Sunday, December 22, 2013

Still lots of reasons to hold gold

This from The Telegraph in London. Note the paragraph about Gresham's law. Important.
The market price of gold might have fallen during the year but hoarding of the precious metal by individuals and central banks is approaching record levels. 
In trading terms, it has been a tough year for the yellow metal. The price has fallen 28 per cent in 12 months. But the fundamentals, characteristics and attractions of gold are undiminished because we are in times of extreme intervention by governments, the outcome of which is completely unknown. 
The first rule of investment is preservation of capital. The second is to search for gains or income that fits with your appetite for risk...more
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
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Thursday, December 12, 2013

House Prices in New Zealand v Gold, November 2013

A movement in favour of houses in November 2013.

It now takes 12 gold ounces more (379) to buy the median priced Auckland house than it did in October. It now takes 5 ounces more (260) to buy a median priced house in New Zealand.

Note that while house prices are going bananas, there has been a slowing of late. Maybe the Reserve Bank first home buyer LVRs are kicking in. But we also note that prices are only half-way to their highs against gold in May, 2005 even though they are really high in fiat money terms right now ie. house prices would have to be around a $960,000 dollar median now if you wanted the same purchasing power now in dollars as with gold in 2005.





Gold in New Zealand dollars: $0000.00 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $00.00 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw: Raw Food for Everyday Living

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. Consultations, Classes, programs and products.
_____________________________________________________________

Wednesday, December 11, 2013

Gold Supply Squeeze?

A recent interview with The Anglo-Far East Company’s Chief Market Strategist Alex Stanczyk regarding his recent visit to Switzerland and what he drills down into what is really behind the scenes of the current precious metals markets learned during his meeting with the Director of Switzerland’s largest refinery...here

Gold in New Zealand dollars: $1518.00 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $24.56 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw: Raw Food for Everyday Living

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. Consultations, Classes, programs and products.
_____________________________________________________________

Monday, December 9, 2013

Why do we value gold?

By Justin Rowlatt Presenter, Business Daily, BBC World Service

Mankind's attitude to gold is bizarre. Chemically, it is uninteresting - it barely reacts with any other element. Yet, of all the 118 elements in the periodic table, gold is the one we humans have always tended to choose to use as currency. Why?...more

Gold in New Zealand dollars: $1479.96 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $23.41 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw: Raw Food for Everyday Living

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. Consultations, Classes, programs and products.
_____________________________________________________________

Tuesday, December 3, 2013

Time for Gold Investors to Admit Defeat?

After a 12-year run, it looks like gold's wave has truly crested, and many bears are arguing that it's all downhill from here. A quick glance at a long-term gold price chart can certainly seem to confirm this impression.

Gold's price has fallen by more than a third since its 2011 high. The downturn exceeds the 2008 waterfall sell off. Many technical analysts are saying that the "damage" on the charts is too great for gold to recover.

The rout is so bad, even hardened gold (lovers) have grown quiet lately.

Is it time for gold investors to admit defeat?... more here

Gold in New Zealand dollars: $1491.50 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $23.57 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw: Raw Food for Everyday Living

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. Consultations, Classes, programs and products.
_____________________________________________________________

Thursday, October 17, 2013

James Rickards About Central Bank Manipulation of Gold and Silver Markets

Fabrice Drouin Ristori (FDR): Mr Rickards, thanks for accepting this interview. How long the manipulation of the precious metal markets can last ?

James Rickards: Central bank manipulation of gold markets can and will last until physical shortages become so acute that banks and exchanges can no longer deliver on futures and forward contacts when requested by customers. At that point, contracts will be terminated and exchanges will order that trading be conducted "for liquidation only" which means that futures customers can close out or rollover contacts, but they cannot receive physical delivery of gold.

FDR: What will put an end to it ? Physical demand ? Geopolitical event (BRICS) ? 

