LBMA is the international trade association that represents the wholesale over-the-counter market for gold and silver bullion. LBMA undertakes many activities on behalf of its members and the wider market, setting industry standards including good delivery and refining standards, ownership of the precious metal benchmark prices as well as serving as a point of contact for the regulatory authorities. For more information, please visit www.lbma.org.uk.
1 August, 2019 Clearing Statistics Daily Averages - June 2019
Clearing Statistics Daily Averages - June 2019
Gold
The volume of ounces transferred in June increased by 30.4% month on month (m/m) to 24.2 million ounces, its highest volume for 18 months. The corresponding value increased by 38% to $32.9 billion. There were 3,997 transfers in June, 34.8% higher m/m, with the clearers settling on average 6,065 ounces per transfer, 3.3% lower m/m.
Silver
The volume of ounces transferred in June increased by 37.6% to 291.4 million ounces, with the corresponding value 37.6% higher at $4.37 billion. There were 1,329 transfers in June, up 35.9% from the previous month, with the clearers settling on average 219,262 ounces per transfer, 1.3% higher m/m. The gold / silver price ratio averaged 90.66 in June, the highest ratio for 26 years. Clearing statistics are published one month in arrears
Download PDF version of complete press release below
Campaign for Liberty Chairman Ron Paul issued the following statement regarding the Federal Reserve’s announcement that it will be reducing interest rates for the first time in a decade:
“The Federal Reserve’s reduction of its benchmark interest rate from 2.25% to 2% is a textbook illustration of a popular definition of insanity: taking the same actions over and over again and expecting different results. Since the stock market meltdown of 2008, the Fed has unsuccessfully tried to pump up the economy via historic low interest rates and Quantitative Easing. As anyone except those who believe the government’s manipulated statistics knows, these policies failed to revive the economy. Instead of acknowledging its mistakes, the Fed is resorting to another rate cut in a desperate—and what will prove futile—attempt to forestall another central bank-created recession, albeit one exacerbated by President Trump’s destructive trade war.
The bright side of the Fed’s failure is that it will increase public interest in Austrian Economics and alternatives to the Fed, such as precious metals and crypto currencies, and auditing and ending the Fed. My Campaign for Liberty organization will continue to mobilize pro-liberty Americans to pass Audit the Fed legislation at the federal level and increase the number of states that have restored gold and silver as legal tender.”
America’s largest bank sounds alarm in face of skyrocketing debt, rise of China
Courtesy of Infowars by Jamie White | JULY 24, 2019
IMAGE CREDITS: PONY WANG/GETTY.
JPMorgan’s Private Bank released a statement to investors warning that not only could the dollar lose its world reserve currency status, but could also “lose its status as the world’s dominant currency.”
In its July investment strategy report, America’s largest bank warned that the dollar’s “exorbitant privilege” as the world’s reserve currency could be “coming to an end.”
“The U.S. dollar (USD) has been the world’s dominant reserve currency for almost a century. As such, many investors today, even outside the United States, have built and become comfortable with sizable USD overweights in their portfolios,” wrote JP Morgan’s Commodities and Rates Strategist Craig Cohen.
“However, we believe the dollar could lose its status as the world’s dominant currency (which could see it depreciate over the medium term) due to structural reasons as well as cyclical impediments.”
The report goes on to say that the downfall of the dollar as the world reserve currency is inevitable given historical trends, and suggests allocating assets to other markets, particularly Asia.
“There is nothing to suggest that the dollar dominance should remain in perpetuity. In fact, the dominant international currency has changed many times throughout history going back thousands of years as the world’s economic center has shifted.”
In fact, JP Morgan’s Chairman of Market and Investment Strategy Michael Cemblast created a graph in 2012 breaking down the world reserve currencies since the 15th century in an effort to highlight the inevitability of the dollar’s decline as the global currency.
Notably, it seems to indicate the U.S. Dollar losing its status sometime in the early 21st century.
The report comes as President Trump and Congress agreed on a bipartisan two-year $2.7 trillion spending package that does nothing to address the bloated spending or national debt, and totally suspends the borrowing limit.
Economist Peter Schiff noted that the budget deal flies in the face of conservative principles of limited government and fiscal responsibility.
Trump finally managed to be the greatest at something. He has managed to negotiate the greatest budget deal disaster in history. No president has signed onto a worse budget deal than this. He sold it to Republicans as a victory. It’s a loss for Republicans and the Republic!
