Archive for September 2012

Factors affecting the future gold price.

Gold Lease Rates

“On September 6, 2011, gold reached a high of $1920;
but when bullion banks intervened by pushing gold lease rates
deep into negative territory in early September,
they made sure enough leased gold would reach the markets
to drive the price of gold lower.

“By late September, gold had fallen back to $1600;
and when gold began to again rise,
gold lease rates were pushed even lower
forcing gold this time below $1600.
The bullion banks one-two punch
took the momentum out of gold’s 27 % summer rally
and by year’s end gold would still be at $1600.

“Lease rates are calculated as:
London Interbank Offered Rate – Gold Forward Offered rate.

“LIBOR had been manipulated
lower than the Gold Forward Offered rate.,
resulting in negative gold lease rates.
Reform in LIBOR will make an end to this suppression.”

Gold as Tier 1 Asset

“if gold is officially confirmed as a “riskless” asset by the European Banking Authority,
then an increase in demand for gold may be seen in the EU.”

Printing Yen

“The Bank of Japan became the latest central bank
to announce further quantitative easing measures.

“If interest rates rose by a mere 2% for Japan,
they would be spending more than 70% of their budget
on just interest expense

“When the savings rates goes negative,
and it is a demographic certainty that it will,
JAPAN will either be forced to pay higher interest rates
or print massive amounts of yen
or cut government spending by equally massive amounts.”

An attempt by Western Central Banks
to recall their swapped and/or lent out gold.

“Over the past several years, we’ve collected data on physical demand for gold
Global annual gold mine supply … is actually lower than it was in year 2000,
there hasn’t been any large, publicly-disclosed seller of physical gold in the market
for almost two years.
Given the significant increase in physical demand
that we’ve seen over the past decade,
particularly from buyers in Asia,
it suffices to say that we cannot identify
where all the gold is coming from to supply it.

“Western central banks are probably under the impression
that the gold they’ve swapped and/or lent out is still legally theirs,
which technically it may be.
But if … those reserves are not physically theirs;
not physically in their possession…
then …”

An audit or an attempt by central banks to regain their gold
would support a higher gold market price.

Dollar as Reserve Currency

“As of, Thursday, Sept. 6,
any nation in the world that wishes from this point on,
to buy, sell, or trade crude oil,
can do using the Chinese currency,
not the American dollar.

“the Russian Federation agreed to sell oil to China
in any and all amounts they desired.
there is no limit.
And Russia will NOT sell or trade this crude oil to China
using the American dollar.”
Never, ever has crude oil been sold, bought, traded,
in any country in the world,
without using the American dollar.”

But,

“the $3.2 TRILLION in official DOLLAR RESERVES that China has accumulated
in maintaining the yuan’s semi-fixed peg to the dollar
tie Beijing’s policy hands.
That is because any hostile gesture,
such as a threat to shift out of dollars,
would destroy Chinese wealth.”

EuroDollars

John Williams of Shadowstats.com:
“there is 12 trillion in liquid dollar assets held outside the U.S.
it is only a matter of time before all the Fed money printing will “trigger a sell-off”

Causing the gold price to rise in US dollars.

GLD Approaching Fib Fan and TL Resistance 9/13/12   Leave a comment

Posted September 13, 2012 by britefire in Uncategorized