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JP Morgan Cornering Silver Bullion Market?JP Morgan Cornering Silver Bullion Market?

JP Morgan Cornering Silver Bullion Market?

- Why is JP Morgan accumulating the biggest stockpile of physical silver in history?
- Legendary silver analyst Ted Butler believes JP Morgan are in a position to corner silver market
- JP Morgan may be holding as much as 350 million ounces of physical silver
- JP Morgan realises the value of owning physical silver bullion today
- Silver at $16 today – Set to soar to over $50 again

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JPMorgan Chase, the largest U.S. bank, one the largest providers of financial services in the world and one of the most powerful banks in the world has accumulated one of the largest stockpiles of silver, the world has ever seen.

The total JP Morgan silver stockpile has increased dramatically in the last four years. In 2011, JP Morgan has little or no physical silver. By 2012, they had acquired 5 million ounces of silver bullion. (more…)

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U.S. and UK GDP Fall Heralds New Depression – ZIRP to Continue

U.S. and UK GDP Fall Heralds New Depression – ZIRP to Continue

- U.S. first quarter GDP grew 0.2%, down from 2.2% last quarter
- U.K. GDP for first quarter was 0.3%, last than half the previous quarter’s figure
- Large inventory build up in the U.S. may mask deep recession
- Zero percent interest policies (ZIRP) to continue despite suggestions to contrary
- Global economy vulnerable to recession and depression

Gold in US Dollars - 5 Years

U.S. and U.K. GDP slowed very sharply in first quarter of 2015. Latest data confirms the rapid slowdown despite stock markets booming in the UK, U.S. and globally.

This highlights the major disconnect between the real economy and a financial sector intoxified by easy money. (more…)

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Europe’s Largest Airline Falls Prey to $5 Million Cyber Theft

Europe’s Largest Airline Falls Prey to $5 Million Cyber-Theft

- Europe’s largest airline says $5 million (€4.5m) taken from bank accounts
- Ryanair confirms hackers stole via Chinese bank
- Cash siphoned from one of its bank accounts
- Allegation that robbed in Chinese banking scam
- Hackers transfer $5 million from a Ryanair dollar account to Chinese bank
- Highlights growing risks of cyber-crime and lack of protection
- Cyberattacks as the “New Cold War” and risk to all our wealth
- Cash no longer king – deposits more risky due to cyber-crime

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Europe’s largest airliner in terms of passengers, Ryanair, has had $5 million siphoned from one of its bank accounts. It is alleged that Ryanair were hacked by cyber-criminals and had the cash illegally transferred to a bank account in China. (more…)

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Gold Rises, Silver Surges on Short-Covering and Physical Demand – Greece, Ukraine, Russia Risks

Gold Rises, Silver Surges on Short-Covering and Physical Demand – Greece, Ukraine, Russia Risks

- Gold rises over 2% while silver surges 4.4%
- Speculators caught off guard as prices rose forcing them to cover their short positions
- Concerns re defaults by Greece and Ukraine
- Geopolitical risk of conflict in Middle East and with Russia remain
- Price rises were accompanied by strong physical demand

Precious metals had their best day since January yesterday as the price of gold and silver rose substantially.

Gold rose over 2% and is now back above the important $1,200 per ounce psychological mark while silver surged 4.4% and is now comfortably above $16 per ounce.

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Many factors seemed to have come together to generate the rise in prices but the primary cause seemed to be buying in the futures market which led to short covering which quickly propelled gold from $1,180 an ounce to over $1,205 an ounce in a short period of time.

Silver prices surged from around $15.80 an ounce to $16.45 an ounce or 4.1 percent prior to selling which capped prices below the $16.50 level. (more…)

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Gold Flows East – India and China Import Massive Quantities of Bullion from Switzerland

Gold Flows East – India and China Import Massive Quantities of Bullion from Switzerland

- Singapore, India and China continue to import staggering volumes of gold from the West
- U.K. exports of bullion to Switzerland increase 6 fold to a very large 97 tonnes
- Gold exports from Switzerland to both China and India doubled in March
- Shanghai Gold Exchange (SGE) becoming most important centre for physical gold trade
- LBMA says London gold trade will not move to exchange
- Gold price languishes at all time inflation adjusted lows despite robust demand …
- Gold will protect Asian peasants and western middle classes …

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In what future generations will likely see as a major, potentially catastrophic blunder of monetary policy, the West and particularly the City of London continues to hemorrhage huge volumes of gold which is flowing Eastwards to Singapore, India and China from London via Switzerland.