JR: Physical demand will remain strong until the world returns to a gold standard. Once the world is on a gold standard, gold may move from country to country in settlement of balance of payments accounts, but there will be no reason to acquire extra gold because the value of gold will be fixed in terms of each major currency. When you are on a gold standard, gold and currency are freely interchangeable. However, gold will continue to be in demand until a gold standard is implemented. This is because the market price of gold is considerably less than the implied non-deflationary price of gold under a gold standard. As long as this situation prevails, there will be an arbitrage motive to exchange currency for gold....more here

Gold in New Zealand dollars: $1522.85 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $25.43 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw: Raw Food for Everyday Living

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. Consultations, Classes, programs and products.
_____________________________________________________________

Monday, October 14, 2013

House Prices in New Zealand v Gold, September 2013

A movement in favour of houses in September 2013.

It now takes 44 gold ounces more to buy the median priced Auckland house than it did in August. It now takes 33 ounces more to buy a median priced house in New Zealand.



Gold in New Zealand dollars: $1530.95 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $25.65 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw: Raw Food for Everyday Living

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. Consultations, Classes, programs and products.
_____________________________________________________________

Friday, September 27, 2013

The Stealth Deceptive Nature of Deflation and Gold

This week Anglo Far East Treasury Director Simon Heapes posed a question to Jim Rickards regarding the stealth deceptive nature of deflation and how it affects the economy and more importantly the real value of Gold.

Business activity is slowing in the western world yet at the same time debt levels are increasing. This is not just happening on a government level but also on an individual and business level for companies.

The Federal Reserve since 2008 is trying desperately to induce inflation, yet with all the money printing in the order of approximately $85 Billion per month, they are having difficulty getting the desired inflation. The economy currently is wrestling between the stealth character of deflation which is what happened in the great depression. Deflation is the Federal Reserve’s worse nightmare because one the problems stemming from it will mean tax revenues will go down, which translates to debt levels which cannot be serviced by the government! Hence leading to national defaults or worse collapse!

-----------------------------------------------------------------------------

Simon Heapes: For those of us involved with the investors and marketing side, what's happening with the gold price – “price action makes market action” – is confusing a lot of investors. It's like stealth. If it goes deflationary, we should be buying gold, and yet the price goes down. People have it in their minds that they only get involved if the price of gold goes up. Obviously, I can see the inflationary side of things just getting bigger and people rushing through every gate they can find to get gold. But on the deflationary side it’s going to be a bit of a trick convincing investors of what's going on.

Jim Rickards:  That's a very good point, Simon. Your marketing function is really an educational function. I would point to two very powerful examples to encourage investors to buy even in a declining environment, given the end game. You must keep your eye on the end game. The problem is, when the end game comes, you're not going to be able to get gold. It’s not a question of price anymore. You won't be able to get it.
Here are two examples. First of all, everything I just talked about has already happened. It happened in 1933. Between 1927 and 1932, the United States had 25 percent deflation, the only time in U.S. history anything like that has happened. Price levels dropped 25 percent. What did the U.S. government do? They revalued gold. They took it from $20 an ounce to $35 an ounce, which is a 60 percent devaluation of the dollar. They knew exactly what they were doing, and the reason they did it was not to reward gold investors. In fact, they confiscated the gold first! They took the gold at $20 and then re-priced it, because they knew what they were going to do. The reason they did it was because they wanted all commodity prices globally to go up.

Nothing happens in a vacuum. Nothing happens that's not part of a bigger picture.

The reason Roosevelt did that in 1933 is not because he wanted the price of gold to go up; he wanted the price of cotton, oil, steel, and coal etc. to go up. The minute he took gold up, from $20 to $35, it worked. We had a huge stock market rally in 1933, and the economy improved significantly from 1933 to 1936. That was a big recovery in the middle of a depression, but it was because they were successful in creating inflation by re-pricing gold, and everything went up. Then we went into a second recession in the Depression, 1937, which had a separate set of causes. My point being, this is not a theoretical exercise or fantasy. It's exactly what happened, and it'll happen again — not because I have a crystal ball, but because it's the only thing that works. If you get that kind of deflation, it means you've tried everything and failed, so you do the one thing that's guaranteed to work. Re-pricing gold is guaranteed to work.