— Peter Schiff (@PeterSchiff) July 23, 2019
Additionally, central banks around the world, including China and Russia, hit a gold ownership-high in April, with gold purchases spiking by 75% in the last year alone to hedge against a volatile dollar.
As long as the dollar is backed by nothing but the Federal Reserve System of credit, countries around the world will continue to hedge against the dollar while the $21 trillion U.S. national debt keeps ticking up.
US big cap stocks have rallied to new highs in recent months, but just as in the rally from the low of the February 2018 mini-panic to the September/October 2018 peak, sizable divergences between different indexes have emerged in the process. New highs in the big cap indexes (DJIA, SPX, NDX) are once again not confirmed by small caps (RUT), the broad market (NYA) and a number of sub-sectors (such as the DJTA which is included in the chart below; according to Dow Theory, the DJTA must confirm moves in the DJIA to validate its trend).
From the top: weekly charts of DJIA, SPX, NDX, RUT, NYA and DJTA. The recent new highs in the three large cap indexes have not been confirmed by small caps and the broad market. Note also the sizable RSI/price divergence in the DJIA (which is mirrored by SPX and NDX) – this is a sign of faltering momentum that is often seen ahead of trend changes.
We last discussed a “lengthy non-confirmation” in mid-September 2018 (see “US Equities – Approaching an Inflection Point”). Everything we said about the phenomenon at the time applies to the current case as well. In fact, it could well be argued that the current spate of non-confirmations is even more ominous as they are stretching over a time period of approximately 18 months by now (the broad market represented by the NYSE Index has yet to overcome its January 2018 peak).
US big caps are diverging from European and Japanese stocks as well, which have failed to reach new highs in the recent rally. It is also noteworthy that stocks and junk bonds have studiously ignored weakening macro-economic data in recent months – the rationale is apparently that an impending easing of monetary policy by Fed and ECB is more important than the economy’s poor performance and the prospect of lackluster earnings. The idea seems to be that a resumption of monetary pumping will immediately arrest and reverse recent economic trends, which is quite a leap of faith.
Government bonds and gold have rallied strongly as well this year, and while these markets also reflect rate cut expectations, they normally don’t move in the same direction as stocks for very long. It is a good bet that something will eventually give. Considering the recent yield curve inversion, investors buying stocks and corporate bonds are probably too sanguine about what lies ahead.
The Roaring 20s vs. Today
In April we briefly discussed parallels between the current time period and the late 1920s (see “A Trip Down Memory Lane”). What prompted us to look into this was the fact that the sharp correction in the (normally) seasonally strong October-December period last year was actually a spitting image of the late 1928 correction. As it turned out, this was far from the only similarity between the two eras.
Incidentally, market participants ignored a weakening real economy in the final stretch of the 1920s bull market as well: economic data deteriorated noticeably in the course of 1929, but that did nothing to curb the stock market’s advance – at least initially.
Two women studying the ticker tape in a stock broker’s office in St. Paul, Minnesota in 1929.
Below is a long term chart comparison as a supplement to the charts we showed in April. Interestingly, there is quite a strong resemblance between the stock market patterns of the 1914-1930 and 1997-2019 periods. The cyclical bull and bear markets of the two eras differ slightly in terms of extent and duration, but the basic patterns look remarkably similar.
It should be noted to this that chart pattern similarities are not unusual per se – all liquid markets exhibit self-similar fractal patterning – both across different time frames and over different historical periods. At some point, these patterns will always diverge – particularly self-similarity between historical periods is usually quite limited.
It is fairly easy to find close correlations over time periods of one year or less, and more often than not they have no predictive value. Nevertheless, we find these long term pattern similarities quite interesting:
Booms and busts in the stock market from 1997 to 2019 and from 1914 to 1930. It is of course possible that the “acceleration phase” of the current bull market still has further to go, but the increase in market volatility, weak money supply growth, historically high valuations and the divergences discussed further above all suggest that a trend change is probably not too far off.
Conclusion
The divergences between the different indexes at the very least represent a heads-up that another correction is likely to begin fairly soon. In view of the increase in market volatility since the January 2018 peak, the next downturn will probably be quite a doozy again.
A standard pattern for the past several years has been for the prices of precious metals to be suppressed in the 24-48 hours before the Federal Open Market Committee makes their announcements at the end of their meetings held every six weeks. The US government, through its primary trading partners and allied central banks, tried again this week.