“Gold exports to China from the refining hub of Switzerland almost doubled to 46.4 metric tons in March”, up from 23.6 tonnes in February” according toBloomberg. India’s gold imports from Switzerland doubled to 72.5 tonnes in the same period. (more…)

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Election ‘Chaos’ In UK Could Trigger ‘Lehman Moment’ For Pound

Election ‘Chaos’ In UK Could Trigger ‘Lehman Moment’ For Pound

- UK economy a ’timebomb’ and will explode after election – Albert Edwards
- Telegraph warns of “Lehman Moment” stemming from possible election chaos
- Currency traders view pound as being particularly vulnerable
- Latest data shows UK poised to slip into deflation for the first time since 1960
- Polls place Labour and Tories neck and neck as election looms
- Hung parliament may force either side to enter coalition with potentially disliked partners
- Outright majority for either side would also lead to further uncertainty
- Political uncertainty may impact sterling and UK assets
- UK has massive debt and vulnerable to Eurozone debt crisis

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With the British general election due in just under two weeks on May 7, concerns are growing about the outlook for the UK pound after the election and the long term outlook of the UK economy due to the extremely high levels of debt – particularly in the private sector in the UK.

UK debt has continued to rise throughout the recovery and has soared to an eye-watering £1.48 trillion. In recent days, a slew of foreign exchange analysts have warned that the pound is vulnerable to falling in value.

London’s Telegraph warned last week that election ‘chaos’ could lead to a “Lehman moment” for the pound. The pound has been in steady decline since July apparently due to traders pricing in uncertainty around the election. It is currently trading at $1.51, down from $1.71 in July. (more…)

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Currency Wars Back As Russia Buys Gold – One Million Ounces of Bullion in March Alone

Currency Wars Back As Russia Buys Gold – One Million Ounces of Bullion in March Alone

- Russia buys one million ounces and increases gold reserves by another 2.6% in March
- Russia sees gold as important monetary and strategic asset in stealth currency wars
- Large purchase by Russia who normally buy some 300,000 ounces
- Russian gold reserves, at nearly 40 million ounces, are now fifth largest in the world
- Russia likely coordinating gold reserve accumulation with Ex Soviet States
- Concerns re euro and of crisis in erstwhile reserve currency, the dollar
- Gold remains central to international monetary system
- Central banks continue to accumulate large volumes

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Russia increased its gold holdings by one million ounces in March, bringing its total reserves to nearly 40 million ounces or 1,238 metric tonnes. The Russian one million ounce gold purchase is a large one even by Russian standards as in recent years they have consistently been buying roughly 300,000 ounces per month.

It followed a two month break from the gold market which had led to erroneous speculation that Russia was not interested in increasing its gold reserves any further.

Since 2005, Russia’s gold reserves have increased three-fold. As a comparison, in the second quarter of 2009, Russia only had 550 tonnes of gold in its official reserves meaning that their reserves have doubled in recent years.

Russia’s gold reserves are now at least the fifth largest national gold reserves in the world or sixth largest if one includes the IMF. (more…)

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Greek Debt Crisis Coming To Head – “Second Currency” For Greece and Contagion?

Greek Debt Crisis Coming To Head – “Second Currency” For Greece and Contagion?

- Greece Rapidly Running Out Of Cash – Soon Must Fold To Troika Or Default
- IMF Rebuff Greek Suggestion To Delay Repayments
- ECB’s Draghi Warns Potential “Grexit” Puts EU In “Uncharted Waters”
- Despite Threats, Greece Remains Defiant, Won’t “Budge On Red Lines”
- ECB Considering A “Second Currency” For Greece

The Greek government and its “partners” appear to be reaching the end of the road in their negotiations to release the final €7.2 billion of its €240 billion bailout deal.

Greek drachmas

Eurozone countries are demanding that the new Greek government produce a list of reforms that prove its credibility before releasing euros to them. However, Finance Minister Varoufakis is suggesting that Greece will not retreat from its red lines and did not rule out a referendum or early polls if talks remain deadlocked.

Greece is rapidly running out of cash with which to pay public sector wages, pensions and welfare payments. At the same time Greece is expected to pay €930 million which is due over the next few weeks.

It would appear as though the moment of reckoning is fast approaching. If an agreement has not been reached by Friday when the Eurogroup of Finance Ministers meet in Riga it is quite likely that Greece will default. (more…)

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Gold In Dollars Has “Hallmarks Of Market That Bottoming”

Gold In Dollars Has “Hallmarks Of Market That Bottoming”

MARKET UPDATE

Today’s AM LBMA Gold Price was USD 1,204.55, EUR 1,113.83 and GBP 801.86 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,204.60, EUR 1,131.19 and GBP 811.40 per ounce.

