Category — gold
Which Central Banks Are Adding To Their Gold Reserves? – It’s Not Who You Think
A lot of speculation exists about which central banks are diversifying part of their reserves into gold. The rumor is China is at the top of the list for countries that are large gold buyers. Trading guru Gartman has the scoop:
The IMF’s data shows that of the fifteen largest governmental holders of gold, only one… Russia…increased its gold holdings. The sellers, unsurprisingly, were France, Austria, Spain, the Netherlands, Portugal, Sweden, the Philippines (?!!!… really!), the Czech Republic, Serbia, Colombia, El Salvador, Mexico and the ECB. Most of these are signatories to the Washington Agreement, but some, such as the Philippines, Colombia, El Salvador and Mexico are not. However, what really caught our eye was the fact that China was not a buyer of gold in ’06… nor in ’05, nor ’04, nor ’03, nor ’02 either! China, according to the IMF, has not changed its gold reserves since ’01. Indeed, the only central banks that have increased their gold reserves are those of Kazakhstan, Belarus, Tajikistan, Suriname and Ukraine. We find it at least of passing interest that so many of the former Soviet Republics were net buyers. We wonder what that is all about?
March 16, 2007 5 Comments
Chart of the Day – Dow Priced in Gold
January 26, 2007 No Comments
Miner Inflation Surge
Today US Producer Prices were up 2% – the most since 1974. The stock market shrugged off the news but miners surged (See chart). Gold and precious metals are seen as a hedge against inflation.
With record corporate profits we may see margins compress before the Producer Price rise shows up in CPI. Make no mistake, this is bad for stocks and it will show up in CPI eventually .
December 19, 2006 No Comments
The Beauty of Real Gold
The Wall Street Journal today writes about the increased popularity of coin collecting, ‘”The ‘coin geek’ has turned into ‘coin chic.’ ” Several of the coins discussed are valuable only because of errors or subsequent changes in design like, “a red 1909 Lincoln penny, part of the first issue of U.S. coins to include a portrait. Also featured on this particular coin was a feature that the mint removed from subsequent issues: the initials of the portrait’s sculptor”.
! I understand subjective value, but the idea that a fiat coin made with cheap metal commanding prices in the $10’s of thousands seems wrong. There is no substitute for real gold.
Can a stamped piece of copper ever compare to the splendor of a Krugerrand or a gold bar? Does anyone ever lust after zinc or nickel?
When Patriot Act 3.0 bans private ownership of gold to prevent terrorist financing and forces you to use ever inflating World Currency Credits (minimum increment $1 billion) which would you rather have:
Exactly. The one that has had value for thousands of years – not the fad.
Any New York based readers should get over to the American Natural History Museum for their gold exhibit. Its impossible to see and not want to own the metal for yourself.
December 18, 2006 3 Comments
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