This week, the FOMC held their two-day meetings on Tuesday and Wednesday and released their announcement at 2 PM Eastern Wednesday afternoon. The announcement left the federal funds interest rate unchanged, as was expected. However, the text included more than usual language stating that the Fed would consider more financial data than it has up to now in making interest rate decisions in future meetings. That can be interpreted as the US government saying that the economy is good now, but it is so weak that it wants to be able to cut the federal funds interest rate because the economy is declining.
Upon the release of Wednesday’s announcement, gold and silver prices took off. As I type this late Wednesday afternoon, the after-hours trading for gold is at $1,359.50 and silver is as $15.12. Gold prices are now up 6.8% since May 21, while silver has jumped 5.2%. This rise has occurred despite major short selling of paper gold and silver contracts on the commodity futures markets.
The price of gold has not closed at $1,360.00 or higher for three years. It has been more than four years since the US COMEX close exceeded $1,368.00. There is a major shortage of physical gold in the London and New York markets right now. Because of this, I think there is a strong prospect we could be near an upward breakout in precious metals prices.
In the meantime, the FOMC will not make another federal funds interest rate announcement until July 30, which will almost certainly be one of the most closely watched releases in recent months.
Patrick A. Heller was the American Numismatic Association 2018 Glenn Smedley Memorial Service Award, 2017 Exemplary Service Award 2012 Harry Forman Dealer of the Year Award, and 2008 Presidential Award winner. He was also honored by the Numismatic Literary Guild in 2017 and 2016 for the Best Dealer-Published Magazine/Newspaper and for Best Radio Report. He is the communications officer of Liberty Coin Service in Lansing, Michigan and writes Liberty’s Outlook, a monthly newsletter on rare coins and precious metals subjects.
Courtesy of Yahoo Finance by Julia La Roche Reporter
Prominent bond investor Jeffrey Gundlach, the CEO of $130 billion DoubleLine Capital, sees the increasing likelihood of a recession within the next six to twelve months.
A couple of years ago, Gundlach began highlighting key recession indicators on his webcasts, to see if there was potentially one on the horizon.
“For the first year and a half or so, it was always, ‘No. No indication of any coming recession.’ But, now, there are several indicators that suggest a recession could occur within the next year,” Gundlach said on a webcast on Thursday.
While not yet a certainty, the billionaire bond investor noted that the probabilities of the economy moving into the red had moved up. He calculated those chances at around 40 to 45% within the next six months — and 65% in the next year.
Most economists believe the U.S. economy is slowing, but few expect a recession, technically defined as two consecutive quarters of negative growth.
The U.S. Conference Board’s Leading Economic Indicator, a key gauge followed by market watchers, is not forecasting one at present.
Still, Wall Street has been rooting for the Federal Reserve to cut interest rates by sending bond yields plunging, in part to ward off a deep downturn.
The red shaded vertical areas are recession periods historically and the dark blue line is year over year conference board leading economic indicator.
In Gundlach’s graphics, the red shaded vertical areas represent recession periods, while the dark blue line is the year-over-year conference board leading economic indicator.
Thus far, the conditions for negative growth have not been met, he said.
“You’ve never got a recession without the leading indicator touching 0 and going through it. That hasn’t happened yet,” Gundlach said.
“In fact, we are not even that close to 0 yet,” he said, adding that “2.7 is the year-over-year reading except our analysis suggests that it’s possible that the year-over-year leading indicator does go negative before year end.”
He emphasized that DoubleLine is not forecasting that move exactly, but recognizes that it’s a “possibility. So, we’re going to be watching this month by month.”
Race to the bottom in US, Europe
Gundlach proceeded to show the economic data change in the U.S., Europe, and globally, all of which he notes have been “declining pretty steadily.”
Economic data has been coming out weaker.
DoubleLine’s indicator compares data as it comes out day-by-day for each dataset to its 12-month moving average. It gives a gauge of the momentum of the economy.
According to the picture painted by DoubleLine’s data, the global economy has been performing “below trend consistently for over a year, and so that is clearly not showing signs of robust health,” Gundlach said.
Remain vigilant. That’s the apparent message the Cboe Volatility Index is flashing, even as cash equities race toward records.
The VIX Index – often referred to as the market’s “fear gauge” – is up over the past three sessions, as of 1:40 pm. in New York. At north of 16, it’s implying that US stocks will tend to move more than 1 per cent per day over the next month. In recent years, it hasn’t lingered above this level unless equities were weakening.
