Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

New CBI Announcement January 23 2014


Butifldrm
 Share

Recommended Posts

Not quite sure why the CBI would want this.   The Fed manipulates the price of Gold down when they see a rise in the price. They sure don't want people to have more faith in Real money than their paper notes.   Anyone remember the spot price on Gold when the CBI bought those large amounts a year or two ago?

 

Thanks Butifldrm

  • Upvote 1
Link to comment
Share on other sites

Central Bank decides "SEC gold bullion" to sell investors and segments of society

23/1/2014

Long-Presse / Baghdad

Decided to CBI, on Thursday, "coined a variety of gold bullion" to sell gold to dealers, investors and segments of Iraqi society, as he emphasized that "this action represents Tools monetary policy of the Bank."

According to a statement to the CBI received (range Press) a copy of it, he was "for the purpose of diversification means savings to the public and to provide large quantities of gold from Mnashye sober sold to dealers in gold, investors and society Bdinaralaraca decided the bank's board in consultation with the Committee on Economic Affairs seeks a variety of gold bullion ranging weights between (5 g and 1000 g). "

The statement added that "the Bank began contracting procedures for gold bullion imported and then sold through the banking system," noting that "this action represents a monetary policy tools of the central bank."

In the view of economists that the entry to the World Gold Iraq is a positive case for the revitalization of the gold market deal in Iraq, especially as the gold market was not affected by the Iraqi gold to enter the United Arab Emirates and Turkey.

The Iraqi Central Bank revealed in (September 22, 2013) announced the arrival of its reserves of foreign currency and gold to about 80 billion dollars, while attributed to an increase in global oil prices, the reserve is expected to increase over the coming months.

The International Monetary Fund, it was announced, in (the 23 of March 2013), the financial assets preventive in the Development Fund for Iraq rose in 2012 to 18 billion dollars, and cash reserves of the central bank's hard currency to $ 70 billion, attributing the increase to the "revenue oil unexpected. "

Financial experts confirmed that Iraq's stockpiles of reserve funds have covered liquidity over the past years, calling for the government to adopt alternative ways to cover the deficit, including recourse to the application of the secondary market policies that have been agreed with the government.

 

http://www.almadapress.com/ar/news/24857/%D8%A7%D9%84%D8%A8%D9%86%D9%83-%D8%A7%D9%84%D9%85%D8%B1%D9%83%D8%B2%D9%8A-%D9%8A%D9%82%D8%B1%D8%B1--%D8%B3%D9%83-%D8%B3%D8%A8%D8%A7%D8%A6%D9%83-%D8%B0%D9%87%D8%A8%D9%8A%D8%A9-

 

Note: the MoF did not give approval to the CBI yet to sell the "currency" bonds we've been awaiting. This may be another method for the CBI to pull in dinars?


http://dinarvets.com/forums/index.php?/topic/170595-central-bank-decides-sec-gold-bullion-to-sell-investors-and-segments-of-society/

 

Sorry Yota..missed your post on this prior to mine


So I'm reading elsewhere that supposedly, the CBI doesn't need approval from the MoF to use this as a tool to pull in IQD

  • Upvote 3
Link to comment
Share on other sites

This method of pulling in Dinar makes sense to me.  Those with more cash may convert a fair persentage of it to gold.  Then an RV will not benefit them as much as if they had kept their Dinar, and the outstanding quantity of IQD goes down pre-RV.

 

Hopefully the corrupt GOI members and other officials will get greedy and buy a lot of gold so the CBI can RV without enriching the bastards so much!

 

Peace and Prosperity

Link to comment
Share on other sites

This method of pulling in Dinar makes sense to me.  Those with more cash may convert a fair persentage of it to gold.  Then an RV will not benefit them as much as if they had kept their Dinar, and the outstanding quantity of IQD goes down pre-RV.

 

Hopefully the corrupt GOI members and other officials will get greedy and buy a lot of gold so the CBI can RV without enriching the bastards so much!

