money

The Disappearing Gold

"The Bundesbank is just as fearful of a run as the Fed and will be only too willing to accept the Fed’s terms. What must be borne in mind is the root cause of the request. It was not the Bundesbank itself that originally wanted the transfer to take place; it was the German people who, quite rightly, have become distrustful of the fact that their gold has been in New York for so long and want to see it repatriated. It is not the banks who wish to correct the situation. Not one bank wishes to expose the inappropriate practices of any other bank. Their loyalty is to each other and not to their depositors." Continue reading →

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LBMA, IGE urged to end Iran-Turkey Gold trade

"Turkey is facing more pressure from global communities to end it's gold-for-gas dealings with Iran. The latest to join the fray is United Against Nuclear Iran (UANI), which launched its Turkey gold campaign, and called on both the London Bullion Market Association (LBMA) and Istanbul Gold Exchange (IGE) to enact new measures to combat illicit barter agreements, where Iranian crude oil is being exchanged for Turkish gold. Specifically, UANI is calling for the LBMA to require all of its members, particularly the IGE, to certify that the recipient of their gold products is not Iran. The LBMA should revoke the membership of any member that is unable to do so." Continue reading →

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How The Central Bank Of Turkey Uses Gold

"Amid the brouhaha over Germany's gold reserves at the Bundesbank, there's another central bank using gold actively to bolster its currency and financial stability. The strategy looks the same – sitting on big stockpiles of the stuff. But the aim differs, because gold is much closer to the everyday financial system. Starting in October 2011, the central bank began allowing commercial banks to hold a portion of their 'required reserves' – needed to reassure depositors and other creditors they had plenty of money to hand – in physical gold bullion. Starting at 10%, that proportion was then raised to 30%." Continue reading →

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Is The ECB Responsible For The Second Coming Of Bitcoin?

"Why the ECB suddenly felt threatened so much by Bitcoin, it felt an imperative to issue a 55 page paper decrying such electronic currencies we will never know. What we do know, however, courtesy of a reminder by Bloomberg's Max Raskin, is that since the publication of said paper, the value of Bitcoin as tracked by the Mtgox exchange, has soared some 40% in just under three months, from a 'fiat equivalent value' of $13 to a most recent closing price of $18.50, and has doubled in the past 12 months alone." Continue reading →

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Bitcoin’s Gains May Fuel Central Bank Concerns

"An increase in the value of bitcoin, the world’s largest online currency, may fuel concerns that virtual money could undermine the role of central banks. Bitcoin has more than doubled in the past 12 months, strengthening to $16.37 from $5.88, according to data from Mt. Gox, the world’s largest bitcoin exchange. Greater demand for virtual currencies could have a negative impact on the reputation of central banks, according to a report published by the European Central Bank in October last year. Since the report was released, bitcoin has risen more than 55 percent against the dollar and use of the currency has surged." Continue reading →

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Two Chess Moves Away from Capital Controls

"Is it really so far-fetched to think politicians wouldn't somehow restrict the movement of gold if their currencies and/or economies were failing? Transferring dollars internationally would certainly be tightly restricted as well. Moving almost any asset across borders could be declared illegal. Even your movement outside your country could come under increased scrutiny and restriction. The hint that all this is about to take place would be when politicians publicly declare they would do no such a thing. You could quite literally have 24 hours to make a move. Even the most nimble of us would have a very hard time making arrangements." Continue reading →

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81 gold coins found during pub work

"Builders carrying out stabilisation work on an old pub building have unearthed one of the most significant finds of gold coins ever recorded in Ireland. Eighty-one coins, mostly guineas and half guineas dating back to the 17th century, were dug up from clay underneath floorboards in a fire-damaged premises on Main Street, Carrick-on-Suir, Co Tipperary." Continue reading →

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Euromoney Endorses Bank of Israel Governor for Fed Chairman

"Euromoney, which chose outgoing Governor of the Bank of Israel Prof. Stanley Fischer as 'Central Bank Governor of the Year in 2010,' calls for him to be appointed the next Chairman of the US Federal Reserve. EPJ was first to suggest that Fischer may be considered for the Fed post, when Bernanke's term ends in January 2014. Euromoney explains how inflationist Fischer was as Bank of Israel's top man. Under Fischer's watch in Israel, inflation has been comparatively very strong. Indeed, in 2011, it was as high as 4.3%, more than twice the Fed's current target rate." Continue reading →

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Financial Times: Other Countries Should Follow Germany’s Gold Repatriation Lead

"The Bundesbank's move is important: not for what it says about Germany's faith in French or American vaults; nor for the cost of shifting 674 tonnes of gold; but because it is a major victory for transparency in the gold market. Central banks are notoriously secretive about their gold-trading activities. Most report, on a monthly basis, their gold reserves to the International Monetary Fund. But these data fall a long way short of full transparency. They tell us nothing about derivative positions in the gold market -- for example, gold loans, agreements for future sales, or options transactions." Continue reading →

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China tells U.S. to slow money printing presses

"A senior Chinese official said on Friday that the United States should cut back on printing money to stimulate its economy if the world is to have confidence in the dollar. Asked whether he was worried about the dollar, the chairman of China's sovereign wealth fund, the China Investment Corporation, Jin Liqun, told the World Economic Forum in Davos: 'I am a little bit worried.' China is the biggest purchaser of U.S. Treasury bonds, using its enormous foreign currency reserves primarily to buy U.S. securities as a long-term investment." Continue reading →

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