Gold Monitoring Thread £ GBP only

[Bratnia]

7 hours ago, HonestMoneyGoldSilver said:

Honestly none of that makes sense to me

You're describing a short squeeze on gold, which would send gold to the moon on a few laps around Pluto.

The west does not control precious metals trading - already 55%+ is Asia-Pacific and that does not mean the other 45% is the USA. The USA is a major producer and important market but it's smaller than the EU + UK. It's also not the largest gold producer, with South America, Canada, Australia, China and Russia being substantially larger gold producers than the USA. Note also the EU central banks/Treasuries own substantially more gold than the Fed/US Treasury

While gold on western markets might be priced in USD and controlled by the COMEX-LBMA cartel, gold is a global commodity with many inputs that are not denoted in USD (vast majority of gold mining and refining is outside the USA). The Moscow-Shanghai exchange is practically divorced from London-New York

In the scenario you outlined above, the value of unallocated paper gold might go to zero but the value of physical gold and allocated gold would go in the opposite direction. If the USA or any other nation put an arbitrary floor on the "free market" price of gold, the free market would sell it to another country and accept Euros, GBP, Yen, oil, wheat or anything else of equivalent market value

When it comes to ETFs or other allocated funds, the rule is already 1:1 in the west. For every ounce of gold sold via allocated funds, there is an ounce of gold sitting in a vault somewhere. There is no reason why that market should abruptly come to a halt. Unallocated gold is a different story though. 

The real reason to own gold is for it to be physically in your custody and NOT tied to the financial system or modern technology. 

The US Treasury are the lawful owner of 8134 tonnes of gold, the Federal Reserve handed over the ownership of that official gold reserves to the Treasury in 1934 in return for gold certificates (non redeemable for gold, only redeemable for cash, paper gold). The Fed remain the custodians of the gold. The gold certificates are valued on the Fed's books at $42.22/ounce. 8134 x $42.22 book value, 8134 x $2111 market value assuming a market spot gold price of $2111/ounce. The Fed could 1:1 sell paper gold in London and buy 50 x 8134 tonnes of physical gold in Shanghai i.e. around 60,000 tonnes of gold, that supplemented with the Treasury's 8000 odd tonnes is around 70% of the entire worlds financial gold value/amount (200,000 tonnes of total world gold of which around half of that is in the form of jewelry, half in financial gold).

When the Fed sells paper-gold to buy physical gold in a 1:1 ratio the market price of gold would tend to remain relatively level, swaps out paper gold for physical gold. Subsequently the Fed could at any time sell some/all of that physical gold in isolation and provided it did so for a $42.22 or higher price overall it would not have lost any money/book-value. With such a big seller in the market the price of gold would tend to be (significantly) lowered (supply/demand).

[MBTPSilver]

US CPI below expected at 3% so a big jump on the live chart and $2,400 briefly hit:

[modofantasma]

Buy order got slipped up to 2387 but not by much for CPI standards 

Just closed. That'll do for the week 🥱

[Dankanugget]

Parity with the dollar? End of year?

[modofantasma]

It's still running 👀

[James32]

£1860 get the caviar out.

[Paul]

7 minutes ago, James32 said:

£1860 get the caviar out.

......... and the brown sauce 

[gji25]

6 hours ago, Bratnia said:

The US Treasury are the lawful owner of 8134 tonnes of gold

Really ?

 

[Bratnia]

1 hour ago, modofantasma said:

Buy order got slipped up to 2387 but not by much for CPI standards 

Just closed. That'll do for the week 🥱

+1 (just now)

Sold the 42 ounces I bought literally minutes before the General Election was announced (6+ weeks back), when the priced dived from my £1893/ounce price I'd paid

Matched that with a similar amount in FTSE250 stock. Just got back to break-even (gold down -1.5% stock up +1.5%, 1863/ounce price) so decided to close-out. Schools break up soon for their summer 6 week break, may wait until they're back to school or might re-enter if the FT250 and/or gold dip back down again, both feel a little 'up' ahead of Friday.

Edited July 11 by Bratnia

[Bratnia]

42 minutes ago, gji25 said:

Really ?

 

It (the gold) is there, assayed and sealed. The US Treasury own it, but for each ounce there's 100+ other paper claims to also own it. I wonder how that might work out. That's the vault showing the actual dollar value of all of the paper claims to the gold, a bit messy, they could have at least swept up those dollars on the floor and put them in a wallet/box.

[James32]

£1866

[stefffana]

2 minutes ago, James32 said:

£1866

Don't get wet, buddy!

Just sayin'....😁

 

This is not Moon yet!

[Chronos]

Wall Street Reacts To Today's Dovish CPI Shock: "It's Time To Cut":

https://www.zerohedge.com/markets/wall-street-reacts-todays-dovish-cpi-shock-its-time-cut

[Derv]

25 minutes ago, stefffana said:

Don't get wet, buddy!

Just sayin'....😁

 

This is not Moon yet!

Oooo matron!

[JamesH]

[CaptCaveMan]

 

Friday smackdown?

/reported.

[Chronos]

Japan Intervenes In FX Market To Crush Yen Shorts After Dovish CPI:

https://www.zerohedge.com/markets/japan-intervenes-fx-market-crush-yen-shorts-after-dovish-cpi

[PapaLazarou]

1 minute ago, Chronos said:

Japan Intervenes In FX Market To Crush Yen Shorts After Dovish CPI:

...in case you were wondering where permatwat Norman Lamont spends the summer.

[James32]

One - eight- seven- three..

[davejones]

Is one or two interest cuts likely to devalue the pound and therefore increase the gold price towards the end of 2024?

[Paul]

Gold has taken its afternoon Viagra I see 

 

[Bratnia]

[Paul]

1 minute ago, Bratnia said:

[Paul]

It'll be smacked down to £1800oz tomorrow. You watch

It's Friday remember. 

[HonestMoneyGoldSilver]

59 minutes ago, davejones said:

Is one or two interest cuts likely to devalue the pound and therefore increase the gold price towards the end of 2024?

If the BoE cuts before the Fed, yes, this would be expected to cause GBP to depreciate vs USD and thus boost the price of gold in GBP

The BoE waited longer to raise rates than the Fed and thus should wait longer to cut rates than the Fed.

The political situation is different on this side of the pond though, with there being heavy pressure from politicians and media within the UK to cut rates immediately. This pressure continues to mount in the face of our cost of living crisis, however, the woketards and non-financially savvy don't seem to understand that weakening GBP vs other currencies will cause MORE inflation, as the UK is a large net importer of things that matter to ordinary people - namely energy and food - which are not counted in the CPI.

The BoE is currently concerned with wage increases, inflation in the services sector and the tight job market - basically they're worried too many people are employed, their wages are rising and so too are the cost of services. These are hard-baked inflationary pressures and are a strong argument against cutting rates, at least according to Huw Pill (Chief Economist at the BoE)

BoE's Pill sees 'open question' on timing of first rate cut (msn.com) (Reuters)