Sunday, December 7, 2014

Gold Report ( December 7 , 2014 ) - Gold repatriation ( Netherlands , Germany - also Belgium investigating the return of their gold held overseas ) ..... Global news touching on gold , manipulation of the price of gold , CME watch ( gold being removed at a nice clip ! )



Tweets....





The Unavoidable Peril of Financial Sphere Bubbles Excellent Report from Doug Noland in his Weekly Missive








GATA....



Koos Jansen calculates year-to-date Chinese gold demand at 1,212 tonnes

 Section: 
10:17p CET Monday, December 8, 2014
Dear Friend of GATA and Gold:
Bullion Star market analyst and GATA consultant Koos Jansen calculates net Chinese wholesale gold demand for the first 11 months of the year at 1,212 tonnes, with demand remaining strong. Jansen also disputes recent gold demand data reported by Bloomberg. His commentary is posted at Bullion Star here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.




Bank of England's former deputy governor misleads about gold and credit creation

 Section: 
11:25p CET Monday, December 8, 2014
Dear Friend of GATA and Gold:
In an interview today with Russia Today's Sophie Shevardnadze, Sir Howard Davis, former deputy governor of the Bank of England and former director of the London School of Economics, makes the most elementary mistake in his objection to restoration of a gold standard for currencies. That is, Davis says a gold standard "would radically reduce the amount of credit and would cause a worldwide depression that would make the 1920s look like a holiday."
But of course the amount of credit supported by a gold standard would depend entirely on the price established for currency convertibility into gold, a price that could be revised from time to time. While Britain's return to a gold standard for the pound in 1925 is now widely regarded as a deflationary mistake, it is because the pound's value in gold was set too high, at the parity in force prior to the First World War and the inflation caused by the war. If the gold price for convertibility was set high enough, a gold standard could support infinite money and infinite credit.
That was established by the famous trillion-dollar platinum coin idea in the United States a few years ago:

Of course gold revaluation allowing an increase in money creation and credit would be instantly recognized as currency devaluation, while, at present, central banks can create infinite money and credit and, with surreptitious intervention in the gold and commodity markets to suppress prices and thereby destroy markets, can prevent most people from figuring out how their money is being devalued. Is that really why a gold standard is so objectionable to Davis -- that it would make central banking a lot more transparent?
At least Davis acknowledges the occasional flaws of central banking and fiat money in regard to credit creation. "At times," he sais, "given the paper money basis of our economy, maybe we allow credit to expand too rapidly, and essentially the story of the last financial crisis was that. We allowed credit to grow too quickly. But there are ways of dealing with that, through interest rates, bank capital ratios, etc., which can constrain credit growth, and you don't need the really freezing shower of a gold standard to do that, which would destroy much of the world's economy."
But can central banks be relied upon to undertake in time the cautionary measures Davis cites, and to do it consistently?
Well, maybe someday, in a more virtuous era, they will, and allowing the money supply to be determined by the amount of a particular metal or two that can be dug out of the ground does seem awfully primitive.
But were the ancients so primitive in establishing such a metallic money system because they realized that anything more sophisticated requires perfectly mechanical virtue in administration and that, administered by mere mortals, a sophisticated system inevitably goes haywire as a result of human corruptibility?
And if today's central bankers have achieved the supreme expertise and disinterestedness required to administer a sophisticated system, why do they do nearly everything in secret, and why is the world's wealth constantly being siphoned upward away from the many and into the accounts of the very few?
Maybe Russia Today could interview Davis again and put such questions to him. In the meantime his interview is posted here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.




Currency ties key to dollar reserve hegemony, BIS study says

 Section: 
By Patrick Graham
Reuters
Sunday, December 7, 2014
LONDON -- Changes in the size of a loosely defined global "dollar zone" could lead to faster than expected shifts in the composition of world currency reserves, potentially eroding the role of the U.S. unit, said a study published on Sunday.
The study, part of a quarterly review by the Bank for International Settlements --
-- argues the dollar's domination of reserves stems chiefly from the extent to which many currencies are tied either formally or through trade links like a dependence on oil or other dollar-priced commodities.
As a result, while the dollar's overall value has declined by 18 percent since the 1970s against major currencies, and by more than half against the euro and yen, its share of reserves has fallen just 5 percentage points from 66 percent to 61 percent. ...
... For the remainder of the report:








Koos Jansen: Belgium's central bank considers repatriating gold

 Section: 
12:55a GMT Saturday, December 6, 2014
Dear Friend of GATA and Gold:
Following those in Germany and the Netherlands, Belgium's central bank is considering repatriating its gold reserves, Bullion Star market analyst and GATA consultant Koos Jansen reports tonight, citing the Flemish commercial broadcaster VTM:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.








