Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Is “100% Guarantee from Legal and Political Risks” States Russian Central Bank

Commodities / Gold and Silver 2015 May 27, 2015 - 01:45 PM GMT

By: GoldCore

Commodities

- Gold is a “100% guarantee from legal and political risks”
- Russia’s central bank buys another 300,000 ounces in April
- Russia views its overseas assets as vulnerable
- ‘De-dollarisation’ continues across Asia
- Gold offers protection from growing risks today

Russia’s central bank once again increased its gold holdings substantially in April. They added another 300,000 ounces to their existing stockpile bringing the total up to 40.1 million ounces (see chart below).


It marks the continuation of a policy which was only slightly affected by last year’s rouble crisis following the collapse in the price of oil and Western imposed sanctions.

In an address to Russia’s lower house, a senior policy maker at Russia’s central bank indicated that while gold prices fluctuate they offer invaluable insurance against external factors. Dmitry Tulin, manager of monetary policy said,

“The price of it swings, but on the other hand it is a 100 percent guarantee from legal and political risks.”


Reuters reports that western sanctions “have not targeted government assets abroad” to date and suggest that Russia’s reduction of its exposure to U.S. Treasury bills is a symptom of its fear that state assets will be targeted next.

Of course, Russia’s reducing of its Treasury bill holdings may also be part of the policy of de-dollarisation which Russia and China are energetically pursuing. As may the insatiable appetite of their central banks for gold.

Countries across central Asia continue to buy gold eagerly. The government of Kazakhstan banned the export of mined gold and is stockpiling its reserves – although its current holding of 200 tonnes is dwarfed by those of its Russian and Chinese neighbours.

Gold is absolutely central to monetary policy in Eurasia and Asia. China openly refer to their yuan as “the reserve currency of the world”. While this ambitious slogan may be slightly premature it is likely that by backing the yuan with gold it would become a major reserve currency that would challenge the debt-bloated dollar.

Investors would be wise to take heed of Russia’s attitude to gold as a “100% guarantee”. In the crisis that approaches physical gold held outside the banking system in safe vaults in safe jurisdictions will prove to be such a guarantee to individuals, companies, pension funds, family offices,  as well as nations.

Must Read Guide: 7 Key Bullion Storage Must Haves

MARKET UPDATE

Today’s  AM LBMA Gold Price was USD 1,187.85, EUR 1,088.07and GBP 770.64 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,194.00, EUR 1,095.56 and GBP 774.77 per ounce.

Gold fell $19.30 or 1.6 percent yesterday to $1,187.70 an ounce. Silver slipped $0.36 or 2.11 percent to $16.74 an ounce.

Gold in USD – 5 Years

Gold in Singapore for immediate delivery was up 0.3 percent at $1,189.65 an ounce while gold in Zurich fell to $1,185.96.

Gold held near a two week high after dipping in the prior session when positive economic data hinted that the U.S. economy may be picking up. The U.S. business investment spending plans increased for its second consecutive month in April and consumer confidence moved upward along with new U.S. home sales that increased last month.

The positive U.S. economic data fuelled the U.S. dollar’s rally which ramped up to an eight year high against the beleaguered Japanese yen.

Greek finance ministers and creditors continue bailout negotiations today. Its payment of 1.6 billion euros is due to the IMF next week and government sources indicate that the nation may not be able to make the payments without a deal.

The ECB kept the cap on emergency liquidity assistance Greek banks can draw from the country’s central bank unchanged at 80.2 billion euros, a banking source told Reuters on Wednesday.

The lack of any solid progress in recent talks has pushed European equities lower yesterday, with the FTSE 100 falling 80 points. Emerging market equities slumped to six-week lows, with sentiment poor due to concerns about the Chinese and indeed the global economy.

In late European trading gold was at $1,186.10  an ounce down 0.19 percent. Silver was at $16.71 an ounce off  0.21 percent, and platinum was at $1,123.90  an ounce down 0.04%,

This update can be found on the GoldCore blog here.

Mark O'Byrne

Director

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in