for longer. Unsurprisingly the U.S. dollar fell which boosted golds safe haven status. Historically gold and the ...

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Gold buying in India the world’s second largest gold consumer is estimated to jump in the final quarter of 2015. It appears lower prices are generating a resurgence in buying activity throughout the sub-continent. Traditionally physical buying peaks in September and November during the wedding season.

China’s shock devaluation of the Yuan and stock market plunge has only increased golds appeal throughout the country.

According to figures released by the Swiss Federal Customs Administration Department exports of physical gold from Switzerland to India rose from 66.2 tonnes in July to 66.9 tonnes in August. Whilst exports to China surged 49% ...

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Global demand for both gold and silver has soared as investor’s across the global scramble to buy retail sized bars and coins. Demand has been so strong many of the world’s leading mints have simply run out of products.

Central Banks have also stepped up their purchases. In August alone the Russian Central Bank bought another 1 million ounces of gold. That’s equivalent to 31 tonnes or a tenth of the UK’s total gold holdings.  In 2015 alone Russia has bought 112 tonnes, bumping their total reserves to over 1,300 tonnes.

Gold demand is China is as strong as ever ...

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Platinum prices dropped 3.6% yesterday to a 6 ½ year low as the U.S. dollar strengthened and investors worry the Chinese economy is stalling.  China’s factory activity contracted at its fastest rate for 6 years.

The scandal engulfing Volkswagon is not helping the sector as investors worry consumers may change their preference away from diesel engines. Platinum is a key component in catalytic convertors and accounts for 50% of the globes total platinum demand.

If regulators uncover widespread irregularities and environmentally conscious motorists switch to petrol it could totally decimate the industry. In the last 12 months the platinum price ...

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The Bank of England (BoE) may introduce negative interest rates to fight low inflation. After 6 years of near zero interest rates the Bank had previous indicated the next interest rate move with be upwards.

Andy Haldane, the BoE chief economist warned rates may have to go negative to support the economy as China slows and global stockmarkets continue to weaken. Worryingly, Haldene believes there are signs the world economy is entering a third phase of turmoil following the 2008-2009 banking catastrophe and the 2011-2012 euro sovereign debt crisis.

Speaking at the Portadown Chamber of Commerce Haldene suggested policymakers should ...

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After months of deliberation the Federal Reserve decided not to raise interest rates. The Fed cited weakness in the global economy and lower than expected inflation as the main drivers behind their decision. Immediately following the announcement the U.S. dollar fell and the gold price rose to £726 per ounce.

Interest rates in the U.S. has now been at zero since December 2008 and many are beginning to doubt if the Fed will ever raise rates. Instead many are anticipating further easing in the form of negative rates or a fourth round of quantitative easing.

European stock markets have reacted ...

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The gold price surged over 2% yesterday, following negative inflation data which makes a fed interest rate rise today unlikely. The gold price rose over $20 per ounce to break through the $1,100 per ounce barrier.

Consumer price inflation turned negative for the first time since January 2014 dampening expectations of a rate rise. Typically the gold price declines when interest rates rise as the opportunity cost of holding gold increases as the metal provides no yield. Higher rates also boost the U.S dollar which also tends to put downward pressure on the gold price.  

Market data indicates that ...

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With global debt over $200 trillion and stock markets straining under the weight of record valuations, is the house of cards ready to fall? Increasing numbers of people are waking up to the idea that our debt based monetary system is both fragile and unsustainable. As the system starts to unravel increasing number of people are asking what will be the trigger point?

Below is a list of potential catalysts

China starts to sell U.S. treasuries.

The stock market or bond market crashes.

Greece defaults on its debt obligations.

Interest rates rise causing mass panic in the world’s debt markets.

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The gold price remains broadly unchanged during Asian trading and is expected to remain quiet as investors wait for the FOMC’s latest interest rate decision on Thursday.

The Fed has not raised interest rates in nearly a decade and many traders now believe the Fed will once again delay a rate rise. Normally a rate hike would be bullish for the U.S. dollar and negative for gold, however, we are not living in a normal economic environment.

Overnight Chinese shares fell 3.52% following the release of poor industrial production data. The FTSE 100 has followed suit and is currently down ...

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Germany’s finance minister, Wolfgang Schaeuble, has warned continued money printing by the world’s Central Banks will result in massive financial bubbles. The comments came after the European Central Bank (ECB) confirmed they would increase the size of its current quantitative easing program if required.

The ECB started is 1.1 billion euro quantitative easing in program in January in attempt to stop the continents economy falling into a deflationary spiral.

During his budget speech Schaeuble warned that policy makers should learn the lessons of the 2008 crisis and not rely on money printing to reflate the economy. Instead he stressed the ...

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Gold coins sale in Europe and the U.S. surged in the third quarter with sales in the U.S. hitting levels not seen since 2013. Low prices and increased volatility in global stock markets has sparked retail demand.

Sales of the 1 oz. gold American eagle trebled in the third quarter to 322,000 ounces. Every time the price breaks down retail demand jumps. Although the gold price has only dropped 6% this year increased stock market volatility, concerns over the health of the Chinese economy and political upheaval in the Eurozone has sparked retail demand.

The Austrian Mint, who produce the ...

