Her Majesty Queen Elizabeth II is sad about gold.

We informed you that her Majesty Queen Elizabeth II was visiting the gold vault at the Bank of England previous week. She was attending the cabinet session this week. She became the first monarch who attended the session since 1781. Surprisingly she reported about gold and said that „I saw all the gold bars, which, regrettably, somebody said don’t belong to us.“ Mr. Chancellor – Osborne, replied: „Some of them were sold, but we’ve still got some left.“ Mr. Osborne has spent much of his political life criticizing Gordon Brown for his sale of the British gold between 1999 and 2002 when he sold 60 % of the UK’s gold reserves (395 tons) for an average of $275.6 an ounce. The only unanswered question which sits in the air is James Turk´s one: “Why Bank of England has invited Queen and did not invite independent auditors into the vaults to actually determine who’s gold that is and whether it’s really gold?”

It seems that Japanese reintroduce gold as a real investment tool. Some small part of Japanese pension funds started to buy gold for the first time to diversify their portfolios which are probably very prone and sensitive to some markets shifts. Gold is used as hedge against inflation which became a real topic after the election in the country. Japanese pension funds have invested mainly in domestic stocks and bonds (for example Japan’s Government Pension Investment Fund, the world’s largest public pension, held 64% of its assets in domestic bonds, 11% in domestic stocks, 9.0% in international bonds, and 12% in international stocks). Among pension funds which invested in gold belong Okayama Metal & Machinery Pension Fund, Mitsubishi UFJ Trust and Banking Corporation or Mizuho Trust & Banking Co.

Despite the relative health of German economy which is on the other hand dependent on their neighbors, German population is very positive to gold. According to Steinbeis Research Center for Financial Services almost 69% of all Germans invested in gold. Enthusiasm for gold is much higher among Germans who earn more than € 4,000 per month. It is usual that higher income Germans prefer gold bars and lower income Germans mostly invest in coins.

Not only drugs but also gold is behind the funding of some terrorist organizations in Columbia. It was drugs which provided to terrorists money to fund their activities but it is more often that these people grasp also the power over some mines which production is used for terrorist purposes.

Bank of Australia holds its 99.9% gold bullion in England. The remaining 0.1 % is located in their vaults in Sydney. It means that almost 80 tons of Australian gold is in London and only 80 kg is in Sydney. Brazil doubled its gold reserves in last three months. They increased their holding from 1.08 million of ounces to 2.16 million of ounces. And this is the gold bullion of Russian Republic till the November 2012:

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Matúš Pošvanc

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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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