- Gold price has been flat but interesting developments bubble under the surface- Emergence of new tech is undermining existing banking cartel and will make owning and trading gold easier- Gold price my rise if current shortages cause COMEX to fail to deliver physical gold- Texas gold “repatriation” is highly significant development being ignored by mainstream- Financial illiterates driving NATO and IMF policy
Goldcore Research Director, Mark O’Byrne was recently interviewed by Max Kaiser in London. Although gold prices have been flat for a number of years there have been some very interesting developments in that time.
Some of these were discussed including the impact that new technologies are having on gold, Texas’s gold “repatriation”, and the dangers posed by “financial illiterates” devising policy.
– The emergence of new technology is allowing new businesses to issue new crypto-currencies outside of the current system. A synergy may emerge between gold and crypto-currencies in the future allowing gold to be traded as a currency insulated from current failing system.
– Documentary evidence shows that gold price has been capped. If the COMEX fails to deliver on a physical bullion contract the wider public would become aware of just has scarce gold is. In such an environment the capped spot price for gold may become irrelevant as sellers demand a premium on their gold.
– The Texas gold “repatriation” issue is highly significant. A powerful state within the U.S. is effectively saying that it does not trust the New York Fed or the dollar. Keiser highlights the increasingly authoritarian nature of the Federal government declaring “if a government like that holds your gold, you don’t have any gold!”
It demonstrates the divide opening up between the Northern and Southern states once again and to the possibility of other states following suit. Also of significance is the fact that Texas intends to use gold as a currency.
– NATO’s push eastward risks a devastating financial response from China, Russia, Iran and others. If the Eastern countries chose to back their currencies with gold it would sink the dollar over-night. Policy makers appear to be unaware of the potential consequences of their actions.
– IMF policy in Greece is being widely perceived as predatory. Lagarde talks social justice but actions speak louder than words.
Mark O’Byrne’s interview with Max Keiser – Click Here
MARKET UPDATE
Today’s AM LBMA Gold Price was USD 1,168.25, EUR 1,051.10 and GBP 747.44 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,164.30, EUR 1,051.24 and GBP 745.70 per ounce.
Gold in U.S. Dollars – 5 Year
Gold fell $2.90 or 0.25 percent yesterday to $1,165.60 an ounce. Silver climbed $.0.06 or 0.38 percent to $15.65 an ounce. U.S. markets are closed today to observe a national holiday for Independence Day. Gold and silver both finished the four days down at 0.72 percent and 0.95 percent respectively.
Gold in Singapore for immediate delivery rose 0.2 percent to $1,168.26 an ounce near the end of the day.
Yesterday’s U.S. economic data showed nonfarm payrolls rose only 223,000 last month, a downward surprise that was below expectations. Payrolls growth in April and May was also revised downwards. At least 432,000 people dropped out of the labour force.
The U.S. dollar is on track for a second weekly gain and has been capping most gains for the yellow metal. Inversely, gold is on track for its second weekly loss.
The IMF said that Greece requires additional bailout funds of around 50 billion euros until 2018 under the current bailout conditions, and slashed its Greek growth prospects for 2015 to zero from 2.5 percent.
The Greek referendum on European bailout proposals is set for Sunday, July 5th, and the world is watching.
In late European trading gold is up 0.21 percent at $1,168.26 an ounce. Silver is up 0.03 percent at $15.67 an ounce, and platinum is unchanged at $1,080.00 an ounce.