If you wake up one day and gold is three times higher, expect to pay three times more for a quart of milk. It just means your money went down by two-thirds. By the way, the best performing stock on the New York Stock Exchange in the 1930s was Home stake Mining. The whole stock exchange went down, and the biggest gold mining company in North America went up for the same reason – because they were mining gold. So, number one, there is a concrete, historical example of this actually happening.

Example number two involves the biggest, smartest buyer in the world, which is China. They took 600 tons of gold from the Perth Mint at the lows of about $1,250 in June. They absolutely just drilled it. If you think China are dopes, then fine, but I don't think they're dopes. I think they know exactly what they were doing. When you see the biggest buyer in the world buying at the lows, you ought to think that maybe you ought to buy at the lows. In other words, buy the dips. That's what I do.

Every time I see gold at $1,200 or $1,320, I go out and buy some more, and when I have the opportunity, I just keep accumulating. Gold is going to go higher one way or the other, and when it comes, you actually might not be able to get the physical.

I agree that this is a hard sell, because people have very short attention spans. They focus more on nominal prices than real prices. Trying to sell people on something that might be going down is a tough sell, for very understandable reasons. You just have to say, hey, everything else you want might go down more!

Gold in New Zealand dollars: $1597.25 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $26.23 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

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optimum nutrition in raw food. Consultations, Classes, programs and products.
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Sunday, September 22, 2013

The Case For Investing In Gold

Here's a useful article that popped up on Zero Hedge today:

"The last two years have been disappointing for gold investors and what happened this week to the yellow metal epitomized the frustrating price movement. After the Fed startled the markets by announcing that it was going to continue with its current rate of bond purchases, gold shot up from just under $1300 an ounce to $1370. But late Thursday, it started to back off somewhat from those gains before falling sharply on Friday.  It ended the week at $1325, virtually unchanged from the prior week.

How can that possibly be?  It has, after all, become more evident that the Fed is politically hindered from turning off the money spigot. If gold can’t stay elevated on that development, what hope is there going forward that it will resume its decade-long uptrend and eventually overtake the  2011 high of $1900 per ounce? And so why bother investing in gold?...more here

Gold in New Zealand dollars: $1585.65 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $26.08 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw: Raw Food for Everyday Living

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. Consultations, Classes, programs and products.
_____________________________________________________________

Monday, September 16, 2013

House Prices in New Zealand v Gold, August 2013

A movement in favour of gold ounces again in August 2013.

It now takes 22 gold ounces less to buy the median priced Auckland house than it did in July (27 ounces last month). That's a 50 ounce shift in favour of gold in two months (15%). It now takes 16 ounces less to buy a median priced house in New Zealand (23 ounces less last month). A 39 ounce shift in two months (15%).





Gold
in New Zealand dollars: $1626.42 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $27.14 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw: Raw Food for Everyday Living

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. Consultations, Classes, programs and products.
_____________________________________________________________

Sunday, September 15, 2013

Proof of Silver and Gold Manipulation?

Andrew Maguire is stating that two traders from JP Morgan have come forward alleging silver and gold manipulation. They did this in July 2012 and gave the information to the CFTC. Nothing has come to light...yet Let's see how this revelation from Maguire plays out.

Gold in New Zealand dollars: $1632.93 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $27.39 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw: Raw Food for Everyday Living

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. Consultations, Classes, programs and products.
_____________________________________________________________

Friday, August 30, 2013

House Prices in Auckland only a 'Solid' Return

Largest Auckland real estate firm says 78% house price growth in Auckland in the past 10 years only a 'solid' return.

Auckland's largest real estate firm Barfoot & Thompson says price gains in Auckland over the past 10 years "have not been spectacular" and have offered investors only a "solid" return.

The firm, which accounts for around 40% of Auckland house sales, has done an "in-depth analysis" of the average sales price of three-bedroom Auckland properties. Three bedroom homes were chosen for the analysis as representing the sized house most commonly bought and sold.

According to Interest.co.nz calculations this works out at a compounding growth rate of 5.94% a year.