 

Peace and Prosperity

 

 

Yea!  That's the ticket!   :)

Link to comment
Share on other sites

now  this article  really  ties  the  " post  we  saw  , about the e-mail  from the dinar buyer / seller ,  will trade  dinar for gold "   this  really might  move  a  lot of  higher  -- 000 `s  notes  off the  markets ,  if  a regular holder of dinar sells  for  gold,  but  I think  the  price of gold is still  to high  to off set  the amount of dinar for gold ---  as  in gold is still 1600  an ounce ,  and  for one ounce  of gold is a lot of dinar ,  { 1600 dollars  an ounce  ,  not  1600  dinars  an ounce !  so if I am correct  it will take  1 million  and  a half  to get an ounce of gold }  think  I will wait  till the value of dinar  is  closer to the dollar value 

Link to comment
Share on other sites

1gramgold.jpg 1 gram gold bar   $40.14 2gramgold.jpg 2.5 gram gold bar   $100.36 5gramgold.jpg 5 gram gold bar   $200.73 10gramgold.jpg 10 gram gold bar   $401.46 20gramgold.jpg 20 gram gold bar   $802.93 50gramgold.jpg 50 gram gold bar   $2007.33 100gramgold.jpg 100 gram gold bar   $4014.66 1-kg-gold.jpg 1 kilogram (kg) gold bar   $40146.63

 

one more...

Gold Price per Gram in US Dollar Gram US Dollar US Dollar Gram 1 Gram = 40.13 USD 1 USD= 0.02492 Gram 2 Gram = 80.27 USD 2 USD= 0.04983 Gram 5 Gram = 200.67 USD 5 USD= 0.12458 Gram 10 Gram = 401.34 USD 10 USD= 0.24917 Gram 20 Gram = 802.68 USD 20 USD= 0.49833 Gram 25 Gram = 1003.34 USD25 USD= 0.62292 Gram 50 Gram = 2006.69 USD 50 USD= 1.24583 Gram 100 Gram = 4013.38 USD 100 USD= 2.49167 Gram 1000 Gram = 40133.78 USD 1000 USD= 24.91667 Gram


Read more: http://dinarvets.com/forums/index.php?/topic/170595-central-bank-decides-sec-gold-bullion-to-sell-investors-and-segments-of-society/#ixzz2rJNOlgvN

  • Upvote 4
Link to comment
Share on other sites

thanks  for  the break  down  yota ,  now   what  can  we  get  for  1  gram cracker  :lol:  ?    but  even  with  your  break  down  of  the gram of gold ,  to  re-sale  gold  back to dollar <------- is it still  the 1165  per dinar  after going through  all the  handling  and  paper work ?  

Edited by jeepguy
Link to comment
Share on other sites

thanks  for  the break  down  yota ,  now   what  can  we  get  for  1  gram cracker  :lol:  ?    but  even  with  your  break  down  of  the gram of gold ,  to  re-sale  gold  back to dollar <------- is it still  the 1165  per dinar  after going through  all the  handling  and  paper work ?  

From Butifldrm...Ok, the CBI during Shabibi's reign suggest the sale of Gold coins as a monetary tool.  So I went back and searched for articles which gave a better explanation of how the sale of Gold Bullion would help the CBI and the people.  The best article I have found so far was written by al-Alwani ( who was recently jailed and waiting trial under terrorism charges), and other economic experts.  This article gives a good explanation of how the sell  of Bullion will affect the economy.

 

Expert: sale of gold coins through the central bank will raise the value of the dinar .. Parliamentary Economic Commission is seeking to activate the ATM project 

 

« on: September 05, 2012, 06:12:27 AM »
BAGHDAD / Conference
The head of the parliamentary Economic Committee Ahmed al-Alwani, said that his committee will address the relevant authorities in order to activate the project ATM in the country. Alwani said (of the Agency news) on Tuesday: that this project, which was scheduled to work it for years in order to facilitate the receipt of financial benefits to the citizen stopped for several reasons related to the reality of Iraq. He stated: The Committee plans to address those responsible for the activation of its work to achieve the aspirations of the banking sector in the construction of a sophisticated, surprising of «the absence of support previously experience». He said al-Alwani: that this experience worthwhile and support was supposed to keep up with developments experienced by the world, calling to benefit from the experiences of other countries in this aspect ». 

The ATM atm is one of the basics of modernism in the banking sector, and was scheduled to be circulated in Iraq since 2008. 