The higher reading belied the brisk advance of more than 2 per cent for the S&P 500 Index over the same three-day stretch. It’s the first time implied volatility has failed to decline amid stock gains of this magnitude since 2009, when the bull market was in its infancy. The two variables tend to move in opposite directions.
During Friday’s 1.1 per cent advance in the S&P 500, the VIX – which measures the 30-day implied volatility of the S&P 500 based on out-of-the-money options prices – also moved higher. That’s despite the weekend effect that typically sees the gauge move lower on Fridays, and the passage of a market-moving event – the May non-farm payrolls report.
This marked just the 11th time since 2004 that the VIX advanced while the stock benchmark rose at least 1 per cent, according to Macro Risk Advisors derivatives strategist Vinay Viswanathan.
“The options market is unwilling to lower its pricing of risk further despite impressive market strength,” he wrote. “The stocks up/vol up move could be a sign from the option market that while equities were performing well, there is still plenty of risk worth protecting against (especially with China trade talks/G-20 lingering on the horizon).”
The event premium built into options that encompass the month-end G-20 summit – at which US President Donald Trump and his Chinese counterpart Xi Jinping are slated to talk trade – is off its recent highs, Viswanathan notes. He recommends July put options on the S&P 500 as an opportunity for investors nervous about the outcome to purchase relatively cheap protection.
Pravit Chintawongvanich, Wells Fargo’s equity derivatives strategist, said in a note that the fierceness of market rallies is contributing to firmness in the volatility index. For the most part, US stocks have taken the staircase down from a record close on April 30, and rebounded via the elevator.
“Up moves count as vol too, and have been pushing realised vol higher,” he wrote. “VIX actually looks low relative to realised vol.”
On Monday, the signal sent by a relatively muted retreat in the VIX appears to be a mirage linked to the demand for upside. The most heavily traded options are S&P 500 calls that expire on June 21 with strike prices of 2,900, 3,000 and 3,100. It’s an indication that fund managers who missed most of the 2019 might be looking for a way to get exposure to further gains without worrying about losses should equities reverse lower.
Courtesy of End of the American Dream Blog May 7, 2019 by Michael Snyder
This is the closest that the U.S. has been to a war with Iran in decades, and yet most Americans are either clueless or they don’t seem to believe that it could actually happen. And I certainly don’t think that President Trump wants a war, but he is surrounded by war hawks that have been pushing an extremely aggressive “get tough” policy with Iran. The Trump administration just canceled the waivers that were allowing other nations to continue purchasing Iranian oil, and the goal of that move is to reduce Iranian exports to zero. But oil exports are 40 percent of the Iranian economy, and the Iranians understand that this move could absolutely cripple their economy. The Iranians have threatened to close the straight of Hormuz in retaliation, and that would almost certainly provoke a U.S. military response. In addition, it is being reported that on Wednesday the Iranians will announce that they are taking steps to restart their nuclear program…
On Wednesday, Iranian President Hassan Rouhani is expected to announce small steps to resume his country’s nuclear program. According to the New York Times, that will include conducting research on centrifuges that can make nuclear fuel, and curbing nuclear inspections from observers.
Of course the truth is that the Iranians never fully abandoned their nuclear program in the first place, but that is supposed to be a big secret.
In any event, tensions between the U.S. and Iran have now reached frightening levels.
On Sunday, White House National Security Adviser John Bolton announced that the USS Abraham Lincoln and four B-52 bombers are being sent to the Middle East as a message to Iran…
Apparently there was some intelligence which indicated that Iran was planning a possible attack on U.S. forces in the region, and Bolton said that these deployments would make it very clear that any assault would be “met with unrelenting force”…
The deployments would “send a clear and unmistakable message to the Iranian regime that any attack on United States’ interests, or on those of our allies, will be met with unrelenting force,” he said in a statement. “The United States is not seeking war with the Iranian regime, but we are fully prepared to respond to any attack, whether by proxy, the Islamic Revolutionary Guard Corps, or regular Iranian forces.”
In response, the Iranians accused the U.S. of engaging in a form of “psychological warfare”.
In addition to everything else, CNN is reporting that it appears that the Iranians have been “moving short-range ballistic missiles aboard boats in the Persian Gulf”, and this has deeply alarmed U.S. officials…
Intelligence showing that Iran is likely moving short-range ballistic missiles aboard boats in the Persian Gulf was one of the critical reasons the US decided to move an aircraft carrier strike group and B-52 bombers into the region, according to several US officials with direct knowledge of the situation.