Gold fell 0.29 percent or $3.50 and closed at $1,199.00 an ounce on yesterday, while silver rose 0.18 percent or $0.03 closing at $16.29 an ounce.

Gold in USD - 1 Week

In Singapore gold was at $1,200.80 an ounce near the end of day trading. In late European trading gold is at $1,205.31 an ounce or up 0.52%. Silver is at $16.44 an ounce or up  0.87% while platinum at at $1,165.67 an ounce or up 0.41%.

Gold remained firm above $1,200 an ounce today with the weaker dollar, negative economic data and concerns about a Greek debt default supporting this week. Greece’s government has been dead locked in talks over harsh measures to its bailout loans. Germany’s Finance Minister said an agreement next week would be unlikely increasing the likelihood of a default.

For the week, in dollar terms gold is $2 or marginally lower, while silver is down 0.3% and platinum is down nearly 1%. Palladium is outperforming and is up 1% and is having its third straight weekly gain. (more…)

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Global Property Bubble Fears Mount As Prices Spike

Global Property Bubble Fears Mount As Prices Spike

- “Renewed global property bubble” warned of by Financial Times
- Research company MSCI says returns on property last year averaged 9.9% globally
- “Best performance” since 2007 and fifth consecutive annual rise
- Rents have not increased in line with asset appreciation
- Speculators moving into more risky peripheral markets around the major hubs like London
- Demand being driven by lack of yield and ultra loose monetary policies
- Bubble is now fully dependent on record low interest rates in the U.S. and EU continuing …
- Bubble will burst as all bubbles do … question is not if but when …

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Fears of a renewed global property bubble are rising as prices hit records last seen before the financial crisis.

New data shows real-estate returns in the UK surging 17.9% in 2014 and London returns of over 20% and global returns averaging 9.9%, the Financial Times has warned of a “renewed global property bubble”. (more…)

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Greece Out of Funds by Month End – Default and Drachma Imminent?

Greece Out of Funds by Month End – Default and Drachma Imminent?

- Greek government to withhold IMF payments according to the FT
- Prime Minister Tsipras denies preparing for default according to Reuters
- Government funds to run out by end of month
- Default would likely lead to “Grexit” and return to drachma
- EU may not withstand uncertainty surrounding break-up of monetary union
- Concern could trigger derivatives crisis and ‘Lehman moment’
- Like frogs in a pot of water that is very slowly coming to the boil

1,000 Greek Drachma Note

The Financial Times, citing unsourced “people briefed on the radical leftist government’s thinking” has made the claim that the Tsipras government in Athens has “has decided to withhold E2.5 billion of payments due to the International Monetary Fund in May and June if no agreement is struck”.

The Greek government was quick to deny the claim. “Greece … is not preparing for any debt default and the same goes for its lenders. Negotiations are proceeding swiftly towards a mutually beneficial solution,” read a statement from the Prime Minister’s office.

The Greek government is rapidly exhausting its funding  to pay salaries and pensions with no funding from its lenders having been released since July. Another “end of the road” deadline looms – this time the Eurogroup meeting on April 24th. (more…)

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Bank Deposits No Longer Guaranteed By Austrian Government

Bank Deposits No Longer Guaranteed By Austrian Government

- Austria will remove state guarantee of bank deposits
- Austrian deposit plan given go ahead by the EU
- Banks to pay into a deposit insurance fund over 10 years
- Fund will then be valued at a grossly inadequate €1.5 billion
- New bail-in legislation agreed by EU two years ago
- Depositors need to realise increasing risks and act accordingly
- “Bail-ins are now the rule” and ‘Bail-in regime’ coming

Bank deposits in Austria will no longer enjoy state protection and a state guarantee in the event of bank runs and a bank collapse when legislation is enacted in July. The plan to ensure that the state is no longer responsible for insuring deposits has been readied by the Austrian government in conjunction with the EU two years ago according to Die Presse.

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Currently, Austrians have their bank deposits guaranteed to a value of €100,000 – the first half to be provided by the failing bank and the other by the state. From July, however, the state will be removed from the process and a special bank deposit insurance fund is to be set up and paid into by banks to meet potential shortfalls.

The fund will be filled gradually over the next ten years to a value of €1.5 billion. In the the event of a failure of a major bank in the intervening period the legislation will allow the fund to borrow internationally although who will provide such funding and on what terms is not clear, according to Austria’s Die Presse. (more…)

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