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Everybody will want their gold back home.

It was Germany last week which decided to repatriate its gold back to country from the US and France. It is possible now that Switzerland will be the second in the row. Last year Swiss gold initiative of four MPs has grown to 90,000 supporters and once the 100,000 is reach Swiss parliament must set up referendum about the issue. It is not known where the Swiss gold is held and the SNB does not want to be precise about gold allocation. And it is not only Germany or Switzerland who is trying to reallocate their gold. The State Oil Fund of Azerbaijan (SOFAZ) removed the first ton of physical gold from JP Morgan´s vaults from London into the vaults of the Central Bank in Baku.

The Pacific Group hedge fund is going to convert one third of its asset into the gold which means $35 million. They believe that the price of gold will rise as governments will print more and more money. Pacific group prepared its own analysis where claims that Comex futures contracts, now represents more than 100 times the physical gold that exists above ground worldwide. The physical stuff is on demand. HSBC bought a great amount of silver from Polish KGHM worth $876 million or PLN 3.65 billion. KGHM is one of the largest producers of silver in the world and is the second-largest producer of refined silver in world.

Russian central bank decided to continue to buy gold as it seeks to diversify its foreign reserves away from paper assets it views as risky. Russian official gold reserves increased 5 fold from 200 metric tons to more than 1000 metric tons within last 6 year. Russian central bank mid-term target is to hold 10 % of their foreign reserves in gold.

Do you know Ron Paul? He is a former US congressman who is known for his negative attitude to the FED, printing money, monetization of US debt and who run the campaign to audit gold of the FED. He revealed his investment portfolio. He has 21% allocation in the real estate, then 14% in cash. What is interesting is his allocation of 64% of his portfolio in gold- and silver-mining stocks among other he hold long Barrick Gold, Goldcorp, Newmont Mining or Silver Wheaton.

marc_faberWidely known investor Marc Faber who is famous for his laugh about financial crisis and who is probably the only one who is joking about crisis responded to Yael University professor Robert Shiller on the question about holding of gold that “I’m prepared to make a bet, you keep your U.S. dollars and I’ll keep my gold, we’ll see which one goes to zero first.” We will see but I would bet on Faber.

The passion for gold in India as a hedge against permanent inflation caused the all-time high account deficit which hit the record of 5.4% of GDP. Indian government therefore decided to increase import tax on gold and platinum from 4 to 6 percent which could cause some decrease in gold demand from this country and globally as well. Why? India is the second biggest importers of gold in the world.

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Matúš Pošvanc

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About matus.posvanc

Trhu so zlatom a striebrom sa venujem od roku 2011. Prešiel som rôznymi fázami a pohľadmi na problematiku. "Trh je manipulovaný. To je jasné!" Inak by cena zlata predsa nešla dole. "Zlato na úrovni 100 tis. USD? Žiaden problém." Najneskôr do pár rokov. "Futures trh je najväčšie zlo a tzv. papierové zlato je nutné zakázať". Nuž, po dlhom štúdiu tejto problematiky, som hlúposti a táraniny opustil. Ostalo to, čo považujem za podstatné. Význam zlata je veľký. Avšak bez pochopenia trhu okolo neho, sa sám od seba znovu neobjaví. Kúpiť zlato ako časť svojho portfólia má zmysel. Snažiť sa na zlate zbohatnúť? To je iný príbeh. Jednu jeho časť nájdete na mojom blogu.
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