The concerns over the movement of the missiles was one of multiple threads of intelligence from various sources that led the US to believe Iran had a capability and intention to launch strikes against US targets.
If both sides rattle their sabers for a while but nothing ever comes of it, we will be fine.
But if someone goes a little bit too far and the missiles start flying, we could be soon engaged in a conflict that could literally spark World War 3.
While they are certainly no match for the U.S., the truth is that the Iranian military is quite strong, and they possess weapons of immense destructive power. And in the event of a military conflict with the U.S., the Iranians have already said that they will hit Israel too.
And if Israel gets hit, they will certainly strike back at Iran extremely hard.
The Iranians absolutely hate both the United States and Israel, and recent moves by the Trump administration have pushed the Iranians into a corner. The following comes from Pat Buchanan…
Did President Donald Trump approve of this? For he appears to be going along. He has pulled out of the Iran nuclear deal and re-imposed sanctions. Last week, he canceled waivers he had given eight nations to let them continue buying Iranian oil.
Purpose: Reduce Iran’s oil exports, 40% of GDP, to zero, to deepen an economic crisis that is already expected to cut Iran’s GDP this year by 6%.
Trump has also designated Iran a terrorist state and the Republican Guard a terrorist organization, the first time we have done that with the armed forces of a foreign nation. We don’t even do that with North Korea.
A cornered animal is extremely dangerous, and at this point the Iranians may feel as if the only option they have left is to lash out.
As a first step, they could potentially close the Strait of Hormuz, and that would instantly create a global oil crisis. Here is more from Buchanan…
Iran has also warned that if we choke off its oil exports that exit the Persian Gulf through the Strait of Hormuz, the Strait could be closed to other nations. As 30% of the world’s oil shipments transit the Strait, closing it could cause a global crash.
In 1973, when President Nixon rescued Israel in the Yom Kippur War, the OPEC Arabs imposed an oil embargo. Gas prices spiked so high Nixon considered taking a train to Florida for Christmas vacation.
Of course a potential war with Iran is not even on the radar for most Americans these days. Most of us are preoccupied with other things, but if the missiles start flying this will instantly become the top news story on the entire planet.
Wars never start in a vacuum. In every major war throughout history, there has always been a series of steps that has ultimately resulted in the outbreak of war.
Without a doubt, the U.S. and Iran are moving toward war. That doesn’t mean that one will happen, and we better hope that it doesn’t, because it would have all sorts of apocalyptic consequences.
So let us hope that cooler heads prevail.
Unfortunately, there doesn’t appear to be any “cooler heads” among Iranian leadership, and Trump has surrounded himself with war hawks like John Bolton and Mike Pompeo.
In the end, Trump himself will make the final call on any conflict with Iran, and let us hope that he makes the right one.
Prime Minister Dr Mahathir Mohamad speaks at the 25th International Conference on The Future of Asia in Tokyo today.
TOKYO: Prime Minister Dr Mahathir Mohamad says Malaysia is proposing a new currency based on gold, as this would be more stable than the current currency trading which is manipulative.
He said the precious metal could be used to evaluate import and export activities among the East Asian countries.
“We can make settlements using that (new) currency (using gold). That currency must relate to the local currency as to the exchange rate, and that is something that can be related to the performance of that country.
“That way we know how much we owe and how much we have to pay in the special currency of East Asia,” he said during a dialogue session at the 25th International Conference on The Future of Asia (Nikkei Conference) here today.
Mahathir arrived in Tokyo last night for a three-day working visit.
He said the new currency could also be extended to countries outside the East Asian region.
Currently, he said, the global market is tied to the US dollar, which gives room for the currency to be manipulated.
“Just because that one country is affected, there is infection to the other countries. Malaysia was very stable way back in 1997… but because of the problems that occurred in Thailand (during the Asian financial crisis), they said we must peg the Malaysian currency also.
“What happened? The currency traders sold the Malaysian currency down and the value of Malaysian currency depreciated.
“It is not even the money that they have. They never had any Malaysian currency but nevertheless they were able to sell huge quantities of Malaysian currency and when it is depressed, of course they can buy and sell it at a higher price when it comes up,” he added.
“Currency trading is not something that is healthy because it is not about the (economic) performance of countries but about manipulation.