China said to consider scaling back restrictions on gold imports

 Section: 
By Feiwen Rong
Bloomberg News
Thursday, December 4, 2014
BEIJING -- China's central bank has circulated a draft plan to ease restrictions on gold imports, said people with knowledge of the matter, in a move that may lead to lower prices in the world's biggest market for bullion.
The People's Bank of China drafted a plan that will open up gold imports to qualified miners as well as all the banks that are members of the Shanghai Gold Exchange, according to the people, who asked not to be identified because the proposal hasn't been made public. China Gold Coin Inc., a maker of commemorative gold and silver coins, could also qualify to import bullion, they said.
Chinese regulators are pushing to open up the country's gold trade and lure foreign investors as part of its broader effort to link the mainland to global markets. In September the country began offering international institutions access to yuan-denominated gold contracts in Shanghai's free-trade zone, a move that may extend its influence over prices while boosting the role of its currency in global trade. ...
... For the remainder of the report:







Paul Mylchreest: Long Nikkei / short gold -- profitable, dangerous, and missed by everybody?

 Section: 
3:41p GMT Thursday, December 4, 2014
Dear Friend of GATA and Gold:
Market analyst Paul Mylchreest of ADM Investor Services International Ltd. in London today published a report arguing that for more than two years gold has been pushed down as part of a two-pronged trade boosting the Japanese stock index, a trade hedging its gold short with silver futures. Such a trade, Mylchreest writes, would be both "cynical" and "really clever" even as it created systemic risk. Mylchreet's report is headlined "Long Nikkei/Short Gold -- Profitable, Dangerous, and Missed By Everybody?" and it has been posted at GATA's Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.








Shanghai gold trade passes record as China seeks more sway

 Section: 
By Feiwen Rong
Bloomberg News
Wednesday, December 3, 2014
BEIJING -- Gold trading on China's largest physical bullion bourse is already exceeding last year's record volume as the world's biggest consumer seeks to exert its influence on the global market.
The volume of all contracts on the Shanghai Gold Exchange, including those in the city's free-trade zone, was 12,077 metric tons in the 10 months to October, compared with 11,614 tons during all of 2013, according to data on the bourse's website. This may climb to 17,000 tons by the end of the year, the exchange's chairman, Xu Luode, said at a conference today. ...
... For the remainder of the report:








Koos Jansen: Eurosystem increases its allocated official gold reserves

 Section: 
4:19p GMT Wednesday, December 3, 2014
Dear Friend of GATA and Gold:
Many European central banks have begun issuing public reports distinguishing their gold in the vault from "unallocated" gold or gold receivables and they now claim very little unallocated gold, Bullion Star market analyst and GATA consultant Koos Jansen reports today. Jansen adds that the distinguishing has been done only for this year and that such data has not been made available for previous years. But the implications may be that the European central banks have been moving steadily toward achieving greater security for their gold reserves, that they are reducing their gold swapping and leasing, and even that a substantial change in the world financial system has drawn near. Gold market analysts will need to examine closely this change of policy and this new data.
Jansen's analysis is headlined "Eurosystem Is Increasing Its Allocated Official Gold Reserves" and it's posted at Bullion Star here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.







Link between paper gold and real metal is stretched to the limit, Hathaway tells KWN

 Section: 
11:45p GMT Tuesday, December 2, 2014
Dear Friend of GATA and Gold:
Tocqueville Gold Fund manager John Hathaway grows more radical by the hour, sounding a lot like Hinde Capital CEO Ben Davies in an interview today with King World News, remarking that "we are reaching an inflection point" where trends will reverse "and investors will start to lose confidence in financial assets, the Fed, and central banks in general."
"The physical market is incredibly tight and you can see this in gold lease rates, GOFO, and that kind of thing," Hathaway says. "That tells me that the link between paper and physical gold is being stretched to the limit and perhaps to a breaking point as bullion banks scramble to find metal to cover their shorts."
Thanks to KWN for steadfastly giving voice to those who would oppose the Evil Empire. To be defeated it needs only to be exposed.
Hathaway's interview is excerpted at the KWN blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.







Turk: Dutch gold was returned only for leasing; Embry: Gold was smashed to discourage Swiss

 Section: 
11:21 GMT Monday, December 1, 2014
Dear Friend of GATA and Gold:
The Netherlands central bank, GoldMoney founder and GATA consultant James Turk tells King World News today, probably managed to repatriate its gold from the Federal Reserve Bank of New York because the Netherlands central bank plans to lend it back into the market for price suppression. An excerpt of the interview with Turk is posted at the KWN blog here:
And Sprott Asset Management's John Embry tells KWN that last week's smash of gold in the futures market was probably part of an effort to discourage Swiss voters from supporting the Swiss Gold Initiative proposal at Sunday's referendum:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.










Jesse's Cafe Americain.....

05 DECEMBER 2014


Gold Daily and Silver Weekly Charts - It Is Whatever We Say It Is


“Now listen to the first three aims of the corporatist movement in Germany, Italy and France during the 1920s. These were developed by the people who went on to become part of the Fascist experience:
  • (1) shift power directly to economic and social interest groups;
  • (2) push entrepreneurial initiative in areas normally reserved for public bodies;
  • (3) obliterate the boundaries between public and private interest -- that is, challenge the idea of the public interest.
This sounds like the official program of most contemporary Western governments.”

John Ralston Saul, The Unconscious Civilization


"Arbitrary power is most easily established on the ruins of liberty abused to licentiousness."

George Washington
Belgium has come forward and is considering whether to repatriate its gold reserves.
The Non-Farm Payrolls Report Day went largely as expected.

Vile creatures lie to us, and we pretend to believe them.
It is drafty and dangerous, living in a house of cards.

Have a pleasant weekend.

****