On the other hand stressed the economic expert Akram Abdel Aziz, to ask the Central Bank of the idea of ​​selling gold coins in the banks on the citizens will contribute to raise the value of the Iraqi dinar against the U.S. dollar. Said Abdul Aziz (of the Agency news) on Tuesday: The sale of gold coins by the Central Bank The Iraqi banks will contribute to raising the value of the Iraqi dinar against the U.S. dollar by pulling the dinar from citizens who are buying gold and lack of display of the dinar in the Iraqi market contributes to increase the demand for the dinar and tight supply. added: Iraq, according to statistics the central bank has the ratio of up to ( 30) trillion Iraqi dinars block cash surplus led to oversupply and lack of demand and the devaluation of the Iraqi dinar against the U.S. dollar, indicating that the index liquidity monetary mass in Iraqi banks exceeded (51%) did not find their way to employ what I paid pressing toward raising the prices of goods and create a state of inflation Iraqi economic market. explained: The sale of gold coins will help to absorb inflation and the depreciation of the exchange rate of the U.S. dollar against the Iraqi dinar and reduces pressure on the price of goods in the Iraqi market. 

On the other hand, affirmed the decision of the Economic Commission MP / coalition of Kurdish blocs / Mahma Khalil, that all customs agreements concluded with Iran or the other will not work in Iraq because of the enactment of the tariff in the country, noting such agreements do not serve the national economy, but just doors propaganda more than be a professional. Iraq had signed a memorandum of understanding customs joint venture with Iran in the Conference of the Non-Aligned Movement held in Tehran with the participation of Iraq. Khalil said (of the Agency news) on Tuesday: that the federal government refuses to work tariff, which was enacted in Council Deputies year (2010), stressing there is a desire and seriousness by the Iraqi government not to deal law tariff new and stay to work on the old law in place since (1955)., and added that the memorandum of understanding customs agreement with the Iranian side will not serve the national economy as long as the Tariff Act Customs new has not been implemented so far, stressing can not be the continuation of old laws because every period of time different from that preceded every circumstance needs to appropriate laws to him. pointed out: that the national economy today differed greatly from what it was in the past or since the introduction of the Tariff Act Year (1955), pointing out that trade with either Iran or Turkey or Jordan increased significantly from the previous requires the application of the Tariff Act for the protection of the local product, Flaimkn a country like Iraq has the second largest economy in the region are no where legally tariff.

Read more: http://dinarvets.com/forums/index.php?/topic/170595-central-bank-decides-sec-gold-bullion-to-sell-investors-and-segments-of-society/#ixzz2rJOr5SJj

Edited by yota691
  • Upvote 1
Link to comment
Share on other sites

Central Bank decides "SEC gold bullion" to be sold on the segments of society

images-122.jpg

BAGHDAD - Iraq Press -24 January: CBI decided, "coined a variety of gold bullion" to sell gold to dealers and investors segments of Iraqi society, as he emphasized that "this action represents one of the tools of monetary policy to the Bank."

According to a statement to the CBI received / Iraq Press /, on Friday, a copy of it, he was "for the purpose of diversification means savings to the public and to provide large quantities of gold from Mnashye sober sold to dealers in gold, investors and society Bdinaralaraca, decided the bank's board in consultation with the Committee on Economic Affairs SEC selections of gold bullion weights ranging between (5 g and 1000 g). "

 The statement added that "the Bank began contracting procedures for gold bullion imported and then sold through the banking system," noting that "this action represents a monetary policy tools of the central bank."                                              

In the view of economists that the entry to the World Gold Iraq is a positive case for the revitalization of the gold market deal in Iraq, especially as the gold market was not affected by the Iraqi gold to enter the United Arab Emirates and Turkey.

 The Iraqi Central Bank revealed in (September 22, 2013) announced the arrival of its reserves of foreign currency and gold to about 80 billion dollars, while attributed to an increase in global oil prices, the reserve is expected to increase over the coming months.

