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- Is There Any <b>Gold</b> Left For Central Banks To <b>Buy</b>? - <b>Bullion</b> Bulls <b>...</b>
- EXCLUSIVE: RippleSingapore co-founder on the 'Value Revolution <b>...</b>
- Why You Need To <b>Buy Gold Bullion</b> Online - vitiviniculturaatlantica
| Is There Any <b>Gold</b> Left For Central Banks To <b>Buy</b>? - <b>Bullion</b> Bulls <b>...</b> Posted: 31 Mar 2014 10:53 AM PDT
Written by Jeff Nielson Monday, 31 March 2014 12:53 Articles & Blogs - Gold Commentary Here is a conundrum for readers to unravel. Throughout 2011, 2012, and early into 2013; central banks in Eastern and Emerging Market nations went on the largest (official) gold-buying binge in history. This occurred as the currencies of these nations were relatively stable, and thus "inflation" pressures were relatively muted. Now flash-forward to early 2014. We have what the mainstream propaganda machine is calling "the crises in Emerging Market currencies" (versus all the currencies of the corrupt, Western bloc). Let's put aside the fact that the "collapse" of these currencies is just another mega-crime from the One Bank – committed while its banker-felons are currently being investigated for serial currency-manipulation. Forgetting about the cause of this "collapse", the effect of this plunge in the value of these nations' currencies is a spike in the rate of inflation. In other words; whatever was the precise motivation for these central banks to begin their gold-buying binge, those motivations would be stronger today. Yet despite a stronger motive, their gold-buying has practically screeched to a halt. The analogy here is a simple one. As summer begins (and people get thirsty), lemonade sales increase significantly. Yet just as a heat-wave arrives (and people are presumably even thirstier), lemonade sales suddenly collapse. There are only two plausible reasons which immediately assert themselves in this hypothetical scenario. Either the lemonade customers have no more funds to purchase lemonade, or the lemonade-makers have no more lemonade to sell. Relating this conundrum back to the real world, if there is one thing which we know for certain it is that all of these central banks have plenty of paper to use to exchange for gold, indeed, virtually infinite amounts. Absent a gold standard; the only thing restraining these governments in the creation of these paper currencies is their own (lack of) discipline. With "competitive devaluation" still the policy-of-suicide for all these governments; this translates into no discipline at all. It's pedal-to-the-metal with all this paper-printing, meaning that all these governments have mountains of 'money' to devote to their gold-buying. Clearly then, our primary suspicion must be that there is little – if any – gold left for these central banks to vacuum-up. Before pursuing this thinking further; let me deal with a few permutations of this scenario which may have occurred to astute readers. Obviously the collapse of all these currencies means that the price of gold (denominated in these same currencies) has spiked. Thus one possibility would be that these gold-buyers are simply waiting for more-reasonable prices. There are two reasons to reject such reasoning. First of all, as previously noted; these governments have essentially infinite amounts of paper to exchange for limited/finite quantities of gold. Playing-out such a scenario; as the price of gold begins to fall, instead of waiting for "the bottom", queue-jumpers would leap into the market to get their gold before supplies are exhausted. The point of logic here is that with infinite quantities of paper and (in relative terms) extremely limited amounts of gold available; the queue-jumpers would never even begin waiting for "better prices". They would have simply continued their gold-buying at the same robust pace we saw in 2011 and 2012 – knowing that the market will run out of gold long before they run out of paper to use in purchasing gold. More cynically; with all these governments playing their little game of Competitive Devaluation (where the object of the game is to drive one's currency to zero), there will never be "a good time" for them to buy – i.e. when the price of gold recedes any significant amount below current prices. It makes no sense for any government deliberately driving the value of its own currency to zero to wait for "better prices" for any hard asset. We also have the reasons put forth by Western banksters: …TDS comments that emerging-market central banks may be less willing to buy gold as they were when U.S. monetary conditions were easing. "Many emerging nations may see their reserves wane, or at the very least grow at a reduced pace. This implies that current holdings of gold represent a higher weight or that less purchasing is required to achieve a target portfolio weighting. Plus there is strong evidence that central banks are pro-cyclical – buying when prices are rallying and selling when they drop. Of course, coming from the mouth of a banker; this is all either fiction or half-truth. However, for readers to appreciate this, first this double-talk must be translated into English. Boiled-down; the line which the bankers are trying to sell is not that the lemonade-makers have no more lemonade to sell, but rather the lemonade-buyers have a lack of funds. Typically, we a banker engaging in more upside-down perversion: in their Wonderland Matrix, it's a world where supplies of paper are limited – but there is infinite quantities of "gold" for sale. Of course what these Snake-Oil Salesmen leave out of their analysis is that the infinite quantities of "gold" being sold by these same bankers are, in reality, just mountains of paper masquerading as gold. Putting aside that first absurdity; this mouthpiece for Western banking is trying to tell us that in a global economy with $100's of trillions floating around global markets (and over $1 quadrillion in the bankers' derivatives casino) that a reduction of $20 billion per month in U.S. money-printing would cause global gold-buying to collapse. Even more absurd; regular readers know that in the real world there has been no "tapering" of the U.S.'s out-of-control money-printing. The other suggestion from TD Securities is equally silly: that essentially these central banks have a pattern/history of buying high and selling low. This half-truth totally evades the crucial distinction that it's been Western central banks selling gold and Eastern central banks doing the buying. As sophisticated readers understand; Western banks were dumping gold on the market precisely to cause prices to fall. Meanwhile, Eastern central banks buy gold to protect their economies from (banker-created) "inflation", which is why we naturally see their gold-buying intensify when inflation spikes – and the price of gold is relatively high. Rejecting the banker propaganda; we return to our original presumption: that there is little gold available for these central banks to buy. We can test this presumption by applying it to what reliable anecdotal evidence is available. In 2013; at precisely the same time that central banks suddenly/dramatically pulled-back from their gold-buying binge, the following events were taking place. As a consequence of the Cyprus Steal; we had "the flight out of paper", where the Smart Money ditched all of the bankers' paper-called-gold which they were holding, and exchanged it for real gold, instead. This interpretation is substantiated with unequivocal market data. Holdings of the bankers' paper-called-gold "funds" collapsed by approximately 40%. Comex gold inventories in New York have plummeted by roughly double that amount. Meanwhile, with the paper-called-gold market (at least) one hundred times larger than the real gold market; panic-selling in this much larger (paper) market caused the price of gold to fall. In turn, this "sale" on (real) gold caused gold imports into the world's two largest gold markets – India and China – to spike to astronomical levels. At one point; by themselves these nations were importing gold at an annual rate of 4,000 tonnes per year. Clearly the logical presumption that there is little-if-any gold for these central banks to purchase (on the open market) is strongly supported by all available empirical evidence. Here it must be noted that two of the world's largest nations which have publicly acknowledged their large appetite for gold – China and Russia – are also two of the world's largest producers of gold (China is the largest). What continues to be misreported throughout the media is that nations which purchase gold on the open market must report/declare all such purchases (in a timely manner), while any gold which nations acquire domestically never needs to be reported. This is derived from our international rules on currency transfers. Despite decades of lies by Western bankers that gold had become "a barbarous relic"; these same bankers have never ceased to treat gold as money in all of their own rules and transactions. Just as is the case with U.S. money-printing, when it comes to accumulations of gold by central banks, we only have some of the data available, and thus we cannot make hard-and-fast conclusions about the overall accumulation of gold by Eastern/Emerging Market central banks. What we can conclude with safety is that there is little gold to be had on the open market – and thus many nations are now (literally) digging it out of the ground for themselves. Trackback(0)   |
| EXCLUSIVE: RippleSingapore co-founder on the 'Value Revolution <b>...</b> Posted: 31 Mar 2014 05:48 PM PDT RippleSingapore.com is one of the purest and most interesting uses of the ripple protocol to date. The service acts as a gateway for gold, silver and currencies. That gives users the ability to transmit gold and silver ounces online. Thanks to RippleSingapore's gateway, users can now buy and sell the following on ripple:
RippleSingapore co-founder James Cox agreed to answer some questions from Crypt.la about the inspiration, goals and ideas behind his service. Here's what he had to say: Q: How did you get into/learn about cryptos? A: I have been interested in economics, monetary science and investing for a long time. I have traditionally been involved in gold and silver. Then came Bitcoin, and I thought it was a fascinating currency. I wrote "Bitcoin and Digital Currencies," which was published by Laissez Faire Books. In 2013, I was introduced to ripple and understood that this was a real game changer for trade. I decided to start writing another book, "Ripple: The Return of Trust" and set about opening a Ripple Gateway. Q: What gave you the idea for Ripple Singapore? Ripple is probably the most versatile of all Fintech solutions, and we were of course keen to innovate in this space. We wanted to give users a way to hold their wealth in gold bullion, use ripple to buy the items they want and pay the merchant in the currency he requires – in 5 seconds. I