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Mark Karpeles, the former chief of the bitcoin exchange MtGox, has been found guilty of embezzlement by a Japanese court.

Karpeles was arrested in August for publishing fraudulent data on how many bitcoins the exchange was processing.

MtGox was shut down by Japanese authorities in 2014 after it was found £132 worth of bitcoins had gone missing. Prior to its closure MtGox was the world’s largest bitcoin exchange processing around 70% of all bitcoin transactions.

The former chief also faces charges he funnelled £1.7 million in bitcoins into companies he owned. A Japanese court placed MtGox into administration in April ...

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With many commodities trading near five year lows some big time investors are returning to the sector. Only last week legendary investor Stanley Druckenmiller made a $323 million bet on gold. Whilst running the Duquesne Capital Management hedge fund between 1981 and 2010 Druckenmiller achieved a 30% annual return and never had a year in which he lost his clients’ money.

George Soros who famously broke the Bank of England in 1992 by beating against the pound recently invested $2 million in U.S coal producers and made a number of acquisitions in the precious metals sector. Does this mean the ...

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Canadian police have arrested four men in connection with last week’s theft of $7.6 million worth of silver from the Port of Montreal.

The robbery occurred last Wednesday when a Maersk shipping container containing 16 tonnes of silver was stolen from under nose of port authorities. Somehow the gang evaded port security and over 350 video cameras.

Canadian police confirmed overnight they had located the missing container, made a number of arrests and recovered some of the stolen silver.

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Chief economist at the World Bank, Kaushik Basu, believes there will be mass panic and turmoil if the Fed raises rates.

The global economy is looking weak and if the Fed does raise interest rates it will send shockwaves across the financial system and cause immediate problems within the world economy.

Following last month’s weak U.S. employment data a decision on whether the Fed will increase interest rates is now too close to call.

An interest rate hike could potentially threaten emerging economies, many which have their debt denominated in the U.S dollar. Firstly they would have to pay a ...

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China have announced they are launching an oil contract priced in Chinese yuan rather than U.S. dollars. The contract will be traded on the Shanghai International Energy Exchange and will compete directly with the Brent and West Texas contract.  Both contracts are currently settled in U.S. dollars.

Most countries and large multi nationals hold U.S dollars in reserve for the purpose of buying and selling commodities. If U.S. dollars are no longer required its status as the world’s reserve currency will come under threat.

More and more countries are attempting to diversify away from the dollar. Only this week the ...

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Every June the Bank of England (BoE) updates the market with its annual report. Within the report the bank states the amount of gold they hold under custody for its customers, which comprise financial institutions, central banks and LBMA members.

In the 2013 report the BoE stated they held £210 bn in bullion, in 2014 the figure was down to £140 bn. Therefore, in terms of weight the BoE holdings fell from 6,240 to 5,485 tonnes. In the Banks latest reported a further 350 tonnes of gold left in their custody. The BoE acts as custodian for around 100 customers.

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Mario Draghi the president of the European Central Bank (ECB) suggested the bank may increase the size of its quantitative easing program. Following the announcement stock markets initially rallied with the German Dax rising 2% whilst the FTSE 100 gained 1.3%.

The news came as no surprise in light of increased global uncertainty following the recent decline in global stocks and lower growth. The ECB also confirmed they will keep interest rates unchanged at 0.05%.

Currently the ECB is buying 60 billion euros of sovereign debt a month in a hope to kick start growth across the continent. It is ...

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The silver price appears to have divorced itself the from supply demand fundamentals.  In normal circumstances when the price declines so does demand. However, his is not happening in the silver market.

With the price trading close to a five year low retail investors around the globe are scrambling to acquire silver bars and coins. The U.S and Canadian Mint have officially run out of silver coins and many dealers are struggling to keep up with demand.

The surge in silver demand has put considerable pressure on global silver inventories.  During August the Comex reported 1 million ounces had been ...

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Vladimir Putin wants all CIS member nations to stop using the U.S. dollar and euro. In effect the Russian President wants to create one single financial market between Russia, Kazakhstan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and Belarus.

Like any financial asset a currency only has value if there is demand. If countries stop using the dollar its value will fall.

Putin is hoping the trade bloc will help expand the use of national currencies, create greater liquidity and promote macro-economic stability.

Russia is also in the process of creating alternative to the U.S based Swift payment system in a move which ...

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As stock markets continue to tumble traders are once again looking to their central banks to save the day.

As global stock markets plunged the Fed rolled out William Dudley, President of the Feds New York branch to calm the markets. After six years of zero percent interest rates and trillions of dollars in quantitative easing the Fed is running out of ammunition. The best  they can now do is hint that they may delay an interest rate rise.

According to a number of traders global stock markets are so pumped up with cheap credit that a market crash is ...

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“Deficit spending is simply a scheme for the ‘hidden’ confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.” — Alan Greenspan

“The great merit of gold is precisely that it is scarce; that its quantity is limited by nature; that it is costly to discover, to mine, and to process; and that it cannot be created by political fiat or caprice.” — Henry Hazlitt

“Money is gold, and nothing else” — J.P. Morgan

“We are in a world of irredeemable paper money — a state of affairs unprecedented in ...

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