The International Monetary Fund, it was announced, in (the 23 of March 2013), the financial assets preventive in the Development Fund for Iraq rose in 2012 to 18 billion dollars, and cash reserves of the central bank's hard currency to $ 70 billion, attributing the increase to the "revenue oil unexpected. "

Financial experts confirmed that Iraq's stockpiles of reserve funds have covered liquidity over the past years, calling for the government to adopt alternative ways to cover the deficit, including recourse to the application of the secondary market policies that have been agreed with the government. Q ended


Read more: http://dinarvets.com/forums/index.php?/topic/170700-central-bank-decides-sec-gold-bullion-to-be-sold-on-the-segments-of-society/#ixzz2rKCrhLbj

  • Upvote 1
Link to comment
Share on other sites

I really like this statement yota.  :)  Teh secondary 

 

Financial experts confirmed that Iraq's stockpiles of reserve funds have covered liquidity over the past years, calling for the government to adopt alternative ways to cover the deficit, including recourse to the application of the secondary market policies that have been agreed with the government. Q ended

 

 

 

Definition of a secondary market

The secondary market, also called aftermarket, is the financial market in which previously issued financial instruments such as stockbondsoptions, and futures are bought and sold.[1] Another frequent usage of "secondary market" is to refer to loans which are sold by a mortgage bank to investors such as Fannie Mae and Freddie Mac.

The term "secondary market" is also used to refer to the market for any used goods or assets, or an alternative use for an existing product or asset where the customer base is the second market (for example, corn has been traditionally used primarily for food production and feedstock, but a "second" or "third" market has developed for use in ethanol production).

With primary issuances of securities or financial instruments, or the primary market, investors purchase these securities directly from issuers such as corporations issuing shares in an IPO or private placement, or directly from the federal government in the case of treasuries. After the initial issuance, investors can purchase from other investors in the secondary market.

The secondary market for a variety of assets can vary from loans to stocks, from fragmented to centralized, and from illiquid to very liquid. The major stock exchanges are the most visible example of liquid secondary markets - in this case, for stocks of publicly traded companies. Exchanges such as the New York Stock ExchangeLondon Stock Exchange and Nasdaq provide a centralized, liquid secondary market for the investors who own stocks that trade on those exchanges. Most bonds and structured products trade “over the counter,” or by phoning the bond desk of one’s broker-dealer. Loans sometimes trade online using a Loan Exchange.

http://en.wikipedia.org/wiki/Secondary_market

  • Upvote 5
  • Downvote 1
Link to comment
Share on other sites

add this...Central Bank plans to sell gold different weights for those wishing to purchase it from citizens

 

 

Editor Safaa Abdel Hamid - Thursday January 23, 2014

   

 
NB-91325-635260873439386887.jpg
 
 
 

         
 
 
Alsumaria News / Baghdad Central Bank announced on Thursday its intention to sell gold different weights for those wishing to purchase it from the citizens, pointing out that he began procedures contracted to import them and then sell them through the banking system. statement said the bank had received "Sumerian Enoz", a copy of it, he was " Governing Council decided in consultation with the Committee on Economic Affairs seeks a variety of alloys of pure gold weights ranging between (50 g and 1000 g) to sell to traders in gold, investors and segments of society, wishing the Iraqi dinar. " the bank said, "The bank's decision comes for the purpose of diversification means savings for the public, and the provision of amounts of gold from the origins of sober, "stressing that" the Bank began proceedings contracted to import them and then sell them through the banking system and that this procedure represents a monetary policy tools. " and the International Monetary Fund announced in December 2012 that Iraq has boosted its gold reserves to reach more of 31 tons, after that bought 23.9 tons of gold. was established Iraqi Central Bank as a bank independent under the law issued on the sixth of March 2004, as an independent body, which is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies and being sessions daily for buying and selling currenciessugr ended
 

http://dinarvets.com/forums/index.php?/topic/170595-central-bank-decides-sec-gold-bullion-to-sell-investors-and-segments-of-society/

Link to comment
Share on other sites

o kay   with this last post from  the  jedi  dude   yota ,  I think this is where the   change in  dinar  might be  ,, if you purchase  amounts of  gold with dinar ,  and go shopping , then  you hand them  large amounts  of  gold , the smaller  would be the change -----  20  and 50   amounts  in value I would  guess !    this would  be only  one  way I could  think of for the value of dinar  to move in our  direction  we  need !   thanks  for all the  information   yota  butrifldrm

Link to comment
Share on other sites

I read this it says that the CBI wants to IMPORT the gold bullion to SELL to Iraqis.... I have not found any evidence that Iraq has gold mines or has discovered any gold ore of economic quality.

