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Posts Tagged ‘Gold’

First repatriated gold shipment lands in Venezuela

In World News on November 28, 2011 at 3:41 am

By Daniel Wallis

Amid wild celebrations, a first shipment of gold bars arrived home in Venezuela on Friday after President Hugo Chavez ordered almost all the country’s foreign bullion reserves be repatriated from Western banks.

Excited crowds lined the roadside waving big Venezuelan flags and chanting “It’s returned! It’s returned!” as a convoy of soldiers and armored cars carried the ingots from Maiquetia airport to the central bank in Caracas.

Experts had cautioned that the operation, which will eventually transport more than 160 tons of gold bars worth more than $11 billion to the South American country, would be risky, slow and expensive.

Nelson Merentes, the president of the central bank, traveled into the city at the head of the convoy. He did not say how much gold was brought back in Friday’s shipment but said the bullion came from several European countries.

“Our gold is being stored in the vaults,” Merentes, sporting a baseball cap that read “The Central Bank of Venezuela with the People,” told the cheering crowds.

“We cannot give exact dates (for when the rest of the bars will arrive) due to questions of security. When we bring the last shipment, the people will learn about it.”

Drums and sirens sounded out across the square as many in the crowd sang “Forward comandante!” in support of the president. Some waved homemade signs that said: “The gold has returned thanks to Chavez!” and “Long live our sovereignty!”

Chavez announced the repatriation in August as a “sovereign” step that would help protect Venezuela’s foreign reserves from economic turmoil in the United States and Europe. Most of Venezuela’s gold held abroad is…

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Not Dollar, Not Euro, But Gold

In World News on July 28, 2011 at 11:46 am

By Antoaneta Becker

Growing concerns about the slow death of the dollar rather than a saviour’s goodwill are underpinning China’s widely publicised purchases of European government debt, according to experts. But as the Eurozone debt crisis spreads from Greece and Portugal to countries like Italy and threatens the very survival of the euro, China’s finance mandarins and keepers of the country’s 3 trillion dollars foreign reserves are looking yet again at gold as the anchor of stability.

Yu Yongding, a former adviser to the Central Bank of China and strong critic of U.S. treasury bonds, an asset in which about 1.2 trillion dollars of China’s foreign reserves are invested, has been calling on Chinese rulers to diversify as much as possible of China’s holdings to guard against a weaker dollar.

Speaking at a global economic forum in Beijing this month Yu said the U.S. debt and its ratio against the country GDP were rising, and predicted trouble for all U.S. assets and the global economy.

Yu is in company of big banks like Goldman Sachs predicting a slow and steady decline of the dollar. Yu believes that from 1929 to 2009 the purchasing power of the greenback has declined by 94 percent. Goldman Sachs forecasts…

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Gold may advance on inflation concern, sovereign-debt crisis in Europe

In Europe News on June 15, 2011 at 6:34 pm

By Bloomberg

Gold may gain for the first time in three days in New York as concern about rising inflation and Europe’s debt crisis spur demand for the metal as a protection of wealth.

China ordered lenders to set aside more cash as reserves after inflation accelerated to the fastest pace in almost three years, while consumer price increases in India quickened. Standard & Poor’syesterday branded Greece with the world’s lowest credit rating, saying the nation is “increasingly likely” to face a debt restructuring.

“The inflation story is still in the back of people’s minds,” said Bernard Sin, the head of currency and metal trading at MKS Finance SA, a bullion refiner in Geneva. “Europe is definitely a problem, that’s why you’re seeing decent demand. Physical traders might be happy to get in at these levels.”

Gold for August delivery rose $3.40, or 0.2 percent…

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Gold, silver coins to be legal currency in Utah

In Americas on May 24, 2011 at 6:40 am

By Associated Press

Utah legislators want to see the dollar regain its former glory, back to the days when one could literally bank on it being “as good as gold.”

To make that point, they’ve turned it around, and made gold as good as cash. Utah became the first state in the country this month to legalize gold and silver coins as currency. The law also will exempt the sale of the coins from state capital gains taxes.

Craig Franco hopes to cash in on it with his Utah Gold and Silver Depository, and he thinks others will soon follow.

The idea is simple: Store your gold and silver coins in a vault, and Franco issues a debit-like card to make purchases backed by your holdings.

He plans to open for business June 1, likely the first of its kind in the country.

“Because we’re dealing with something so forward thinking, I expect a wait-and-see attitude,” Franco said. “Once the depository is executed and transactions can occur, then I think people will move into…”

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China is now top gold bug

In World News on May 21, 2011 at 12:11 am

By The Wallstreet Journal

Chinese investors are snapping up gold bars and coins, buying more than ever before in the first quarter of 2011 and overtaking Indian buyers as the world’s biggest purchasers of the metal.

A growing middle-class in China is raising the appetite for gold there.

China’s investment demand for gold more than doubled to 90.9 metric tons in the first three months of the year, outpacing India’s modest rise to 85.6 tons, the World Gold Council said in its quarterly report on Thursday. China now accounts for 25% of gold investment demand, compared with India’s 23%.

The report underscores the rising appetite for gold among the growing middle-class in China. Fears of the country’s soaring inflation, as well as a search for new investments, is luring investors to gold, and marketing of the precious metal has also increased in recent months.

“I think people will be surprised by the strength in the Chinese demand, but we think this is a trend that is set to continue,” said Eily Ong, an investment research manager at the gold council.

Historically, India has been the largest investment market for gold. In 2007, just before investing in gold began to…

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Will governments confiscate gold?

In World News on April 25, 2011 at 2:34 pm

By Alasdair Macleod

As concerns mount that there is another financial crisis in the offing and the gold price rises, American investors worry increasingly about whether the US government will confiscate their gold. The precedent was set by President Franklin Delano Roosevelt, who in 1933 forced all of America’s gold owners to sell their bullion to the Federal government at the official price.

However, the situation today is very different from that of 78 years ago. At that time, gold was the primary currency, the dollar being tied to it at $20.67 per ounce. But today, the Fed and European central banks strongly deny that gold has any monetary role at all, and argue instead that it’s just a hangover from the past: “that barbarous relic” as Keynes called it. Its confiscation would be an embarrassing admission that gold, after all, is money.

Nevertheless, as paper currencies continue to lose credibility, the temptation for any government to seize its citizens’ gold to enhance official holdings must be growing. Americans today, however, are unlikely to meekly accept confiscation the way they did…

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