For comparative purposes B&T used the NZX Asset Class Performance Report, showing annual returns for 10 years to June 2010.  It showed that listed property returned 8.3%, corporate bonds 7.4%, government bonds 6.9%, NZ cash 6% and NZ shares 5.8%.... more

Comparison: if it is all about wealth preservation and return combined, then here are some other figures:

10 year silver : up 15% for wealth preservation and return
10 year gold: up 11% for wealth preservation

Gold in New Zealand dollars: $1816.21 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $30.81 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

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Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. Consultations, Classes, programs and products.
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Thursday, August 29, 2013

Auckland house market risky: NZIER

'PEOPLE TELL ME HOUSE PRICES NEVER FALL ... GO AND LOOK AT PRICES IN THE PROVINCES'

It is a myth that house prices never fall in New Zealand, with inflation-adjusted prices outside Auckland and Canterbury down 20 per cent since 2007, according to NZIER.

"People tell me house prices never fall in New Zealand . . . go and look at house prices in the provinces. House prices do fall," NZIER principal economist Shamubeel Eaqub said yesterday.

Auckland house prices had risen 13 per cent since the last peak in 2007, after adjusting for inflation, driven by low-deposit lending and coming on top of already high debt levels, which made the market "vulnerable".

In the past year, in central Auckland house prices had risen 15 per cent, but rents were up just 2 per cent.

That indicated there was not an actual shortage of homes as there was in the early 2000s when there was a migration and real shortage of homes.

"My feeling [is] what's happening in Auckland is driven by investors, not by physical supply and demand balances," Eaqub said.

Canterbury house prices were up 5 per cent, since 2007, adjusted for inflation. That reflected a clear shortage of housing since the big quake in 2011 destroyed 10,000 homes.

But for the rest of the country, inflation adjusted house prices had fallen 20 per cent since 2007.

"There is no housing crisis, outside of Auckland," Eaqub said. In fact, house prices in many places had become "pretty affordable".

For example, in regions such as Taranaki the median price is about $320,000. For skilled energy sector workers such as a field engineer that was only about three times annual income.

Inflation remained under 1 per cent and wage inflation was low.

Gold in New Zealand dollars: $1796.88 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $30.63 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw: Raw Food for Everyday Living

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. Consultations, Classes, programs and products.
_____________________________________________________________

Monday, August 26, 2013

Where to from here with Gold and Silver?

Ah yes, the crystal ball. If only life was so plainly obvious.

But what of gold and silver. In New Zealand dollars quite an upturn in price in the last two weeks. What's going on?

Over the past 7 years of following PMs, I notice there is a lot of internet based misfiring loudmouths that can easily lead you astray in your PM life.Guys that own huge PM funds that will always tell you that now is the best time to buy while secretly selling. Annoying. Annoying also having to try and filter out all that noise and discover good sound logic.

So who do I listen too and follow without hesitation? No one. Call me a cynic (many have) but no one has all the information necessary to make you wealthy with anything. You need to be the filter.

In hindsight, in the last 6 months PMs seem to have got a little overbought. Probably by hedgefunds. Was there manipulation of prices? Sure, there always is. Those big players always get their toes close to the legal line in order to make big.

What's happening now to make prices jump? Probably wars and the rumours of wars. Gold for safety and silver for the electronic parts needed for weapons?

Maybe India is frightfully close to chaos. Will this be the next Egypt? When people get hungry, they get desperate. They take to the streets.

Maybe it's the big fat Greek catastrophe rearing it's poseidon head once again. Thought Greece was fixed. No, of course not, it just wasn't a big enough story to make the headlines.

Maybe it is all about the Fed's "she tapers, she tapers not" idiocy. The markets don't seem to care about fundamentals (at least right now) and are a mixture of confusion and insanity.

I tend to think that PMs are weird and unknowable. Except that I wouldn't have my wealth anywhere else right now.

Will they go up to $100 silver and $5000 gold soon.

Not saying as I don't want to be the next spruiker on the internet.

Gold in New Zealand dollars: $1783.84 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $30.79 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw: Raw Food for Everyday Living

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. Consultations, Classes, programs and products.
_____________________________________________________________

Friday, August 16, 2013

Silver up on High Volume

Silver has been the star performer (along with copper) for the past 6 days. From what I'm reading, no one (once again) quite knows why. Safe-haven? So why isn't gold going gang-busters? Egypt? Maybe. Good news in China? But who believes that. Someone bougth a large amount of silver today (see article below). So what now?