Hey rock,  I know it's crap cause I don't have a link, but there have been many articles that talk about Iraq having vast amounts of unmined gold. I would look but the baby just woke up. Bye

  • Upvote 1
Link to comment
Share on other sites

I read this it says that the CBI wants to IMPORT the gold bullion to SELL to Iraqis.... I have not found any evidence that Iraq has gold mines or has discovered any gold ore of economic quality.

This should help...

http://dinarvets.com/forums/index.php?/topic/105754-iraq-gold-rush-as-fog-of-war-lifts/

http://dinarvets.com/forums/index.php?/topic/154409-economist-central-bank-retain-large-quantities-of-gold-will-support-the-iraqi-economy/

http://dinarvets.com/forums/index.php?/topic/126279-iraqs-mineral-wealth/

 

There are more from where this came from...

  • Upvote 4
Link to comment
Share on other sites

one more...CBI decides coined gold bullion

Source: 

  • BAGHDAD - Iraq Ahmad
Date: January 25, 2014

Decided to CBI, "coined a variety of gold bullion" to sell gold to dealers, investors and segments of Iraqi society, pointing out that "this action represents a monetary policy tools of the bank."

The statement said the central bank was "for the purpose of diversification means savings to the public and to provide large quantities of gold from the origins of sober sold to dealers in gold, investors and segments of society in Iraqi dinars, decided the bank's board, in consultation with the Committee on Economic Affairs, SEC assortment of gold bullion ranging weights between (5 g and 1000 g ). "

The statement added that "the Bank began contracting procedures for gold bullion imported and then sold through the banking system," noting that "this action represents one of the instruments of monetary policy of the central bank." In the view of economists that the entry to the World Gold Iraq is a positive case for the revitalization of the gold market deal in Iraq.

The CBI, revealed in (September 22, 2013) announced the arrival of its reserves of foreign currency and gold to about 80 billion dollars, while attributed to an increase in global oil prices, is expected to increase the reserve in the coming months.

Financial experts confirmed that Iraq's stockpiles of reserve funds have covered liquidity over the past years, calling for the government to adopt alternative ways to cover the deficit, including recourse to the application of the secondary market policies that have been agreed with the government. sugr ended


Read more: http://dinarvets.com/forums/index.php?/topic/170755-cbi-decides-coined-gold-bullion/#ixzz2rN4Ym5SX

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.


  • Similar Content

    • By Markinsa
      DANIEL LEE: Bo Polny’s “Greatest Timepoint In Human History” Aligns With Real Passover Date On April 26th!
       Maggie Mitchell1 day ago  

      Daniel Lee and Bo Polny spoke the truth
       
      These two aren’t afraid to talk about Donald Trump, Bitcoin, and pretty much every hot topic out there.
       
      Lee follows the Jewish Feast Dates. Bo spoke of “one of the greatest timepoints in human history” in late April. Well, the date he suggested is the TRUE date of Passover.
       
       
      Biblical cycle expert and financial analyst Bo Polny says we are approaching the “Greatest Time Point in Human History” near the end of April. In the last year, Polny has calculated time points and big events such as his prediction of a “new era of time” that would unfold after his February 2020 interview. It certainly did with the age of Covid lock-downs that started in March of 2020.
       
      Polny also predicted a 35% to 40% decline in the stock market in mid-2020. (The market sold off 38%.) Polny also predicted “something epic” would happen on September 18, 2020, and that was the day Supreme Court Judge Ruth Bader Ginsberg died.
       
      So, what is Polny’s cycle analysis telling him now? Polny says, “What started in 2020 will end in 2021, and we have related that actual cycle to Noah’s Ark. When oil went to zero (April 21, 2020), that would equate to when the door was closed on the Ark. . . .
       
      This is the time when Noah is on the Ark and doesn’t step off until April 26, 2021. . . . The world we are presently stepping into is the new era, and it does not start until April 26, 2021, and right now we are in transition. The greatest time point in history is about to happen.”
       