“Anything that you have in oversupply, we will lose value. Anything that is short of supply will increase in value so they sell huge quantities of money they don’t have, and because the amount is so big, there is depression of the value.”
Mahathir said if countries are downgraded or upgraded, it should be by an uncommitted international forum, not a country.
Here, he hit out at the US for “labelling” other countries.
“The US is fond of labelling that country as no good, this country as no good, and telling countries about ways to conduct their businesses.
For almost a decade, global central banks have been avid gold buyers. Gold purchases by central banks in 2018 rose 36 percent over the previous year. Central banks are now holding 366 tons of the yellow metal. These gold purchases are the largest since 1971 when President Nixon ceased the gold standard and the tie between the U.S. dollar and gold, which rapidly led to the devaluation of the U.S. dollar.
Not every central bank has followed this trend. Venezuela, which is in the midst of an economic collapse, sold 25 tons of gold in 2018 in an attempt to repay its debts. But Venezuela is an exception. Other central banks are eager to increase their gold reserves as a hedge against economic uncertainty. Gold ownership by central banks is at a 50-year high as global purchases have increased 75 percent over the past year.
1. United States
The Federal Reserve holds the largest amount of gold of any other central bank, 8,133.5 tons. This is 75.2 percent of its foreign reserves. The Federal Reserve has not been as active in the gold-buying spree as other countries in an effort to keep the dollar from devaluing.
2. Germany
Germany’s central bank has been busy repatriating 674 tons of gold from the Banque de France and the Federal Reserve Bank. During the Cold War, the country’s closeness to what was then Russia-controlled East Germany drove Germany to store its gold with other countries. Now, the Deutsche Bundesbank is calling its gold back home. This move is expected to be completed by 2020. Germany currently holds 3,370.0 tons of gold, which account of over 70 percent of its foreign reserves. Germany, which experienced hyperinflation in the 1930s which saw the Deutschmark become valueless, has learned its history lesson.
3. Italy
Italy plans on holding on to its 2,451.8 tons of gold. The Bank of Italy has stated that it considers gold a safe investment in times of economic turmoil and a safeguard against the volatility of the U.S. dollar. Gold represents 67.9 percent of Italy’s foreign reserves.
4. France
France has gradually ceased selling its gold reserves in an effort to hold on to the 2,436.0 tons of gold it currently has. This amounts to over 60 percent of the country’s foreign reserves. Marine Le Pen, leader of the National Front Party, has advocated for a freeze on the sale of gold, as well as repatriation of all of France’s gold currently being held by foreign countries.
5. Russia
The Russian Central Bank has been bullish on gold for six years. In 2017, it overtook China to become the fifth largest holder of gold reserves. Much of this is due to trade tensions between the U.S. and Russia. Two years ago, Russia purchased 224 tons of gold and sold off much of its U.S. Treasury debts. This move is seen as a defensive effort to weaken the U.S. dollar as the top global reserve currency. Currently, Russia holds 2,119.2 tons of gold in reserves. The Russian Central Bank is leading the way in gold purchases in its efforts to devalue the dollar.
Since the U.S. placed economic sanctions against Russian, its central bank has been accumulating gold as a safety net against having its assets frozen. In 2018, it purchased 8.8 million ounces of gold.
6. China
China, which currently holds 1,864.3 tons of gold in reserve, a low amount among the leading gold-holding countries, but there have been many reports that the country has left some of the gold purchases off its books. However. China is expanding its reserves slowly. It is also the leading producer of gold in the world.
Global central banks now hold the greatest share of the world’s gold, approximately 33,800 tons. Gold has been a critical diversification tool, a safety hedge against inflation, or as collateral for loans.
Central banks in Austria and Switzerland have also indicated that they consider gold an essential reserve against future emergencies. The Polish central bank expressed the fact that their gold reserves allow diversification and greater independence and less reliance on the financial stability of other countries.
Sweden, Greece, and Portugal have expressed the same sentiments. Gold is a haven of safety during economic turndowns.
Goldmoney Research@GMoneyResearch
Countries have held #gold as a reserve asset throughout history…
2109:51 AM – Mar 28, 2019Twitter Ads info and privacy171 people are talking about this
The world’s central banks are counting on the power of gold to help them through bad economic times. Is this something investors should be thinking about, as well? The current economic growth experienced around the globe is expected to come to an end, as all economic upswings do. Some economists are predicting a recession by 2020. In the event of such an occurrence, investors should be position by having a proven hedge during bearing times.
