Archive for October, 2012

Bundesbank slashed London gold holdings in mystery move

October 29th, 2012 No comments

Excerpt – Source : The Telegraph UK / Ambrose Evans-Pritchard

“Germany withdrew two thirds of its vast holdings of gold from Bank of England vaults shortly after the launch of the euro more than a decade ago, according to a confidential report by German auditors.”  “The revelation came as Germany’s budget watchdog demanded an on-site probe of the country’s remaining gold reserves in London, Paris, and New York to verify whether the metal really exists.”  “It called for repatriation of 150 tons over the next three years to test the quality and weight of the gold bars. It said Frankfurt has no register of numbered gold bars.”

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Banksia burnt by bad debts, properties

October 29th, 2012 No comments

Excerpt - Source : The Australian / Anthony Klan and Rachel Blaxendale

“THE collapse of major mortgage fund Banksia Securities was exacerbated by an apparent failure to adequately account for almost $200 million in overdue loans and repossessed properties.

Banksia, based in Bendigo, was swept into receivership on Thursday night holding $650m on behalf of about 3000 investors, many of them retirees.

The fund operated by raising money from ordinary investors and then lending money to property developers and other businesses at higher rates.

Four weeks ago, auditors for the company approved the group’s accounts and raised no concerns about its financial viability.”

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Inflation Spike Dampens Rate Cut Chance

October 25th, 2012 No comments


Excerpt – Source : ABC Michael Janda

“Inflation has jumped more than expected, as electricity and gas prices rose sharply in the first quarter since the carbon tax was introduced.

The Bureau of Statistics Consumer Price Index (CPI) rose 1.4 per cent in the September quarter, to be 2 per cent higher than a year ago.

The ABS says that is the largest quarterly rise since the flood affected March quarter of 2011, and the highest annual inflation rate since the end of 2011.”

“The ABS figures show the largest price movements were a 15.3 per cent surge in electricity prices and a 14.2 per cent jump in the cost of gas and other household fuels.

Other significant price increases included vegetables (up 10.5 per cent), international holiday travel and accommodation (up 6.6 per cent), and medical services (up 4.5 per cent).”

» Source: ABC Michael Janda «

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Asian economies turn to yuan

October 25th, 2012 No comments

Excerpt – Source : / Gao Changxin

A “renminbi bloc” has been formed in East Asia, as nations in the region abandon the US dollar and peg their currency to the Chinese yuan — a major signal of China’s successful bid to internationalize its currency, a research report has said.

The Peterson Institute for International Economics, or PIIE, said in its latest research that China has moved closer to its long-term goal for the renminbi to become a global reserve currency.

Since the global financial crisis, the report said, more and more nations, especially emerging economies, see the yuan as the main reference currency when setting their exchange rate.

And now seven out of 10 economies in the region — including South Korea, Indonesia, Malaysia, Singapore and Thailand — track the renminbi more closely than they do the US dollar. Only three economies in the group — Hong Kong, Vietnam, and Mongolia — still have currencies following the dollar more closely than the renminbi, said the report, posted on the institute’s website.

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U.S. Mint Continues to sell 50 times more silver than gold

October 24th, 2012 No comments

Excerpt – Source : / SRSrocco

The US Mint’s frantic silver sales pace continued over the weekend, as the Mint reported 430,000 ounces of silver sales over the weekend on Monday.Perhaps more importantly, the US Mint Silver eagle to US Gold eagle sales ratio continues to exceed 50 to 1, a pace that is simply unsustainable with a current mine ratio of 9 to 1.”

Silver Eagle

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Mexico’s Past, The World’s Future Currency Devaluations

October 24th, 2012 No comments

Guillermo Barba draws comparisons from Mexico’s past fiscal policy and consequential currency devaluation to today’s style of Federal Reseve policy.

Mexican Paesos

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- Source : / Guillermo Barba

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Mid-Year Economic and Fiscal Outlook 2012-2013

October 23rd, 2012 No comments

Excerpt : Source – MYEFO 2012-2013 Media Release Canberra 22 October 2012

“Global growth has slowed in recent months, with the recession in the euro area and the subdued recovery in the United States weighing on growth in our region.

The weaker global outlook and lower than expected commodity prices, along with the general easing of price pressures in the economy, are again slowing the recovery in tax revenue.

This is driving a further write-down in tax receipts of almost $22 billion over the forward estimates, almost all from company tax and resource rent taxes, with a write-down of $4 billion in 2012-13 alone.

Since the start of the Global Financial Crisis, tax receipts have been written down by a total of almost $160 billion.”

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Global fallout hits budget surplus-Swan

October 23rd, 2012 No comments

Treasurer Wayne Swan says Australia’s economy is feeling the fallout from global economic uncertainty.
‘It’s pretty obvious to all that … this mid-year review has been put together amid storm clouds which are hanging over the global economy,’ he told reporters in Canberra on Monday.
‘This lower global growth outlook has had another very big whack at government tax revenues and has made it harder to deliver a surplus.’
Mr Swan said anyone who suggested Australia is immune from the global fallout is ‘kidding themselves’.

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What Will the Price of Gold Be in January 2014?

October 19th, 2012 No comments

Price predictions are always brave calls to make, but Casey Research’s graph below tracking the performance of the Gold Price compared to the expansion of the monetary base since January 2008 packs a powerful visual punch.

Gold Price vs. Adjusted Monetary Base

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How to Start Investing in Gold: 5 Tips for Beginners

October 19th, 2012 No comments

The fact that the price of gold has been steadily increasing over the past decade has been bringing a lot of attention to this rare mineral. For this reason, gold has been at the forefront when it comes to people looking for ways they can invest their money. And there’s no specific type of investor anymore. Investors can be anyone from a seasoned professional, to a small-time investor, to someone who has never invested before.

How to Start Investing in Gold

People are choosing more and more to invest in gold because it’s considered a safe way to secure savings. Although there are never any guarantees when it comes to investing, gold is a pretty safe bet in regards to making a profit.

It’s a good idea for those who don’t have a lot (or any!) experience to first do a little research before making any final decisions about how to start investing in gold. It’s also a good idea to decide how much money you’re willing to invest, and whether or not you want to create an investment portfolio (allows for a variety of investments) or only invest in gold.

5 Tips for Beginners

1. Invest in Real GoldReal gold means gold bars and gold coins, which are also called gold bullion. Be sure to lock up any real gold you purchase in a safe place. Using a safe deposit box in your bank or a personal safe hidden in your home are good options, but you can also pay for storage at reputable bullion firms.

2. Buy Gold When You Need It – Gold is considered to be a long-time investment, so there’s no hurry when buying gold. Like any investment option, prices fluctuate so it’s a good idea to consider waiting to purchase if the prices are particularly high – if prices aren’t tipped to further increase over the long-term.

3. Create a Well-Balanced Portfolio – It’s a smart idea for any new investors to create a well-balanced portfolio. To see the greatest returns, it’s usually recommended to have a portfolio that’s balanced and diversified if you want to see the greatest returns. Gold should make up anywhere between 10% and 30% of your portfolio.

4. Invest in Gold Shares – This extremely common and simple method is used by both old and new investors, and allows you to manage your gold similar to that of buying and selling stock. You’ll need to set up a brokerage account with a gold exchange trade fund. This can be a riskier option than bullion investment.

5. Find a Reputable Brokerage Firm – A trustworthy firm will do everything in their power to assist new investors so they can make good decision for their investments. Finding a firm with a good reputation means that you will not only be able to get some great advice, they can also save you money.

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