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Scramble for gold to beat tax increase
Financial Times Coins that are currency but not sterling, such as South African krugerrands, are subject to CGT, the Revenue says. Dealers said the rush by UK-based … and more » |
Source:Scramble for gold to beat tax increase – Financial Times
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Gold at $1500/oz Forecast by Gold Analysts on Sovereign Debt and Currency Concerns
Gold Seek Bullion premiums have begun to move up in Europe and premiums on Krugerrands and one ounce gold bars are up by more than 1% in the last 2 weeks. … and more » |
Source:Gold at $1500/oz Forecast by Gold Analysts on Sovereign Debt and Currency Concerns – Gold Seek
Why Europe’s $1 trillion bail out could make Gold Investment vital today…
JUST UNDER $1 trillion…that’s what the European Union has promised in an emergency rescue package to stabilize the Euro currency and Europe’s financial woes, writes Steve Sjuggerud at Daily Wealth.
The result? Nothing so far.
On Friday, the Euro hovered around $1.27 all day. As I write…$1 trillion later…the Euro is hovering around $1.27. Like I said, nothing.
In fact, the result turns out to be worse than nothing. It may prove to be the worst $1 trillion ever spent.
To me, this $1 trillion spells the end of the Euro as a credible "threat" to the US Dollar. And it brings gold one step closer to being at least the world’s No. 2 reserve "currency" (behind the US Dollar).
You see, before the $1 trillion promise (along with new promises from the European Central Bank to spend money to prop markets up), the Euro currency had some semblance of credibility.
The Euro’s credibility goes back to the predecessor of the European Central Bank – Germany’s "Bundesbank". For decades, Germany’s old currency (the Deutschemark) was one of the world’s strongest. The Bundesbank had a reputation for not sacrificing the value of the deutschemark for political needs, so investors wanted to hold Germany’s currency.
With the start of the Euro, financial markets assumed the new European Central Bank would inherit the legacy of the Bundesbank. That’s what kept the Euro up as a credible threat against the US Dollar’s world dominance.
But the $1 trillion promised over the weekend – along with promises to prop up the markets – killed the idea that the European Central Bank would act like the Bundesbank. It horribly damaged the Euro’s long-term credibility.
Now, the Euro is just like a Dollar – politicians are willing to sacrifice its value. Wait… a Euro is now worse than a Dollar. The Euro is less traded (less liquid) than the Dollar. And if the Euro fails, there is nobody to blame.
It gets worse…
Yesterday, in his excellent Gartman Letter, trading guru Dennis Gartman asked, essentially:
What is the propensity of the reserve banks of China and India to add Euros to their reserve assets now? We have to think it is somewhat reduced from what it was only a short while ago…
On the other hand, what is their propensity to own gold now? Almost certainly it is enhanced.
The numbers are showing it. Gold Prices are hitting highs in BOTH Dollars and Euros. In short, paper money really lost credibility over the weekend.
The Euro is now a garbage currency. It deserves even less credibility than the US Dollar. But the US Dollar doesn’t deserve a lot of credibility, either.
It’s easy to sit in the States and see the problems over there. But the thing is, we have the same problems. We have too much government spending…and we have too many future promises we can’t fulfill, like Social Security.
What makes our government’s problems that much different than the countries of Europe? They’re just ahead of us.
What we need is change. We need countries to commit to changing their ways.
You don’t fix a drug addict by giving him more money. He’ll go spend it on more drugs. Instead, you need to get him to rehab, to give him a fighting chance to change his ways.
You don’t fix someone who’s overspent on their credit cards and is living beyond his means by giving him more money. He’ll simply get himself deeper in debt. Instead, you need to cut up the credit cards and force him to live lean for a while.
What can you do? Two obvious things:
Buy Gold instead of paper currencies. The US and Europe have made it crystal clear their "release" valve is the value of our paper currencies;
Make your presence known to your government representatives. Do your best to "take their credit card away" and "send them to rehab" to prevent the US from becoming the next Greece.
Both the Dollar and the Euro will be weak against gold, as politicians the world over have now proven they’ll sacrifice the value of their currencies for short-term political gain.
Trade and invest accordingly.
Buy Gold and own it – securely – inside non-bank Swiss storage for just $4 per month by using BullionVault…
Source:A Waste of $1 Trillion
Gold ends lower on Thursday, retreating from four-month as buying prompted by currency fears fizzle.
Source:Metals Stocks: Gold ends lower as currency fears subside
 ETF Database |
World Gold Council Discloses Investors Bought 5.6 Tonnes Of Gold Via ETFs In Q1
Before It’s News Overall demand, however, remains high by historical standards. Investors wishing to purchase gold coins or small bars can find a list of retail dealers on … McGhee On The Gold CurrencyResource Investor all 17 news articles » |
Source:World Gold Council Discloses Investors Bought 5.6 Tonnes Of Gold Via ETFs In Q1 – Before It's News