So what caused the rally today? A good question today is, "what caused the rally?"  My answer - I have no idea.  There was no news event that triggered this move that I could see.  After trading all day in asia and london around the 22 level, silver was hit for a 30 cent loss after a deluge of economic releases starting at 0830 EST, but then recovered slowly back to even.  Then someone started buying silver futures, starting at 12:47 EST, and continued buying them until the massive spike at 13:11 that resulted in 306 tons of (paper) silver changing hands in one minute, silver moving from 22.80 to 23.19 on that final spike.  From what I could tell, gold appeared to be reacting to silver's move.  Various news articles suggest it was some sort of "safe haven" move (if true, gold should outperform silver) but honestly, I think someone with some pretty deep pockets decided to "buy the breakout" as silver moved above its previous high for the day (21.16), and then every time there was a pause, they bought again, and this happened until silver hit 22.80 when the last batch of shorts gave up and the biggest spike occurred....see more

Gold in New Zealand dollars: $1693.44 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $28.52 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

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Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
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Wednesday, August 14, 2013

Seven Stages of Empire

A history lesson in gold. See what you make of this presentation by Mike Maloney:


Gold in New Zealand dollars: $1658.80 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $26.94 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Mix and Match Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, August 12, 2013

House Prices in New Zealand v Gold, July 2013

In July, 2013, the gold ounce to house price ratio has moved in favour of gold.

Looks like my call that that house prices were high at the end of June because of timing issues, was timing issue with the figures at the end of June. Especially as gold was at a bottom.

The median house price in Auckland is down another 0.5% according to the REINZ website. Again, people are being hoodwinked with the local media still spruiking house prices. Caution needs to be the order of the day if you want to speculate on houses. Just today, people are still thinking house prices will rise significantly from now to match the run-up from 2004 - 2007.

Right now, it appears that a majority of the excess reserves of US Fed printed money ($85 billion per month) is headed to overseas banks ($43 billion per month). This no doubt fuels the housing market here. Once this is taken away, all sorts of distortions will occur. See here.

It now takes 27 gold ounces less to buy the median priced Auckland house than it did in June, and 23 ounces less to buy a median priced house in New Zealand.



Gold in New Zealand dollars: $1638.05 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $25.62 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Mix and Match Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, July 17, 2013

What does this graph mean?


Gold in New Zealand dollars: $1638.23 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $25.17 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Mix and Match Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, July 10, 2013

House Prices in New Zealand v Gold, June 2013

In June, 2013, the gold ounce to house price ratio has moved in favour of houses. However, I think this is simply a timing issue with the figures at the end of June. Especially as gold was at a bottom. This not to say that I'm trying desperately to see gold doing well. You will notice that the median house price in Auckland is down 2% according to the REINZ website (although you wouldn't know it if you read the local news).

It now takes 38 gold ounces more to buy the median priced Auckland house than it did in May, and 32 ounces more to buy a median priced house in New Zealand.

We are back to December 2009 in house values (or March 1996).




Gold in New Zealand dollars: $1593.50 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $24.57 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Mix and Match Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Thursday, July 4, 2013

Cyprus and Gold Forgotten

Remember 2008. The NZ government saved the banking system here from collapse.

Not from an old fashioned bank run, but from a lack of liquidity. Debt deflation was destroying the system quickly. To retain confidence, the nice government men needed a quick solution. They (with tax payer backing) took all the risk and guaranteed bank deposits.

Never again will this happen. The latest NZ Reserve Bank changes and the newly created bank recovery and resolution directive in Europe now means that banks once again need not care whom they screw. The first cab of the rank in the next 2008, will be Joe Blow creditor. The hard-working plumber or builder, will suffer the first loss. This without even the banks agreeing to any structural changes. If the situation warrants a quick confidence fix, then you as a innocent depositor will have a large percentage of your wealth confiscated to strengthen the banks capital base.