      Polny says there are other biblical cycles ending as well in 2021. Polny explains, “One of the cycles that we are following is called the Red Sea Moment, and the cycle time point for that is April 25, 2021. (This is when Moses parted the Red Sea to escape from Pharaoh in ancient Egypt.) So, we are about a month away right now. What will happen, I don’t know . . . but it is truly fascinating that things are happening right now at the Rea Sea. (A massive container ship is currently blocking the Suez Canal.) The United States is replaying biblical cycles. April is going to change our world forever.”
       
      Then there is the 50 year debt jubilee concept talked about in the Bible. The U.S. dollar was taken off the gold standard by President Richard Nixon in August 1971. August 2021 is the 50th year. Polny says, “God is going to force the hand of this event. So, when the dollar drops sizably in value, expect an immediate reaction, and the immediate reaction would likely be some type of a war event.”
       
      What about Bitcoin and the U.S. dollar? Polny says, “Bitcoin is up $40,000 in God’s New Year, and we are in the 50th year in a jubilee cycle. So, this year, the dollar itself is supposed to tank. When it drops, that’s going to be the fuel for Bitcoin and the crypto currencies to accelerate even faster vertically. . . . We have talked about this before, and I have said the price point for Bitcoin could be over $200,000 in 2021. . . . The price moves we have seen so far are only preliminary pricing for what is still coming for Bitcoin. . . . Wall Street is front-running the trade and piling into Bitcoin because they know something.”
       
      What about gold and silver? Polny says, “When gold and silver go up on this move that’s coming . . . this move coming for precious metals will destroy the banks. It will destroy the financial mechanisms that are in place right now. When it starts to destroy the mechanisms used to hold down precious metals, that’s going to cost them billions of dollars a minute when gold and silver start to skyrocket. So, they are doing anything and everything to not let precious metals go up. There is a point of time coming, and it is based on Leviticus 25:9. It specifically talks about the 50 year jubilee cycle. . . . That event is going to cause a drop in the value of the U.S dollar. That event is going to cause a jubilee cycle for precious metals where they lift off and go vertical.”
       
      On President Trump returning to office, Polny says, “Cycles do nothing more than replay themselves with different characters. Look at Saul and David. Saul ended up chasing David out because he knew he was anointed. David ran and hid in the wilderness, and, basically, he was hiding. What did they do to Trump? They chased him out of the White House. As in David, he was chased out, but chase him out all you want, he was still anointed. . . . We are replaying history with different characters. In this case, Saul is Biden and Trump is David . . . but when Saul falls, David returns. That’s what’s coming.”
       
      In closing, Polny contends that God will not turn over America to evil. Polny predicts, “America will not fall . . . God will not forsake America.”
       
      We can’t wait to see what happens later in April.
       
      Watch this on Rumble.
       
      .
    • By Markinsa
      Wait Until You See the Price of Gold in Venezuela Right Now
      August 6, 2018

      Last month in Venezuela’s capital city of Caracas, a cup of coffee would have set you back 2 million bolivars. That’s up from only 2,300 bolivars 12 months ago, meaning the price of a cup of joe has jumped nearly 87,000 percent, according to Bloomberg’s Café Con Leche Index. And you thought Starbucks was expensive.
      But that was July. Prices in Venezuela are doubling roughly every 18 days. The International Monetary Fund (IMF) now projects inflation to hit an astronomical 1 million percent by the end of this year. This puts the beleaguered Latin American country on the same slippery path as Zimbabwe a decade ago and Germany in the 1920s, when a wheelbarrow full of marks was barely enough to get you a loaf of bread.
      Venezuela’s socialist president Nicolas Maduro—who only this past weekend survived an assassination attempt involving several explosive-laden drones—announced recently that the country plans to rein in hyperinflation by lopping off five zeroes from its currency. If you recall, Zimbabwe similarly tried to combat soaring prices of its own by issuing a cartoonish $100 trillion banknote—which in 2009 was still not enough to buy a bus ticket in the capital of Harare.
      Without structural governmental reforms, a new bolivar is just as unlikely to steady Venezuela’s skyrocketing inflation or remedy its crumbling economy.
      Gold Could Save Your Life
      So where does this put gold? At some point, hyperinflation gets so ludicrously out of control that discussing exchange rates becomes pointless. But as of July 30, an ounce of the yellow metal would have gone for 211 million bolivars—an increase of more than 3.1 million percent from just the beginning of the year.

