Arizona is going to vote about gold and silver to be a legal tender in the state. The legal tender means (by the law) the possibility to pay taxes and debts by coins which contain gold and silver and are minted in the U.S. If Arizona passes the law, gold and silver would go into effect as legal tender in the state in 2014. More than 14 states in the US were considering reintroducing gold and silver as a legal tender but only the state Utah did it. Other states as Virginia or South Dakota already rejected these suggestions and Indiana’s version of recognizing U.S. issued gold and silver coins as legal tender, appears to be buried in the Indiana State Senate Committee.
The right-wing Swiss People’s Party (SVP) has gathered more than 100,000 signatures within 18 month to force a referendum on a proposal to prohibit the Swiss National Bank (SNB) from offloading its gold reserves as well as force it to hold at least 20 percent of its assets in gold. However the success of the referendum is in question due to the fact that similar attempts failed to pass the Swiss parliament. Swiss franc was actually the last currency which was backed by gold till 2000 and it would be interesting if Swiss return to it as first nation.
It became a tradition not to believe to official data or statements from China. Vice Governor of the PBOC had made a statement last week that China´s gold reserves remains static at 1,054 tones which was the 2009 number. Does anybody believe to him? Probably yes, but it is very unlikely that the PBOC have not added any gold bar to their reserves due to the fact that China produces 400 tons of gold and imports another 500-600 tons of gold per year. We will see in a few years how much gold they officially hold.
India and China are top world consumers of gold. According to World Gold Council officials the Indian demand for gold could reach very close to 1,000 tons in 2013 compared to 864 tons in 2012. It seems that the India’s recent efforts to discourage gold consumption by higher levies, regulatory measures and of course by record high prices in Indian rupees will not affect gold’s cause in the country. Gold is the number two import article in India after oil and Indian households are hoarding more than 18,000 tons of gold which represents almost 50% of the country’s GDP.
JPMorgan has won the dismissal of a nationwide investors‘ lawsuit accusing the largest U.S. bank of conspiring to drive down silver prices. The judge Patterson said on Monday that the investors showed that JPMorgan had the ability to influence prices what was not opposed by JPM. However they failed to show that the bank „intended to cause artificial prices to exist“ and acted accordingly. So there is no manipulation on silver market at least from the legal point of view.