And like in Cyprus, the banks will close until you have confidence. Unless, like the wealthy Russians, you get a tip-off to withdraw your savings before the cataclysm hits. But that's not likely.

And 2008 will repeat, only next time with greater consequences. They think these new laws will stop bank-runs. Nope. Only likely to increase the possibility. Do such laws give you more confidence in your local bank?

You see nothing has changed. The system is still spewing debt by the truck load to wide-eyed house buyers and those that think house prices will go up forever. Is a five year time-frame so short that our collective memories are lost?

They are betting you will not care and will forget about 2008 and Cyprus and even gold's definition as money. Will you?

Gold in New Zealand dollars: $1611.35 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $25.37 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Mix and Match Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, July 3, 2013

Is Gold Dead?

Here is an excellent article from Duncan Cameron of Anglo Far-East...see here.

Excerpt : "When underlying issues are not resolved, all that has been purchased with global QE is a window of seeming tranquility in the eye of the storm. If you take away that money printing, you better have your financial house boarded up, because it’s going to get cold and wet again."

Gold in New Zealand dollars: $1606.01 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)
Low since previous high: $1532.30 (28 June, 2013)

Silver in New Zealand dollars: $25.20 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
Low since previous high: $23.51 (28 June, 2013)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Mix and Match Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Friday, June 28, 2013

Brave or Stupid

I don't feel brave; I don't feel stupid. But with this current gold and silver correction I may have fleeting doubts. However, I still cannot see where the fundamental reasons for holding PMs has changed.

But I do feel like William Wallace and his band of motley fighters right now...



Gold in New Zealand dollars: $1541.27 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $23.76 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, June 26, 2013

The Gold Buyers Lament

"I get so frazzled watching markets from day to day and watching that trained pony Bernanke do his tricks that I take my eyes off the horizon. The end really isn't in doubt, but they throw up all sorts of distractions to make you think so. We live in the age of appearances, where any illusion works.

Until you see through it, and realize the truth is simple. It always is, once you identify it.

Simple truth is, inflation never works. Never has, never will. Always guts the middle class and savers, always ends in tragedy for the society that tries it. America is no exception to that truth. Wait and see.

That's why I will patiently sit on my gold and silver, and buy more whenever I see this decline turning. But y'all already know I'm nothing but a natural born durn fool from Tennessee, not one of them clever Yankee traders. Reckon I'm just doomed. Wonder why I don't feel no worse for it?"

from Franklin Sanders... more here

Gold in New Zealand dollars: $1653.00 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $25.41 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, June 24, 2013

Strange Days Indeed

So we have all sorts of people telling us that gold is a goner. No good, kaput. Prices have slumped and no sane person is buying. Put your money into equities and property. This is where the money is flowing and the returns are greatest.

But wouldn't it be intriguing to 'follow the real money' in this whole saga. Money being that which can ultimately be swapped for goods and services and not be devalued. Gold that is. So where is the gold headed?

Mums and Dads are ignorant of golds monetary usefulness and are so hard pressed by stifling debt that money ain't going to flow anyway, anyhow from that direction. Secondly, most fund managers are telling you gold is useless in that it provides no returns such as dividends (maybe this has something to do with the fact that fund managers can't earn fees from you holding gold...hmm). So no one appears to like gold right now. It's falling, in a bear market and has no chance of recovering.

This is all true if you look at gold as an investment. But it's not; well not completely. As stated before here, it is primarily an insurance against bad government.

Therefore, follow the real money; follow gold. Where's it heading? Yep, Central Banks are buying. Interesting. A useless relic and a tradition is being bought by those that control capital flows worldwide.

And because they are buying, did you think they would want to buy at $1900 per ounce rather than $1250? And do you think they have the means to beat the paper price down in order to snap up the physical from distressed long-gold holders? Yep.

My figuring is that once this Central Banking cartel have enough gold, they will reset the price of fiat money to a higher plain against that gold, as the US did back in '33 to produce inflation, then the fun will start. And the wealth destruction for Mums and Dads will begin in earnest.

Anyway, here's a curious wee article on a NZ news website on Sunday. Curious in that everyone hates gold, but this article is telling us how and where to buy it!!