teamed up with a gentleman who has a very strong grasp of how the world works named Marco Faasse. He had the idea of placing gold and silver on the ripple network. The software for a gateway is of course essential and requires both experience and innovation. This was handled by fellow co-founders Erwin and Herco van der Waal. They set up a successful software company in the 1990's called TTT. Their talented development team has consulted with Ripple Labs to make an attractive and functional site that integrates straight to your Ripple Wallet. The advantage here is that we do not hold any customer funds on our servers. Cash deposits are held at OCBC (Singapore's oldest and one the world's best capitalized banks), 100% reserved physical gold, silver and platinum are bought through Silver Bullion Pte Ltd., which is an excellent dealership. They do the testing of premium quality bullion from the world's most respected mints. The bullion is stored in a private vault outside of the banking system. The rights to redeem are only held by the user in their ripple wallet. Naturally, our customers are able to redeem their cash or bullion on demand or liquidate their holdings on the distributed ripple exchange immediately. Q: What's the trade volume been like for XAU, XAG and XPT? Has it met or exceeded your expectations so far? Our user base is expanding rapidly and our customers have bought gold, silver and platinum. The volume is still quite small – one of the main problems is that supply is not meeting demand for bullion. Our physical gold, silver and platinum trade at a premium to Comex. However, the real price of gold varies a great deal from country to country – it is much more expensive in China and India for example. In terms of volume, this means the price keeps going up due to excess demand, and then there is not enough liquidity. A quick glance at the order book (on March 27, 2014) will show that the bids for XAU/XRP for example, outweigh the asks by 5:1. This will take a long time for the demand to be satisfied. Q: Why does the world need Ripple Singapore? The world needs ripple because it is the most powerful combined exchange and payment system. Gold and silver are timeless assets that have been stores of value for thousands of years. Singapore is the ideal place for a precious metals ripple gateway. Singapore is a safe and trustworthy jurisdiction and the financial and innovation hub of South East Asia. There is already a massive demand for physical gold and silver in Asia – the word for 'money' is the same as 'silver' in many languages around the region. Singapore is renowned for its rule of law and free trade policy that has made it so successful. Whilst each user must do their own due diligence on their own country, there is 0% sales tax in Singapore on investment-grade gold, silver and platinum, 0% capital gains tax and Ripple Singapore charges 0% vault fee. Given that we only charge 0.2% transaction fee we feel this is a great service for our users. Q: Are you anticipating inflation in the short- to medium-term? Why or why not? This is a difficult question. I like to use Jim Rickard's analogy of two strong men in a tug of war. Whilst the contest may seem stable, there are huge pressures building that lead to sudden movements. I think we shall continue with a series of increasingly volatile bouts of deflation followed by inflation. Eventually inflation will win. Q: Is there any way governments (particularly the U.S. and E.U.) can de-leverage their existing debt without turmoil and inflation? They are of course not able to lower their outstanding debts. However, they are able to decrease the debt-to-GDP ratio with inflation. I would recommend Ben Davies' analysis of the UK fiscal situation, Grant Williams' of France and Kyle Bass' of Japan. I think these countries will be of greater interest over the next few years. Q: Do you have long-term price targets for gold, silver and platinum? The prices of gold, silver and platinum are all going much higher in next few years. Q: What excites you about Ripple? Its versatility, efficiency and easy user experience. Look at all of the great inventions – they are incredibly hard to describe, but once you have seen them they are unbelievably simple to understand: paper, the automobile, the TV – great technology that is super easy to use and that everyone benefits from. Once you have used ripple your next question is – "so why has this only just been invented?" Q: Where do you think Ripple will be in one, five and/or 10 years? I think in 5–10 years time, having a ripple address will be as normal as an email address. This will include many of the 2 billion people currently outside of the banking system. There will be a far greater range of goods and services bought and sold on ripple in the future. We are hoping that Ripple Singapore's gold and silver demonstrate that it is not just currencies that can be traded on the network. I think we are at the foothills of a much broader 'Value Revolution.' Q: Is XRP in and of itself a good investment? Or will it always be a cheap enabler for other financial transactions? Many people misunderstand XRP; its foremost role is to defend the Ripple network. Imagine each Ripple transaction was an envelope. That envelope needs a stamp that cannot be re-used. A tiny amount of XRP is used in each transaction to defend the Ripple Network. The second important role is that XRP, as the only asset on Ripple without counter-party risk, enables traders on Ripple to minimize