      click to enlarge
      My point in bringing this up is to reinforce the importance of gold’s Fear Trade, which says that demand for the yellow metal rises when inflation threatens to destroy a nation’s currency—as it’s doing right now in Venezuela. A Venezuelan family that had the prudence to store some of its wealth in gold would be in a much better position today to survive or escape President Maduro’s corrupt, far-left regime.
      In extreme cases like this, gold could literally help save lives.
      Such was the case following the fall of Saigon in 1975. If not for gold, many South Vietnamese families might not have managed to escape the country. A seat on one of the thousands of fleeing boats reportedly went for eight or 10 taels of gold per adult, four or five taels per child. (A tael is slightly more than an ounce.) Gold was their passport. Thanks to the precious metal, tens of thousands of Vietnamese “boat people,” as they’re now known, were able to start new lives in the U.S., Canada, Australia and other developed countries.
      Venezuela’s Once Prosperous Economy Destroyed by Corruption and Mismanagement
      But back to Venezuela. Amid the corruption and mismanagement, the only thing helping the country pay its bills right now is gold. Two years ago, it had the world’s 16th largest gold reserves. Today it stands at number 26 as it’s sold off more than half its holdings since 2010. While countries such as China and Russia continue to add to their holdings, Venezuela has been the world’s largest seller of goldfor the past two years.

      click to enlarge
      It’s hard to remember now, but as recently as 2001, Venezuela was the most prosperous country in all of South America. Like Zimbabwe, the OPEC nation is rich in natural resources, home to the world’s largest oil reserves and what’s believed to be the fourth largest gold mine. Oil exports account for virtually all of its export revenue.
      In 2016, Venezuela was the third largest exporter of crude to the U.S. following Canada and Saudi Arabia, but with output in freefall, this is changing rapidly. For the first time ever in February, Colombia sold more crude oil to the U.S. than its eastern neighbor did. And in June, Venezuela’s state-owned oil and gas company, Petróleos de Venezuela (PDVSA), informed at least eight foreign clients that it would be unable to meet supply commitments. According to GlobalData, production is on track to fall to only 1 million barrels per day by 2019, down from 3 million a day in 2011, meaning the petrostate might soon have nothing left to deliver.
      President Maduro now has the ignoble distinction of reigning over an economic recession that rivals the very worst in modern history. Last month, the IMF forecast that the country’s real gross domestic product (GDP) would fall 18 percent this year—the third straight year of double-digit declines.

      click to enlarge
      A mass exodus of young, working-age Venezuelans, many of them college-educated, is unlikely to help. Estimates of the number of people who have fled the country in the past two years alone range from 1.7 million to as high as 4 million.
      Their escape is no easy task, as numerous international airlines, citing rampant crime and a lack of electricity, have canceled all flights in and out of Caracas. The only U.S. carrier still operating in the country is American Airlines, which offers a single daily flight from the nation’s capital to Miami. Just two years ago, there were as many as 40 nonstop American flights, not to mention those of rival carriers, between the two cities—a sign of just how dramatic and swift Maduro’s mismanagement has been in crippling Venezuela’s once-robust economy.
      The Diversification Benefits of Gold
      The gold bears were on top last week, with the metal trading as low as $1,205 on Thursday. That’s the closest it’s come to dipping below $1,200 since February 2017. Friday’s lower-than-expected jobs report gave gold a modest boost, but it wasn’t enough to prevent a fourth straight week of price declines.

      click to enlarge In times like this, it’s important to remember that, according to gold’s DNA of volatility, it’s a non-event for the metal to close up or down 1 percent at the end of each session, 2 percent for the 10-day trading period. And guess what? The S&P 500 Index has the same level of volatility.
      Ten days ago, gold was trading just under $1,230 an ounce, or 0.6 percent more than today. The math is sound.
      It’s also worth remembering that gold has traditionally had a low to negative correlation with other assets such as equities. This is why many investors over the years have used it as a portfolio diversifier.
      Case in point: On June 26, Facebook suffered its worst single-day decline since the company went public in 2012. Its stock plunged 19 percent, erasing some $120 billion in market capitalization—the most ever in history for a single trading session.
      Gold, meanwhile, held relatively steady, slipping only 0.62 percent.
      Curious about learning more? Explore the two main drivers of gold, the Fear Trade and Love Trade, by clicking here!
       