"A price slump is often a signal that investors are deserting a market but a sharp fall in the gold price has had the opposite effect"....more

Strange days indeed.

Gold in New Zealand dollars: $1669.20 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $25.78 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, June 12, 2013

House Prices in New Zealand v Gold, May 2013

In May, 2013, the gold ounce to house price ratio has moved in favour of gold. It now takes 2 gold ounces less to buy the median priced Auckland house than it did in April, and 5 ounces less to buy a median priced house in New Zealand.



I was correct in calling for weaker house prices v gold in May. How will it pan out for June? Likely to get better for those who hold gold again.

Gold in New Zealand dollars: $1742.82 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $27.59 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, June 10, 2013

Junior Lenders

Hi Junior, how's it going?

Imagine if you walked into your plush local bank today and was greeted by a happy faced young lady in such a friendly way? Would you be confused? Well, you needn't be, because it is true. If you have a savings deposit account at that bank, you are a junior creditor to that bank. You have loaned them your savings and if that bank gets into financial trouble, you are the first cab off the rank to get screwed.

Perhaps a good reponse would be; "Fine thank you. Now can I get all my money out as I have problems with what you just said?" Great answer, just don't say it too loud. As you may recall in Mary Poppins, bank runs start on very small rumours. But I jest slightly.

Not many people know this about their status with their bank, or even care for that matter. Until it happens to them. Ask Joe Blow Cypriot if he cares. Just make sure you stand a wee way away from him, his spitting vitriol is likely to be unhealthy on your face.

So what do you do?

Some would say only have an amount in your bank account sufficient for everyday transactions; going to the supermarket, buying gas etc. The rest? Try to protect is as well as you can. Is gold an option? Yes. Even Nouriel Roubini, the 'gold bug name-caller' still recommends a 'modest' amount of gold in every portfolio.

Get out from underneath the leveraged balance sheets of institutions that are vulnerable and in the system. Look at assets that can be stored, insured, located in multiple jurisdictions and is allocated to you alone.. Come to think of it, gold comes to mind again.

Gold
in New Zealand dollars: $1760.900 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $27.70 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, May 27, 2013

Do the Math - Grant Williams

Are the equity markets set for a correction soon? Seems likely. Pull up a chair and have a look at this video.





Gold in New Zealand dollars: $1718.41 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $27.87 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Monday, May 20, 2013

Causes of the Stock Market Crash of 1929


Interesting parallels to today.

_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Thursday, May 16, 2013

House Prices in New Zealand v Gold, April 2013

In April, 2013, the gold ounce to house price ratio has moved in favour of property. It now takes 30 gold ounces more to buy the median priced Auckland house than it did in March, and 19 ounces more to buy a median priced house in New Zealand.





Auckland prices are back to February 2009 levels. Will they keep increasing against gold? Note that gold took a larger than expected (and justifiable) hit in April and the latest May figures for house prices in Auckland show weakness.
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Tuesday, May 14, 2013

The New Zealand Housing Market - Tumble Weed Alert

If you were a bit cynical like me, you might think the Real Estate industry here in New Zealand was keeping deliberately quiet about the latest house price figures for April 2013.

You see, the figures aren't so good. OK, so its not they are that bad, however the the prices are down 3% overall in New Zealand and 1.25% specifically in Auckland.

No headlines spruiking the increase in house values and buy now before they get higher talk. Nope, just tumble weed blowing through that abandoned marketing hoohaa . The silence says it all.

Next month there could well be an increase, but the latest falls are signalling a stalling top.

Cautioning young house-hunters right now should be the mantra of all involved in the housing industry. Coaxing young workers into large mortgages could almost be considered .... but I shouldn't really say that.

Banks have been at the forefront of this frenzy to lend the easy money gained from the US, Japan and European money printing craziness. Foistering their wares on starry eyed house investors. Since when did banks care anyway, after all, next time they get into trouble they are taking at least 10% of YOUR money through bail-ins. Don't think so? Think again, think Cyprus.

Note too that once the Chinese, who make up a considerable portion of the current Auckland market, get spooked by government policy (subsidised housing) or Council rhetoric (opening up green fields) then watch this market bubble burst in a hurry.

