The reality of peak gold production has recently been acknowledged by Bloomberg and some of the financial media. Yet the mainstream, non specialist financial media has yet to cover this important topic with obvious ramifications for the gold market and the gold price in the medium and long term.
Oops! Experts’ £6 Bln blunder sends UK trade deficit soaring. The UK failed to measure huge imports of gold coins and bars after Brexit vote, accroding to an article written by Philip Aldrick, Economics Editor at The Times, London.
Russia gold buying accelerated in October with the Russian central bank buying a very large 48 metric tonnes or 1.3 million ounces of gold bullion. This is the largest addition of gold to the Russian monetary reserves since 1998 and could be seen as a parting ‘gift’ by Prime Minister Putin to his rival ex-President Obama.
Gold has risen another 1.7% in British pound terms this week and is 1.8% higher in euro terms and is again acting as a hedge against currency devaluations, Brexit, eurozone and heightened political and geo-political risk in the United Kingdom, European Union, United States and most of the world.
Sterling gold surged 5% in less than a minute overnight in Asia with prices rising from £994/oz to £1,043.40/oz as sterling had a massive “flash crash.” Sterling plummeted in the second biggest fall in its history – only slightly less than the collapse after the Brexit vote.
Gold’s largest plunge in 14 months may soon reverse according to gold’s top forecaster in Q3, according to Bloomberg. Looming risks from the U.S. presidential election in November to Britain starting talks to leave the European Union next year may boost its role as a haven.
Gold fell by 3.4% to $1,268.70, while silver fell by even more and was down 5.1% to as low as $17.73 per once. Gold was also down by more than 3% versus the euro and sterling gold was also down 3% as the beleaguered pound had a temporary reprieve.
A couple of weeks ago an article appeared on Bitcoin magazine called, "Some economists really hate bitcoin." I read it with a sigh of nostalgia. As someone who has been writing about gold for a few years, I am used to reading similar criticisms as those bitcoin receives from mainstream economists, about gold.
After all, you can own something that’s in someone else’s legal possession. For example, I own a house in Cape Town. My tenants have formal right of possession under a lease. I sleep at night because the sheriff of the Simon’s Town Magistrates’ Court will enforce my superior right of possession under South African law if needed — say, if they stop paying rent.