       
      All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the link(s) above, you will be directed to a third-party website(s). U.S. Global Investors does not endorse all information supplied by this/these website(s) and is not responsible for its/their content.
      The S&P 500 Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.
      The Bloomberg Café Con Leche Index tracks the price of a cup of coffee in the eastern portion of Venezuela’s capital city of Caracas.
      Diversification does not protect an investor from market risks and does not assure a profit.
      Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed by U.S. Global Investors as of 6/30/2018: American Airlines Group Inc.
    • By magawatt
      The kerfuffle over what Pres.Trump may have said in recent meetings has caused stocks to fall and gold to raise.
       
      Good for Nations holding large gold reserves...such as Iraq.
       
      A golden opportunity?
       
    • By Dinarian64
      Gold is on track to be the best performing asset class in February, surging almost 10 percent over the month as safe haven and exchange-traded fund (ETF) flows bolster the commodity.
      The yellow metal is up around 9.8 percent in February so far, and is on course for its biggest monthly gain since January 2012. With a 16 percent rally in prices so far this year, it is also this year's best performing asset.
      Dario Pignatelli | Getty Images
      An employee arranges one kilogram gold bars for a photograph at the YLG Bullion International Co. headquarters in Bangkok, Thailand.
      Spot gold was up around 0.7 percent at $1,231 per troy ounce on Monday afternoon having hit a one-year high of $1,260 earlier this year.
      Holdings in exchange-traded funds have risen to the highest level in almost 17 months, gaining 3.9 tonnes to 1,682.6 tonnes on Friday, the highest level since October 2014, according to data from Investec.
      Demand for gold has seen the SPDR Gold Trust, the world's largest gold ETF, rise to around 762 tonnes on Friday, around a year-high.
      Gold moves revive memories of 1990s currency crisis
      "Precious metals saw very large inflows over the last month as negative rates and the prospect of a more dovish (U.S. Federal Reserve) make this zero-income safe haven asset more attractive," said strategist at UBS, Ramin Nakisa.
      ETF investors are not the only ones backing the precious metal, with hedge fund managers upping bullish bets on U.S. COMEX to a 12-month high, according to data released by the Commodity Future Trading Commission (CFTC) on Friday for the week ending February 23.
      Jenny Cosgrave
      Reporter, CNBC.com
      by Taboola
    • By ixic
      Gold Is A Bargain Right Now, But No One Is Paying Attention - Rob McEwen

      Nov 10, 2015
      Guest(s): Rob McEwen 
      owner of McEwen Mining, a mid-tier gold and silver producer. ‘If you are in Australia, Canada, the price is going up because of the foreign exchange -- at some point, it will move in U.S. dollar terms,’ McEwen said in an interview with Kitco News on Monday. He added, ‘People should be putting a little money into gold, think of it as 80-90 percent off; you can turn gold into cash in two days, it is value.’ McEwen, the former founder and CEO of Goldcorp said one of the greatest challenges the mining industry now faces, is operating within the lower cost environment. December Comex gold was last up $0.30 at $1,088.50 an ounce. McEwen also addressed the company’s record production for the third quarter with the El Gallo Mine, which he said is the company’s, ‘star performer.’ Total output for the July-September period was 43,390 gold-equivalent ounces, an increase of 54% over the third quarter of 2014. The El Gallo mine in Mexico was robbed last April but McEwen said the company has received reimbursement for approximately 80% of the fair value of a loss. ‘You have to be a little more sensitive to the local community -- we built a new refinery and it is now according to Brinks – the state of art facility in Mexico,’ McEwen said. Kitco News, November 10, 2015.

       

      ...I sound like a broken record, but I happen to agree with him. Gold won't be this low forever.
  • Testing the Rocker Badge!

  • Live Exchange Rate

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.