Tomorrow we look at the housing verses gold chart for April 2013.

Gold in New Zealand dollars: $1736.00 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $28.53 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Thursday, May 9, 2013

Why There May Be a Lot Less Gold than We Realize

Chris Martenson is a sensible bloke. He is usually very measured in his thought processes and does very good research. In my opinion, this article is therefore worth your reading:

Why There May Be a Lot Less Gold than We Realize

Exactly How Much Gold Do We Have?

There's growing concern that a lot of official gold has been leased out into the market and that sooner or later, as happened back in the late 1990s, one or more parties, perhaps bullion banks or a metals exchange, would run into difficulty trying to meet a physical gold delivery commitment... more

Gold in New Zealand dollars: $1741.70 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $28.49 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Wednesday, April 24, 2013

Golden Undervaluation

A very useful report from Ben Davies over at Hinde Capital.

"I want to scream and shout".

Gold in New Zealand dollars: $1676.27 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $27.20 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________

Thursday, April 18, 2013

Physical Gold in Great Demand

Since the large decrease in the price of gold this week, gold physical demand has been very large.

In Australia there are pictures of people queuing at bullion shops. In Thailand, demand has surged. In the US, gold and silver eagle sales are at all-time records. Savvy buyers are seeing a bargain price. And believe it or not, reports (as below) of large Asian Central banks on the bid for physical gold as the market crashed downwards. Now, that is interesting.

Add to this the recent 'default' by ABN Amro bullion custodians (they settled gold they should have had for cash and closed) and the recent seven year delivery time for German gold, then you have the dots beginning to form for a run on physical gold. Now when gold is leveraged by 100 paper ounces to every 1 physical gold ounce, watch this space, the leveraged paper market could very well be in trouble.

This from Murray Dawes of the Daily Reckoning today:



I was chatting with a mate of mine on Tuesday who took the opportunity presented by the collapse in precious metals to buy some for himself.

He wandered down to his friendly local metals dealer and was confronted by a huge line going out the door.  He took the opportunity to ask those in the queue (apparently made up predominantly of Asians and Indians) whether they were there to sell or to buy and every single person said they were there to buy.

This was on a day when prices had had their biggest collapse in 30 years…



Shouldn’t there have been panic in the streets, with investors doing all in their power to get rid of their gold at all costs? No. Quite the opposite in fact.

Another contact at a large bank told me Asian central banks were on the bid (lining up to buy) all day on Tuesday. A collapse like the one we’ve seen will bring a lot of latent demand to the fore. In fact my expectations are that we’ll see a vicious bounce in the gold price, sooner rather than later.

I think it’s a bit like jumping on an inflated ball in the pool.  The further you push it down the quicker it will whip back in your face.

The rumours are swirling around the internet about the reasons for the take down. Ben Bernanke and his cohorts are at the top of the conspiracy list of course. I wouldn’t be surprised at all if that was the case.

It appears that the bulk of the selling is in the paper gold market. But the fact is that the failure of multi-year support around US$1,530 would have led to a cascade of stop losses that would have fed on each other.
Throw in the margin calls for leveraged positions and suddenly you had traders eyeing off the window ledge nearest their desk. 

Any trader worth his salt would have known that a big fall was on the cards below those lows, so if the big boys did want to set off the avalanche all they had to do was give it a nudge at the top, then sit back and watch the mayhem ensue while covering their shorts on the way down.

Easy money.


Gold in New Zealand dollars: $1614.59 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $27.44 per oz
Previous all-time high: $59.19 per oz (30 Apr, 2011)
_____________________________________________________________

The Anglo-Far East Company
AFE is the gold bullion custodial provider of choice for the sophisticated investor,
families, and institutions that require the highest level of discretion, competence,
safety, and service. Your reference when you order: an-001
_____________________________________________________________

Go More Raw Seven Day Raw Food Program

Raw food can be interesting, satisfying and taste fantastic. The big bonus is the
optimum nutrition in raw food. For seven days you can put raw food to the test
and you could be pleasantly surprised.
_____________________________________________________________