Precious Metals

The bacterium that lays tiny nuggets of gold

"Among the more peculiar organisms that inhabit our Earth exists a bacterium that turns water-soluble gold into microscopic nuggets of solid gold, scientists said Sunday. Chemists have often pondered why the germ Delftia acidovorans is frequently found on the surface of tiny gold nuggets. Its presence led scientists to speculate it may be creating the particles from soluble gold — ions of gold that are dissolved in water. But the puzzle was how D. acidovorans did this trick, as soluble gold is toxic. The answer lies in a molecule excreted by the microbe that both shields the organism and transforms the poisonous ions into particles." Continue reading →

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Pacific Group to Convert 1/3 of Hedge-Fund Assets to Gold

"The Pacific Group Ltd., founded by a former PaineWebber Inc. trader, is converting one-third of its hedge-fund assets into physical gold, betting that prices will go up as governments print more money to pay off debt. The Hong Kong-based asset manager plans to take delivery of $35 million worth of gold bars that can be traded on the London Bullion Market Association and other international markets, William Kaye, its founder and chief investment officer, said in a telephone interview on Jan. 18. It has secured vault space at Hong Kong International Airport to store the gold, he said." Continue reading →

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Swiss Gold Repatriation Almost Reality

"Today, almost one year later we have 90000 supporters for this initiative. Once the 100000 supporters is reached, we are certain that the Swiss National Bank will repatriate their gold holdings. I'm sure those 10000 votes will be reached by March 2013. The SNB hasn't said where its gold is and also hasn't said if it will repatriate their gold all at once, but if they were to repatriate it all at once, it would be almost double the amount that Germany is now repatriating over 7 years: namely 674 tonnes of gold. Other countries who want their gold back are: Ecuador (26 tonnes), The Netherlands (613 tonnes)." Continue reading →

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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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India hikes import tax on gold by 50%

"India raised the import tax on gold to 6% from 4%, a senior finance ministry official said, as the world's top gold buyer aimed to curb purchases and rein in its ballooning current account deficit. India's passion for gold, seen by many as a hedge against persistently high inflation, has contributed to a rise in its current account deficit, which reached an all-time high of 5.4 percent of GDP in the July-September quarter. The shortfall has increased India's need for foreign capital inflows and evoked memories of the 1991 balance of payments crisis, when the central bank sent 47 tonnes of gold to Europe as collateral for a loan to avert a sovereign default." 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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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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Honduras police seize $50,000 gold-plated AK-47 rifle

"The authorities in Honduras have seized a gold-plated, jewel-encrusted AK-47 assault rifle, complete with two silver magazines. The gun, estimated to be worth more than $50,000 (£30,000), is believed to belong to drug traffickers. Following a tip-off, police also found a number of weapons, along with other military equipment and passports." Continue reading →

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Gold nugget weighing 5.5 kg discovered in Australia

"A prospector who found a gold nugget weighing 5.5kg (12lb) in the Australian town of Ballarat is said to be 'very happy'. The find, which is 22cm long (8.7in), was handed to gold shop owner Cordell Kent to sell to the highest bidder. He estimates the gold is worth more than 280,000 Australian dollars ($290,000; £180,000). The man has decided to stay anonymous, but that has not stopped local residents from speculating on his identity." Continue reading →

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