3 Minute Gold News
A Quick Read for Busy People
Singapore Gold Hub
Hong Kong Protests
Alan Greenspan and China
Ebola and Gold
The spot price for gold is $1,214.20 U.S. per ounce according to Kitco.com.
SINGAPORE GOLD HUB
Singapore continues its desire to move towards becoming the gold hub of the world.
They will be launching the 1 kilo gold bar contract on October 13th, in just under two weeks.
The new gold contract is designed to actually deliver physical gold to institutions and wholesalers instead of settling in cash.
The settlement of the contract in physical gold 1kg bars (32.15 troy ounces) will act as an actual price discovery.
Here’s a 1kg bar selling at the Royal Canadian Mint:
The physical gold settlement is two days after the trade date so wholesalers will be able to quickly gauge actual supply and demand.
Legendary investor, Jim Rogers, moved his young family to Singapore from New York in 2001. He believes Asia is the next economic hub. He said that in 1801 you moved to London, in 1901 you moved to New York, and in 2001 you move to Asia.
Hong Kong is also vying to be the new east gold hub, but with the current democratic protests, we’ll have to see if Singapore offers more stability.
The protests in Hong Kong have been growing in size with rising uncertainty in the outcome.
The images from the “umbrella revolution” are stunning.
Umbrellas are a good choice as a symbol — they protect from the rain (and tear gas), offer stability when closed (for walking or moving through crowds), and are quite pointy as a defense item.
One student protestors I was watching on a news program said that they are protesting now because if they don’t do it now they may not have another chance.
#HongKong update 1: A protest like no other. Polite, respectful students. Police holding back.
Maybe it’s good to look at the world that way.
Change is coming. World reserve currencies change hands at regular intervals and we’re due for one. There’s economic hardship for some people, usually the middle class and poor, in the process. There is usually political pressures and uncertainty for a short while.
Gold and silver have historically become safe havens at those times.
ALAN GREENSPAN AND CHINA
Alan Greenspan wrote in a September 29th Foreign Affairs article, published by the Council on Foreign Relations, that if China should use part of its $4 trillion foreign exchange reserves to buy enough gold to pass the U.S. as the world’s largest holder of monetary gold, that China’s currency “could take on unexpected strength”.
In the currency wars, isn’t it an advantage to have your currency weak against other currencies, not strong?
Greenspan predicted that as China is buying all this gold that the price of gold would rise, but it would “likely fall back” once China stopped buying.
In the currency wars, wouldn’t China be buying the gold to hedge against the loss of value of the U.S. currency they hold? In this case, buying gold to hedge against their close to $3Trillion U.S. dollars losing value because of inflation from all the Federal Reserve QE money printing?
The printing of more fiat currency means each dollar already in existence becomes worth less — so there’s inflation because everyone has more dollars to pay for the same goods.
So — isn’t China, as Jim Rickards has been saying in recent interviews and in his bestselling book The Death of Money, buying gold because the metal rises in value when the U.S. dollar falls in value?
So — isn’t China either holding value in the $3 Trillion worth of U.S. dollars they have or else holding value in the gold they buy with the U.S. dollars before those dollars lose value due to the inflation brought on by the excessive QE.
So — it almost looks like Greenspan is warning or suggesting that if China keeps stockpiling gold that it will both make the yuan undesirably strong and also not hedge against the devaluing of their U.S. dollars because the gold will fall back in price after they stop buying.
Almost looks like a reverse psychology article. Maybe it’s just me.
EBOLA AND GOLD
We have the U.S. with heavy debt and the first confirmed case of Ebola contracted (or at least becoming contagious) on U.S. soil, in Dallas, Texas. The next 21 days, the incubation period, will be important to watch. There is already a second person being monitored in Dallas, Texas.
There are conflicting reports regarding when a person is contagious or how easily it is transmitted. Health Canada website used to say, about a month ago when I looked, that it was suspected but never confirmed to be airborne, as primates in cages across a room contracted the virus without contact. The website removed that statement so perhaps they didn’t want to alarm people when it wasn’t confirmed.
The CDC states that it is not airborne and that it is only contagious after a person shows symptoms.
Might be an interesting time to mention that gold has been used in medical situations for thousands of years.
The Gods of the Copybook Headings
words by Rudyard Kipling and music by Elaine Diane Taylor
copyright 2009 Intelligentsia Media Inc.
All rights reserved.
Available on iTunes.
Black Swan Dive (high frequency trading, banker deaths and gold manipulation)
words and music Elaine Diane Taylor
© 2014 Intelligentsia Media Inc. All rights reserved.
available soon on iTunes