their exchange paths to two steps with more concentrated liquidity (eg. KRW/XRP → XRP/XAU). That being said, the network is currency agnostic. If people choose to use XRP as a currency then demand for it will increase and this could increase its price. Q: Why do bitcoiners dislike ripple? I do not think that is entirely true. I would suggest that many Ripple users are also bitcoin fans. Bitcoin is a fantastic math-based currency and ripple is a fantastic math-based marketplace. Bitcoin is understandably one of the most popular currencies on ripple. The value (not the price) of any currency, including bitcoin, is determined by the number of goods and services it can be exchanged for – divided by the number of units of that currency. Therefore, I would encourage bitcoiners to consider the merchants, goods and services. Presumably, you would like to receive ownership of the goods you have bought with maximum speed and cost efficiency. This is also what the merchant wants – and under these conditions he is more likely to sell his goods. You would both also like some assurances – proof of ownership and sale recorded on a blockchain and the chance to see the liabilities and trust lines of the merchant. We are all aware that although there are many new merchants who accept bitcoin, the vast majority of them do not. This is because many merchants don't understand bitcoin, can't risk its volatility and are unsure of future regulations. Therefore, they almost certainly require their own local currency. Ripple provides the solution. You can keep the currency you like, receive ownership of the goods you want and the merchant receives the currency he needs. There is some criticism in the bitcoin community of XRP being pre-mined, and I do understand this concern. However, I would invite people to consider the fact that XRP defends the Ripple Network – for $5-$10 worth of XRP you will never have to pay transaction fees ever again for a potentially massive range of items of value. I am also aware of the criticism that the founders have kept a large proportion of XRP for themselves. However, if you believe in free markets, you allow for the fact that people make great products in the hope that in offering people what they want, they can also benefit themselves. That is how capitalism works. Q: What do you think the future holds for ripple and Ripple Singapore? The more things change the more they stay the same. People want to improve their lives and this is best done by discovery, innovation, hard work and offering goods and services other people want. People all over the world want to do this as efficiently as possible and be able save their profits in a steady store of value until they decide to spend or invest. I believe that ripple is a game-changing technology in the history of the marketplace. It is growing exponentially both in its number of users and items of value. But look a little deeper, and you will find that for all the marvelous technology, the marketplace has not changed one bit in thousands of years. In the marketplace, trust networks come first, and when these are established, goods soon follow. Demand and supply determine the value of those goods, and in the long term, financial value is best measured in gold and silver. Learn more at RippleSingapore.com.   |
| Why You Need To <b>Buy Gold Bullion</b> Online - vitiviniculturaatlantica Posted: 31 Mar 2014 03:06 AM PDT The internet has simplified means through which you can easily leverage lots of professional services and buy lots of amazing products. You need not to pass through stress in your bid to buy gold bullion as there are oodles of authorized companies through which you can easily buy high quality and well purified gold or silver bullion on the internet. What you just need to make such an important investment as investing on precious metals like gold bullion and others is your internet device. But, you need not to be careless in your bid to buy bullion through the internet. This is to avoid you falling victim of scams that normally offer their victims fake gold bullion in form of pure gold bullion. In that regard, you need to ascertain the services of any company you want to buy bullion from on the internet. Obviously, there are two ways through which you can easily ascertain the reliability or authorization of any bullion dealer you want to patronize online. You can either do that through the testimonials left by clients that have bought bullion from such company or you checkout for trust sign on their website which will ensure you about the certification or authorization of such company. Actually, you need to consider the experiences of the bullion dealer you want to leverage his services online. Truly, with the help of most reliable bullion dealers on the internet, you can either pick up your well-purified gold bullion or you will have them delivered right at your doorstep. Therefore, just go ahead and search for an authorized and reliable gold and silver bullion dealer over the internet so as to stand chances of enjoying your potential store of value. Really, your investment in gold or silver bullion can be considered as an insurance against inflation or economic recession.
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2 Comment for "Buy Gold Bullion | Is There Any Gold Left For Central Banks To Buy? - Bullion Bulls ... | News2Gold"
The post is giving information about the current status of commodity Gold.
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